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May 501(c)(3) vets group contribute to political party?

Your Legal Questions Answered

May 501(c)(3) vets group contribute to political party?

If I donate to a 501(c)(3) charity that claims it was formed to benefit disabled American veterans, can it turn around and donate money to an American political party?

Only if it wants to jeopardize its charitable tax exemption.  A 501(c)(3) charity is prohibited from participating in a political election at any level of government.  Donating to a political party would be considered an intervention in an election.  (See Ready Reference Page: “IRS Guidance Has Not Changed on Electioneering”).  If the IRS looked, it could impose a fine or completely revoke the exemption.

What you could do about it is another matter.  Assuming you are only a donor and not a voting member or trustee of the organization, the most you would have standing to do would be to complain to the IRS.  Unless you are talking about a huge amount of money (and probably even if you are), the IRS is not likely to do anything about it.  Your primary recourse is to walk away and give your contributions to a vets charity that does only what it says it was set up to do.

Tuesday, July 30, 2024

Comments

The complainant can also contact their state AG’s charitable activities section and file a complaint against the c3 that engaged in electioneering conduct through contributions.

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