{"id":7063,"date":"2016-09-14T07:00:46","date_gmt":"2016-09-14T11:00:46","guid":{"rendered":"https:\/\/www.theseventhstate.com\/?p=7063"},"modified":"2016-09-13T10:25:41","modified_gmt":"2016-09-13T14:25:41","slug":"is-help-save-maryland-violating-its-tax-status","status":"publish","type":"post","link":"https:\/\/www.theseventhstate.com\/?p=7063","title":{"rendered":"Is Help Save Maryland Violating its Tax Status?"},"content":{"rendered":"

By Adam Pagnucco.<\/em><\/p>\n

Anti-immigration group Help Save Maryland (HSM) has a political agenda which it characterizes<\/a> as \u201cWorking to make our elected officials accountable to the citizens of Maryland.\u201d\u00a0 More specifically, the group seeks to make the State of Maryland inhospitable to illegal immigrants through influencing a variety of public policy decisions.\u00a0 HSM, like any other group, has a First Amendment right to express its political views.\u00a0 But it also claims a tax-exempt status with the federal Internal Revenue Service and that could be a problem.<\/p>\n

Non-profit organizations may file with the Internal Revenue Service (IRS) to obtain tax-exempt status.\u00a0 One such category is governed by section 501(c)(3) of the Internal Revenue Code, which allows non-profit organizations (and contributions to them) to be exempt from federal taxes if they are organized for one or more of the following purposes<\/a>: religious, charitable, scientific, testing for public safety, literary, educational, fostering amateur sports competition and the prevention of cruelty to children or animals.<\/p>\n

HSM states on its website<\/a>:<\/p>\n

Help Save Maryland.org is a multi-ethnic, grass roots, citizens\u2019 organization with members state-wide. As a volunteer, nonprofit 501(c) 3, we accept donations (tax-deductible) to help defray our costs. Let\u2019s work together through outreach and other activities to educate fellow Marylanders regarding the financial, social and economic costs of illegal immigration. Please donate by credit card online or postal mail your tax deductible donation to:<\/em><\/p>\n

Help Save Maryland<\/em><\/p>\n

PO Box 5742<\/em><\/p>\n

Rockville, MD 20855<\/em><\/p>\n

In return for being exempt from federal taxes, the IRS imposes restrictions on political activities that may be undertaken by 501(c)(3) non-profits.\u00a0 The first is an absolute prohibition on advocating for or against candidates in elections.\u00a0 The IRS states<\/a>:<\/p>\n

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. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.\u00a0 Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.<\/em><\/p>\n

HSM has broken this rule at least three times.\u00a0 In January 2008, the organization formally endorsed<\/a> GOP candidates Andy Harris (CD1) and Steve Hudson (CD8) for Congress.\u00a0 In May 2009, HSM advocated for the defeat of Nancy Navarro in the 2009 Council District 4 special election.\u00a0 In an email to its supporters<\/a>, HSM stated plainly, \u201cWe need your help this Saturday and Sunday May 2 & 3 in Montgomery County. HSM is fighting the election of Democratic Candidate Nancy Navarro for County Council in a District 4 special election scheduled for May 19.\u201d\u00a0 The group called for volunteers to help defeat Navarro. \u00a0And in June 2009, HSM openly called for the defeat<\/a> of four state legislators for allegedly supporting illegal immigrants: Senator Jennie Forehand (D-17) and Delegates Ana Sol Gutierrez (D-18), Sheila Hixson (D-20) and Saqib Ali (D-39).<\/p>\n

Help Save Maryland makes endorsements for Congress.<\/em><\/p>\n

\"hsm-endorses\"<\/p>\n

Organizations with 501(c)(3) status are allowed to engage in other forms of political activity, but restrictions apply.\u00a0 On the topic of lobbying by 501(c)(3) groups, the IRS says this<\/a>:<\/p>\n

In general, if a substantial part of the activities of your organization consists of carrying on propaganda or otherwise attempting to influence legislation, your organization’s exemption from federal income tax will be denied. However, a public charity (other than a church, an integrated auxiliary of a church or of a convention or association of churches, or a member of an affiliated group of organizations that includes a church, etc.) may avoid this result. Such a charity can elect to replace the substantial part of activities test with a limit defined in terms of expenditures for influencing legislation. Private foundations cannot make this election.<\/em><\/p>\n

A general question for the reader.\u00a0 Check out HSM\u2019s website<\/a>.\u00a0 Do you see anything OTHER than propaganda there??<\/p>\n

Let\u2019s go back to the IRS.\u00a0 The agency defines \u201cattempting to influence legislation\u201d<\/a> as:<\/p>\n

    \n
  1. Any attempt to influence any legislation through an effort to affect the opinions of the general public or any segment thereof (grass roots lobbying), and<\/em><\/li>\n<\/ol>\n
      \n
    1. Any attempt to influence any legislation through communication with any member or employee of a legislative body or with any government official or employee who may participate in the formulation of legislation (direct lobbying).<\/em><\/li>\n<\/ol>\n

      There are exceptions, including \u201cmaking available the results of nonpartisan analysis, study, or research\u201d and \u201cexamining and discussing broad social, economic, and similar problems.\u201d\u00a0 HSM no doubt would claim that its activities fall within these areas.\u00a0 But take a look at content like this attack<\/a> on Gold Star father Khizr Khan as a \u201cMuslim Brotherhood agent who wants to advance sharia law\u201d and decide for yourself if this qualifies.<\/p>\n

      The IRS\u2019s monetary limits on allowable lobbying expenditures, including \u201cgrass roots expenditures\u201d intended to \u201caffect the opinions of the general public or any segment thereof,\u201d are complicated<\/a>.\u00a0 For small non-profits with limited resources, a key rule<\/a> is \u201cthe lobbying nontaxable amount for any organization for any tax year is the lesser of $1,000,000 or 20% of the exempt purpose expenditures if the exempt purpose expenditures are not over $500,000,\u201d with different limits for larger organizations.\u00a0 Clearly, any organization that spends most of its resources on lobbying, including grass roots activities to affect public opinion, would have problems complying with this provision.\u00a0 HSM\u2019s gathering<\/a> of signatures<\/a> for Robin Ficker\u2019s term limits amendment, its email on the petition’s behalf<\/a>\u00a0and its defense of Donald Trump<\/a> are definitely intended to \u201caffect the opinions of the general public.\u201d\u00a0 And more broadly, an individual perusing HSM\u2019s website<\/a> and blog<\/a> would have difficulty spotting content that is NOT political in nature.<\/p>\n

      Help Save Maryland has every right to express political opinions.\u00a0 That\u2019s not the issue here.\u00a0 But it does not have a right to engage in little other than political activity while being exempt from federal taxes and collecting tax-exempt contributions.\u00a0 Your author is no tax lawyer, but from the facts presented above, it seems possible that Help Save Maryland\u2019s activities may run afoul of the IRS\u2019s 501(c)(3) rules.<\/p>\n","protected":false},"excerpt":{"rendered":"

      By Adam Pagnucco. Anti-immigration group Help Save Maryland (HSM) has a political agenda which it characterizes as \u201cWorking to make our elected officials accountable to the citizens of Maryland.\u201d\u00a0 More specifically, the group seeks to make the State of Maryland inhospitable to illegal immigrants through influencing a variety of public policy decisions.\u00a0 HSM, like any … Continue reading Is Help Save Maryland Violating its Tax Status?<\/span> →<\/span><\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[151],"tags":[1545,1334],"class_list":["post-7063","post","type-post","status-publish","format-standard","hentry","category-adam-pagnucco","tag-adam-pagnucco","tag-help-save-maryland"],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p4mKJE-1PV","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/posts\/7063","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7063"}],"version-history":[{"count":4,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/posts\/7063\/revisions"}],"predecessor-version":[{"id":7071,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=\/wp\/v2\/posts\/7063\/revisions\/7071"}],"wp:attachment":[{"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7063"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7063"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.theseventhstate.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7063"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}