AG won’t review nonprofit group
No Labels status goes to IRS
WASHINGTON — A left-leaning political group has asked Arkansas Attorney General Tim Griffin to review the status of a centrist political effort eyeing a third-party presidential bid, but the attorney general’s office says it has nothing to review at this time pertaining to the request.
End Citizens United filed complaints with the Internal Revenue Service and the Federal Election Commission earlier this month, in which the group asserts No Labels is not functioning under its current nonprofit status, but instead working to grow a political party.
In its IRS complaint dated Jan. 23, End Citizens United argued No Labels’ activities show it is not working to promote social welfare over generating a profit, but rather the organization is operating to “sustain the political fortunes of the No Labels Party” ahead of a likely Joe Biden-Donald Trump rematch in November.
End Citizens United sent the request to the Arkansas attorney general’s office on Monday as part of a multistate effort challenging No Labels’ tax-exempt label. An End Citizens United spokesperson told the Arkansas Democrat-Gazette that the letter’s intention was to flag possible federal issues in case of interest in investigating potential state infractions.
“In its attempt to run a third-party presidential ticket, No Labels is abusing its nonprofit status in Arkansas and we believe Attorney General Tim Griffin should investigate and hold them accountable,” End Citizens United President Tiffany Muller said Monday.
“No Labels is a shadowy dark money political group that is grossly exploiting Arkansas laws which are designed to benefit legitimate social welfare organizations. If No Labels’ corrupt charade continues unchecked, it will set a dangerous precedent for future elections.”
End Citizens United derives its name from Citizens United v. Federal Election Commission, a 2010 U.S. Supreme Court case in which the judicial majority ruled against limitations on corporate-funded political speech.
Jeff LeMaster, communications director for Griffin, confirmed to the Democrat-Gazette on Tuesday the attorney general’s office received End Citizens United’s letter. He said the office does not review federal tax law matters, adding the request “does not allege that any Arkansas laws have been broken, therefore there is no action for us to take at this time.”
No Labels was founded in 2009 — as the conservative Tea Party movement was building steam nationwide — and bills itself as an organization open to Americans who feel left behind by the Republican and Democratic parties.
The organization in 2021 began shifting its attention to the 2024 election cycle with interest in offering a presidential “unity ticket” to voters across political affiliations, pointing to polls showing most Americans are unsatisfied with the likelihood of a second Biden-Trump matchup.
“No Labels is working to give the American voters a better choice should they want it,” the organization says on its website. “We have a strategy to get on 50 state ballots and the District of Columbia in time to potentially offer our ballot line to an independent Unity ticket in 2024 if that’s what the American people want.”
No Labels has garnered enough signatures in Arkansas and 13 other states to list presidential and vice presidential candidates on this fall’s ballot.
End Citizens United argues No Label’s efforts go against the IRS’ rules for 501(c)(4) organizations; the majority of No Labels’ work and spending, according to End Citizens United, has focused on building the status of the No Labels Party ahead of the presidential election.
“The volume of time and money spent on this work compared to anything else that the organization is doing demonstrates that No Labels no longer operates ‘exclusively for the promotion of social welfare’ as required by section 501(c)(4),” Muller argued in the IRS complaint.
“Instead, the organization appears to operate primarily to convey a non-incidental private benefit to the No Labels Party to oppose the candidacies of Joe Biden and Donald Trump. Its activities are therefore in furtherance of a substantial nonexempt purpose.”
No Labels chief strategist Ryan Clancy described End Citizens United’s effort as a “PR stunt.”
“Its initial junk complaint to the IRS didn’t make much news so it is now sending copies to state officials to generate local press. Their argument is meritless,” he told the Democrat-Gazette. “Unlike a political party, which runs candidates up and down their ballots, No Labels does not get involved in electioneering. Because No Labels is not involved in electoral activity, it is not required to disclose its donors.”
No Labels has insisted its “unity ticket” would not serve as a spoiler in the presidential election and the candidates would be placed on ballots “only if the public clearly wants an alternative to the major party nominees and there is a viable path to outright victory for an independent Unity ticket in 2024.”
Clancy said No Labels’ sole focus is getting on the ballot for “one presidential ticket this one time for the 2024 election.”
“If No Labels ultimately does offer our ballot line to a presidential ticket, they must form their own committee and report their donors as required by law,” he added.
The organization has set March 15 as its deadline for determining if it will offer presidential and vice presidential candidates, 10 days after Super Tuesday when Arkansas and multiple states will hold their primary elections.