The IRS scandal has raised a bunch of issues. One of them is who really qualifies for tax-free status in the first place:
What is a 501(c)(3)?
Internal Revenue Code Section 501(c)(3)is the portion of the tax code that gives certain entities the right to receive tax deductible contributions.
What are the qualifications for tax exempt status?
An organization must meet the following requirements to qualify:
The organization must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes
Net earnings may not inure to the benefit of any private individual or shareholder
No substantial part of its activity may be attempting to influence legislation
The organization may not intervene in political campaigns
The organizations purposes and activities may not be illegal or violate fundamental public policy
Tax Exempt Status for Churches and Nonprofits.
So groups like Media Matters or the NAACP aren't even qualified. Any group that singles out a political candidate for or against is subject to audit and removal of their tax-free satus.
What is a 501(c)(3)?
Internal Revenue Code Section 501(c)(3)is the portion of the tax code that gives certain entities the right to receive tax deductible contributions.
What are the qualifications for tax exempt status?
An organization must meet the following requirements to qualify:
The organization must be organized and operated exclusively for religious, educational, scientific, or other charitable purposes
Net earnings may not inure to the benefit of any private individual or shareholder
No substantial part of its activity may be attempting to influence legislation
The organization may not intervene in political campaigns
The organizations purposes and activities may not be illegal or violate fundamental public policy
Tax Exempt Status for Churches and Nonprofits.
So groups like Media Matters or the NAACP aren't even qualified. Any group that singles out a political candidate for or against is subject to audit and removal of their tax-free satus.