IRS Employee: Foreign Nationals can legally donate to 501(c)(4)s

[jacobin]

Many people have claimed that foreign nationals cannot donate to a 501(c)(4). I asked numerous times to link to a law that says this. I was directed to an FEC website (http://www.fec.gov/pages/brochures/foreign.shtml) that in my understanding allowed foreign nationals to donate to (c)(4)s.

Earlier I spoke with an IRS employee and asked her this question. Her first response was "I don't see why". After a few minutes of research, IRS employee Mitchell (ID #1718878) confirmed that foreign nationals are legally allowed to contribute to 501(c)(4)s.

You can reach the IRS help desk for tax exempt organizations at: 877-829-5500

Mitchell also confirmed that it is legally allowable to accept donations to organize and pay for a 501(c)(4).

I hope this clears up a lot of confusion and misinformation. It is also great news as now the whole world is allowed to donate to our political causes via 501(c)(4)s.

[Mark]

Many people have claimed that foreign nationals cannot donate to a 501(c)(4). I asked numerous times to link to a law that says this. I was directed to an FEC website (http://www.fec.gov/pages/brochures/foreign.shtml) that in my understanding allowed foreign nationals to donate to (c)(4)s.

Earlier I spoke with an IRS employee and asked her this question. Her first response was "I don't see why". After a few minutes of research, IRS employee Mitchell (ID #1718878) confirmed that foreign nationals are legally allowed to contribute to 501(c)(4)s.

You can reach the IRS help desk for tax exempt organizations at: 877-829-5500

Mitchell also confirmed that it is legally allowable to accept donations to organize and pay for a 501(c)(4).

I hope this clears up a lot of confusion and misinformation. It is also great news as now the whole world is allowed to donate to our political causes via 501(c)(4)s.

They can't donate to Politically Oriented 501(c)4's

===============

The Prohibition

The Federal Election Campaign Act (FECA)

prohibits any foreign national from contributing, donating or spending funds
in connection with any federal, state, or local election in the United States, either directly or indirectly.

It is also unlawful to help foreign nationals violate that ban or to solicit, receive or accept contributions or donations from them.

Persons who knowingly and willfully engage in these activities may be subject to fines and/or imprisonment.



.

[jacobin]

I asked her repeatedly and she put me on hold several times to research this issue. I suspected what you said, politically oriented 501(c)(4)s but I assumed the IRS codes all the same as (c)(4) and there is no subset. If what you say is true, it'd make more sense to make a 501(c)(29) -- yes there are 27 other subsets beyond (c)(4) -- a politically active 501(c)(4).

If the NRA can receive donations from foreigners and then host events or otherwise indirectly promote candidates that are pro-gun, then how is that possible?

The FEC information below seems to support the fact that they can in fact donate to 501(c)(4)s--

http://www.fec.gov/pages/brochures/foreign.shtml


Despite the general prohibition on foreign national contributions and donations, foreign nationals may lawfully engage in political activity that is not connected with any election to political office at the federal, state, or local levels. The FEC has clarified such activity with respect to individuals' activities.

In Advisory Opinion 1989-32, the Commission concluded that although foreign nationals could make disbursements solely to influence ballot issues, a foreign national could not contribute to a ballot committee that had coordinated its efforts with a nonfederal candidate's re-election campaign.

In Advisory Opinion 1984-41, the Commission allowed a foreign national to underwrite the broadcast of apolitical ads that attempted to expose the alleged political bias of the media. The Commission found that these ads were not election influencing because they did not mention candidates, political offices, political parties, incumbent federal officeholders or any past or future election. [3]

[jacobin]

I don't mean to debate the nuances, but you still haven't linked to an IRS or FEC website that says foreign nationals cannot donate to politically oriented 501(c)(4)s. Plus 501(c)(4)s can create (c)(3) and work side by side -- it's all about the tax deductible issue and preventing foreigners from donating to campaigns (or PACs).

Please clarify this from the FEC: "foreign nationals may lawfully engage in political activity" vs what you just wrote "They can't donate to Politically Oriented 501(c)4's". Clearly either you or the FEC is wrong.

I don't know what constitutes promoting ballot issues and highlighting key issues by pointing out the people who support them vs indirect campaign support.

And please before you answer, research original sources to be accurate.

[jacobin]

?

any clarification?