If a board member of a not-for-profit—say, a prominent arts organization—were to use the organization’s internal email list to invite folks to a political fundraiser for a fellow board member running for local office… that would not only be inappropriate, but an obvious violation of IRS rules, right?
Somebody from the real press might want to look into that. There could be a story there.
My experience may be a bit out of date, but I recall that a non-profit can sell its mailing list to a political organization or candidate — but then it cannot pick and choose who it will sell to.
It cannot do a mailing on behalf of a candidate or endorse a candidate. A board member using a list to invite the non-profits donors and supporters to a fundraiser sounds like a very gray area, but definitely worthy of scrutiny.
How is it a violation of IRS rules? I’m not seeing it. I don’t agree with her personally on politics, but I think it’s a smart use of a resource that many would overlook.
Back in the day, smart telemarketers would visit local churches to get the little phone books that churches made for their parishioners to contact one another. You could start a buzz by contacting people who see each other and you could also get phone numbers that were non-published.
If the person with the non published number asked you how you got it, you could say that the phone company sold it to you. That’s a good way to deflect their anger.
It’s a violation of the tax-exempt status of the not-for-profit organization. That could cause major tax problems for the not-for-profit if it lost its tax-exempt status.
Even a 501(c)(3) can expend some resources on “lobbying” activity (usually less than 15%, depending on how they file with the IRS), as long as it’s consistent with the organization’s mission.
Where they may run into trouble is with the SEEC (if city candidate) or PDC. It must be reported as an in-kind contribution from the 501(c)(3) to the campaign committee.
So probably not illegal, but definitely highly inappropriate.
@4 (myself)
I need to correct myself: while a 501(c)(3) is allowed to spend resources on “lobbying” activity, this does NOT include supporting candidates for office.
A non-profit can support a ballot measure (e.g. the Market Foundation supporting the Market Levy last year), but not individuals.
So yes, probably an IRS violation. I don’t know the penalties, however. My guess is a fine, but non-profit status can continue.
Sounds like a PDC violation to me and could be a violation of that NP’s by-laws.
I don’t know about IRS stuff.
It would sure as hell bring disciplinary action — up to and including dismissal — if you worked for a government entity, e.g. the state or county. And if your program gets federal funding it might be a Hatch Act violation, too. And you’d probably also have the state attorney general’s Executive Ethics Commission all over your back.
@2 I always wondered how church people got targeted by con artists selling investment scams. Church people seem to be easy pickings because of their tendency to trust people they shouldn’t.
I would say the candidate in question lacks the minimum basic knowledge and character required to hold public office. A candidate who breaks campaign laws probably will violate laws after getting into office, too.
@9 There is no indication that the candidate was involved in the email. It could have just been a very sloppy move by the other board member.
If it turns out it was coordinated with the campaign, then I agree with you.
@10 The candidate, or her campaign manager, should jump in and say, “No! No! You can’t do that! It’s illegal!” If the candidate doesn’t there’s something wrong with the candidate.
Of course, incompetence and illegal behavior by a candidate has never stopped Republican voters from voting for anyone. Republican voters are either stupid or just don’t care.
Name names or STFU.
8 RR
Yes, it’s as though they are far too easily gulled by people who ask them to believe impossible things based on faith.
1) The list for a c-3 cannot be used for political electoral purposes, period.
2) It can be sold at a real and fair market value. It must be available to anyone.
3) The actions of the Board member require reporting of the list value to the PDC.
4) Having served on may PAC boards and many 501(c)(3) boards, this is not a tough call. Its dead wrong and blatantly so.
5) Even the lobbying activity of a 501 c-3 is very, very tightly constrained.
6) many of these issues apply to a 501 c-4, but they have far greater latitude on lobbying and member education.
I do a lot of work in this area, so I can tell you that it depends on who sent the email, and how.
If I (as either staff or board member) were to send an email from my private email address to other members of the board of my organization, as well as staff, at their private email addresses, no problem. Our connection may be from the non-profit or public entity, but it isn’t using non-profit or public resources on behalf of a partisan candidate.
Even if I (as staff or board member) send an email from my private email address to staff at their non-profit or public email addresses, I have been severely tacky but haven’t broken the law, and the staff didn’t ask for my severely tacky email to be sent to them, so still no problem.
However, if I invoke the non-profit or public entity’s name in the communication, or use the my email from the non-profit or public entity’s internal email system or address to SEND such an email, then yes, I am potentially sideways with both the PDC and the IRS, because I have used the non-profit or public entity’s resources in an unlawful fashion. Whether the organization itself is in trouble depends on what position I hold within the organization, and / or whether someone in authority with the organization gave me authorization to act.
So, say that someone from the Seattle Symphony staff or board (as just merely a random example) used a Seattle Symphony email address to send such a notice / solicitation / endorsement / etc, then I am (and should be) in deep shit with the PDC and IRS.