I belong to a number of organizations that have 501(c)(3) status. These organizations are very careful to support issues–not political parties and not candidates. As individual members, we are free to support whatever party or individual we choose, but as an organization we focus on providing information and education on issues. Donating to a political party or a candidate is not permissible for a 501(c)(3). Not all 501(c)(3) organization are willing to stay within those boundaries.
On Friday, Townhall posted an article about some increase scrutiny into some 501(c)(3) who have not necessarily been willing to follow the rules.
The article reports:
According to the New York Post, Treasury Secretary Scott Bessent and the IRS are preparing to review the tax-exempt status of several prominent progressive organizations, including George Soros’ Open Society Foundations, the Council on American-Islamic Relations (CAIR), and the Southern Poverty Law Center (SPLC). The reviews could lead to the revocation of their 501(c)(3) status and face substantial back-tax payments, civil penalties, and potentially the standard 21 percent federal corporate tax rate moving forward.
The article notes:
As for the three major nonprofits reportedly in Treasury’s sights, Open Society Foundations has faced allegations that its money has reached groups tied to violent protests and Antifa-aligned activism. CAIR has long faced more serious questions as the FBI suspended formal outreach to the organization after citing evidence of a relationship with Hamas, while critics have accused the group of operating as a terrorist-aligned organization. The SPLC, meanwhile, was federally indicted just months ago on allegations that it secretly funneled more than $3 million in donor money to people associated with the KKK, neo-Nazi organizations, and other violent extremist groups. Prosecutors say some of that money ultimately supported criminal conduct.
Whether any of that will meet the legal threshold for revocation is ultimately for the IRS to determine. But the Treasury appears ready to find out whether these organizations are charitable institutions or simply left-wing political machines.
…”Where the evidence leads, we will not hesitate to follow,” he (Treasury Secretary Scott Bessent) added. “And of course, we will hold these organizations, officers, directors, accountable. And just as financial institutions must know their clients, they must know their grantees. That work is well underway.”
Stay tuned.