The anti-American nonprofit world has long been a problem for advocates of traditional American values. Today, unfortunately, its universe is bigger and more influential than ever.
The Internal Revenue Code requires nonprofit organizations to adhere to certain legal strictures in order to benefit from the nonprofit, tax-free status such organizations enjoy. This includes numerous prohibited activities such as engaging in political campaigning over social media and many other prohibited behavior.
Thankfully, should American patriots find certain organizations engaging in activity which falls afoul of the Code’s nonprofit prohibitions, they can easily file a one-page complaint form with the Internal Revenue Service. IRS agents are empowered to conduct audits of nonprofits they deem worthy to investigate, including by way of Correspondence-based and/or Field-based Examinations as well as Correspondence Checks relating to recordkeeping and information reporting requirements. Even if the auditor decides the matter does not warrant immediate action, he or she may place the file in a database for cases warranted future re-evaluation.
Enclosed is a description of this complaint process in more detail along with a broad overview of the legal violations which can strip such an organization of their nonprofit status. The Free Expression Foundations encourages supporters to closely review the activities of nonprofits that seek to oppose American traditional values, for instance, by trawling past social media activity in order to unearth possible IRS violations.
The IRS offers online instructions for filing a complaint about a nonprofit. This includes:
- Emailing your concerns in writing by email to firstname.lastname@example.org; or,
- Completing the Tax-Exempt Organization Complaint (Referral) Form.Both the email and form must include the following details:
- The nonprofit’s Employer Identification Number (which can be found searching the IRS’s database)
- The nonprofit’s contact details
- The individual engaging in what kind of illegal activity
- The illegal activity in question
- The financial amount at stake
- This information emailed or mailed
The National Association of State Charity Officials’ website provides a link to many of the state offices that regulate charities.
Examples of IRS Violations of Nonprofit Status
- Engaging in Political Activity, which includes:
- Raising funds for candidates for elective office*
- Making campaign contributions (either in cash or in kind)
- Publicly support/oppose a candidate or party on social media and elsewhere
- Combining encouragement to vote (which is legal) with criticism of a public official
- Comparing the nonprofit’s position on a particular issue with that of a candidate during an election
- Using federal funds (i.e. grants) to lobby (which can include contacting elected officials or the public generally about legislative issues)
- Benefiting personally from a nonprofits’ assets, resources of activities—called “inurement” or “private benefit” under IRS regulations. This includes:
- Overt misappropriation of funds
- Using group assets (i.e. car, credit card) for personal use
- Making board members paid-employees
- Giving group-related contracts to an insider’s business
- Endorsing a company in exchange for financial support
- Spending funds on charitable purposes which deviate from the particular cause that the funds were donated for i.e. funds resulting from a direct solicitation regarding a homeless shelter being used to purchase food for the homeless
*Nonprofits can lobby for or against legislation, but only up to a certain portion of their income.