The CBD is a 501©3 non-profit group. As such it is forbidden from contributing to any election or political group under current IRS law. Last year CBD gave in excess of $27,000 to a anti-development vote in Santee (Prop x). When any non-profit group give money to any political group it is in violation of tax law and can have its tax status revoked. I can not think of a better thing happening to CBD. I encouage everyone to go to the IRS site and complane about CBD and tun them in for tax code violations. The election was Feb. 15 2005. You can turn in CBD and not give your name, but we can really hit them where it hurts. If they lose their non-profit status, then all cash given to them is no longer tax deductable.

Make a difference, turn them in.


Here is some info about how much CBD gave and when.

http://mysantee.com/index.php?main=page&id=749

Thanks, Mike

 

~Religious organizations, excluding churches, may elect to use the expenditure test under IRC section 501(h) by filing IRS Form 5768, “Election/Revocation of Election by an Eligible Section 501(c)(3) Organization to Make Expenditures to Influence Legislation.” The organization’s exempt status will not be at risk as long as its lobbying expenditures do not exceed an amount specified in IRC section 4911. This limit is based on the size of the organization and may not exceed $1 million (see the Exhibit). The election remains in effect until the organization revokes it.~

Applies to all 501s.

http://www.nysscpa.org/printversions...04/804/p20.htm

C. The Section 4911 Statutory Framework

Under section 4911 and its companion provision, section 501(h), eligible public charities can elect to have the limitation on their lobbying specified in dollar terms, with the limits computed as fixed per-cent-ages of the organization's annual charitable-purpose expenditures. The overall lobbying ceiling equals 20% of the first $500,000 of such charitable expenditures. The percentage declines as expenditures rise, and the ceiling reaches a maximum allowance of $1 mil-lion per year for organizations with annual budgets exceeding $17 million. Only 25% of this amount may be devoted to "grassroots" lobbying. Expenditures that exceed either the grassroots or overall lobbying limits are subject to a 25% penalty tax. An organization loses its tax-qualified status if it exceeds either of these ceilings by more than 50% over a four-year period.

http://www.independentsector.org/pro.../def_4911.html

All of the above was accomplished with the particular intent of allowing not-for-profits to be formed with a side benefit of supporting the politicians who created the legislation. Those non-profits also generally provide lucrative jobs/benefits for political cronies and family members. Ever hear the term 'You can't fight city hall'?

Good luck on your mission.

 

Then it looks like if this is to make it, all of the groups "donations" will need to be tracked. I am willing to bet, however, if enough people submit CBD's name for consideration, the IRS may do a audit of the group. To me, that in itself would be a really good start.

Mike

 

Sorry to be so negative regarding your quest, but most not-for-profits have annual financial and operational audits by outside firms to satisfy their board of directors and the IRS. The only thing many of them have going for them is their tax exempt status and they seldom endanger that. If they are making contributions to influence legislation, I'd bet they're very well connected. I'm no lawyer and not offering legal advice, but watch your back and good luck.

 

georged is right on the audit side. I worked for a 501(c)3 before. And boy was audit time fun. Basically the NP pays an accounting firm to audit the books. Our auditor specialized in NP audits and his butt is on the line as well. You then forward your audit to those requesting or requiring it. Pretty much that was all of our funding sources (city, county, Feds, and various other NGO (United Way, etc.)) Cheaper for everyone to have one audit than multiple. We specifically stayed out of the political area because of the NP status. (There was enough political BS going on in our "industry" we didn't need any more.)

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