On Jan. 27 the National Association for the Advancement of Colored People (NAACP) declined to respond to a summons from the Internal Revenue Service (IRS) in an audit based on charges of illegal partisan activity. The NAACP said the agency did not follow proper procedures and its actions are politically motivated. The IRS denied its motives are political and referred the allegation to the Treasury Department's Inspector General for Tax Administration. The audit is unusual because it is based on NAACP Chairman Julian Bond's July 2004 convention speech that criticized Bush administration policies.
IRS Clarifies Rules for Foundation Funding for Lobbying
A recent letter from the Internal Revenue Service (IRS) to the Washington, DC-based nonprofit, Charity Lobbying in the Public Interest (CLPI), sheds light on the rules that govern private foundation lobbying. The request from CLPI contained a series of questions aimed at clarifying the law on foundation support of nonprofits that engage in lobbying. The response from the IRS dispels the misperception that foundation funding of nonprofits that lobby is inappropriate and illegal.
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