New Georgia Project and New Georgia Project Action Fund both have admitted to political activity contrary to their status as nonprofits in a legal case
Washington D.C. --- February 5, 2025 --- Today, the non-partisan ethics watchdog the Foundation for Accountability and Civic Trust (FACT) filed a complaint urging the IRS to take action against two affiliated organizations: New Georgia Project and New Georgia Project Action Fund, both having admitted to political activity contrary to their status as nonprofit organizations.
In 2013, Stacey Abrams founded the New Georgia Project to engage in voter registration activities, and now-Senator Raphael Warnock led it from 2017 to January 2020. New Georgia Project was incorporated in 2017 as a tax-exempt organization under Internal Revenue Code section 501(c)(3), and thus cannot engage in any political activity in order to be eligible for nonprofit status. New Georgia Project’s affiliated organization, New Georgia Project Action Fund also claims tax-exempt status under section 501(c)(4), meaning the organization cannot have political activity be its primary activity.
In a case before the Georgia State Ethics Commission, it was recently established that the New Georgia Project and its Action Fund engaged in political activity including campaign activity for Stacey Abrams during her 2018 gubernatorial campaign and other candidates.
The Georgia State Ethics Commission found, and New Georgia Project and its Action Fund admitted, that they engaged in political activity and in doing so violated numerous state laws. This included that they were an independent committee, because they raised and spent funds for a political candidate, and they failed to register as such. Both organizations continued to raise and spend unreported and unregulated funds to influence the election for Abrams and other statewide candidates.
New Georgia Project and its Action Fund failed to disclose $4,216,783.07 in campaign contributions and $3,200,449 in campaign expenditures during the 2018 election cycle. Ultimately, New Georgia Project and its Action Fund stated the findings, and legal conclusions were true and agreed to pay a $300,000 fine.
“New Georgia Project and its Action Fund have admitted to political activity --- and their actions must have federal consequences. Federal law is very clear and strict in that when an organization receives the benefits of nonprofit status, those running it are absolutely prohibited from using it as a political campaign organization. This is a straightforward case because the nonprofits admitted to raising and spending millions of dollars for campaigns. Thus we have requested the IRS take action, investigate this matter, and if appropriate revoke the organizations’ tax-exempt status and impose financial penalties,” said Kendra Arnold, Executive Director of FACT.
A full copy of the complaint can be found HERE.
FACT is a nonprofit organization dedicated to promoting accountability, ethics, and transparency in government and civic arenas. For more on FACT, visit http://www.factdc.org/
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