Abuse of Power Comes for Nonprofits

It’s really easy to get suckered into the cultural meme war that Trump and his cronies like to play. Whether it’s Pope Trump or Jedi Trump, it’s all a nonsensical distraction that isn’t worth your time. The same goes for most things that Trump says, like putting tariffs on movies or reopening Alcatraz. Are either of these even feasible? Probably not, but it makes for good social content, and that’s all that matters anymore.

Everything Trump does, whether willingly or prompted, is a distraction to hide what is happening behind the scenes: the people currently in power do not understand their jobs but are using them to squash political rivals, and they don’t care if they take the Constitution and our rights down along the way.

Take, for example, the DC prosecutor threatening Wikipedia’s tax exemption. In exclusive reporting from The Free Press, Ed Martin is questioning Wikipedia’s 501(c)(3) tax exemption. He sent a letter to the organization’s DC-based office with a list of demands questions he wants answered by mid-May. Among them is a threat based on “spread[ing] propaganda:”

It has come to my attention that the Wikimedia Foundation, through its wholly owned subsidiary Wikipedia, is allowing foreign actors to manipulate information and spread propaganda to the American public. … Masking propaganda that influences public opinion under the guise of providing informational material is antithetical to Wikimedia’s “educational” mission.

There are a lot of things wrong with all of this, which we’ll get to in a moment. But first, let me tell you a little about my life outside the Internet. I’m an executive at a tax and compliance consulting firm that works exclusively with nonprofit organizations nationwide. I know a bit about this stuff, and nowhere in the 501(c)(3) code is there anything defining education.

Martin’s claim that a 501(c)(3) cannot promote the interests of other countries under the “guise” of education is frankly laughable. Do you know how many nonprofit organizations exist to spread cultural education about foreign countries?

A 501(c)(3) nonprofit is a tax designation that the IRS issues to charitable organizations. These nonprofits must meet the IRS’s (c)(3) requirements, which it defines as such:

The exempt purposes set forth in section 501(c)(3) are charitable, religious, educational, scientific, literary, testing for public safety, fostering national or international amateur sports competition, and preventing cruelty to children or animals. The term charitable is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

Nowhere does the IRS define educational purposes as those that only serve American interests. Martin’s posturing shows his isolationist and anti-educational views. However, his letter doesn’t stop there; Martin also seems to be afraid of foreign persons serving on the Wikipedia Board of Directors:

In addition, Wikipedia’s operations are directed by its board that is composed primarily of foreign nationals, subverting the interests of American taxpayers. Again, educational content is directionally neutral; but information received by my Office demonstrates that Wikipedia’s informational management policies benefit foreign powers.

Here, again, Martin is intentionally misinformed. The IRS requires that public charities like Wikipedia have at least three (3) board members, with the majority being unrelated. The main requirement is that board members not receive an inurement (profit or personal benefit) from the organization. Nowhere does the IRS require that the majority of any nonprofit board be US citizens (or even live in the country). Many nonprofit organizations operate internationally and have board members to represent the interests of those communities.

Martin’s letter to Wikipedia is a gross abuse of power. Even if Wikipedia were in violation of the IRS’s tax exemption requirements (it’s not), the IRS would audit and intervene. In the worst case, the organization would lose tax exemption and have to pay corporate taxes moving forward. While this would be a massive financial problem for most organizations, it is not a criminal act. In no world would such a violation fall under Martin’s jurisdiction.

Martin is grandstanding way out of his league to score political points while attempting to squash freely available education. And, unfortunately, he’s setting a very dangerous precedent.

A politically motivated prosecutor trying to jump their station can “just ask questions” and waste people’s time and money dealing with fake legal challenges. Further, Martin’s act threatens all nonprofits that might offer education that the current administration doesn’t align with (all of it).

Nonprofits are run by hardworking, passionate people who are part of a $1.4 trillion industry that makes up 5.2% of the US GDP. These organizations prop up the US economy by providing vital services in every community that the government does not. But, sure, let’s make them all ascribe to an “America First” loyalty oath despite not having a single such requirement in the tax code.

As long as the administration continues to abuse its power, we can expect more Trump memes and distractions. Don’t fall for it. Pay attention to what is really happening and respond accordingly. If you can, donate time or money to the nonprofits doing excellent work in your community. Trust me, they could use your support.