Stacey Abrams-founded group’s tax-exempt status targeted by top Republican

House Ways & Means Committee Chairman Jason Smith, R-Mo., has taken a bold step by urging the Internal Revenue Service (IRS) to revoke the tax-exempt status of a nonprofit organization associated with former Georgia gubernatorial candidate Stacey Abrams. The organization in question, the New Georgia Project, was recently slapped with a hefty $300,000 fine for violating state election laws by the Georgia Ethics Commission.

In a letter addressed to IRS Commissioner Melanie Krause, Smith emphasized the significance of this penalty, describing it as “the largest in the Ethics Commission’s history and possibly the largest ethics fine ever issued in the United States.” The Ethics Commission unanimously charged the New Georgia Project with failing to disclose over $4 million in campaign contributions and more than $3 million in expenditures while supporting Abrams’ unsuccessful 2018 gubernatorial campaign.

Under Internal Revenue Code Section 501(c)(3), organizations are strictly prohibited from engaging in political campaign activities on behalf of or in opposition to any candidate for public office. Smith highlighted this point in his letter, emphasizing that the IRS has the authority to revoke an organization’s tax-exempt status or impose excise taxes for violations related to political campaign intervention.

Although Abrams founded the New Georgia Project in 2013 with the aim of boosting voter registration efforts in Georgia, she has not been involved with the organization since 2017. Smith pointed out that 501(c)(3) nonprofits are prohibited from advocating for specific political candidates, a rule that the New Georgia Project appears to have violated.

While the New Georgia Project’s affiliated group, the New Georgia Project Action Fund, is permitted to endorse candidates, donations to this entity are not tax-exempt. Smith argued that the New Georgia Project’s intervention in the 2018 election cycle in support of Stacey Abrams and other candidates constitutes a clear violation of their tax-exempt status.

Smith acknowledged that nonprofits are allowed to engage in nonpartisan voter education activities that do not amount to prohibited political campaign activity. However, he contended that the New Georgia Project crossed the line by intervening in the 2018 election cycle on behalf of specific candidates.

In light of these findings, Smith urged the IRS to prioritize a review of the New Georgia Project’s tax-exempt status and take swift action to revoke it. Despite reaching out to the New Georgia Project and the IRS for comment, Fox News Digital did not receive a response by press time.

In response to the Ethics Commission’s ruling, New Georgia Project attorney Aria Branch expressed acceptance of the outcome and a willingness to move past activities that occurred more than five years ago. The organization remains determined to comply with legal standards and uphold transparency in its operations.

Elizabeth Elkind, a politics reporter for Fox News Digital, played a key role in covering this development. With previous digital bylines at Daily Mail and CBS News, Elkind brings a wealth of experience to her reporting. Follow her on Twitter at @liz_elkind and reach out with tips at elizabeth.elkind@fox.com.

This article sheds light on the ongoing controversy surrounding the New Georgia Project and underscores the importance of adherence to tax-exempt regulations for nonprofit organizations. As the IRS considers the potential revocation of the organization’s tax-exempt status, the implications of this decision could have far-reaching consequences for both the New Georgia Project and similar entities in the future.