Several groups that organized people to disrupt Judge Brett Kavanaugh’s Supreme Court confirmation hearings could be at risk of being stripped of their tax-exempt status for violating Internal Revenue Service rules, based on a review of the agency’s applicable rules.
The groups encouraged protesters to commit acts of civil disobedience by disrupting the hearings. The IRS prohibits giving tax-exempt status to organizations that plan or encourage illegal activities, which, in past practice, included civil disobedience.
Over 200 people were arrested during the four days of hearings, held Sept. 4 to 7, for disrupting the hearings. They were organized by Women’s March and Center for Popular Democracy Action (CPDA), both holding 501(c)(4) tax-exempt status as social welfare organizations, as well as Housing Works, which holds the 501(c)(3) tax-exempt status reserved for charitable organizations.
It gives two options: “CD participant!” and “Providing support onsite, but not getting arrested.”
IRS Rules
“Not only is the actual conduct of illegal activities inconsistent with exemption, but the planning and sponsoring of such activities are also incompatible with charity and social welfare,” a 1985 IRS document stated (pdf).The document cites a previous IRS ruling, which stated that an organization “that planned and sponsored protest demonstrations at which members were urged to commit acts of civil disobedience did not qualify for IRC 501(c)(3) or (4) exemption.”
In fact, the organizations that planned the hearing disruptions violated IRS rules even before the protests took place, according to the document.
No Sign of Stopping
On Sept. 17, the three groups held a conference call where they encouraged activists to continue “civil disobedience” as well as an intent to “shut down” the Sept. 24 Senate Judiciary Committee meeting, according to The Daily Caller News Foundation, which reported Sept. 20 that it listened in on the call.The groups plan to continue to cover the fines.
Money Trail
CPDA’s Walker said the group crowdfunded the money used to cover fines for the hearing disruptors. The estimated $10,000 in bail money would hardly set the group back though. Progressive billionaire George Soros alone has given the CPDA Fund over $900,000 since 2016 and about another $1.3 million to its sister organization, CPD, since 2014. Its other major contributors included the Ford and Wyss foundations (pdf).The CPDA, Women’s March, and Housing Works, as well as the IRS, didn’t respond to requests for comment.