Monday, April 10, 2023
Spy vs. Spy, Civil Society Version
My older brother had a lot of Mad Magazines. We shared a room until he left to join the Army and that's when I inherited them all. I loved Spy vs. Spy. Sometimes black on white won, sometimes white on black, but the competition for world domination was incessant. That's also the case with politics and nonprofit organizations, particularly those funded by big donors who themselves want to run the earth. George Soro's philanthropy is despised by the right, as much as Leo Leonard's is by the left. Two wealthy donors who would just as soon blow the other to Kingdom Come. Their well-funded stakeholders typically describe their philanthropic activities as socialist or fascists, respectively, but neither calls the other democratic.
Last October, the National Legal and Policy Center filed a complaint against a "Soros-backed" organization after that organization sued Governor DeSatanists for organizing a bus caravan full of migrants to places north, like Martha's Vineyards. As though the migrants weren't human just political pawns. I mean I can't exaggerate how despicable that is. But I admit to admiring the way DeSatantis and his ilk are so good as imbuing words with pejorative connotations. It is stylish from the right these days to used "Soros-backed" as a modifier to some prosecutor or organization. Since the Trump indictment was handed up, I have come to know the prosecutor in the Southern District as the "Soros-backed" DA. Repeatedly associating the phrase "Soros-backed" with things despised helps us eventually despise the modifier itself and anything else legitimately or illegitimately associated with the modifier. Helpful in efforts to neutralize opponents. Anyway, here is a small snippet from the NLPC complaint against Soros-backed Alianza Americas:
Alianza held "two congressional briefings" in Washington, D.C., on immigration related issues and made over 200 "visits to Congress" between June 2017 and September 2019, the nonprofit group disclosed on its 2019 tax documents. Alianza also disclosed it "activated a nationwide community organizing strategy" after the Trump administration's "cancellation" of temporary protected status - letting immigrants remain in the United States if their native country is dealing with armed c01iflict or other extraordinary condition. Indeed, an examination of Alianza America's Form 990 returns for both 2019 and 2020 show extensive lobbying activities. In its 2020 Form 990 filing, the group reports in Part III:
This organization and mobilization led by Alianza Americas and member organizations have enabled our network and partner organizations in various states to engage hundreds ofTPS holders so they could tell their own stories to policymakers in Congress and advocate for permanent solutions, and for immediate measures to protect TPS holders. Recent results our organizational strategy: Two congressional briefings on TPS, DACA and DED, held in Washington, DC More than 200 visits to Congress made between June 2017 and September 2019. (emphasis added).
. . .
In response to the cancellation of Temporary Protected Status (TPS) programs, we activated a nationwide community organizing strategy led by our members, including the "House for House" campaign in key cities in the USA This organization and mobilization led by Alianza Americas and member organizations have enabled our network and partner organizations in various states to engage hundreds ofTPS holders so they could tell their own stories to policymakers in Congress and advocate for permanent solutions, and/or immediate measures to protect TPS holders. Recent results our organizational strategy: Two congressional briefings on TPS, DACA and DED, held in Washington, DC More than 200 visits to Congress made between June 2017 and September 2019.
According to the IRS's definition of lobbying, "An organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation." It seems abundantly clear that Alianza Americas has violated the IRS laws and regulations for failing to report that it engages in lobbying activities as defined by the IRS and failing to file the required Schedule C listing the expenditures for such activities.
And then last week, the Campaign Accountability sent an 18 page, single spaced complaint to the Service alleging Leo Leonard and charities to which he has made donations have engaged in repeated and gigantic acts of private inurement and excess benefit:
CONCLUSION
In summary, Leonard Leo has caused several recently formed Code Section 501(c)(3) and 501(c)(4) tax-exempt organizations to pay him (directly or indirectly) more than $73 million over a six-year period from 2016 through 2021. There is some evidence to suggest that Leonard Leo’s for-profit businesses, which received millions of dollars in payments for alleged consulting, research, and/or public relations services may have either not have provided those services at all or may have provided services at a level not commensurate with the payments received. Furthermore, there is evidence that from the moment these payments began, Leonard Leo began spending millions of dollars on personal expenditures in amounts commensurate with the amounts being siphoned off from the Leo-Affiliated Nonprofits to BH Group and CRC Advisors. CfA urges the IRS to use its summons, investigatory, and other related enforcement powers examine the activities of Leonard Leo, BH Group, CRC Advisors, and the Leo-Affiliated Nonprofits to uncover further evidence of private inurement, excess benefit transactions, and other activities that violate the Code and the Leo-Affiliated Nonprofits’ tax-exempt status and take appropriate action if violations are found.
There is no "Leo-backed" phrases but unlike the NLPC complaint, the complaint is against Leo himself. Both sides are trying to rule the earth, is all, and they have no qualms about using exempt orgs, or the IRS to do so.
darryll jones
https://lawprofessors.typepad.com/nonprofit/2023/04/spy-vs-spy-civil-society-version.html