An excellent question from satirist:
On its website, ROCK claims to be a 501(c)(3) organization. A question maybe our friends at the Tribune can answer: At what point does ROCK's political activities make it a taxable organization?
As we've noted previously, ROCK makes no bones about it:
ROCK is a non-profit organization that exists to defend and sustain the Judeo-Christian principles upon which our country was founded.
Maybe the Tribune should ask. maybe one of nine council persons who swallowed the theocratic medicine without a discernable whimper might, too.
I guess that makes it our job.
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18 comments:
It would be a very good answer indeed. I know that in the clinics non-profit status I am strictly forbidden from taking part in political processes that could affect the clinic!
(any actions that would appear to be lobbying, etc...)
I doubt ROCK donors are eager to amend their tax returns. However, if ROCK is a political organization, my understanding is that donors cannot receive deductions for their contributions. Whether or not you agree with their message, I don’t think all taxpayers should be forced to subsidize it.
From the IRS website:
Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.
I think the bottom line is that ROCK can advocate an issue. However, if they even think about getting involved in an election, in any way, the IRS will be on.
Wasn't this the big issue with the Prop (h)8 and the Church of the LDS?
For a long time now, people in and out of 501(c)3's have misunderstood the nature of the threat to tax-exempt status that could result from political action.
Many 501(c)3's explicitly espouse Education and education of the public as one of their principles. To advocate by educating and otherwise providing information to public bodies, these organizations do not threaten their tax-exempt status.
Tax-exempt organizations like the ACLU have established separate foundations to explicitly lobby for policies. You can bet that the ACLU has been challenged on what is and what isn't political activity, and have taken care to separate those activities.
There's absolutely nothing to prevent ROCK or any other non-profit from establishing and funding a separate political arm. The fact that ROCK is almost exclusively made up of people who live outside New Albany would not prevent them from engaging in partisan candidate-supporting activity in any election cycle.
The most disturbing point made in this thread, however, is John Gonder's assertion that speaking in opposition to the ordinance would have made no difference in any case. He may be right, but it's still disturbing.
This is taken verbatim from the IRS Web site:
In general, no organization may qualify for section 501(c)(3) status if a substantial part of its activities is attempting to influence legislation (commonly known as lobbying). A 501(c)(3) organization may engage in some lobbying, but too much lobbying activity risks loss of tax-exempt status.
Legislation includes action by Congress, any state legislature, any local council, or similar governing body, with respect to acts, bills, resolutions, or similar items (such as legislative confirmation of appointive office), or by the public in referendum, ballot initiative, constitutional amendment, or similar procedure. It does not include actions by executive, judicial, or administrative bodies.
An organization will be regarded as attempting to influence legislation if it contacts, or urges the public to contact, members or employees of a legislative body for the purpose of proposing, supporting, or opposing legislation, or if the organization advocates the adoption or rejection of legislation.
Organizations may, however, involve themselves in issues of public policy without the activity being considered as lobbying. For example, organizations may conduct educational meetings, prepare and distribute educational materials, or otherwise consider public policy issues in an educational manner without jeopardizing their tax-exempt status.
You make the call.
The measurement by the IRS involves a judgment call as to what proportion of a group's activity is "lobbying." Too much, and the tax-exemption is kaput.
Whether an organization’s attempts to influence legislation, i.e., lobbying, constitute a substantial part of its overall activities is determined on the basis of all the pertinent facts and circumstances in each case. The IRS considers a variety of factors, including the time devoted (by both compensated and volunteer workers) and the expenditures devoted by the organization to the activity, when determining whether the lobbying activity is substantial.
Under the substantial part test, an organization that conducts excessive lobbying in any taxable year may lose its tax-exempt status, resulting in all of its income being subject to tax. In addition, section 501(c)(3) organizations that lose their tax-exempt status due to excessive lobbying, other than churches and private foundations, are subject to an excise tax equal to five percent of their lobbying expenditures for the year in which they cease to qualify for exemption.
Further, a tax equal to five percent of the lobbying expenditures for the year may be imposed against organization managers, jointly and severally, who agree to the making of such expenditures knowing that the expenditures would likely result in the loss of tax-exempt status.
Private foundations are subject to a different set of taxes on their lobbying expenditures; churches are not subject to excise taxes on excessive lobbying.
Sounds like a lot of sour grapes for a group that can actually get things accomplished. They are organized and focused, even if it is on one issue. Some up start groups in the city could learn from their approach. But, then again, they are passionate about the cause they go after. Just saying...
Daniel Short, what are you saying? Assuming you support ROCK, in this if not all things, are you implying that the rules don't apply to them? That they should not be subject to the proscription against lobbying, or that their tax-exemption should be upheld no matter how much lobbying they do?
If that's not what you're saying, please explain the "sour grapes" comment.
Am I the only one who thinks it appropriate that the Common Council of the City of New Albany request a copy of Reclaim Our Culture, Kentuckiana's latest Form 990, and make it a part of the record of legislation?
As Mr. Gonder has standing to enter that into the record, perhaps he can make the request.
Unlike most charitable organizations who take donations for which the donor can claim a tax deduction, ROCK does not include its Form 990 on its Web site or otherwise offer to make it available to interested parties.
According to the Kentucky Attorney General's office, ROCK took in and spent in excess of $180,000 in 2007.
Their remarkable organizational skill has been recognized both here and other places. So has their focus. Sex seems to be the only "culture" they care about reclaiming.
When their "topic" was over at each of the meetings, there was a mass exodus for the door. Sure would be nice if some of these activists cared about many of the other cultural problems in New Albany. Of course, it is beginning to look like few of them actually live in New Albany.
Looks like the patrons of the "cabaret" aren't the only ones coming from outside of New Albany to get their jollies.
isnt Jim Kanning at IUS an active member and I believe he actively engages in campus bible studies on university property and on university time, should that be checked into?
I really struggle with this.
The Clarksville XXX place aside, we have an adult bookstore, a massage parlor, and the dancers place in New Albany. We can debate a lot of things about their 'rights to exist' but we all know that none of these places add to the value of New Albany in any constructive ways.
ROCK has shown some organization skill, gotten some programming together, and worked to pass legislation to combat these things. A lot of time, effort, energy, and money will be spent and we may or may not have the book store, the massage parlor, and the strip club when it is all over. The adult industry itself, however, is usually well organized and well funded and has proven to be a formidable foe in many places. Lot of communities ultimately do get rid of these places, but only after years of court battles and millions of dollars spent.
Is this battle where we want money to go?
While I do not like seeing these things in town, I don't see them as the largest problem we have as a community. I know that I sound like a broken record, but the greatest problem downtown New Albany has is a growing poverty rate. Another church came to us for assistance in setting up a Clothes Closet (hooray!) and the Soup Kitchens are increasingly crowded. Our building was packed on Saturday for a local health fair where people came in droves to have their eyes examined, have a meal, and get a hair cut for free. While I am incredibly proud of the people of St. Marks for this huge effort, and it was a huge effort, the thought that we are spending tax dollars and donations to fight the sex industry when people are so impoverished in our very town is very unsettling to me.
Just a brief comment, John. You mention the "book store" as part of the sex industry. Since we came here, we've had to: a) persuade people we weren't the sex shop which everyone keeps calling a bookstore - it's a DVD store!, and b) persuade people we weren't a religious bookstore.
When even friends keep calling one business a "book store" downtown, it doesn't make our job of providing a full-service, community-building part of the cultural community any easier. We're reclaiming a culture here, too...one where freedom of expression coexists with the sacred and the secular, the liberal and the conservative, children's and adult.
EDITORS: Send me a bill if that constitutes a commercial announcement.
Mr. Bookseller, what I am saying is take a page from ROCK and organize accordingly. Their issue is the sex industry, period. They get more accomplished that way. What is your main focus, your passion for change? My suggestion is pick the top one or two and focus like a laser beam. This may not be the ideal way to turn around the downtown area, but the results cannot be denied.
Ouch, let me rephrase that. We have a very fine book dealer downtown and we have a porn shop. One is a great asset to the community and one is a liability.
I just hate the fact that valuable dollars that can actually change life in New Albany are being used to fight that liability. I guess I can tolerate the existence of a sex shop more than I can hungry people.
AFAIK, EW, the Bible studies are led by the Christian Student Fellowship, a student group.
I personally do not agree with "sex shops", whether in book form, dvd, or "live shows", How ever that does not make me believe that my feelings towards such establishments supercedes the right of the owners to have them, or other consenting adults to patron such places.
I do think that controls should be in place as far as WHERE they can operate.
My life hass not changed one single bit with the rustic frog going to a ***ty bar. And I do not feel that my 16 year old daughter has been endangered, or bent on perverted self destruction.
Live and let live....
My rights to choose not to go to a place like that is no greater than the rights of persons who would choose to do so.
I agree with John's comments--much money can be wasted in court battles that could be well spent elsewhere, solving our community's problems. But I do believe the 'adult industry' in New Albany needs serious oversight. Human trafficking does happen, and it happens in places like strip bars and massage parlors.
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