Bill to Revoke Tax-Exempt Status of Nonprofits ‘Engaged in Insurrection-Related Offenses’ Advancing

A bill by State Senator Scott Wiener (D-San Francisco) “authorizes the Franchise Tax Board to revoke the tax-exempt status of a charitable organization if the organization has engaged in, or incited the active engagement of, any criminal conspiracies or acts.”

Sen. Wiener is targeting “Authoritarian and anti-democratic organizations.”

“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,” said Senator Wiener. “These poisonous organizations are attacking the heart of our nation and cynically scamming people and preying on their fears and misunderstandings.”

Does disagreeing with the current administration qualify as inciting treason, misprision of treason, insurrection, seditious conspiracy, advocating overthrow of the government or the government of any State?

So far, Senate Bill 834 has passed five Senate committees and the Senate, 28-0 (12 abstentions recorded). And SB 834 just passed in the Assembly Public Safety Committee Tuesday morning.

“There is precedent for making this distinction in California’s tax code,” Wiener says. “Under federal and California law, for instance, if a nonprofit organization supports terrorism, its tax-exempt status is suspended. The nonprofit organizations that support insurrection should receive the same treatment.”

Sen. Wiener continues to distort the truth as he explains his bill:

“SB 834 is a first-in-the-nation bill that will revoke the California tax-exempt status of nonprofit organizations that participate in or incite efforts to overthrow the United States government or any state government. Nonprofit organizations have used the ‘Big Lie’ – the fraudulent notion that the 2020 election was stolen – to fundraise for and funnel money to extremist and anti-democratic initiatives like the January 6 insurrection. Tax-exempt status is a privilege, not a right, and organizations that engage in or incite insurrection or conspiracy to commit insurrection – both of which are illegal – should not be given this special status to help them fundraise. Moreover, non-California nonprofits should not be able to register to raise money in California if they are engaging in or inciting insurrection.”

Another “first-in-the-nation bill.” Where do we begin?

How does government legitimately determine if non-profit organizations are attempting to overthrow the government, especially based on the dubious Jan 6 committee we are witnessing in real time, and in prime time? Many call it “political theater,” while actual political prisoners are being held in the Washington D.C. jail 17-months later, without being charged with a crime (or are charged with trespassing).

Declaring political enemies as enemies of the state is dangerous turf.

California’s highly politicized Attorney General is loathe to pursue, prosecute or punish fraudulent or politically-active non-profit organizations operating in the state, but under this alarming new bill will “notify the Franchise Tax Board if the AG has determined that an entity granted tax-exempt status has engaged in specified criminal acts.”

We wish the Attorney General would pay attention to nonprofit organizations engaging in criminal acts. So what is the bill referring to?

Senator Wiener continues:

“These organizations, which are fundamentally undermining our democracy and cheering for the destruction of free and fair elections in America, should not be allowed to operate with advantages like tax-exempt status. 

For example, the leader of the “Oath Keepers,” a national militia movement, was charged with seditious conspiracy.  While the Oath Keepers does not have California tax-exempt status, it has an “educational foundation” with federal exempt status and tax-exempt branches in several states.  In the words of one expert, “It can only be presumed that [funds contributed to the Oath Keepers], which [donors were] able to deduct from their federal taxes, went to transporting and lodging members of the group slated to participate in the ensuing riots.” These organizations should not be allowed, under any circumstances, to use tax write-offs to help fund illegal activities. 

I can think of a couple of groups which have recent televised history of inciting riots and committing violence while banking millions of dollars on their non-profit status (Antifa and BLM) – particularly Black Lives Matter, which has been exposed as a big “grift.”

“I can’t believe how badly some people got played by BLM.

Wow. https://t.co/9knTOdDKBG

— Jamil Jivani (@jamiljivani) April 9, 2021

This Tweet has since been removed.

Is Sen. Wiener setting a dangerous precedent? His bill has not landed one Republican vote.