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Wednesday, October 21, 2015

Is an Inauguration A Political Non-Partisan Campaign Event?

The Restriction of Political Campaign Intervention by Section 501(c)(3) Tax-Exempt Organizations

Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.  Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. 
Certain activities or expenditures may not be prohibited depending on the facts and circumstances.  For example, certain voter education activities (including presenting public forums and publishing voter education guides) conducted in a non-partisan manner do not constitute prohibited political campaign activity. In addition, other activities intended to encourage people to participate in the electoral process, such as voter registration and get-out-the-vote drives, would not be prohibited political campaign activity if conducted in a non-partisan manner.
On the other hand, voter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.
Page Last Reviewed or Updated: 06-Jan-2015

How many Morgan County Sheriff's Office employees participated in the Governor's Inauguration Event AKA the Posse which I believe is a Section 501(c)(3) Tax-Exempt business?  How were the employees paid?
Activities and monies associated with the 501(c)(3) must be kept separate from all other Sheriff's Office funds.

Which brings me to a complaint I have heard from a number of prior posse members.  How much money has been deposited in the Posse Account, and where does the money go?  See below the rights of the Posse members to review "All books and records of a corporation may be inspected by any member, director or officer, or his agent or attorney, for any proper purpose at any reasonable time".
Alabama Nonprofit Corporations 
$AC:AREAEX:BacktoAlabama$ OverviewThe AlabamaBusiness and Nonprofit Entity Code (“Entities Code”), ALA. CODE §§10A-1-1.01, et seq., generally governs the formation and governance of all entities, including nonprofit corporations. The Alabama Nonprofit Corporation Law, ALA. CODE §§10A-3-1.01 et seq., specifically governs the formation, operation and dissolution of nonprofit corporations in Alabama (the "Nonprofit Law").  

A nonprofit corporation has an existence of its own, independent of the terms of office or employment of members, directors or officers. It can sue or be sued in its own name and can own real estate in its own name.

Management and ControlThe nonprofit corporation will be run by the directors and managed on a daily basis by the officers.  By law, the directors shall be natural persons but need not be residents of Alabama (unless the governing documents—certificate of formation and bylaws—so require). The number of directors shall be set at first by the certificate of formation and then by the bylaws but shall not be less than three (3).

Recordkeeping, State Reports and State TaxesPursuant to ALA. CODE §10A-3-2.23, each nonprofit corporation shall keep correct and complete books and records of account and shall keep minutes of the proceedings of its members, board of directors and committees having any of the authority of the board of directors; and shall keep at its registered office or principal office in Alabama a record of the names and addresses of its members entitled to vote, directors and officers. All books and records of a corporation may be inspected by any member, director or officer, or his agent or attorney, for any proper purpose at any reasonable time.

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