The Caesar Rodney Institute, according to its website, is a 501(c)(3) “research and education organization dedicated to the measured improvement in the quality of life, the degree of individual liberty, and opportunity for personal fulfillment for all Delawareans.”
Now, let’s remind ourselves what a 501(c)(3) organization is. A 501(c) organization is a tax-exempt, nonprofit corporation or association created under Section 501(c) of the United States Internal Revenue Code (26 U.S.C. § 501(c)), which provides for 26 types of nonprofit organizations that are exempt from some federal income taxes. Sections 503 through 505 of the IRS Code set out the requirements for attaining such exemptions. Many 501(c) organizations are exempt from state taxation as well.
Now, to be a Section 501(c)(3) organization, CRI is prohibited from engaging in political activities.
“Under the Internal Revenue Code, all section 501(c)(3) organizations 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. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity. Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes. […]
“[V]oter education or registration activities with evidence of bias that (a) would favor one candidate over another; (b) oppose a candidate in some manner; or (c) have the effect of favoring a candidate or group of candidates, will constitute prohibited participation or intervention.
Now, since its creation, CRI has tried to brand itself as “Delaware’s preeminent non-partisan, free-market oriented think tank.” However, it is also quite clear, just through reading the CRI blog, or its issue papers, or through our posts on the CRI, that what the CRI is trying to do is brand right wing conservative talking points as nonpartisan.
For example,
CRI an Honest Broker?
Charlie, Come Out, Come Out Where Ever You Are
CRI an Honest Broker? Part 2
CRI an Honest Broker? Part 3
The Non Partisan Garrett Wozniak Addresses the Sussex GOP
Indeed, the whole purpose for CRI’s existence is to provide Delaware’s Republicans a source to point to for support of their positions. But up until now, the CRI has danced up to, but not over, the line prohibiting overt political activities.
Perhaps until today.
I am told from a downstate listener that CRI Executive Vice President Shaun Fink was a guest on a downstate talk radio station, where he railed against SB 234, the Recycling Bill, and told the listeners that “we will remember in November” who voted for this bill. I will leave untouched the similarity of Mr. Fink’s comment to the Republican Governor’s Association’s campaign Remember November, as it is a common phrase for any political opposition. Oh wait, I just used the magic word, didn’t I?
Is Mr. Fink engaging in political activity here, in his opposition to SB 234 and comments on air on behalf of CRI, that would “would favor one candidate over another” or would “oppose a candidate in some manner” or would “have the effect of favoring a candidate or group of candidates?”
I dare say so, especially if specific Representatives and Senators were mentioned by Fink, and I hear they were. Now, we may be too far out from the election for these comments to be deemed to be “directly or indirectly participating in, or intervening in, any political campaign” or “public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office,” especially when you consider that the filing deadline is not until July 30.
But perhaps it is time for us to contact the IRS.