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Ethics Group Asks IRS To Change Rule on Political Activity of Nonprofits

The Citizens for Responsibility and Ethics in Washington (CREW) has filed a rulemaking petition with the Internal Revenue Service seeking to amend the rules that permit 501(c)(4) nonprofit groups with a “primary purpose” of promoting social welfare to engage in electoral activities. Some of these groups claim the current rules permit them to spend 49 percent of their funds on electoral activity and still keep their donors secret as a nonprofit. CREW seeks a rule that 501(c)(4) groups must be operated “exclusively” for social welfare purposes in order to maintain their nonprofit status.

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