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Indybay Feature

FreeRepublic Network is abusing 501(c)4 status

by Microscope on Freepers
Is this legal and are they violating federal laws?
The FreeRepublic Network(also known as the FreeRepublic Forum) has admitted to holding 501(c)4 status. Here is an explanation of the guidelines 501(c)4 groups must abide by:

Key paragraph which may indicate FreeRepublic is breaking the law is...... "but may not directly or indirectly participate or intervene in political campaigns on behalf of or in opposition to any candidate for public office. "

501c4 Tax Exempt Organization

An organization with 501c4 status cannot solicit tax deductible contributions from donors. The organization must demonstrate that it is organized exclusively to promote social welfare. However, because of the non-tax deductible status, such organizations can engage in lobbying for legislative change, but may not directly or indirectly participate or intervene in political campaigns on behalf of or in opposition to any candidate for public office. To obtain tax exempt status, your organization must file a Form 1024 Application with the IRS.

We would like a legal opinion from any attorneys as to whether they are indeed breaking the law on this. Freepers do campaign for various candidates and "Freep" polls openly in attempts to affect political campaigns.

by Love to play dominos
See the Position Paper by the Alliance and others at http://www.nonprofits.org/npofaq/16/20.html.


"In essence, a 501(c)(4) can do just about anything (legal) , but electioneering cannot be the majority of its work. Therefore the IRS says 49% or less."


I would say since they take official stances on candidates such as Jim Robinson endorsing and promoting McClintock and later Ahnold they might be breaking the law.

by axiom
The questionable areas are whether or not the organization is campaigning for a candidate or registered forum members are urging support for a candidate.

I think your target is probably the individual themselves and not the organization as a whole. My guess is that they may be violating the rules, but no more than any other organzation like the NAACP, People for the American Way or the Southern Poverty Law Center.
by axiom
The Alliance for Justice is not an independant organization despite its claim to independance. The AFJ is a front for MALDEF, the People for the American Way, NAACP and NOW. The AFJ is their judiciary branch expert.
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