The Washington Post published a deeply researched expose today about the “secret universe” of “charities” that fueled the election of Donald Trump.
Please understand before reading this that the Internal Revenue Service classifies organizations for tax purposes as 501(c)3 or 501(c)4. When Anthony Cody and I formed the Network for Public Education in 2013, we learned that we had to get IRS approval to raise money. Contributions to a (c)3 are tax-deductible. Contributions to a (c)4 are not tax-deductible. If we were a (c)3, we had to have broad charitable purposes and could not engage in any political or partisan activities, although we could lobby for legislation that met the purposes of the organization. To engage in political action or endorsements, we had to create a (c)4, with its own board. The (c)4 can be completely political, lobby for legislation, endorse candidates, but contributions are not tax-deductible. We hired a lawyer, followed the rules, and we often check with the lawyer to make sure we are always in compliance.
That is why we have two organizations. The Network for Public Education is a (c)3. Contributions are tax-deductible. It advocates for the improvement of public schools. It does not endorse candidates. We also created an organization called the Network for Public Education Action Fund, which is a (c)4. Contributions to it are not tax-deductible. It endorses candidates in states where we are allowed to do so, and endorses referenda.
As you read the article about the Shadow Universe, you will see references to foundations that are nakedly partisan. Yet, they are (c)4 tax shelters for the wealthy. They give only to rightwing causes that are unabashedly political, yet have (c)3 stats. You will see references to “charities” that are not charitable but political. They wage war against the left. They consider climate change a hoax. They think America’s universities are controlled by Communists. They think America is about to be taken over by “Islamofascists.” They want the federal government to spend billions on vouchers to remove children from public schools. When the IRS tried to crackdown on political organizations that masqueraded as charities, Republicans in Congress angrily denounced the IRS for going after conservative “charities,” and the IRS backed off. Now those “charities” have put Trump in the White House and captured the Republican Party.
So, one aspect of the article is the way the IRS code has been flagrantly ignored by rightwing activists, first, to shield family fortunes (like Bradley, Scaife, DeVos, Mercer, and many more) from taxation, but second, to enable rightwing political activists to raise tax-exempt contributions from the rich, who are always seeking ways to avoid paying for the government that protects them.
The article is also important because it exposes a little-known world of rightwing activism. It explains the origins of the ideologues on the fringe right who have seized control of the Republican Party.
You will understand Trump better if you read this article. His election represents the victory of a militant, angry, bitter group of extremists. They don’t give a hoot about working people. Trump is the point of the spear of a well-organized, well-financed powerful movement.
Diane et al.,
Thank you much for this invaluable article. For everyone’s clarity: I believe that in the fourth line of the second paragraph, Diane meant to say, “If we were a (c)3” (not (c)4).
On this twenty-eight anniversary of the Tiananmen Square massacre,
Bill
Thanks for the correction, Bill.
awesome!
Another one of those issues where Obama failed the progressive movement. Remembering well how mainlined the IRS was,. Did Obama go on the offense with a strong defense of his employees or an attack on this source of dark money in politics . Hell no, to do so would turn off the spigot to a source of funding to Democrats . Of course the Democrats drank from a garden hose while the right posses a super pumper.
Notice the flood of issue orientated adds telling the American public that arsenic (right wing policy) is good for you. .
Bill Gates and Walton heirs (fringe right) are active in schemes foisted on the public by the Democratic Party. Gates/Walton-funded organizations claim non-partisanship while they work to build and perpetuate structural inequities that benefit the richest 0.1%. Just like all other oligarchs, including the Koch’s, they hide their plots in deceptions and throw money to get buy-in. The Democratic Party hierarchy put the white hats on Bill and Melinda, mocking American democracy.
Yeah, I could never buy that “charity” nonsense.
So now we’ve got people with power and influence in all three branches of government who have made their fortunes due to capitalism and laws with many loopholes for the wealthy, at least one of whom calls himself a “Leninist” who wants to destroy the very system that enabled them all to be successful –and they claim Democrats are Communists?
WTF? Scary stuff. And the fact that they have a following buying into their hatefulness is horrifying.
I think the indicators are telling us that these so-called nationalists will do all they possibly can to prevent whites from becoming a minority in a country that has a long history of treating minority groups very badly.
ALEC is a nonpartisan charity under section 501(c )(3) of the tax code.
ALEC is a charity that writes model legislation to deregulate corporations and limit goverbment
Exactly. There’s nothing charitable about supporting a wealthy corporate membership. Can’t get much more political than writing legislation for right-wing GOP politicians.
The readers and commenters at this blog are familiar with the superb investigative work of the honorable staff at the Center for Media and Democracy, who have exposed ALEC for what it is- an abomination. Bi-partisan claim- check the state ALEC rosters of members and contrast the number of Republicans with the number of Democrats.
Jane Mayer exposed the backers of ALEC, the anti-democracy Koch’s, in her book and articles about “Dark Money”.
There are fewer and fewer arenas in which the richest 0.1% can hide their plotting.
UnKochMyCampus.org.
ALEC operated in stealth since the early 70s and their exposure a few years ago resulted in a number of corporations pulling out of ALEC. With enough pressure, they could either lose or decide to give up their non-profit status, as with the NFL not long ago.
It’s abhorrent that in this nation, for so many years, low-wage taxpayers have had to effectively fund the very organization that writes legislation which seeks to strip them of their civil rights and labor protections. That includes laws purposely named to deceive them, such as “Right to Work” legislation that aims to decimate unions. ALEC is all about making the rich even richer and encouraging them to use their wealth to buy power in government, such as laws and politicians that favor them over the struggling masses.
When are working class people going to finally realize and take action against the wealthy, who have been fighting a war against them for many, many years, aided and abetted by ALEC and corrupt politicians?
I will never understand how working class voters could be so blind as to elect billionaires to represent them at the federal, state and city level, such as Trump, Rauner and Bloomberg, when it has long been demonstrated that the super-rich have more contempt than empathy for those less fortunate and they are clearly a major part of the problem, certainly not the solution.
Live and learn, people!
The billionaires win with name recognition and sound bites crafted by well-paid P.R.
Cross-posted at https://www.opednews.com/Quicklink/The-Most-Important-Expose-in-Best_Web_OpEds-Bogus-Charities_Government_Hoax_Republican-170824-888.html#comment670923
NPR
Some of the most ad nauseum words:
“Support for NPR comes from…”
Can’t get to the Off button quickly enough.