NY Tax-Exempt Organizations Run Afoul of IRS

This story came out a couple of weeks ago, and we’ve been meaning to mention it. Federal law prohibits nonprofits classified as 501 (c) 3 organizations from making political donations or participating in campaigns. Those that do risk losing their tax-exempt status. According to the New York Times, this seems to be happening quite often in New York.

A review of campaign-finance and federal tax records shows that at least 81 tax-exempt charities have given contributions to legislative candidates since 2005, with some organizations giving more than once to multiple candidates. While the amounts were not eye-popping, the contributions often flowed to lawmakers who helped the charities secure state money. The donations — by museums, churches, hospitals, even Little Leagues and soccer clubs — underscore the lack of oversight of lawmakers’ fund-raising practices in the state.

One wonders if these reviews are guided in part by politics and political affiliation. It would be interesting to research the political identities of the recipients. A word to the wise to tax-exempt New York arts organizations.