Friends of the Capital Crescent Trail has filed another lawsuit in an effort to stop the Purple Line. They've done a lot of that, but not much else that I can see. Mostly they've been arguing that the Purple Line Project isn't following the rules, and they get pretty far in the weeds on that. But what's good for the goose as they say.
FOCCT is a 501(c)(3) organization.
To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates.
My first question is are they pursuing exempt purposes?
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.
I'd bet that rule is pretty loosy-goosy, but I don't see which one of those purposes they're serving.
My 2nd question is are they an action organization? They do try to influence legislation, but is it a "substantial part" of its activities?
I suspect they're within the broad range of the rules. But only a full investigation can really be sure.
I'd say file a complaint with the IRS, but they might not get to it anytime soon.
Posted by: Richard B | January 17, 2019 at 12:21 PM
I'm not saying that I agree with anything these self-interested folks are doing, nor do I want WashCycle to curtail its muckraking.
The reality is that they are probably within their rights to do what they are doing, based on what they disclosed in their 990 filing. The great thing about tax-exempts is that there is some paper trail to follow.
From this piece, http://www.actfortransit.org/purple_trail_myth.html it looks like they told the IRS they are a continuation of the Greater Bethesda-Chevy Chase Coalition.
When I searched for a Form 990 filed by that organization, I found this 2016 year-end filing: http://990s.foundationcenter.org/990_pdf_archive/521/521500193/521500193_201612_990EZ.pdf
It describes out friend Ajay Bhatt as the president, and describes their purpose as "Protect and establish parkland and green space."
These are their Program Accomplishments:
28. Public interest litigation to uphold the National Environmental Policy Act and other laws applying to Maryland's Purple Line which would deforest the Georgetown Branch section of the Capital Crescent Trail, clear-cut 48 acres of forest inside the Beltway, and impact the Rock Creek and Anacostia watersheds.
29 Education via website and e-newsletters regarding the value and benefits of the Capital Crescent Trail and green space, the impacts of the Purple Line, and more cost-effective and less harmful alternatives that would preserve the forested Trail for the thousands who use it for recreation or to bike or walk to work and more.
It is noteworthy that they got $84,049 in grants for that year, which because they are tax-exempt, was tax deductible by the contributors.
They also disclosed the lobbying activity they undertook, as required.
Posted by: fongfong | January 17, 2019 at 01:52 PM
https://www.irs.gov/charities-non-profits/irs-complaint-process-tax-exempt-organizations
File a complaint!
Posted by: Zack Rules | January 17, 2019 at 05:10 PM
It looks to me like there's nothing to even hint that they are out of compliance.
I agree with fongfong - you're digging into something you don't quite understand and you should probably stop.
Posted by: NFP | January 18, 2019 at 09:15 AM
A lack of understanding isn't a reason to stop, it is a reason to learn more.
Posted by: Jonathan Krall | January 18, 2019 at 12:49 PM
Per Jonathan, which is why Washy asked and I dug in to get more.
I would point out to NFP that this is just an information tax return that is not indicative of anything regarding whether these folks actually followed their avowed exempt purpose. With unlimited time, I'm sure we could find them taking actions beyond those stated.
Posted by: fongfong | January 18, 2019 at 02:16 PM
But you learn more BEFORE you post an article about it.
Your article was irresponsible.
Posted by: NFP | January 28, 2019 at 03:44 PM