Update: Margaret Blough reminded me that the UDC has always maintained a strict code for displaying the Confederate flag. Their concern has always been that liberal use would disconnect it from the Civil War – a lesson the Flaggers and others should take to heart.
Apparently, a representative of the UDC explained to the Flaggers that their presence threatened their status as a tax exempt organization. Someone is going to have to explain that one to me. Interestingly, the UDC does not use the battle flag on their official insignia.
Has the UDC always used the First National as part of their logo or is this a more recent change? Somehow I doubt that their concern with the Flaggers has solely to do with taxes.