I received a few blog responses about my Focus on the Family (FoF) podcast episode. People are asking how in the world FoF is allowed as a non-profit organization to try to influence legislation. Point-of-fact, I believed that 501(c)(3) entities were not allowed to spread any information about politics let alone able to spin their message of hate in the media outlets. Read on… (this one is kinda long)
A 501(c)(3) is simply a non-profit organization. These organizations include churches, charities, service organizations, etc. ”501(c)(3)” is a portion of the tax code that defines the ability to have an organization that pays no taxes due to several criterion. All tax code references forthwith are from the US Code (the sum of national laws), Title 26 (a volume in this big US Code book), Internal Revenue Code of 1986 (as amended), section 501 (unless otherwise specified).
Focus on the Family is indeed a 501(c)(3) according to their website. The first half of paragraph (3) of subsection (c) defines the types of organizations and the second half (in bold) defines what the organizations can and cannot do.
Corporations, and any community chest, fund, or foundation, organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes, or to foster national or international amateur sports competition (but only if no part of its activities involve the provision of athletic facilities or equipment), or for the prevention of cruelty to children or animals, no part of the net earnings of which inures to the benefit of any private shareholder or individual, no substantial part of the activities of which is carrying on propaganda, or otherwise attempting, to influence legislation (except as otherwise provided in subsection (h)), and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for public office.
Now, the important note is subsection (h) and how it applies to someone like FoF. Also, section 4911 talks about taxes that need paid on excess money used to influence legislation. I’ll distill it like this as I understand the law as I have studied these two sections: FoF is not a church. It has no related organizations that are churches. This makes them able to spend money on legislative influence as long as it is not their primary activity and that they stick to under 1.5M spent on legislative influence activities in each of two concurrent years. Churches and organizations related to specific churches are not allowed to expend money to influence legislation. No non-profits are allowed to campaign for political candidates, spread propaganda, etc. The recourse is that an organization’s tax-exempt (501(c)(3)) status could be revoked.
How is FoF able to get away with all the crap that they do?
- Laws are not enforced.
- “Dr.” James Dobson has friends in high places.
- They cook the books.
- They know the loop-holes.
- All of the above.
Basically, Focus on the Family is full of bastards and they should not be able to get away with the political swaying, homosexuality prevention efforts, etc. that they do. It disgusts me. The end.
Internal Revenue Code of 1986, as amended, 26 U.S.C. § 501 et seq. Retrieved May 28, 2007, from http://www.law.cornell.edu/uscode/26/501(c).html
Internal Revenue Code of 1986, as amended, 26 U.S.C. § 4911 et seq. Retrieved May 28, 2007, from http://www.law.cornell.edu/uscode/uscode26/usc_sec_26_00004911—-000-.html
Tags: 501 c 3 · charities · focus on the family · gay · homosexuality · influence · internal revenue code · James Dobson · legislation · non profit organization · propaganda · tax2 Comments
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2 responses so far ↓
I checked FONF’s web site and lucky I was able to download their 2007 Fiscal report. It turns out that in 2007, they had recieved almost $120 million in contributions. Something tells me they didn’t make all that money by selling cookies. From the same document I found out that they spent that same year, more than $7 million on public policy awareness? You need to spend that much money to make people “AWARE” of public policy??? The public is constantly on crack and they forget that there even is a thing called “public policy”? Where is all this money going.
Now you’re saying that this organization can spend more that $1 million on legislature??? Is this democracy??? How is this any different than an Islamic extremist group affecting the legislature of some other country?
Don’t get me wrong, I love America. But before the media or anyone bashes other countries, they should first think about the psychopaths that are running USA.
Thanks.
Thank you for posting a comment! I just want to clarify one thing. the law states that the organization can spend up to 1M or 1.5M USD (depending on certain circumstances) for the purposes of influencing legislation tax free. Any amount over that and they pay a 25% tax on the overage. The law is a little confusing, but it’s my understanding that if an organization spends more than the statutory 1M or 1.5M USD in each of two consecutive years that they will lose their tax exempt status as a 501(c)(3).
FoF can spend money on public policy awareness! Yes… it could be their way of codifying and/or reclassifying legislation influence. Either way, it sucks and some laws need enforced, but the US Government isn’t necessarily up to that challenge.