Is ACORN a 501(c)(3)???
If so... then how are they receiving government money (4% of EVERY MORTGAGE IN THE USA goes to them as of Jully law signed by W)
And how can they take money FROM obama’s campaign? $800thousand!!!
Aren’t both not allowed for a 501c3?
no
most groups have local chapters, etc, register under different tax structures. The ACORN Institute is not the same entity as ACORN. The ACORN Institute is a 501(c)3 nonprofit that does tax Federal funds and that is tax exempt.
Although ACORN’s projects run a wide gamut, the group claims as its purpose helping low- and middle-income Americans — through initiatives ranging from improving urban public schools, to providing counseling on how to avoid “predatory lending,” to increasing the availability of “affordable housing.” Most of these programs are conducted locally, by state-level ACORN organizations — which are often set up as 501(c)3 nonprofit entities distinct from the national ACORN umbrella, a 501(c)4 lobbying organization. Sounds benign enough — except that, according to Bob Huberty, executive vice president of the Capital Research Center, these tax-exempt 501(c)3s “have no reason for existence other than to get grants from the government and foundations.” They are, essentially, an ACORN front for asking Uncle Sam to subsidize political activity.
Ask ACORN does — and it definitely receives. Take, for example, the most recent tax information from one of ACORN’s subsidiary nonprofits: the ACORN Housing Corporation, Inc., based out of the organization’s national headquarters in New Orleans. For the tax year beginning July 1, 2002, and ending June 30, 2003, ACORN Housing Corp.’s 990 Form shows a total of $1,710,203 received in government grants (the year before, the total was $1,977,306).
The nominal purpose of those millions is to “provide low rent housing & loan counseling services to low income individuals.” But if the government is funding the actual, legitimate work of ACORN at the local 501(c)3 level, it means that the national lobbying organization can dedicate more of its unrestricted resources to electioneering. Furthermore, explains Craig Garthwaite, director of research at the Employment Policies Institute, “The funding is not only fungible in that if they receive money for X, they can spend more on Y.” He cites one particular example of money-rerouting malfeasance: the crooked dealings surrounding an AmeriCorps grant in 1996. According to an EPI study, when the ACORN Housing Corp. applied for the grant, they denied any connections to the main ACORN lobbying group (the grant is not for political advocacy). But the AmeriCorps inspector general discovered that “not only was AHC created by ACORN, engaged in numerous transactions with one another, and sharing staff and office space — but it utilized the AmeriCorps grant to increase ACORN membership, a violation of federal guidelines.” (ACORN charges membership dues, much as labor unions do; thus, by exploiting AmeriCorps funding to inflate its membership rolls, ACORN used government resources to bring in even more money — money with no restrictions on its political use.)