It’s an important election year. I’m sure you’ve heard that about a million times. That, of course, leads to discussions about the importance of the political process, getting out the vote and – oh yeah – mudslinging.
I’ve already seen ads on both sides that make me queasy. I’m not sure what either party hopes to accomplish by making folks like me, who actually vote, irritated at the whole process – unless that’s the point.
Now, they’re taking shots at each other on a whole other level. Lawyers for the Democratic Congressional Campaign Committee have filed a complaint with the IRS against Americans for Prosperity Foundation. The 501(c)(3) organization has allegedly been running advertisements across the midwest that are inherently “political in nature.” Depending on exactly how “political in nature” the ads are, that might be a violation of their tax-exempt status; a violation could result in the loss of status which generally means a loss in donors.
Tax-exempt organizations are prohibited by law from being “too” political. That generally means supporting a particular candidate or endorsing a key issue in an election. Organizations may, however, seek to increase voter participation or educate voters on issues (such as holding candidate forums) so long as it happens in a nonpartisan manner. You could see where that leaves a lot of room for interpretation.
For its part, the Americans for Prosperity Foundation is claiming that they’re merely exercising their First Amendment rights. The IRS has not yet commented on the matter.
Even if this complaint is resolved, expect to see more. Remember, it’s an important election year. You’ve heard that before, right?
If that is the only defense APF has raised, isn’t that besides the point? Sure, APF has First Amendment rights but that doesn’t help them keep their 501(c)(3) status.
Sure, they’re exercising their first amendment rights. No question about that. But that’s not the point.
The point is that the law and the IRS say that if exercise of your free speech rights is political in nature, then people who contribute money to you or your organization can’t deduct that contribution on their income tax. Neither the law nor the IRS say that you can’t say “political” things. Whjat they do say is that when you do utter “political” speech, the Federal Government isn’t going to “subsidize” your organization by giving your donors a tax break.
i dont know what the real intentions are, but this defensive step that APF has adopted certainly seems a no-harm for me.