Americans United announced yesterday that it has asked the Internal Revenue Service to investigate whether Liberty University has violated its Section 501(c)(3) non-profit status by using the school's student newspaper to support one of the two candidates for a seat in Virginia House of Delegates last November. AU's letter (full text) to the IRS charges that University Chancellor Jerry Falwell, Jr. and others used the paper and other school resources to support the election of Scott Garrett over incumbent Shannon Valentine. Garrett won by 210 votes in a victory attributed to block voting by students, faculty and staff of Liberty University. [Thanks to Scott Mange for the lead.]
Tuesday, February 23, 2010
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6 comments:
Does it surprise anyone that Liberty has been gaming the system?
It's not about doing what's right. It's about power and who gets to use it.
-American Atheist
AA,
Don't forget that it's also about money. With their 501c3 status they get to not pay taxes like you and I have to. Having selected 501c3 status of their own free will they now want to ignore the rules of that tax status.
Jim51
Did they say, "Vote for so and so." They can't do that on their status --but they can educate as to which candidates are pro-life, pro-abortion, pro-this or that, etc. And let readers draw their own conclusions.
they can also take a stand on the issues --just not as they discuss candidates by name.
right?
The Bush administration should have investigated this issue when it was first raised, but they were afraid to alienate one of their primary constituencies.
Even if the IRS decides to investigate, the case will drag out for years. If a Republican is elected president in 2012, the case will be quietly "closed."
Uh Jim --5013C means WHO doesn't have to pay taxes? the university? I thought schools were tax exempt anyway. All of them.
I thought 501C3 status means that the donors to the school can deduct their donations from their income and not pay income tax on the money they give away to charities, schools, etc. It helps people afford to give charity. It acknowledges that charities are worthy of support.
The IRS law says such charities cannot participate in political campaigns as institutions. but they CAN participate in advocating or criticizing a cause or belief on public policy--like gay marriage and abortion--and they can campaign for laws that directly affect their institutions (like school bus laws, or faith based office in the White House, etc.)
There is currently protest by churches on this ruling that prohibits churches from actively campaigning for or against politicians. Or perhaps because it is being over-extended to prevent cause advocacy.
Barb,
Schools are not necessarily tax exempt. To be tax exempt an organization must select from among the available tax exempt statuses. Each tax status comes with a set of known rules and regs. The organization should be prepared to follow the rules and regs of the status that they choose. If they are not, they should choose differently.
To select 501c3 status an organization should be non-profit, not a political PAC, and be in some charitable endeavor. Donations to such an entity are tax deductible only to the extent that there is no quid pro quo for the 'donation.' This is why if you contribute to a 501c3 entity but they publish a magazine, then the cost of that magazine is not tax deductible. Likewise, for a school with such a tax status donations are tax deductible but tuition is not.
There is a separate tax status for non-profit political action groups and any church or 'school' is free to select that status also and there will be no restrictions on their campaigning activities. However, there are reporting requirements for such a non-profit PAC status. Such an entity must divulge what they have spent their money on and where, and from whom, they got it. We as a nation have decided that we want to know who is putting money into our politics.
Jim51
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