logo logo
Fund the truth. #Wethecivic giving banner
Donate
    • Membership
    • Donate
  • Social Justice
    • Racial Justice
    • Climate Justice
    • Disability Justice
    • Economic Justice
    • Food Justice
    • Health Justice
    • Immigration
    • LGBTQ+
  • Civic News
  • Nonprofit Leadership
    • Board Governance
    • Equity-Centered Management
    • Finances
    • Fundraising
    • Human Resources
    • Organizational Culture
    • Philanthropy
    • Power Dynamics
    • Strategic Planning
    • Technology
  • Columns
    • Ask Rhea!
    • Ask a Nonprofit Expert
    • Gathering in Support of Democracy
    • Humans of Nonprofits
    • The Impact Algorithm
    • Living the Question
    • Nonprofit Hiring Trends & Tactics
    • Notes from the Frontlines
    • Parables of Earth
    • Reimagining Philanthropy
    • State of the Movements
    • We Stood Up
    • The Unexpected Value of Volunteers
  • Newsletters
  • NPQ Online Events
    • Premium Webinars
    • Learn Out Loud
    • Partner Events
    • On Demand
  • Leading Edge Membership

Nonprofit Newswire | Nonprofits and (Anonymous) Money in Politics

Aaron Lester
September 22, 2010

 

September 21, 2010; Source: New York Times | Nonprofit advocacy group—mostly on the Republican side, so far—have become “some of the biggest players in this year’s midterm elections,” according to the New York Times on page one yesterday.

But wait, you must be thinking, nonprofits, by definition, are supposed to be non- political in terms of electoral campaigns.  And you would largely be correct in your thinking. While 501(c)(3) public charities are absolutely prohibited from political campaign activities [PDF], 501(c)(4) “social welfare organizations” (as well as 501(c)(5) labor organizations and 501(c)(6) business leagues) can engage in campaign activities “so long as it does not constitute the organization’s primary activity,” according to the IRS.

But this hasn’t stopped many groups from exercising outsized influence on the recent midterms “in part because the anonymity they provide donors,” the Times says. And those concerned with the role of money in politics are not happy.

Unlike 527 political organizations, which can also accept donations of unlimited size, 501(c) groups permitted to engage in political campaign activities have the advantage of usually not having to disclose their donors’ identity.

Sign up for our free newsletters

Subscribe to NPQ's newsletters to have our top stories delivered directly to your inbox.

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

The issue has become more important than ever since the Supreme Court decision in the Citizens United case earlier this year that eased restrictions on corporate spending on campaigns. Since the Court’s decision, more and more money is pouring into these nonprofit groups to influence elections across the country.

“These groups are popping up like mushrooms after a rain right now, and many of them will be out of business by late November,” Marcus S. Owens said. Owens used to lead the tax exempt division at the IRS. “Technically, they would have until January 2012 at the earliest to file anything with the IRS. It’s a farce.”

It’s a farce because the IRS. doesn’t feel like it’s in the regulation game, nor do they have an interest in overseeing clean elections. They’re in it for the money, and these groups would yield little tax revenue for the effort. What’s more, newly formed nonprofits aren’t required to seek approval from the IRS. until they file their first tax returns, which may be months after an election.

The Supreme Court, with the cascading affect of Citizens United, has left our election system worse than they found it. And the nonprofits whose aim it is to elect a candidate and obscure otherwise regulated money in politics have left the nonprofit sector worse than they found it.—Aaron Lester

Our Voices Are Our Power.

Journalism, nonprofits, and multiracial democracy are under attack. At NPQ, we fight back by sharing stories and essential insights from nonprofit leaders and workers—and we pay every contributor.

Can you help us protect nonprofit voices?

Your support keeps truth alive when it matters most.
Every single dollar makes a difference.

Donate now
logo logo logo logo logo
About the author
Aaron Lester

Share a little biographical information to fill out your profile. This may be shown publicly.

More about: Nonprofit News
See comments

Sidebar-WTC
You might also like
Thousands of Species Wait for Protection as Delays Grow Under Endangered Species Act
Rajeev Tyagi
A Crushed 1891 Strike by Black Farmer Cooperatives Holds Keys to Economic Justice Today
Shivank Pandey
Community Benefit Agreements: A Tool for Building Stronger Democracies
Sameera Fazili, Pronita Gupta and Doug Bloch
A Letter of Gratitude to Kim Klein and Stephanie Roth
angélique nguyễn green
What Is Movement Lawyering Really For?
Christian Snow
Fundraising as Democracy: Honoring a Legacy, Claiming Our Moment
angélique nguyễn green

Upcoming Webinars

Group Created with Sketch.
June 25, 2:00 pm ET

Reframing Organizational Risk

Register
Group Created with Sketch.
July 16, 2:00 pm ET

Readying for the 2026 Midterms

How 501(c)(3)s Can Educate and Advocate During this Election Season

Register

    
You might also like
A vintage television dispalying an image of a woman’s hand lighting planet earth on fire with a handheld lighter.
When Broadcast News Abandons the Climate Beat, Movement...
Shilpi Chhotray
An illustration of a woman blowing out a lit match, but an illustration of the earth is peeaking out from under the flames.
The planet is overheating. Why is the news looking away?
Grist
Yellow CLOSED sign hanging in a dusty shop window, conveying themes of business failure, recession, and economic downturn.
Nonprofits in Limbo as Flipcause Bankruptcy Unfolds
Lauren Girardin

Like what you see?

Subscribe to the NPQ newsletter to have our top stories delivered directly to your inbox.

See our newsletters

By signing up, you agree to our privacy policy and terms of use, and to receive messages from NPQ and our partners.

  • About
  • Advertise
  • Careers
  • Contact
  • Copyright
  • Donate
  • Editorial Policy
  • Funders
  • Media Relations
  • Privacy Policy
  • Submissions

We are using cookies to give you the best experience on our website.

 

Nonprofit Quarterly | Civic News. Empowering Nonprofits. Advancing Justice.
Powered by  GDPR Cookie Compliance
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.

Strictly Necessary Cookies

Strictly Necessary Cookie should be enabled at all times so that we can save your preferences for cookie settings.