Maybe the IRS WASN’T Wrong About the Tea Party Groups

[Nimajneb Nilknarf]

24. The whole 501(c)(4) exemption seems problemmatic at its core. Zealots of all stripes have always

justified their political agendas as consistent with or necessary to the promotion of social welfare.

Even if they aren't consciously cheating the system by claiming tax-exempt status, this provision in the tax system attracts people who are able to convince themselves that what they want is in everyone's best interests.

"The National Federal of Associations is a nonprofit organization established to support the Prematurely Balding Senate Caucus in achieving enactment of the national agenda Americans voted for on Election Day. NFA will advocate for these policies throughout the country and will mobilize citizens of all parties and diverse points of view to speak out for speedy passage and effective implementation of this program, including clean water, equality for all and fixing potholes. In addition, NFA will encourage the formation of chapters that will be dedicated at the grassroots level to this program, but also committed to identifying and working progressive change on a range of issues at the state and local level. In carrying its work, NFA will operate as a "social welfare" organization within the meaning of section 501(c)(4) of the Internal Revenue Code. So send us money."

That all sounds noble, albeit vague, so people send them money but really don't have any idea what happens to it. Of course much of it ends up being paid to lobbyists to twist arms in Congress and state legislatures, so the whole thing is political at its roots. The money that doesn't go toward lobbying pays the staff of the organization. So they all profit even though the organization itself shows a flat bottom line.