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Current Events & Hot Topics Current Events & Hot Topics

"Social Welfare" Groups and Tax Exemption

Posted by on Mar. 30, 2013 at 10:21 PM
  • 18 Replies

It seems the IRS wants to figure out if some of these groups, including Crossroads GPS and Americans for Prosperity, actually qualify as 501(c) groups (meaning a "social welfare" group or in other words, a charity) or if they are just partisan poltical groups looking to avoid taxes.  As if there is any question.

From NPR:

The IRS calls the move a "compliance check." It asks a wide range of questions about a group's finances and internal structure. Some of the information will turn up, eventually, in a group's tax return on the Form 990. But other intriguing information will not. For instance, how did the group set the compensation for its most highly paid officers? Did it give them first-class or charter travel? How about country-club memberships? Any other perks?

The agency has targeted groups that are "self-declared." That is, they claim they qualify for 501(c) tax-exempt status, but they've never filed the application with the IRS. That lets them avoid the application form asking the group to describe its proposed tax-exempt activities.

The IRS says the questionnaire is meant "to help us understand" the self-declared groups and to learn "how they satisfy their exemption requirements."

http://www.npr.org/blogs/itsallpolitics/2013/03/30/175761558/irs-to-social-welfare-groups-show-me-the-political-ad-money


by on Mar. 30, 2013 at 10:21 PM
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Replies (1-10):
EireLass
by Ruby Member on Mar. 31, 2013 at 10:14 AM

I always wonder that myself. I have a friend who had worked long-term for the MSPCA. She had a modest income, doing administrative work in Boston. They started making big cuts - she and others were being laid-off, shelters were closing. All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k

AdrianneHill
by Platinum Member on Mar. 31, 2013 at 10:29 AM
2 moms liked this
How the hell are they allowed to be self declared? For that matter, I'm a social welfare group and don't owe any taxes ever
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meriana
by Platinum Member on Mar. 31, 2013 at 10:29 AM
2 moms liked this

I really fail to see how a political action group is a charity. Their funds go to promote the candidate and ideas of their choice and I don't think any of their candidates could be considered low-income and in need of help with food/housing, etc.

All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k. by EireLass

That's pretty much true of the top few in almost any large "charity" or so-called non-profit organization.


 

rgba
by Bronze Member on Mar. 31, 2013 at 10:30 AM
2 moms liked this
This is long overdue.
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EireLass
by Ruby Member on Mar. 31, 2013 at 11:33 AM

This particular group struck me because they are 'in the business' of sheltering un-wanted dogs/cats. They've had to close about 12 shelters across the state due to funding, lay off 'regular employees', yet they weren't interested in cutting any of their pay to keep things as they should be.

Quoting meriana:

I really fail to see how a political action group is a charity. Their funds go to promote the candidate and ideas of their choice and I don't think any of their candidates could be considered low-income and in need of help with food/housing, etc.

All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k. by EireLass

That's pretty much true of the top few in almost any large "charity" or so-called non-profit organization.


mommy.of.3.boys
by Bronze Member on Mar. 31, 2013 at 11:43 AM

Sounds like our illustrious "elected leaders" (aka the Gov't)!

Quoting EireLass:

This particular group struck me because they are 'in the business' of sheltering un-wanted dogs/cats. They've had to close about 12 shelters across the state due to funding, lay off 'regular employees', yet they weren't interested in cutting any of their pay to keep things as they should be.

Quoting meriana:

I really fail to see how a political action group is a charity. Their funds go to promote the candidate and ideas of their choice and I don't think any of their candidates could be considered low-income and in need of help with food/housing, etc.

All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k. by EireLass

That's pretty much true of the top few in almost any large "charity" or so-called non-profit organization.



Procrastination is like masturbation. It's all good until you realize you just fucked yourself.
meriana
by Platinum Member on Mar. 31, 2013 at 11:59 AM

Quoting EireLass:

This particular group struck me because they are 'in the business' of sheltering un-wanted dogs/cats. They've had to close about 12 shelters across the state due to funding, lay off 'regular employees', yet they weren't interested in cutting any of their pay to keep things as they should be.

Quoting meriana:

I really fail to see how a political action group is a charity. Their funds go to promote the candidate and ideas of their choice and I don't think any of their candidates could be considered low-income and in need of help with food/housing, etc.

All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k. by EireLass

That's pretty much true of the top few in almost any large "charity" or so-called non-profit organization.



I agree it's sad but that's pretty much the way a whole lot of charity/non-profit groups operate. Just as an example, remember when in some states there was a huge uproar about PP either closing or threatening to close clinics if they lost state funding? Well those few at the top makes six-figure incomes and have huge benefit packages on top of it. You didn't see any of them offering to lower their paychecks, forego some aspects of their benefit packages or do anything else to keep clinics open, yet they run a group that is supposedly all about providing health care to low-income and under-privileged women and it is as long as those few at the top keep their large incomes and benefits. Apparently in order to do that, they require state/gov. funding .
morriganna
by Member on Mar. 31, 2013 at 11:59 AM

Good.

Suzy_Sunshine
by Silver Member on Mar. 31, 2013 at 12:10 PM
3 moms liked this

It is about time. Next they need to evaluate churches. 

Suzy_Sunshine
by Silver Member on Mar. 31, 2013 at 12:14 PM

I really don't think there is anything wrong with that. I don't see people taking salary cuts at for profit companies when there are cuts and non profit compensation does tend to be more modest from the get go. Running an organization is a huge job that just becomes more complex when you're doing charitable work. I do a lot of volunteering but I would not be willing to volunteer as CEO or even at the Director level. That is just too much work to do for free.

Quoting meriana:

I really fail to see how a political action group is a charity. Their funds go to promote the candidate and ideas of their choice and I don't think any of their candidates could be considered low-income and in need of help with food/housing, etc.

All the while, the top few 'big wigs' were pulling in incomes in the mid-$300k. by EireLass

That's pretty much true of the top few in almost any large "charity" or so-called non-profit organization.


 


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