September 26, 2004
Foolproof Campaign Finance Violations
This advertisement which appeared in today's Seattle Times, seems to point to flagrant violations of federal campaign finance and tax regulations.

The sponsoring organization, "Foolproof Performing Arts" is a 501(c)(3) non-profit organization. Its roster of speakers leans distinctly towards the left wing of the Democratic party, with only a rare token Republican sometimes added to a panel discussion.

I'm no lawyer, but it's hard to see how using tax-exempt status to subsidize a Michael Moore "Get Out the Vote" rally ("All tickets only $15!") cannot be a violation of IRS rules barring non-profit organizations from engaging in political activity:
These organizations cannot endorse any candidates, make donations to their campaigns, engage in fund raising, distribute statements, or become involved in any other activities that may be beneficial or detrimental to any candidate. Even activities that encourage people to vote for or against a particular candidate on the basis of nonpartisan criteria violate the political campaign prohibition of section 501(c)(3).
the consequences can be serious:
If the IRS finds a section 501(c)(3) organization engaged in prohibited campaign activity, the organization could lose its tax-exempt status and it could be subject to an excise tax on the amount of money spent on that activity.

In cases of flagrant violation of the law, the IRS has specific statutory authority to make an immediate determination and assessment of tax. Also, the IRS can ask a federal district court to enjoin the organization from making further political expenditures.

Naturally, Foolproof and its patrons are free to sponsor Michael Moore or anybody else. I only want to see them adhere to the same tax and campaign finance rules that everybody else is subject to. I'm going to bring Foolproof to the attention of both the IRS and the FEC. I'll keep you posted.

Posted by Stefan Sharkansky at September 26, 2004 04:27 PM
Comments

You say: "I'm going to bring Foolproof to the attention of both the IRS and the FEC." Good work. If we can help with this let us know.

Posted by: Ron on September 27, 2004 02:19 PM

Look at it this way. If Washington is such a swing state that Michael Moore is spending time there, then Bush has the election in the bag. In fact, to ensure that Bush is re-elected, you probably want to make sure that Michael Moore spends as much time in Washington as possible.

Of course, that might mean some local Republican candidates are defeated, but to mis-quote the movie Shrek, I'm sure that's a sacrifice you are willing to make.

Posted by: Scott on September 29, 2004 02:37 PM

Stefan,
Can all of us file complaints? Similar to the deluge of complaints to CBS and their affiliates concerning Mr. Rather? If so can you get us pointed in the right (no pun intended, but I like it) direction?

AH

Posted by: alexander on September 30, 2004 03:53 PM
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