House Republican pushes to revoke New Georgia Project's tax-exempt status

In the U.S., the New Georgia Project, a nonprofit organization established by Stacey Abrams, has faced significant scrutiny recently due to its actions during the 2018 gubernatorial election. The Georgia State Ethics Commission imposed a historic fine of $300,000 on the group for failing to disclose over $4 million in campaign contributions and more than $3 million in expenditures connected to Stacy Abrams' campaign. House Ways & Means Committee Chairman Jason Smith highlighted this penalty as potentially the largest ethics fine issued in U.S. history, indicating serious violations of the Internal Revenue Code's regulations regarding political campaign involvement by tax-exempt organizations. Smith's concerns stem from the commission's findings that the New Georgia Project supported Abrams' candidacy and other political efforts, which clearly falls outside the permitted activities for a 501(c)(3) nonprofit organization under U.S. law. He emphasized that under Internal Revenue Code Section 501(c)(3), organizations must refrain from political campaigning on behalf of specific candidates. As a result, Smith has officially requested that the IRS prioritize a review of the New Georgia Project's compliance with tax regulations and considers revocation of its tax-exempt status. Aiming for accountability, he argued that the New Georgia Project had engaged in activities beyond its stated purpose, thereby violating its tax-exempt designation. While the New Georgia Project's attorney expressed disappointment over the ruling, they indicated a desire to move forward from the past infractions. Smith's actions reflect a growing trend of heightened scrutiny of nonprofit organizations involved in political activities, raising questions about the intersection of tax exemption and political activism.