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Obama Group Runs Afoul of IRS Rules, Its Own Promise

By Organizing for Democrats.

9:26 AM, Feb 8, 2013 • By JERYL BIER
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Obama for America continued its metamorphosis this week into Organizing for Action (OFA), an independent organization that will advocate for various "progressive" causes, including immigration reform and gun control. The BarackObama.com website, home of the presidential campaign of Barack Obama, has been changing as well, but the transition has not been without its missteps.

The latest problem involves a local event (actually a series of events) posted on the site as a “Day of Action” to collect signatures for Democrat Terry McAuliffe to get the former chairman of the DNC on the ballot for governor of Virginia:

At the bottom of the page is the new footer which has replaced the "Paid for by Obama for America" that used to mark each page on the website:

However, under the rules governing 501(c)(4) "social welfare" organizations, which is what Organizing for Action is according to its "About" page, such activity on behalf of a candidate or political campaign is prohibited. IRS rules state:

The promotion of social welfare does not include direct or indirect participation or intervention in political campaigns on behalf of or in opposition to any candidate for public office.

As noted above in the event listing, the host for the event is John Heflin, who appears to be an intern for the Terry McAuliffe for Governor campaign, and previously worked for the Presidential Inaugural Committee, and the Wisconsin branch of the Obama for America campaign.

Even if Organizing for Action does not have a pre-screening process for the listing of such events, this posting has been on the site for more than two day without being caught.  

This is not the first time Organizing for Action has run afoul of 501(c)(4) IRS regulations.  Two weeks ago, before OFA suspended its donations page, at least two emails when out, one from the president himself and one from Vice President Biden.  Both emails were labeled as "Paid for by Organizing for Action," and yet the links in the email took recipients to the BarackObama.com website where donations were still be accepted for the Obama Victory Fund to pay off campaign debt. (As of 12/31/12, the Obama campaign was still reporting debt of almost $6 million.)  While the president was not a "candidate" at the point the donations were being solicited, at least the spirit of the IRS rules were being violated if not the letter.

Ironically, Politico is running a story today titled, "New Obama group Organizing for Action says it’s non-partisan" [emphasis added]:

President Barack Obama’s new nonprofit Organizing for Action insists that promoting the White House’s legislative agenda can’t be counted as “partisan political activity.”

The organization on Wednesday quietly posted new guidelines on its website formally declaring its intention to stay out of campaign politics.

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