Campaign puts 501(c)3 organization at risk of losing tax-exempt status
Sara Gideon yesterday held a campaign event at a Portland nonprofit that is organized as a 501(c)3 - a clear violation of IRS guidelines for nonprofits.
Nonprofits of this type, which enjoy tax-exempt status from the IRS, are "absolutely prohibited" from involvement in any campaign activities. Gideon’s event put this important recovery nonprofit’s tax exemption at risk.
A similar discussion about this type of violation was covered multiple times by the Press Herald during the 2019 mayoral race.
The Gideon campaign invited press, hung campaign signs, and posted on the campaign’s social media outlets about the event.
Press coverage of the event was even featured on the Election 2020 segment on WMTW.
From the IRS website:
Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office.
From the nonprofit’s Articles of Incorporation: