Loophole: Questions about the 501(c) Tax Exemption for Certain Right-Wing Groups

In the last post, we then asked how the political organization can claim a 501(c)(3) tax exempt status when it is clearly engaged in influencing legislation. 

We’ll now look at the larger issue of the abuse of the loophole by a plethora of right wing groups.

Questions from an Unexpected Source

Not long ago, questions about the misuse of the 501(c)(3) status was brought up by the right wing news site, The Daily Caller, against media watchdog Media Matters for America (MMfA). For some time, Fox News and Media Matters have been at war and clearly, the right wing was willing to try any means to attack the opposition.

The conservative blog, The Daily Caller was founded a couple of years ago by journalist and political pundit Tucker Carlson and Neil Patel, former adviser to former Vice President Dick Cheney. The site decided to take up this question, asking whether Media Matters should qualify for a tax exemption. The question was based on allegations that the organization was privately sharing information with President Barack Obama’s staff. 

What was very interesting was the cool reception. There’s a very good reason for this too. It’s really the right wing’s weakest link. As one source noted:

I had a conversation the other day with a well known conservative who runs a 501(c)(3). His take is that anything used against Media Matters would likely then be turned on similar conservative organizations. In other words, this may be a new front in the political war that we don’t want to open at this point.

Meaning: we won't open this can of worms until we have attained power or until the organizations on the left begin doing it more successfully.