Tax-Exempt Nonprofits Bend Rules to Boost Democratic Turnout

While Democrats like Sen. Sheldon ⁤Whitehouse warn of “right-wing dark-money networks seeking to undermine the⁤ future of democratic elections ⁢in the United States,” progressives have surpassed Republicans in utilizing supposedly nonpartisan nonprofit ⁣organizations⁢ to win elections.

According to data⁤ compiled by Restoration of America, a conservative political action committee, over 150 progressive nonprofits spent $1.35⁤ billion on political activities ‍in 2021 and 2022. ⁢While there are ⁣no readily available‌ estimates of comparable conservative efforts, experts⁢ believe⁤ they are outmatched.

“The liberal nonprofit sector is much larger than the conservative ⁢nonprofit in the⁣ political arena,”​ said Bradley Smith, founder⁤ of the conservative Institute for Free Speech and former commissioner with the Federal Election Commission.

Progressive‌ activist nonprofits include faith-based groups, ethnic activist operatives, and colleges and universities, which play​ a significant role in the Democratic Party’s election strategy.

These⁣ groups navigate legal restrictions on nonprofits that accept tax-deductible‌ donations ⁤by selectively‍ engaging in nonpartisan efforts such as voter education and participation.

However, much of the funding, like the $332 ‌million donated by⁢ Meta CEO Mark Zuckerberg and his⁤ wife Priscilla Chan to public‌ elections offices for​ the 2020 elections, ends up in the hands of groups operating in liberal strongholds and‌ working with ​reliably⁤ Democratic constituencies.

This is how influential groups like the Voter Participation Center and the Center for Voter‌ Information boost Democrat⁢ turnout. Their mission is ⁤to encourage voting among specific demographics, such as⁤ young people, ⁣people of color, and unmarried women, who are key constituents of the Democratic Party. Research from Nonprofit Vote shows that engaging these groups through nonprofits increases their likelihood of ‍voting by up⁢ to ⁢two-and-a-half times.

The importance of these groups was evident when the Biden administration ‍met with⁢ leading progressive operators, including Democracy Fund, Fair Elections Center, FairVote, the Southern Poverty Law Center, Al Sharpton’s National Action Network, and the George Soros-backed Open Society Policy Center, to discuss ⁣expanding‍ citizens’‍ opportunities to register to vote.

Nonprofit allies​ of the Democratic Party ⁢also echo their stance on issues like climate change and⁤ voting procedures. For example, the‍ Fair Elections Center refers to those who question the outcome of the 2020 presidential race as “election deniers” who oppose the right to vote. This aligns‍ with President Biden’s statements on the matter.

Significant funding for these voting activist operations comes from the same sources that ⁢contribute millions of dollars to Democratic and progressive campaigns.

Some of these sources include:

The Tides ​Foundation,‌ which had⁢ $1 billion in ​revenue in 2020, funds the moveon.org PAC and supports the ‍Voter Registration Project, League of Women Voters, and Project Vote. The foundation is affiliated with other Tides ‍nonprofits that advocate for causes such ‍as abortion ‍rights, gun control, and “equity.” It is also a partner ‍of⁣ Black Lives Matter.

New⁣ Venture Fund, formerly known as Arabella Legacy ⁤Fund, advocates for ⁤progressive causes, including election laws, in 41 states. In 2020, it disbursed nearly $500 million for issues like racial ⁤justice. A civil rights​ lawsuit ‍filed by a former employee ⁣alleges ‌that New Venture engaged in prohibited partisan political activity, although this is ​disputed by the organization.

New Venture: Empowering Progressive Voting Groups

The Silicon Valley Community Foundation has ‌been ​a major financial supporter of progressive voting groups such as American ⁣Votes, NAACP National Voter ‌Fund, and Fair Elections Center. ⁤Since 2020, they ‍have granted a staggering $106 ‍million to nonprofits dedicated to voter education and turnout.

These grants, facilitated by‌ Zuckerberg’s millions, have been instrumental in supporting public ​elections offices across the United States. Additionally, the foundation has donated funds to organizations like Planned Parenthood and Democracy Now, while⁢ its employees have⁣ exclusively⁢ contributed to Democratic candidates.

Over the past decade, there has been a ​significant increase in the number and funding of ‍electorally active progressive nonprofits. These organizations⁢ have taken on the role of engaging voters,‍ replacing ⁢the traditional efforts‌ of political campaigns.

This shift can be attributed to a⁣ changing political landscape, as Sasha Issenberg,⁤ author of The Victory Lab: The Secret Science of Winning Campaigns, explains. This transformation has been driven by the use of micro-analytics and social science in voter targeting, initially dominated by Republicans and later refined by Democrats. Younger individuals with a collectivist mindset have played a crucial ⁢role in this refinement.

“When you ‍had this era​ of innovation on the left,‍ it set upon a culture that was already in place and wanted to perfect this idea.” – Sasha Issenberg

Progressive voter groups have adeptly navigated tax rules, allowing 501(c)(3) ⁤nonprofits to engage in voter participation and get-out-the-vote drives, as long as they do not directly benefit⁤ a‌ political party.

These ⁢groups possess valuable voter and demographic data, along with experienced community organizers.‍ Erick Kaardal, a Minneapolis-based attorney, acknowledges their legal compliance and contrasts​ it with the challenges faced by conservative nonprofits. He emphasizes the‌ significant​ resources ‌that progressives have invested in building a well-oiled⁣ machine that operates⁣ within the bounds ⁤of the law.

Today, tax-exempt entities are at the‍ forefront of voter registration and ​engagement efforts,⁢ advocating for positions aligned with leading elected ​Democratic officials.

A Leftward Disparate Impact

As a result, seemingly neutral⁢ efforts have a disparate impact that⁢ favors Democrats over⁣ Republicans. Ryan Williamson, co-author of Nationalized ​Politics: Evaluating Electoral Politics ⁣Across Time, highlights the importance‍ of reaching every constituent ⁣equally to avoid disproportionate effects.

The proliferation of nonprofits funding voter registration‍ can be ‌traced back to the Obama campaign in 2008. This strategy has been‍ successful for‌ Democrats, who have consistently outperformed historical expectations in national ‌elections.

Arabella Legacy Fund, founded in 2008, played a significant role in this proliferation. It⁣ later transformed into the New Venture ⁢Fund, providing substantial funding to voting nonprofits. Arabella Advisors, a ‍for-profit entity, now handles strategy and management⁣ for⁢ New Venture and other partisan nonprofit enterprises.

Progressives view​ the creation and ‌funding of⁣ nonprofits as a core Democratic Party strategy. Their aim is to build a new⁤ American majority, encompassing ‍people of color, women, students, ⁤and the ​LGBTQ+ community. Ned Jones, deputy director ​of the conservative Election Integrity Network, acknowledges the effectiveness of this strategy and highlights the lack of funding, ⁣structure, and system on the opposing team.

This article is ‌an exploration of how tax-exempt nonprofits navigate the U.S. ‍tax code to support ⁤Democratic ​voter turnout.

Engaging Paraphrase:

Get ready for an exciting ‍election day! We have some fascinating insights to share with you, courtesy of RealClearInvestigations. So,​ grab ⁢a cup of coffee and let’s dive into the details.

⁤Do nonprofit ⁣organizations, ‌particularly ⁤progressive ones, have a partisan agenda that influences⁢ elections in favor of a specific political party?

The law.

However, critics argue that ‍these progressive nonprofit organizations, despite claiming to be nonpartisan, ⁣are simply​ extensions of the Democratic Party. They argue that the vast funding and ‍support they receive from liberal donors and their alignment with Democratic Party objectives make it clear that their ultimate goal is to influence elections in ​favor of the Democratic‌ Party.

Conservative nonprofit organizations, on the ‍other hand, face ⁣more scrutiny and regulatory challenges. Bradley Smith points out that conservative nonprofits often face accusations of violating⁤ the tax-exempt status rules and engaging in partisan political activities. The ‌perception that conservative organizations are engaged in “dark money”‍ operations further adds to the challenges they face.

Despite these ​challenges, conservative nonprofits still ‌play a significant​ role in elections. The National Rifle Association (NRA) is one prominent example of⁣ a conservative nonprofit that has successfully⁢ influenced elections through its political ​advocacy⁤ and ⁣membership mobilization efforts.

It is important to‍ note that the influence of nonprofit organizations‌ in⁢ elections is not limited to funding and​ partisan activities. These organizations ‌also contribute⁢ to shaping the political discourse and promoting specific ⁣policy agendas. They can raise awareness about certain issues‍ and advocate for legislative changes, ‍effectively influencing public opinion and political⁤ decision-making.

The increasing role of nonprofit organizations in ‍elections raises important ‌questions about transparency and accountability. Critics argue that the vast amount of money flowing⁣ through these⁤ organizations, ⁤often from undisclosed sources,‌ erodes the transparency ​of⁣ the electoral process. They argue that ⁤voters have a right to know who is funding ⁢the campaigns and‌ initiatives they⁢ support.

Efforts have been⁣ made‌ to increase ‌transparency ​in‌ campaign financing, such⁢ as the⁤ requirement for‍ political‍ organizations to disclose their donors. However, ‍these regulations often have loopholes that allow ‌nonprofit organizations to‌ avoid disclosing their contributors.

As the influence of nonprofit organizations in elections grows, it becomes crucial to have a comprehensive and ‍transparent framework to ensure that⁤ the ⁢electoral process remains fair and free from undue ⁣influence. Striking​ the right balance between allowing nonprofits to engage in political activities‍ and preventing the ⁣abuse of tax-exempt‌ status is a challenge that policymakers must address.

In conclusion, nonprofit organizations, both progressive and conservative,‍ have become​ key players in the electoral landscape.‌ While progressive‌ nonprofits ⁤have surpassed‌ conservatives in ⁤terms of funding and utilization of these organizations for their election strategies, conservatives ⁣still play a significant role.​ The influence of ‌nonprofit organizations ‍in elections⁢ goes beyond financial​ contributions and includes shaping political discourse​ and promoting​ specific policy agendas. However, the​ growing influence of nonprofit organizations raises concerns about transparency and accountability, necessitating the development of ⁤comprehensive regulations to ensure a fair and transparent ​electoral‍ process.