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(ABC10) – Non-profit groups found to have aided in the Jan. 6 insurrection at the U.S Capitol or who attempt to stop a democratic election could have their tax-exempt status pulled, if a new bill proposed by California state Senator Scott Wiener is passed.
Senate Bill 834 aims to allow the California Franchise Tax Board to suspend or deny tax-exempt status for organizations that promote, engage in, commit to, support, or aid insurrection against the United States, any effort to overturn democratic election results, or obstruct the peaceful transfer of power.
State Senator Scott Wiener said he was terrified as he watched the Jan. 6, 2021 events at the U.S Capitol on television.
“Nonprofits that fundraise off of the insurrection and that are working to overthrow our government and dismantle our democracy should not receive privileged tax status,” Wiener said in a statement. “These poisonous organizations are attacking the heart of our nation and cynically scamming people and preying on their fears and misunderstandings.”
Educational, religious and charitable organizations may qualify for tax exempt status if they serve the public. Non-profit status may also open the door for donations and grants, a huge leg up for these organizations.
Wiener argues those groups should not be allowed to benefit from tax-exempt status while funneling money to extremist groups who seek to undermine democracy. Federal law prohibits support non-profits from supporting terrorism, breaking the law and contributing to political campaigns.
