A major nonprofit organization may have run afoul of tax law and its 501(c)(3) status, according to a whistleblower complain filed with the IRS last week.
The American Legislative Exchange Council (ALEC) is accused of funneling voter data to Republican state lawmakers.
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The Center for Media and Democracy, a liberal group, filed the complaint against the American Legislative Exchange Council, which hosts conferences and provides model legislation to state legislators. It alleges that the council provides its 2,000 members, most of them Republican lawmakers, with data from a campaign vendor linked to the Republican National Committee, and that data ALEC members enter in the system goes directly to the RNC. ALEC does not provide similar information about Democratic voters.
As a nonpartisan nonprofit, ALEC cannot help candidates win elections. If the IRS finds the organization broke that pledge it could revoke its nonprofit status, which would be a financial blow to an organization that has served as the policy bedrock to the conservative swing in many states, providing blueprints for laws on energy, guns, education and more.
ALEC could face additional legal jeopardy from complaints making similar allegations that the Center for Media and Democracy, in conjunction with the watchdog group Common Cause, says it is also filing with 15 Attorney General offices.
“What the complaints show is that ALEC is a partisan organization at heart, dedicated to promoting Republican policies and supporting elected officials who will implement those policies,” said Arn Pearson, the center’s executive director.
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The complaints are based on internal documents provided by a state lawmaker and ALEC member. The documents show the group provides its members free access to data from Voter Gravity, a Virginia company founded by Ned Ryun, a conservative activist.
