Group Fined in Calif. Contribution Case Gets 501(c)(4) Mark

The Internal Revenue Service granted a conservative Arizona organization status as a “social welfare” nonprofit last October, nearly a year after the group was embroiled in a California court fight over campaign-finance violations, reports the Center for Responsive Politics.

Americans for Responsible Leadership, or ARL, acknowledged in a November 2012 settlement with California regulators that it had served as a conduit for money from other groups to flow into two referendum campaigns. ARL and another group were ultimately fined a combined $1-million for their roles in the funding effort.

On Oct. 22, 2013, two days before the fine was announced, ARL received a 501(c)(4) imprimatur from the IRS. The group had applied for nonprofit status in 2012 and had stated it would be involved in “limited express advocacy” in elections. The nonprofit designation followed lengthy exchanges between IRS officials and ARL, according to documents obtained by the Center for Responsive Politics.