IRS Clears Foundation Investigated for Political Campaign Intervention
IRS Clears Foundation Investigated for Political Campaign Intervention
- AuthorsLough, Sunita B.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2009-11299
- Tax Analysts Electronic Citation2009 TNT 94-25
Person to Contact/ID Number:
Annie Cruse/76-44020
Contact Numbers:
Telephone: 281 721-7982
Fax: 281 721-7160
Taxpayer Identification Number:
11-3749929
Form:
990-PF
Tax Year(s) Ended:
December 31, 2006
Exemption under Section 501(c)(3) of the Internal Revenue Code
Niemoller Foundation
427 W. 20th Street
Houston, Texas 77008-2431
Dear Niemoller Foundation,
Our examination of the information return(s) indicated above disclosed that your organization continues to qualify for exemption from Federal income tax. Accordingly, we accept the return(s) as filed.
However, our examination identified certain deficiencies that we are addressing in the enclosed addendum. Noncompliance with the requirements set forth in the addendum could result in penalties and/or loss of exempt status.
You have the right to contact the office of the Taxpayer Advocate. Taxpayer Advocate assistance is not a substitute for established IRS procedures, such as the formal appeals process. The Taxpayer Advocate cannot reverse a legally correct tax determination, or extend the time fixed by law that you have to file a petition in a U.S. Court. The Taxpayer Advocate can, however, see that a tax matter that may not have been resolved through normal channels gets prompt and proper handling. You may call toll-free 1-877-777-4778 and ask for Taxpayer Advocate Assistance. If you prefer, you may contact your local Taxpayer Advocate at:
Taxpayer Advocate Service
1919 Smith Street
Stop 1005 Hou, Room 1650
Houston, Texas 77002
Thank you for your cooperation.
Sunita B. Lough
Director EO, Examinations
Addendum
Form 886A
Explanation of Items
Schedule No. or Exhibit
Name of Taxpayer Year/Period Ended
Niemoller Foundation 200612
ISSUE
Whether Niemoller Foundation engaged in political intervention.
FACTS
The Niemoller foundation is a private foundation organized exclusively for Charitable, religious and educational purposes within the meaning of 501(c)(3) of the Internal Revenue Code per article 6 -- purpose statement of the articles of incorporation. The articles also included a dissolution statement any assets held by the corporation shall be dedicated to an exempt purpose consistent with those listed within the meaning of section 501(c)(3) of the Internal Revenue code. Their purpose and objective in articles 3 Of the Bylaws shall be to sponsor and organize roundtables and gatherings of religious and community leaders across the U.S. to educate, discuss and raise awareness of issues that impact American Families and American culture.
Article 8, of the bylaws state in Section 1. Limitations on Activities: No substantial part of the activities of this corporation shall be the carrying on of propaganda, or other wise attempting to influence legislation (except as otherwise Provided by Section 501(h) of the Internal Revenue code), and this corporation shall not participate in, or intervene in (including the publishing or distribution of statements), any political campaign on behalf of, or in opposition to, any candidate for public office.
According to the determination letter dated May 11, 2005, Niemoller Foundation was granted upon review of their application for tax exemption, based on the information in the application, an exemption from Federal Income Tax under section 501(c)(3) of the Internal Revenue Code. Contributions are deductible under section 170 of the code. The foundation classified as a private operating foundation described in section 4942(j)(3) of the code.
Niemoller Foundation funded several Pastor Conferences in the year 2006. The itineraries, schedules, programs, records, printed materials all distributed materials were requested for review to determine if the organization funded any interventions in political activity. Niemoller Provided the items requested to the extent that the Niemoller Foundation had the items in their possession. Some of the items requested were not provided because they were not items that Niemoller Foundation kept a copy of record of. therefore Niemoller Foundation did not have the item to provide for review.
The Niemoller Foundation was reviewed for possible engaging in political activities. Niemoller was reviewed because of the speeches of politicians at the conferences held and funded by Niemoller Foundation and the messages promoted concerning same sex marriages and other similar issues at the conferences. In a letter to the service, the organization was accused of Intervening in political activity and using exempt funds to get churches to assist in the re-election campaign of Governor Rick Perry in 2006. In the same letter, the organization was accused of distributing materials to inform members how to vote on the Florida Marriage Amendment. The Niemoller Foundation was reviewed and all of the materials provided were reviewed. In one of the materials provided, the copy of an audio visual compact disk of some of the speeches from the pastor conferences, a speech made comparing civil rights to gay right was reviewed. The speaker did not state anything would have been considered political or request any action of the attendees to vote for or against any legislature. In the speeches provided, no political intervention type activity was noted. Several other speeches by politicians were provided and reviewed, the speeches did not appear to be made in their capacity as a candidate, since no solicitation was made for a vote. Also no appeal was made to sway anyone on any issues. The speeches did not appear to be political intervention. An appeal was made to request attendees to vote and to request their members to register and vote but in each instance observed they were told to vote their values.
The Neimoller Foundation was accused of attempting to influence the outcome of an election on a state constitutional amendment barring same-sex marriages and civil unions in Texas. Attempts were alleged by the distribution at Texas Restoration Project event in which a CD-Rom from the Texas Marriage Alliance PAC supposedly in support of the proposed marriage amendment. The Niemoller Foundation provided no copy of that CD-Rom in the materials requested and stated they would provide a copy of what the foundation distributed. Niemoller stated they did not distribute the CD-Rom and no proof to the contrary was found.
In the review of the Niemoller Foundation restoration project-pastor conference, several voter registration drives were conducted, however no evidence of attempts to influence legislation or support candidates was noted in the material provided for review. A pastor conference held in Texas by the Texas restoration project was called a pre-inaugural dinner by the program committee. Reviews of the activities of the event proved the event was a pastoral conference held in the same manner as the other conferences and was not a dinner for Governor Rick Perry. The Foundation stated the name, "pre-inaugural dinner," for the event was references to the timing of the event.
LAW
Internal Revenue Section 501(c)(3), states no substantial part of the activities of which is carrying on propaganda or otherwise attempting to influence legislation, and does not participate in, or intervene in (including publishing or distributing of statements) any political campaign on behalf of (or in opposition to) any candidate for public office.
TAXPAYER'S POSITION
We strive to provide the resources necessary for churches to educate their members on the moral issues facing our society and encourage them to participate in the democratic process.
GOVERNMENT'S POSITION
No evidence of political intervention was noted from the items available for review. The topics of some of the speeches and names used for some of the events appeared to foster political intervention, however did not prove to be. Naming an event pre inaugural dinner implied political intervention, but was not proved to be intervention. Caution should be exercised to refrain from attempts to influence legislature or intervene in political activity.
CONCLUSION
Since no political intervention or attempts to influence legislature was proved on behalf of the Niemoller Foundation, the organization continues 501(c)(3) status. This advisory is sufficient to remedy the concerns notated in the review of the Foundation.
- AuthorsLough, Sunita B.
- Institutional AuthorsInternal Revenue Service
- Code Sections
- Subject Area/Tax Topics
- Jurisdictions
- LanguageEnglish
- Tax Analysts Document NumberDoc 2009-11299
- Tax Analysts Electronic Citation2009 TNT 94-25