Sen. Tom Cotton of Arkansas sent a letter to the IRS Tuesday. He is seeking an investigation into the tax-exempt status of the Southern Poverty Law Center (SPLC). In the letter Cotton urges an investigation into whether the SPLC “should retain its classification as a 501(c)(3) nonprofit organization” amid news reports verifying the “long-established fact that the SPLC regularly engages in defamation of its political opponents.”
The Cotton letter asserts, “The business model has paid well… The SPLC has accrued more than $500 million in assets. According to the group’s most recent financial statement, it holds $121 million offshore in non-U.S. equity funds. The SPLC uses these assets to pay its executives lavish salaries far higher than the comparable household average.”
Cotton also references a CNN report that states the organization “suffers from a pervasive racism culture.” Its co-founder, Morris Dees, was recently fired over inner turmoil among its treatment of its workers. Richard Cohen, the group’s president, has also stepped down.
“Based on these reports, and in the interest of protecting taxpayer dollars from a racist and sexist slush fund devoted to defamation, I believe that the SPLC’s conduct warrants a serious and thorough investigation… Engaging in systematic defamation is not a tax-exempt purpose: Federal law requires nonprofits classified as 501(c)(3) organizations to comply with IRS guidelines and have a “tax-exempt purpose,” Cotton writes.
Cotton goes on to speak of the SPLC’s “hate map”, which regularly lists mainstream conservative groups including the Family Research Council, the Alliance for Defending Freedom, and the Center for Immigration Studies alongside actual racist groups such as the Ku Klux Klan.
“The SPLC operates a tax-sheltered slush fund to enrich its leadership: In addition to failing to have a tax-exempt purpose, the SPLC’s peculiar financial situation warrants your attention,” the letter reads. “Federal law prohibits tax-exempt organizations from inuring to the benefit of any private individual. Yet the SPLC has accrued more than $500 million in assets as of October 31, 2018. Reportedly and inexplicably, $121 million of these assets are parked in offshore accounts.”
Cotton finishes by saying its “shady financial practices” have earned the organization an “F” rating from Charity Watch and calling for an investigation into the group after a flood of recent reports. Said more directly: How does any non-profit accumulate half a billion dollars in cash by teaching tolerance? And if it is that good a business model, then why do they need tax payer support? What kind of business are they in?
Ref:
Washington Free Beacon By: Joe Schoffstall @ April 2, 2019
https://freebeacon.com/wp-content/uploads/2019/04/2019-SPLC-Cotton-Letter.pdf
