ATTENTION Both Media Matters and Media Research Center are Tax Exempt

What I posted about the Media Research Center being tax exempt and doing the same phony illegal activities that Media Matters is being attacked for was also posted on Crooks and Liars. It's good that hypocrisy is being talked about and pointed out in the blogosphere.

karoli
Crooks and Liars
June 30, 2011


The idea of Fox News getting high and mighty about Media Matters' DropFox campaign is, well...laughable. However, what might be even more laughable is the idea that they can start a campaign to strip Media Matters of their tax-exempt status. They should be careful what they wish for.
In this clip, viewer Dana Martin from New Orleans tells Fox and Friends why she is so convinced that Media Matters tax-exempt status must be revoked. So convinced, in fact, that she filled in a web form to send a complaint to the IRS about their tax exempt status. And guess where that web form is? On the Fox Nation web page, of course, where else?
But as I said, they should be careful what they wish for. Let's look at some other tax-exempt organizations who also undertake "campaigns" with taxpayer subsidies. There's the Media Research Center, headed by Brent Bozell, who routinely appears on Fox News as a commentator. One look at their website shows that they have some 'projects' of their own which are clearly not educational at all, but purely political.
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Phony Tax Exempt Complaint Against Media Matters

 

Last Tuesday (6/21/11),  an article in the  Washington Times alleged that Media Matters is improperly receiving tax-exempt status. I not going to pretend to be an expert in tax-exempt statuses as said Ellen at Newhounds when discussing this story. I'm just going to offer my observations about this complaint against Media Matters.

Is Media Matters legally tax exempt under 501(c)(3)? 

From the IRS

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes. None of its earnings may inure to any private shareholder or individual. It may not be an action organization- not attempt to influence legislation or participate in any campaign for or against political candidates. Organizations under 501(c)(3) are also known as charitable organizations. Organizations described in 501(c)(3), other than testing for public safety organizations, are eligible to receive tax-deductible contributions in accordance with Code section 170. The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual. If the organization engages in an excess benefit transaction with a person having substantial influence over the organization, an excise tax may be imposed on the person and any organization managers agreeing to the transaction. 501(c)(3) organizations are restricted in how much political and legislative (lobbying) activities they may conduct. See Political and Lobbying Activities, Lobbying Issues

So it seems to me that yes Media Matters is legally tax-exempt under 501(c)(3) as they say on their site.

So what's the complaint?