Complaints filed against Million Mom March for (1) misleading advertising and (2) possible violations of 501(c)(3) tax exemption

I have filed the following complaints against the Million Mom March. These complaints are my opinion (plus the indicated evidence). They are not a legal opinion since I am not a lawyer, nor are they findings by any governmental or private sector regulatory agency.

1. Complaint of potential misleading and deceptive advertising in conjunction with fundraising activities (sent 5/13/00)
2. Possible violation of 501(c)(3) tax exemption
3. Followup complaint, based on the MMM's announcement that it is going to become a political action committee (sent 5/16/00)
• Million Mom March's conduct may place corporate sponsors in violation of Federal election law. Corporations may not donate money to influence Federal elections. Of course, the MMM's corporate sponsors were relying on the MMM's representation of itself as a tax exempt 501(c)(3) entity.
• Complaint sent to Federal Election Commission on June 14 re: Million Moms' acceptance of corporate donations while praising and attacking House candidates
4. (5/24/00) Bell Campaign's merger with the Million Mom March: possible solicitation of corporate donations to influence Federal elections, continued attempts to influence legislation
5. (6/15/00) More evidence of the Bell Campaign's efforts to influence legislation while claiming 501(c)(3) status
6. (7/15/00) Another complaint filed against the Bell Campaign, based on American Rifleman articles and Million Mom March speech transcripts that show the May 15 event to be a political rally for Al Gore and other candidates
• Excerpts from Eric Yoffie's speech, including a possible pitch for Al Gore
• Excerpts from Elizabeth Wright's "get out the vote" speech

Complaint of Misleading and Deceptive Advertising

13 May, 2000

Subject: Possible deceptive and misleading fundraising practices by nonprofit orgs.

• Million Mom March (MMM)
• Bell Campaign

I am writing to bring your attention to certain questionable practices by the above nonprofit organizations. I will admit up front that I am not impartial to these organizations; I dislike them. I also recognize that sensationalism, exaggeration, and even lying are normal parts of American politics, and they are acceptable under the First Amendment— but not necessarily when nonprofit fundraising is involved. It is up to you to decide whether the practices on the Web sites shown below violate of any of the following standards. (Emphasis is mine):

1. Federal Trade Commission page at http://www.ftc.gov/opp/gpra/append1.htm

• Under Section 5, the Commission has determined that a representation, omission, or practice is deceptive if: (1) it is likely to mislead consumers acting reasonably under the circumstances; and (2) it is material, that is, likely to affect consumers' conduct or decisions with respect to the product at issue.

1. Pennsylvania Solicitation of Funds for Charitable Purpose Act at http://www.attorneygeneral.gov/ppd/charity/Brochures/charact.shtml

• Section 162.15. Prohibited acts
• (a) General rule.--Regardless of a person's intent or the lack of injury, the following acts and practices are prohibited in the planning, conduct or execution of any solicitation or charitable sales promotion: ...
• (2) Utilizing any unfair or deceptive acts or practices or engaging in any fraudulent conduct which creates a likelihood of confusion or of misunderstanding.

1. Better Business Bureau's standards for charities at http://www.bbb.org/about/charstandard.asp:

• C1. Solicitations and informational materials, distributed by any means, shall be accurate, truthful and not misleading, both in whole and in part.

http://www.millionmommarch.com/html/contribution.html says (as of 5/13/2000, and I have downloaded a copy for use as evidence in case it changes):

Alleged Deceptive and Misleading Advertising

http://www.millionmommarch.com/html/media.html says,

Furthermore, one could argue that the Million Mom March is lying with statistics by giving the Web site visitor the perception that the risk implied by "12 children a day" applies to his or her own law-abiding preteen, teenage, or young adult child, which it absolutely does not. Inclusion of 18-19 year olds inflates the figure substantially because this age group includes many violent criminals. That is, the statement, "Every day, 12 children die from gunshot wounds. Each day there is no action on this issue, we lose 12 more children" could easily mislead and deceive a prospective donor or sponsor who is unfamiliar with statistics. The bottom line, however, is that the Million Mom March is presenting an outright lie ("12 children a day") in conjunction with requests for donations.

Violation of 501(c)(3) Tax Exemption?

Internal Revenue Service page (http://www.irs.gov/plain/bus_info/eo/eo-faqs.html#12) on 501(c)(3) organizations: "Whether a tax-exempt organization may endorse candidates for public office without jeopardizing its tax-exempt status depends upon the type of tax-exempt organization it is. For example, § 501(c)(3) organizations may not engage in political activity, including endorsing candidates, but other organizations, such as §501(c)(4) organizations, may engage in political activity so long as that is not their primary activity. However, § 501(c) organizations that make expenditures for political activity may be subject to tax under § 527(f). For more information, download Election Year Issues." [emphasis is mine]

www.millionmommarch.com has two Web pages, their "Apple Pie Award" page and "Time Out Chair" page, that praise and condemn political candidates. http://www.millionmommarch.com/html/pies.html (Apple Pie page) praises Atlanta mayor Bill Campbell, Reps. Joe Hoffel (D-PA) and Carolyn McCarthy (D-NY), Gov. George Pataki (R-NY), and others. http://www.millionmommarch.com/html/timeout.html condemns House Majority Whip Tom DeLay (R-TX).

This may not fall under your purview, and I have in fact reported it to the complaint address that the IRS provided. However, the following news release (http://chblue.com/article2.asp?ID=142) brings up another issue:

MILLION MOM MARCH MOTHERS' DAY 2000 is
dedicated to the mission of educating our children
and our country about the life-threatening danger of
guns. …

Enlistment of Help from Corporate America
We call on all child-friendly, nonviolent stores,
companies, and corporations to sponsor us in these
pursuits by advertising our message that guns -- in
the wrong hands - is simply unacceptable. We call on
the like minded to work with community law
enforcement agencies to offer swaps of meaningful
goods and services for guns. And that the guns be
destroyed by the proper authorities. In turn, we, the
mothers, will patronize all child-friendly, nonviolent
sponsors who join us in this mission.

Nowhere does this Web page even suggest that the Million Mom March had plans to convert itself into an "overt political action committee." It can therefore be alleged that this organization solicited contributions from corporate sponsors under misleading and deceptive pretenses.

Conclusion/ Requested Action

I request that the FTC, Pennsylvania Attorney General's office, and BBB Philanthropic Advisory Service review the above Web site and judge whether it violates these agencies' respective policies on fundraising practices by nonprofit organizations. I have, incidentally, downloaded the above Web pages in case www.millionmommarch.com changes and you want copies.

Very truly yours,
 
 

William A. Levinson
 

Potential violation of 501(c)(3) Tax Exemption

I believe the Million Mom March (http://www.millionmommarch.com) may be in violation of its 501(c)(3) status as a tax-exempt organization.

http://www.millionmommarch.com/html/contribution.html says,

"We have 501-c(3) status as a nonprofit tax entity and have recently been adopted by The Bell Campaign. Contributions are tax deductible." [emphasis is mine]

The IRS page at http://www.irs.gov/plain/bus_info/eo/eo-faqs.html#12 says,

Can tax-exempt organizations endorse candidates for public office?

Whether a tax-exempt organization may endorse candidates for public office without jeopardizing its tax-exempt status depends upon the type of tax-exempt organization it is. For example, § 501(c)(3) organizations may not engage in political activity, including endorsing candidates, but other organizations, such as §501(c)(4) organizations, may engage in political activity so long as that is not their primary activity. However, § 501(c) organizations that make expenditures for political activity may be subject to tax under § 527(f). For more information, download Election Year Issues.

Finally, I bring your attention to the Million Moms' "Apple Pie award" page, which praises several political figures, and the "Time Out" chair, which attacks House Majority Whip Tom Delay (R-TX), for their respective stands on gun control.

http://www.millionmommarch.com/html/pies.html

http://www.millionmommarch.com/html/timeout.html

Copies of the three Million Mom March Web pages are enclosed.

Regards,
 

Followup complaint, based on the MMM's announcement that it is becoming a PAC

15 May, 2000

Subject: Possible abuse of 501(c)(3) tax exempt status by nonprofit organizations, including deception of donors regarding the organization's purpose

• Million Mom March (MMM)
• Bell Campaign

http://www.millionmommarch.com/html/contribution.html said as of 4/28/2000,

The Million Mom March's claim to 501(c)(3) status changed this weekend. http://chblue.com/article2.asp?ID=142 says,

By Justin Torres, CNS Senior Staff Writer

1. The Million Mom March was collecting money for a political campaign under the mantle of 501(c)(3) tax exemption.
1. The Million Mom March mislead and deceived its contributors by concealing its intention to become a political action committee.

William A. Levinson
 

Followup, regarding tax-exempt Bell Campaign's merger with Million Mom March

24 May, 2000

Subject: Possible abuse of 501(c)(3) tax exempt status by nonprofit organizations, and possible solicitation of corporate contributions to influence Federal elections

• Bell Campaign, now merged with the Million Mom March

Issue 1: Possible improprieties in Bell Campaign's 501(c)(3) status

The Million Mom March's Web page recently changed to announce that it was splitting into 501(c)(3) and 501(c)(4) organizations, and was merging with the Bell Campaign, which represents itself as tax-exempt. The Million Mom March's Apple Pie Award page is still endorsing candidates, although its Time Out Chair recently dropped House Minority Whip Tom DeLay (R-TX) and is now condemning NRA spokesman Wayne LaPierre, who is not a political candidate.

Furthermore, the IRS page at http://www.irs.gov/plain/bus_info/eo/exempt-req.html says, "To be tax-exempt as an organization described in § 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in § 501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates." [emphasis is mine]

The Bell Campaign, however, specifically tries to influence legislation at http://www.bellcampaign.org/media/NRA_attack.htm: "We demand that Congress take action on the President's request to pass the Gun Show Background Check legislation by April 20, the first anniversary of Columbine. The NRA played a major role in the fact that all gun legislation stalled after Columbine. We also call for licensing of gun owners and registration of all handguns." I don't know whether this qualifies as "substantial" under IRS regulations.

Issue 2. Possible solicitation of corporate contributions for electioneering

The Million Mom March's list of sponsors includes publicly-traded corporations like StrideRite and Guess; I believe Northwest Airlines also was on the list, although it is not there any more. Fabricut Inc. also is on the list. The sponsor list also includes many religious organizations, which might not be allowed to contribute to political campaigns.

Federal Election Commission regulations (http://www.fec.gov/pages/fecfeca.htm#anchor257909) ban corporate contributions to "influence Federal elections." As shown above, however, the Million Mom March's Apple Pie Award page was (and still is) endorsing candidates while its Time Out Chair was, until a few days ago, condemning House Minority Whip Tom DeLay. In fairness to the businesses and religious institutions on the list, the Million Mom March's Web site told them they were contributing to a 501(c)(3) tax exempt educational organization.

Enclosures (Web pages dated 5/24/2000)

1. http://www.millionmommarch.com/

• Shows merger of Million Mom March and Bell Campaign, and the Million Mom March's change in tax status. (Perhaps they should have tried separate 501(c)(3) and 501(c)(4) organizations before they asked for donations and not after they received them?)

1. http://www.millionmommarch.com/html/pies.html

• Million Mom March Apple Pie Award Page, praises candidates
• The Time Out Chair, until recently, condemned House Minority Whip Tom DeLay (R-TX)

1. http://www.millionmommarch.com/html/sponsors.html

• Million Mom March sponsor list as of today, including corporate sponsors. (Sponsors were, however, told that the Million Mom March was a tax exempt 501(c)(3) organization.)

1. http://www.bellcampaign.org/about/memberandcontribute.htm

• Bell Campaign's claim of tax exempt status

1. http://www.bellcampaign.org/media/NRA_attack.htm

• Bell Campaign's attempt to influence legislation

William A. Levinson
 

More Evidence of Bell Campaign's Efforts to Influence Legislation

My letter of 5/24/2000 to the IRS included evidence that the Million Mom March (www.millionmommarch.com), which said it had been "adopted" by the Bell Campaign, was claiming 501(c)(3) tax exempt status as an educational organization while praising and endorsing political candidates on its Apple Pie Award and Time Out Chair pages. It also provided evidence of the Bell Campaign's possible noncompliance with the IRS page at http://www.irs.gov/plain/bus_info/eo/exempt-req.html: "To be tax-exempt as an organization described in § 501(c)(3) of the Code, an organization must be organized and operated exclusively for one or more of the purposes set forth in § 501(c)(3) and none of the earnings of the organization may inure to any private shareholder or individual. In addition, it may not attempt to influence legislation as a substantial part of its activities and it may not participate at all in campaign activity for or against political candidates." [emphasis is mine]

The combined Million Mom March and Bell Campaign has announced that it is splitting into 501(c)(3) and 501(c)(4) (nonexempt) sections, but the following took place at the Bell Campaign well before this happened, when the Bell Campaign was solely a 501(c)(3) organization. The following is evidence of the Bell Campaign's attempts to influence legislation while it was a 501(c)(3); I do not know whether it qualifies as a "substantial part" of the organization's activities. Emphasis is mine. A copy of each Web page is enclosed.

1. (Previously reported to you on 5/24): http://www.bellcampaign.org/media/NRA_attack.htm: "We demand that Congress take action on the President's request to pass the Gun Show Background Check legislation by April 20, the first anniversary of Columbine. The NRA played a major role in the fact that all gun legislation stalled after Columbine. We also call for licensing of gun owners and registration of all handguns."
2.  Media release dated September 23, 1999 at http://www.bellcampaign.org/media/million.htm WASHINGTON, DC: Representatives of The Bell Campaign joined Congresswoman Carolyn McCarthy (NY- 4), Congresswoman Connie Morella (MD-8) and Donna Dees-Thomases, founder of the "Million Mom March Mother's Day 2000", today on the steps of the nation's capitol in calling on Congress to pass laws that protect communities from gun death and injury.
3. Press release dated August 12, 1999 at http://www.bellcampaign.org/media/jccpress.htm. The title is "Bell Campaign Demands Congressional Action." "With yet another gun violence tragedy occurring this week at a Jewish Community Center near Los Angeles, The Bell Campaign calls on the United States Congress to stand up to the gun industry and pass responsible gun laws."
4. Bell Campaign's attempt to influence Congress on The Safe Streets and Neighborhood Act of 2000 (U.S. H.R. 4051), at http://www.bellcampaign.org/done/maryleighblekhousestatement.htm. (April 6, 2000) "So I am here today to say that calling for the establishment of a grant program to provide incentives for states to enact mandatory minimum sentences will do little to prevent gun deaths and injuries. More importantly, it will divert money and attention from where it truly belongs. What we need are comprehensive and common sense gun policies that include consumer product safety protections, especially in design features to prevent child and other unauthorized use. We must address the many loopholes in our current laws that allow for the distribution of firearms to criminals and prohibited classes of persons. It is way past time to hold gun owners personally accountable and responsible for the possession of firearms and that means a system where all gun owners are licensed and all guns are registered. …"
5. Bell Campaign calls on Congress to enact "common-sense gun laws" on April 17. http://www.bellcampaign.org/done/nraadpresresponse.htm "Licensing gun owners and registering guns are just common sense legislation that is way overdue in this country. The Million Mom March is yet another example that the people have had enough of the gun lobby dictating our gun policy. On Mother's Day 2000 there will be a million moms and others joining with victims in Washington D.C. and in local marches as they call upon Congress to enact common sense gun laws."
6. Bell Campaign brochure at http://www.bellcampaign.org/images/bellcambro.pdf: "We will demand national, state, and local gun policies to reduce access to guns." In addition, this brochure, as downloaded on June 15, still represents the Bell Campaign as tax exempt. "Your additional tax deductible contribution will advance our mission to prevent gun death and injury, and to support the victims of gun trauma."

     Very truly yours,
 

      William A. Levinson
 

Complaint filed against the Bell Campaign (copy to Wayne LaPierre), sent 7/15/00

cc: Wayne LaPierre
11250 Waples Mill Road
Fairfax, VA 22030-9400
certified mail 7099 3220 0008 7131 3694
(Federal Election Commission may also be notified)

         15 July, 2000

501(c)(3) tax exempt Bell Campaign involved in influencing Federal elections

The two enclosed articles by Wayne LaPierre and Daniel T. McElrath indicate that the Million Mom March rally in Washington on May 15 violated Federal tax laws and Federal election laws by campaigning on behalf of candidates for Federal office. (Mr. LaPierre, please send the IRS and FEC any transcripts, videotapes, or eyewitness accounts of the rally that would consitute legal evidence that electioneering took place.) In addition, I previously sent the IRS copies of the Million Mom March's "Apple Pie Award" page, which endorsed House candidates Carolyn McCarthy (D-NY), Joe Hoeffel (D-PA), and Connie Morella (R-NY). The "Time Out Chair" page attacked House candidate Tom DeLay (R-TX).  The Million Mom March had, until a few days before the event, advertised itself as a 501(c)(3) tax exempt organization, and it was also accepting corporate contributions from companies like StrideRite and Guess.

The Million Mom March's Web page, "FORM 990 AND 1023 DISCLOSURE" at http://www.millionmommarch.com/html/who/forms.html says the tax exempt Bell Campaign was a party to this activity: "At the time of the Million Mom March on Mothers' Day 2000, the march was a project of a 501(c)(3) charity called The Bell Campaign." If the enclosed articles by LaPierre and McElrath are accurate, this means a political campaign rally was a project of the Bell Campaign.

The IRS page at http://www.irs.gov/plain/bus_info/eo/eo-faqs.html#12 says,
Can tax-exempt organizations endorse candidates for public office?
Whether a tax-exempt organization may endorse candidates for public office without jeopardizing its tax-exempt status depends upon the type of tax-exempt organization it is. For example, § 501(c)(3) organizations may not engage in political activity, including endorsing candidates, but other organizations, such as §501(c)(4) organizations, may engage in political activity so long as that is not their primary activity. However, § 501(c) organizations that make expenditures for political activity may be subject to tax under § 527(f). For more information, download Election Year Issues.

Regards,William A. Levinson
Enclosed:Wayne LaPierre's article [July American Rifleman]
Daniel McElrath's article
Million Mom March tax disclosure page (quoted portion)
Transcript of Rabbi Eric Yoffie's speech, includes apparent pitch for Albert Gore
Transcript of Elizabeth Wright, "We will make sure that the NRA does not have an office in the White House come November!"

Excerpts from Rabbi Eric Yoffie's speech, as posted on the Million Mom Web site

 RABBI ERIC YOFFIE

President, American Hebrew Congregations

"I am pleased to be here with representatives of religious groupings from across America."

"Is the need for sensible gun control a religious issue? You bet it is! The indiscriminate distribution of guns is an offense against God and humanity. Controlling guns is not only a political matter; it is a solemn religious obligation. Our gun-flooded society has turned weapons into idols, and the worship of idols must be recognized for what it is, blasphemy. And the only appropriate religious response to blasphemy is sustained moral outrage. ..."

[Does this mean that Jewish NRA members worship graven images? If that is how American Hebrew Congregations feels about us, maybe we all belong elsewhere. "Controlling guns is ... a solemn religious obligation." Can you say, "Separation of Church and State," Mr. Yoffie? Are you using your position as a rabbi to tell Jews how to vote? Many years back, by the way, I jumped all over Cardinal O'Connor in a letter to the editor because of O'Connor's threat to excommunicate New York Governor Mario Cuomo for supporting abortion rights-- even though I am not actively pro-choice and even though I despised Cuomo-- because the Church should not be allowed to influence legislation by threatening to excommunicate Catholic politicians.]

"We are ready for a knockdown, drag-out, no-holds barred battle against the NRA - which is the real criminal lobby in this country, and which is drenched in the blood of murdered children. Sure, we may not have the money of the NRA, but we've got savvy, grit and passion, and we're going to find out who's getting NRA funds, and who's  benefitting from NRA ads, and we're going to vote for the other guy! ..."

"The American people, I believe, are ready for a leader who will take on the fanatics and support sensible gun control."

[Another 501(c)(3) tax exempt organization campaigning for Al Gore?]

Excerpt from Elizabeth Wright (Coalition to Stop Gun Violence): your tax money at work through the 501(c)(3) tax exempt Bell Campaign