A fundraising event hosted by a charitable organization and linked to Donald Trump may have broken the law if it explicitly benefited his campaign, as an IRS rule bars charities from endorsing candidates for elections.
Border911, a Trump-backed charitable organization led by Tom Homan, his former Immigration and Customs Enforcement chief, hosted a gala on April 4 that Trump attended. Other attendees included former presidential candidate Vivek Ramaswamy and Matt Whitaker, who served as chief of staff at the Department of Justice under Trump.
The nonprofit group campaigns against illegal immigration and seeks to persuade swing voters to vote for border security, without explicitly telling them to support Trump. According to the invitation, tickets for the event ranged from $1,200 to $100,000.
Concerns have been raised that the organization may be breaking the law with its links to Trump. The Border911 Foundation received its charitable tax exemption from the IRS in August 2023, which prohibits it from participating in partisan political campaigns.
Donald Trump at the LIV Golf Invitational Miami in Doral, Florida, on April 7. An organization that has limits on its political activities held a fundraiser last week that may have benefited Trump. Donald Trump at the LIV Golf Invitational Miami in Doral, Florida, on April 7. An organization that has limits on its political activities held a fundraiser last week that may have benefited Trump. Photo by Megan Briggs/Getty Images
According to IRS rules, charities "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." The IRS can revoke a charity's status if it violates these rules, according to the agency's website.
Newsweek has contacted a representative for Trump and Border911 for comment by email.
On X, formerly Twitter, Eric Lisann, a former federal and state prosecutor, wrote that if the fundraiser benefited Trump, the organization could risk losing its tax-exempt status, and Trump and others could also be taxed on the private benefits.
The Supreme Court held in Better Business Bureau Of Washington, D. C., Inc. v. United States, that the presence of a private benefit to any entity other than the recognized beneficiaries of the tax exempt organization's exempted activities, if substantial in nature, will destroy… https://t.co/lugnuN8GrE — Eric Lisann (@EricLisann) April 8, 2024
In March, when asked about Border911's compliance with IRS rules, Homan told ABC News that any problematic messaging was "unintentional." He added, "We are making changes quickly to ensure we stay in compliance with [federal] rules."
"They understand now that they can't endorse a candidate either overtly or covertly," Steve Lentz, an attorney working with Border911, told ABC News.
Anything improper that may have happened "is inadvertent, it's not intentional. And Tom is very committed to cleaning it up," Lentz said. "As a former law enforcement officer, he wants to follow the [law]."
Lentz also said he and Homan were in the process of registering a 501(c)(4) entity with the IRS that Border911 could use to participate in political activities. These organizations can intervene in elections and lobby members of Congress, but donations they receive are not tax-deductible.
OverlyComplexPants on April 8th, 2024 at 14:56 UTC »
Considering how speedy the courts move against rich, politically well-connected people, I'm sure this will end up in court in 10 or 15 years from now.
BlotchComics on April 8th, 2024 at 14:46 UTC »
I'd be more surprised if it didn't break the law.
BukkitCrab on April 8th, 2024 at 14:45 UTC »