Exclusive: Tom Cotton Pushes IRS to Investigate Southern Poverty Law Center’s Tax-Exempt Status
Sen. Tom Cotton (R-AR) is pressing the IRS to investigate the tax-exempt status of leftist group Southern Poverty Law Center (SPLC), an organization that has been mired in scandal. Cotton argues that a series of recent reports regarding the leftist group’s patently political activities are troubling, and in a letter to the head of the IRS provided to Breitbart News exclusively ahead of its public release questions whether these actions warrant removal of the group’s status as a nonprofit organization.
“I am writing to urge you to investigate whether the Southern Poverty Law Center (SPLC) should retain its classification as a 501(c)(3) nonprofit organization,” Cotton wrote in the Tuesday letter to IRS Commissioner Charles Rettig. “Recent news reports have confirmed the long-established fact that the SPLC regularly engages in defamation of its political opponents. In fact, the SPLC’s defining characteristic is to fundraise off of defamation.”
Cotton noted in the letter to the IRS commissioner, citing SPLC financial documents, that the leftist organization has made lots of money by targeting conservative groups with allegations that they are hate groups–regardless of the veracity of such allegations. “This business model has paid well. The SPLC has accrued more than $500 million in assets,” Cotton wrote. “According to the group’s most recent financial statement, it holds $121 million offshore in non-U.S. equity funds. The SPLC uses these assets to pay its executives lavish salaries far higher than the comparable household average.” Cotton’s letter cites a number of recent investigative reports by the media into SPLC’s standards and culture, including a recently-published CNN exposé where staff alleged racism and sexism running rampant throughout the leftist group’s organizational structure.
“Famous civil rights group suffers from ‘systemic culture of racism and sexism,’ staffers say,” was the headline in CNN’s March 29 article by Nick Valencia and Pamela Kirkland. “Some employees at the Southern Poverty Law Center say the legendary civil rights nonprofit group suffers from a ‘systemic culture of racism and sexism within its workplace,'” Valencia and Kirkland wrote. “The SPLC, which has been on the front line of the fight against racial inequality and injustice in the United States since 1971, has been thrust into chaos after allegations over its treatment of minority and female employees. The claims have been followed by changes in its leadership and a company-wide review.”
Cotton also cites a New York Times report from Alan Blinder published on March 22 that Cotton noted described the SPLC as “in turmoil” while citing SPLC employee claims that the organization and its leadership are “complicit in decades of racial discrimination, gender discrimination, and sexual harassment and/or assault.” Both Richard Cohen, the organization’s president, and Morris Dees, the organization’s co-founder, have been pushed out in recent days amid these scandals — and the SPLC has named an interim president to lead the group for now. “Based on these reports, and in the interest of protecting taxpayer dollars from a racist and sexist slush fund devoted to defamation, I believe that the SPLC’s conduct warrants a serious and thorough investigation,” Cotton wrote to the IRS commissioner. “Engaging in systematic defamation is not a tax-exempt purpose: Federal law requires nonprofits classified as 501(c)(3) organizations to comply with IRS guidelines and have a ‘tax-exempt purpose.’ While IRS guidance lists several examples of tax-exempt purposes, engaging in defamation as a business model is of course not one of them. The SPLC defames other organizations in several ways.”
https://www.breitbart.com/politics/2019/04/02/exclusive-tom-cotton-pushes-irs-to-investigate-southern-poverty-law-centers-tax-exempt-status/