Based on what I've found out thus far, it's my opinion that Media Matters is breaking the law. Here's what Media Matters says about itself:
Media Matters for America is a Web-based, not-for-profit, 501(c)(3) progressive research and information center dedicated to comprehensively monitoring, analyzing, and correcting conservative misinformation in the U.S. media.Here's what the regulations says about exempt purposes for IRC 501(c)(3)'s:Launched in May 2004, Media Matters for America put in place, for the first time, the means to systematically monitor a cross section of print, broadcast, cable, radio, and Internet media outlets for conservative misinformation, news or commentary that is not accurate, reliable, or credible and that forwards the conservative agenda, every day, in real time.
Exempt purposes are described in IRC 501(c)(3) and the applicable regulations. Exempt purposes described in IRC 501(c)(3) are:
- Charitable
- Religious
- Educational
- Scientific
- Literary
- Testing for public safety
- Fostering national or international amateur sports competition
- Preventing cruelty to children or animals.
The exempt purposes described in 501(c)(3) regulations encompass the general legal definition of the term “charitable.” The regulations list the following specific charitable purposes:
- Relief of the poor, the distressed, or the underprivileged;
- Advancement of religion
- Advancement of education or science
- Erecting or maintaining public buildings, monuments, or works
- Lessening the burdens of government
- Lessening neighborhood tensions
- Eliminating prejudice and discrimination
- Defending human and civil rights secured by law
- Combating community deterioration and juvenile delinquency
Q1. Must an organization’s creating document contain a provision expressly limiting its purposes to one or more exempt purposes?I haven't seen the creating document for Media Matters so I can't know what's contained in it. That said, Media Matters website tells us what they're about.A1. Yes. The creating document must refer to purposes that come within those described in IRC 501(c)(3). This may be accomplished by a statement that it is formed for charitable, religious, educational, scientific, or other purposes referred to in IRC 501(c) (3) or the applicable regulations. The purposes do not have to expressly refer to IRC 501(c)(3). See Reg. 1.501(c)(3)-1(b)(1)(ii).
Media Matters website says that their purpose is to "systematically monitor a cross section of print, broadcast, cable, radio, and Internet media outlets for conservative misinformation, news or commentary that is not accurate, reliable, or credible and that forwards the conservative agenda, every day, in real time." In other words, they're essentially the Clinton War Room on steroids.
The first Clinton War Room was all about the Clintons. This organization isn't exclusive to the Clintons. Instead, it's about smearing anyone that stands in the way of the Clintons or the Democratic Party. The next logical set of questions focuses on how much they coordinate their smear campaigns with the Democrats in general and with Hillary specifically. Another question I'd want answered is whether there's coordination between Media Matters and organizations like the Center for American Progress (CAP). I ask because I noticed a few familiar names on their list of advisors.
Here are a few of the familiar names:
Oliver Willis
Eric Alterman
Duncan Black, aka Atrios
David Brock
Interestingly, Karl Frisch and Eric Burns, two other members of the staff advisors to Media Matters, are former staffers to Rep. Louise Slaughter (D-NY) on the House Rules Committee.
David Brock has a long and indistinguished career as a political hack. he first gained notoriety for breaking Bill Clinton's Troopergate scandal. Democrats loathed him for a long time. Then came his epiphany. Suddenly Democrats loved him, hung on his every word because he 'confessed' that the things that he'd written about the Clintons were lies.
The notion that Duncan Black, David Brock and Oliver Willis are suddenly interested in doing legitimate research seems a bit stretched to me. In the last 5 years, I'd be hard to convince that that trio hadn't met a hit piece on Republicans that they didn't like.
Based on this information, I don't see why Media Matters' 501(c)(3) status shouldn't be revoked. Isn't it time that we learned what affiliations they have with Hillary and/or the Democratic Party? Isn't it time that this Democratic 'PR firm' got shut down?
I've been doing some research since you posed these questions. While I'm definitely not a tax attorney or a non-profit organization experct, I was able to research some key info that may help answer your questions.
1) It is quite common for 501(c)(4) organization to create a 501(c)(3) for "educational" purposes. Media Matters for America (MMFA) has a sister 501(c)(4) organization called Media Matters Action Network (MMAN). MMAN is set up for advocacy, lobbying-like activity, promoting legislation, etc... They share employees and have filed IRS documents to explain the relationship.
2) MMAN cannot accept tax-deductible contributions, but MMFA can. According to the by-laws I found on MMFA, they will provide a list of their IRS filings to the public with the donors names redacted.
3) MMFA uses the NTEE designation of A30 which classifies it as a media organization.
Here are a list of my sources where I did my research in case you want to do more digging.
http://en.wikipedia.org/wiki/501(c)#Examples_of_501.28c.29.283.29_organizations
http://en.wikipedia.org/wiki/501(c)#501.28c.29.284.29
http://mediamattersactionnetwork.org/
http://www.guidestar.org (you can register free to do research on non-profits on their site. I found the last 3 IRS filings of MMFA on this site, including their officers, by-laws, expenses, salaries, etc...)
http://www.sos.state.md.us/sos/search/charity.cfm (According to the MD Secretary of State, MMFA "has applied to register under the Maryland Solicitation Act but has not submitted all of the required information to be registered and in full compliance with the Act and cannot solicit charitable donations."
Posted by: ConservativeBelle at October 6, 2007 02:14 PM
I posted a summary of Mark Levin's remarks on Media Matters (the talk show host/attorney claims it is a 'criminal enterprise').
And Conservative Belle believes MM may be violating Maryland law!
Posted by: Doug at October 7, 2007 07:17 PM
"Is Media Matters breaking the law?" That's a question that was asked about Hillary Clinton's Million Mom March in 2000, which also found very creative ways to use 501(c)(3) funds (e.g. to run a thinly disguised campaign rally for Al Gore).
I'm the person who broke the MMM's back by exposing this, with some very good luck and a column by a pro-2nd Amendment columnist with nationwide circulation. See my Web site for a downloadable Word document with the full story about this scandal, as well as the MMM's very creative Form 990 tax return for 2000.
Posted by: Bill Levinson at October 9, 2007 12:49 AM
Going down this path is rather silly. There are bajillions of conservative organizations that do exactly what MMFA does in terms of using the 501(c)3 rules. Of course, you're never going to complain about those groups, so rather than doing any actual damage to MMFA, you just look like hypocrites out to use anything to damage your partisan opponents.
There are plenty of folks on the left who play this same game, turning a blind eye to the bending of tax law to fund their side while being OUTRAGED, OUTRAGED when conservatives do it. They look pretty darn foolish too.
Posted by: David Mastio at October 17, 2007 01:12 PM
