It seems the IRS controversy has spilled into the states. Late last week Governor Rick Perry vetoed legislation that would have required the disclosure of high-level donors by many politically active organizations, including those exempt under Section 501(c)(4) of the Internal
Revenue Code. After a Republican legislature passed the bill, there was a fevered internet
disclosure
NY Attorney General Proposes New Rules Requiring Nonprofit Groups to Disclose Political Donors
By Lawrence H. Norton on
On December 11, New York’s attorney general revealed new regulations that would, if adopted, require nonprofit groups doing business in New York to disclose the percentage of total spending devoted to political activities in New York. The rules also would require groups that spend more than $10,000 to identify any donor giving $100 or more.…
Is my donation really anonymous?
Many “political” organizations have 501(c)(4) arms that claim to allow their donors to remain anonymous. Donors who don’t mind being disclosed often give to independent expenditure committees (“super PACs”), which publicly disclose all of their donors to state or federal officials. Those who prefer not to disclose their name, address, occupation, and employer will often…
Court Rules on Donor Disclosure for Advocacy Groups; Van Hollen Case Overturned
By Lawrence H. Norton & Ronald M. Jacobs on
Today a D.C. federal appeals court temporarily reinstated a Federal Election Commission rule concerning when advocacy groups and others must disclose their donors, but has directed the FEC to clarify the rule or return to the courts for more litigation. The effect of the ruling is to put in limbo a key disclosure rule less…
States Ramp Up Disclosure Rules for Political Spending; Federal Efforts Stall
By Lawrence H. Norton on
Outside groups have become a potent political force in the 2012 election campaign. Unleashed by the Supreme Court ruling in the Citizens United case and subsequent lower court rulings, such groups can raise unlimited sums from individuals and corporations for ads and other spending that is not “coordinated” with a candidate. The most dramatic example:…
Better Late Than Never: FEC Issues Guidance on Reporting Electioneering Communications Donors
By Ronald M. Jacobs on
With elections quickly approaching, last week the FEC finally issued a statement of how it will implement a federal court ruling striking down the Commission’s current regulation of electioneering communications. In late April, the D.C. District Court decided Van Hollen v. FEC, in which it vacated the FEC’s regulation requiring disclosure of donors to…
IRS Unlikely to Move on Political Activity by 501(c)(4)’s Until After Election
By Lawrence H. Norton on
Tax-exempt groups known as 501(c)(4)’s have become a potent force in the 2012 election, eclipsing Super PACs as the vehicle of choice for many corporations and individuals because 501(c)(4)’s do not have to disclose their donors. Amid growing controversy about whether some 501(c)(4)’s are engaged in more extensive election-related activity than the law allows or…