FORT WAYNE, Ind. (AP) — Critics say a nonprofit might have violated federal rules barring political activity by tax-exempt groups when its president and chief executive appeared in a new campaign ad touting Republican Gov. Mitch Daniels' record on child protection.

The television ad features Sharon Pierce of The Villages, an Indianapolis-based nonprofit that bills itself as Indiana's largest child and family services agency, providing foster care and other services to more than 1,200 children each day through more than 20 offices statewide.

"I have been in child welfare for about 30 years and I have always been a champion for children personally, so for me it's not about party or person — it's about leadership for children," Pierce told The Journal Gazette for a story published Thursday. "I would never do anything to jeopardize the work of our organization."

Pierce, whose organization recently won a two-year, $12 million contract from the Daniels administration, said discussions she had with staff at The Villages and due diligence by Daniels' campaign staff led her to believe she could appear in the ad without breaking any rules.

The Internal Revenue Service Web site bars 501(c)(3) organizations like The Villages from directly or indirectly participating in any political campaign on behalf of or in opposition to any candidate for elective public office. The prohibition, however, is not intended to restrict free political expression by leaders of organizations speaking for themselves as individuals.

Daniels faces Democrat Jill Long Thompson in the November election.

Chris Worden, a Democratic activist and Indianapolis attorney who represents parents involved in child welfare cases, sent a letter to Pierce asking her to have the ad pulled.

"I am a die-hard proponent of individuals offering whatever endorsement they feel is appropriate personally, but I cannot condone an organization receiving tax-exempt funds that build its public standing only to have that standing be appropriated by a political candidate," the letter said.

In the campaign ad, Pierce says on camera, "The magnitude of the change that has occurred since Governor Daniels took office is really almost unbelievable."

The Daniels administration, with funding approved by the General Assembly, has hired hundreds of additional child welfare case workers. Child abuse and neglect deaths have fallen since he took office in 2005.

Julia Vaughn, policy director of the citizens watchdog group Common Cause Indiana, which lobbies for open and accountable government, said she has worked for nonprofits for 20 years and "you're not allowed to take sides."

"If they're not crossing the line, they've stepped right up to it with their toes squarely on it," Vaughn said.

IRS spokeswoman Jodie Reynolds said she hadn't seen the ad. She said persons who speak in their individual capacities are encouraged to indicate clearly that their comments are personal and not intended to represent the views of their organizations.

Nothing in Daniels' ad notes that Pierce is speaking on behalf of herself and not the organization.

Cam Savage, spokesman for the Daniels campaign, said the rules allow individuals to speak personally and be identified in relation to their organization.

"There is no problem or concern, legal or otherwise, with this ad," Savage said.

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Information from: The Journal Gazette, http://www.journalgazette.net