What is the best way for an anti-Trump group to register ourselves?
February 10, 2017 12:36 PM   Subscribe

What are the benefits and disadvantages around the different ways to register a lefty activist group in New York/New York City? We are looking at a 501c3, 501c4, fiscal sponsor, an LLC (???) or something else.

We have around 100 people at our meetings. We haven't had much in the way of expenses, but now we are making plans to take on a more formal approach, for budget and fundraising. We don't know what the next four years will hold for us - it might be solely anti-Trump activities, we might end up doing general issue work/voter reg/non-partisan activities, or something else.

Our major concerns are, roughly in order
* Limiting financial or legal liabilities for any members/donors
* Offering us the independence to engage in whatever activities we want in the future (partisan/political/etc.)
* tax benefits for us as an organization, and our donors
* easiest for us to set up/maintain, and lowest costs

It seems there are trade-offs to each of these options, or is there an obvious best approach?
Have you had past organizing experience where you had to consider these options? What did you choose and why?
Will any of these options be an issue if we are planning to raise money to plan and support civil disobedience?
Are there other questions that we should be asking ourselves?

A number of us work at non-profits, so we are generally familiar with 501c3/501c4 options, although the other approaches are less familiar to us. Thanks!
posted by anonymous to Law & Government (8 answers total) 2 users marked this as a favorite
 
Though it's still unclear how this will manifest, you'll need to keep your eye on the fact that he took the (unprecedented, of course) step of filing as a 2020 presidential candidate with the FEC *on his inauguration day*. If that or a similar filing is approved, it will not be allowed at any point during his entire presidency for any 501c3 to engage in "political speech" against him. :(
posted by kalapierson at 2:11 PM on February 10, 2017


Being a 501(c)(3) will significantly limit your options when it comes to partisan political activity.

If you are planning on incorporating in NY, you may wish to consider doing so as a benefit corporation.
posted by praemunire at 2:16 PM on February 10, 2017 [3 favorites]


If that or a similar filing is approved, it will not be allowed at any point during his entire presidency for any 501c3 to engage in "political speech" against him. :(

Check Snopes on that.

The Constant Campaigner
"Legal experts don't believe President Trump's filing for re-election early will have a noticeable affect on the activities of nonprofit and nongovernmental organizations."
posted by andoatnp at 2:25 PM on February 10, 2017 [3 favorites]


You need a pro bono lawyer.

It's true that 501(c)(3)s can't intervene in political campaigns. But they also can't attempt to influence legislation, and generally have to limit lobbying and political actions. So Trump's declaring for 2020 doesn't really move the needle, but a 501(c)(3) doesn't sound like it's going to work for you.
posted by benbenson at 7:20 PM on February 10, 2017 [2 favorites]


You actually need three years of operations and tax returns to be granted 501(c)(3) status. You can apply for it and function but your status will take three years to be granted I believe.
posted by leafwoman at 8:01 PM on February 10, 2017


You actually need three years of operations and tax returns to be granted 501(c)(3) status

Not true.
posted by Miko at 8:56 PM on February 10, 2017


A 501c(3) will only allow the most general advocacy - not particular campaigns for/against legislation or candidates. Probably not what you want.

You might want to explore a 527.

I agree that you need a lawyer. Perhaps someone in your network can step up to advise you.

In similar situations - where the future extent of the mission and length of need is a bit uncertain - I have sought a fiscal sponsorship instead of taking on the obligations of incorporation. That may be your best bet: aligning with a similar organization that can do pass-through banking and serve as an umbrella.
posted by Miko at 8:59 PM on February 10, 2017 [1 favorite]


This is not legal advice, but an LLC is going to be simplest for you. No restrictions whatsoever on your partisan activities. Of course, donations to an LLC are not tax-deductible, but neither are contributions to a political campaign, and people still give eagerly to those.
posted by Conrad Cornelius o'Donald o'Dell at 7:51 PM on February 11, 2017 [1 favorite]


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