Wednesday, November 6, 2013

501(c)(6)s - Replacing 501(c)(4)s in the next election cycle?

As reported by the Daily Tax Report and Nonprofit Quarterly, the Citizens fpr Responsibility and Ethics in Washington (CREW) has requested that the IRS take notice of the use of 501(c)(6)s as the new tax-exempt vehicle for political campaign activity.  CREW specifically targeted Freedom Partners, a nonprofit organization linked to the Koch brothers that fundraised and distributed between $235 and $250 million in the 2012 election cycle, asking the IRS to review the organization's use of its tax-exempt status to funnel anonymous donations to other organizations conveying a predominantly conservative political message.  Organizations that are tax-exempt under section 501(c)(6) are typically business leagues or trade associations associated with a particular line of business or industry.  According to its website, Freedom Partners states that it is a "501(c)(6) chamber of commerce that promotes the benefits of free markets and a free society."  Both the Nonprofit Quarterly and CREW similarly opine that Freedom Partners seems to lack a "common business interest" other than ideological.   CREW acknowledged the "vague" rules governing 501(c)(6) organizations, requesting that the IRS provide clarification on required and restricted activities.

NAM

http://lawprofessors.typepad.com/nonprofit/2013/11/501c6s-replacing-501c4s-in-the-next-election-cycle.html

Current Affairs, Federal – Executive, Federal – Legislative | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef019b00bed482970b

Listed below are links to weblogs that reference 501(c)(6)s - Replacing 501(c)(4)s in the next election cycle?:

Comments

Post a comment