-By Paul Blumenthal
February 16, 2012- WASHINGTON — Seven Democratic senators sent a letter to the Internal Revenue Service (IRS) calling for an investigation into social welfare nonprofits that spend large amounts on direct political advertising.
The letter came amid rising concerns that nonprofit groups are acting primarily as political vehicles after the Supreme Court's January 2010 decision in Citizens United v. Federal Election Commission (FEC) allowed them to spend money on express advocacy of candidates, which was previously banned.
Because of their nonprofit status, these groups do not have to disclose donors, making them appealing vehicles for secret political donations in recent years. Social welfare nonprofits, organized under section 501(c)(4) of the tax code, have tax-exempt status as long as their primary purpose is social welfare causes.
But many groups have interpreted this to mean that, as long as they spend 51 percent of their budget on something other than political activities, they are complying with the law.
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