The Port of Pensacola Users Association contributed $3,500 to campaigns of various Pensacola City Council candidates:
8/21/2008 Pratt, Megan Benson: $500
8/26/2008 Nobles, John ‘Jack’ W.: $500
9/4/2008 Donovan, Marty: $500
9/24/2008 Hall, Sam: $500
10/6/2008 Desorbo, Mike: $500
10/13/2008 Townsend, Ronald P: $500
10/20/2008 Cannada-Wynn, Jewel: $500
The association is a not-for-profit corporation that must adhere to the IRS rules for a 501(c)(3). Its registered agent is Michael Pate of Pate Stevedore Company. Here are its Articles of Incorporation: port-user-articles.
The problem for Pate and the Association is the IRS code states: “Organizations described in section 501(c)(3) of the Code that are exempt from federal income tax are prohibited from participating or intervening in any political campaign on behalf of, or in opposition to, any candidate for public office.”
Furthermore: “If the IRS finds a section 501(c)(3) organization engaged in prohibited campaign activity, the organization could lose its tax-exempt status and it could be subject to an excise tax on the amount of money spent on that activity.
In cases of flagrant violation of the law, the IRS has specific statutory authority to make an immediate determination and assessment of tax. Also, the IRS can ask a federal district court to enjoin the organization from making further political expenditures.
In addition, contributions to organizations that lose their section 501(c)(3) status because of political activities are not deductible by the donors for federal income tax purposes.”
Oops. Read IRS-2004-59, April 28, 2004