"...Despite the legal statute stating that tax-exempt nonprofits organized under section 501(c)(4) of the tax code must operate "exclusively" in their declared social welfare area, current IRS rules state these groups may engage in political activity, so long as that activity is not the "primary purpose" of the organization. In a July 10 letter to Treasury Secretary Jack Lew, 14 Democrats called on the Treasury Department -- which houses the IRS -- to revise regulations. The Democrats, led by Rep. Ted Deutch (D-Fla.), called for the elimination of the "primary purpose" standard and clear definitions for both the amount of political activity allowed for these groups and what constitutes political activity. "Given the dramatic growth in donations and the number and diversity of these organizations, the current regulations make it nearly impossible for the IRS to make consistent and fair determinations when reviewing applications for tax-exempt status under Section 501(c)(4)," the letter states. Spending by 501(c)(4) nonprofits exploded following a string of recent Supreme Court rulings, including Wisconsin Right to Life and Citizens United, that loosened the ability of corporations -- even nonprofit corporations -- to spend money on political campaigns..."
Posted on: Fri, 19 Jul 2013 13:43:35 +0000
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