DC organization seeks to revoke the tax-exempt status of a conservative think tank in Austin

A nonprofit organization has complained to the Internal Revenue Service asking them to cancel the Texas Public Policy Foundation's tax-exempt status.

The Austin-based organization, which bills itself as a watchdog on "malfeasance in public life," was accused of abusing its nonprofit status by making "brazen incursions" into political campaigns by the Campaign for Accountability.

The foundation, which has expanded to become Austin's largest think tank, invited Republican politicians, including failed Arizona gubernatorial candidate Kari Lake, to a donor gathering close to Austin in late September, the Campaign for Accountability alleged in the lawsuit.

The Washington, D.C.-based organization pointed out that none of the Democratic challengers to the invited speakers in the 2018 midterm elections were given invitations to the 2022 Victory Summit.

Brian Phillips of the foundation responded to the complaint with only six words. "This is dumb. Really, really dumb," the think tank's chief communications officer commented via email.

According to the federal agency's website, nonprofit organizations are expressly prohibited by the IRS from directly or indirectly engaging in, or interfering in, any political campaign on support of (or in opposition to) any candidate for elected public office.

The tax-exempt status of an organization might be denied or revoked in the event of violations.

The executive director of the Campaign for Accountability, Michelle Kuppersmith, stated that the organization depended on material that was freely accessible on platforms like Facebook and YouTube.

Kuppersmith said that they're not even attempting to disguise it.

A political fundraising event called the 2022 Victory Summit was held from September 22 to 24 at the Hyatt Regency Lost Pines in Cedar Creek, roughly 30 minutes east of Austin.

Republican candidates were represented by at least five of the speakers, including Mike Lee of Utah, Dan Patrick, Chip Roy of Austin, Lake, and state senator Paul Bettencourt of Houston.

Chief Executive Officer of the foundation Greg Sindelar facilitated the discussion with Lake. When discussing her gubernatorial campaign against Democrat Secretary of State Katie Hobbs, Lake at one point seemed uneasy.

According to the accusation, the organization improperly engaged in political campaigns by using social media, traditional news sources, and "other means."

The lawsuit stated that Carol M. Swain, the foundation's distinguished fellow for constitutional studies who is headquartered in Nashville, tweeted "an endorsement of Ms. Lake" during the 2022 Victory Summit.

"I am thrilled and honored to have met, Kari Lake, the future governor of #Arizona. Kari has what America needs" , according to Swain.

The Campaign for Accountability's lawsuit stated that TPPF shared many more messages that cross the threshold from issue advocacy to political campaign interference just before the election.

On November 8, the day of the election, a Facebook post urging voters to cast their ballots was cited. It "lists many wedge issues Republicans relied on to distinguish candidates in the 2022 election cycle, including border security and immigration, inflation, election process, and school curricula."

Campaign for Accountability reported that on October 26, Chuck DeVore, the foundation's chief national programs officer, published a post on Fox News' website with the heading "Democrats soft on crime and midterms give Americans a chance to choose safety."

The essay, which was also posted on the website of the foundation, praised Republican governors Kevin Stitt of Oklahoma and Bill Lee of Tennessee for having "financed the police." According to DeVore, that stood in contrast to plans by several significant cities run by Democrats to reduce police funding in 2020. Last year, Stitt and Lee were both up for reelection, and the Campaign for Accountability highlighted that DeVore's opinion was "posted close in time to the election."