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Why are GOP groups tax exempt non-profit?!?!?!?

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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 09:45 AM
Original message
Why are GOP groups tax exempt non-profit?!?!?!?
I was on the RNC website. Click on this link that said "GOP GROUPS"

http://www.gop.com/About/GopGroups.aspx

I started going to the groups and found many of these groups the Republican have admitted are theirs are TAX EXEMP!!!! That means Republicans are making political donations with our tax dollars since they get to deduct the donations!!!

For example a wealthy republican can donate to the following republican groups

American Enterprise institute

or

American Values

and they get to save on their taxes as if they were donating to a REAL CHARITY that helps clothe or feed the poor
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cali Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 09:51 AM
Response to Original message
1. Umm.....
Not all non-profits are organizations dedicated to helping the poor. In fact, I'd hazard a guess that most aren't. Non-profits cover a wide spectrum from the arts to politics, historic preservation, and literacy, just to name a few. Just the way it works.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 09:54 AM
Response to Reply #1
2. Your donation to say moveon.org is not tax deductible!
You can not deduct a donation to the DNC from your taxes!
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beaconess Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:26 PM
Response to Reply #2
9. Moveon, DNC and RNC are not 501(c)(3) groups
so they're not tax-exempt. If they were, they couldn't do their missions.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:28 PM
Response to Reply #9
11. The others are political organizations per the RNC
they do not meet the 501C requirement.
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beaconess Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:50 PM
Response to Reply #11
14. The RNC does not determine who is and who is not a political org.
Just because the RNC says it, doesn't make it so under the law.

But, I tell you what. If you believe so strongly that this is the case, I suggest you file a complaint with the IRS.

In the meantime, I'm going to spend my time doing something more constructive.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-16-06 04:05 PM
Response to Reply #14
20. UNLIKE YOU! I did do something constructive!
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paineinthearse Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 09:56 AM
Response to Original message
3. AEI
:wtf:

"Legal requirements aside..."??????!!!!!

Is that like * signing the McCain torture bill, with the caveat, "I don't agree and will not abide by it"?

http://www.aei.org/about/

Policy Advocacy

As a tax-exempt educational organization governed by Section 501(c)(3) of the Internal Revenue Code, AEI is generally prohibited from attempting to influence legislation in the U.S. Congress or other legislative bodies. Legal requirements aside, AEI has important reasons of its own for abstaining from any form of policy advocacy as an institution. Policy research of the kind AEI specializes in--emphasizing empirical analysis, intellectual depth and originality, unflinching criticism, and concrete proposals for reform--is an inherently individual activity, best pursued by a single scholar (or a pair or small group of scholars) rather than by a committee or hierarchy. Moreover, AEI scholars or authors may disagree on particular policies or on the conclusions to be drawn from a set of research findings. Attempting to forge an Institute-wide consensus or corporate position would interfere with the intellectual independence of individual scholars and with the sharpness, clarity, and interest of AEI publications. For these reasons, AEI takes no institutional positions on policy issues (whether or not they are currently before legislative, executive, or judicial bodies) or on any other issues.

AEI scholars and fellows frequently do take positions on policy and other issues, including explicit advocacy for or against legislation currently being considered by the Congress. When they do, they are speaking for themselves and not for AEI or its trustees or other scholars or employees. It is customary for AEI scholars and fellows to include an explicit disclaimer to this effect when they present formal testimony to a congressional committee or other government body. Many also include such a disclaimer in books, articles, speeches, and other presentations addressed to the general public, especially when they are addressing subjects of active controversy and disagreement--but the disclaimer is often well understood in these contexts and the appropriateness of stating it explicitly varies from case to case.

AEI's abstaining from institutional positions on policy issues does not, of course, apply to policy issues affecting its own institutional interests.

Political Campaigns and Other Partisan Activities

AEI's 501(c)(3) tax status also forbids it from participating in any campaign for elected public office. This means that AEI may not take an institutional position for or against any political candidate and may not permit its resources, including the on-the-job time of its salaried employees, to be used in an electoral campaign. As in the case of policy advocacy, AEI's own purposes lead it to broader policies against partisanship in any of its activities. AEI research and publications, participation in its conferences, and the policy advice of its research staff and other employees, are available to government officials, legislators, political candidates, and others regardless of party affiliation. When the policy positions of AEI scholars and fellows coincide with those of a particular political party or electoral candidate, this is without any purpose of advancing the partisan interests of the party or candidate. During election campaigns, AEI employees who endorse particular candidates, or who become engaged in campaigns as candidates, advisers, volunteers, or employees, must do so as individuals and on their own time and resources, and must arrange for part-time or full-time leaves-of-absence if necessary. During each national election year, AEI's president provides each employee with a memorandum setting forth these requirements in detail; the most recent such memorandum is available here.

more.....

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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 10:05 AM
Response to Reply #3
4. Kind of hard to claim no influence
Edited on Sun Jan-15-06 10:09 AM by nomad1776
When the Republicans admit this is one of their groups. In that same link you provided they also claim to be non-partisan. Yet the RNC claims them as their own!
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WCGreen Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 10:32 AM
Response to Reply #4
5. Someone has to complain to the IRS in order to get that
organizations tax exempt status removed.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 11:14 AM
Response to Reply #5
6. How do we do that?
I would be happy to file a complaint. If someone can tell me how.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:18 PM
Response to Reply #6
7. Tried to submit this tip to Raw Story
Their mail box doesn't work. Can anyone, who knows another address, forward this information?
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Igel Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-16-06 01:52 PM
Response to Reply #3
19. No, it would be like a dem saying
that he's not going to engage in torture because, legal requirements aside, it's immoral, he fears setting a precedent, or some other non-legal reason.

In other words, there's the legal requirements, then there are the additional reasons for which they will be doing the same that the legal requirements dictate.
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beaconess Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:24 PM
Response to Original message
8. Those groups have registered as 501(c)(3) organizations and, as such
are tax exempt. As long as they don't endorse candidates for office or spend a significant amount of their time and expense lobbying, they are eligible.

501(c)(3) organizations are not limited to organizations that feed or clothe the poor.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:27 PM
Response to Reply #8
10. They don't meet the standard!
These are admitted Republican groups. If you read who is exempt, they don't meet the standards

Exemption Requirements



To be tax-exempt as an organization described in IRC Section 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in IRC Section 501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates.

The organizations described in IRC Section 501(c)(3) are commonly referred to under the general heading of "charitable organizations." Organizations described in IRC Section 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with IRC Section 170.

The exempt purposes set forth in IRC Section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and the prevention of cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erection or maintenance of public buildings, monuments, or works; lessening the burdens of government; lessening of neighborhood tensions; elimination of prejudice and discrimination; defense of human and civil rights secured by law; and combating community deterioration and juvenile delinquency.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:35 PM
Response to Reply #8
12. Here is more proof they are in violation
Tax-exempt nonprofit organizations categorized under IRC 501(c)(3) in federal law are generally permitted to "lobby" to some extent, but are absolutely prohibited from engaging in "political activity." The distinction between these two activities is crucial, but not always simple to make. Under federal law (IRC 501), lobbying to an extent beyond an "insubstantial" amount is only permitted by IRC 501(c)(3) organizations that may and do elect to qualify under the IRC 501(h) rules, which provides strict financial limits for lobbying expenditures. Violation of the laws and regulations controlling lobbying and political activity can result in any or all of: fines (in the form of excise taxes) against the organization, personal fines against organization managers, and loss of federal tax-exemption recognition. Obviously this is dangerous ground for 501(c)(3) tax-exempt organizations and their staff, yet lobbying is an important activity for many.

http://www.muridae.com/nporegulation/lobbying.html
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beaconess Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:47 PM
Response to Reply #12
13. Insubstantial depends upon what proportion of their overall
activity is devoted to lobbying. Only if you know what proportion their lobbying is to the rest of the activity can you say whether they are in violation.

Plus, they may have elected to file under a different provision of the 501(c)(3) regulation that allows them to spend up to a certain amount of money in time and expenses on lobbying. In that case, if they spend less than a specific amount on lobbying, as determined an IRS formula (probably, in their case, $1 million), they are not in violation. And lobbying, under the IRS definition, is defined very strictly as a direct contact with a member of Congress regarding a specific piece of legislation. It doesn't include judicial nominations, public statements, articles, reports, testimony, etc.

This is all very complicated and most of these organizations have plenty of lawyers making sure that they comply, at least to the letter, if not the spirit, of the IRS laws.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-16-06 01:12 PM
Response to Reply #13
17. Seems to me
Since they are all part of the GOP, they should be 501(c)(4), which does not allow donations to be tax deductible. One group even claims to be non partisan, while the GOP is claiming them as their own.
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formercia Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 01:51 PM
Response to Original message
15. and non-partisan too.
yeah, right.
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stevebreeze Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-15-06 02:13 PM
Response to Original message
16. I may be wrong but I think these groups were established some time ago
and that since the rules have changed. I don't remember when but I would be surprised if it was at least in part so the Dem's could not match them. I believe they were grandfathered in befor the requirements were made stricter.
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NJmaverick Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-16-06 04:07 PM
Response to Reply #16
21. THE RNC WAS FORCED TO CHANGE THEIR WEBSITE
Reported this to Raw Story (one of the few REAL news agencies out their)

http://rawstory.com/news/2005/GOP_website_appears_to_flout_law_0116.html
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Doctor_J Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jan-16-06 01:25 PM
Response to Original message
18. Because the Constitution is not in force any more
same reason * can spy on me.
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