It’s time to clear the air on the meddling in local political races by the Talbot Integrity Project, Inc. It’s also time to be factual rather than to bloviate. A recent complaint was filed with the Maryland State Board of Elections, asking them to look into whether the Talbot Integrity Project, Inc. has legally filed as a Political Action Committee (PAC) or not. Maryland campaign finance law requires that entities file with the State as a PAC when involved in political activities and contributing to political candidates; federal, state, or local. Contributions include monies and in-kind contributions. All Candidates and political entities must report all cash transactions, loans, and in-kind contributions on a frequent cadence during election years.
Is the Talbot Integrity Project a Political Action Committee? It is now up to the State of Maryland to make this determination. And, there are potential further complications. First, TIP Inc., Dan Watson “acting treasurer”, has authorized the placement of signs (large and small) around Talbot County with an authority line where the principal (Dan Watson) is also acting treasurer. If the State of Maryland Board of Elections determines that TIP has not filed as a Political Action Committee and is required to do so, this is another potential conflict with Maryland Campaign Finance law. Second, TIP, Inc. claims to be a 501(c)4 non-profit organization. This writer asks that TIP, Inc. make their IRS (approved, “not” pending) filing as a 501(c)4 non-profit available for public review immediately. According to several Talbot Spy articles and other local publications, they have raised substantial funds under the 501(c)4 umbrella from over 100 Talbot citizens. Citizens have been led to believe that this is a non-profit organization focused on “no-growth” for Talbot County. Federal IRS regulations prohibit political activities by non-profit 501(c)3 and 501(c)4. Thus, the burning questions. Is TIP, Inc. operating as an unauthorized PAC (for the State of Maryland to determine)? And, is TIP, Inc. engaging in political activity not allowed by the IRS for non-profit organizations?
There is a secondary issue of the “RESET” signs with the TIP authority line, placed illegally within the right-of-way of streets and highways in Talbot County. However, this issue is rarely enforced as can be witnessed by the failure of the County and State to remove illegally sized and placed BIDEN/HARRIS signs during the last election.
A more disturbing factor is the endorsement and apparent “in-kind” contributions to the full slate of Democratic and 2 Republican County Council candidates. The large 8 foot-by-4 foot signs shown below that are being placed around the county have Pete Lesher’s name in bold next to the “RESET” Talbot County logo. Did Mr. Lesher authorize this sign or not? I can understand why the Chesapeake Maritime Museum may support “no” or limited growth, however, given Mr. Lesher’s professional conduct, I doubt if he authorized this apparent “lock- in” with the TIP project. As a concerned citizen, I ask that all County Council Candidates state in public, whether they have authorized the use of their name and candidacy in these publications, mailers, and signs placed by TIP, Inc. I also ask that they publicly confirm or deny if they have reported TIP, Inc’s. “in-kind” contributions in their Campaign Finance reports.
Just to reinforce the points above, the following are direct quotations from the National Council of Non-Profits. “Nonprofits and foundations may not “participate in, or intervene in (including publishing or distributing of statements), any political campaign on behalf of (or in opposition to) any candidate for political office.” This prohibition applies to any and all candidates for federal, state, and event local elections.”
“All charities…are absolutely prohibited from intervening in a political campaign for or against any candidate for an elective public office. If a charity does intervene in political campaigning, it will lose both its tax-exempt status and its eligibility to received tax-deductible contributions.” Source: IRS instruction for Schedule A, National Council on Non-Profits website.
Council Candidates, clarify your connections with TIP, Inc. Have you reported their in- kind contributions on your campaign finance reports? TIP, Inc. clarify your status and disclose this information to your contributors and the general public! Talbot citizens deserve to know if their contributions to your effort are being appropriately used and handled according to the rule of law.
Surely, your name, Talbot Integrity Project, implies your organization, members, and endorsees are following all appropriate state election, and Non-Profit charitable organization laws. It’s now time for the Talbot Integrity Project and Council Candidates endorsed by them to clear the air.
Ryan Geib
Trappe MD
Jim Franke says
Today the Easton Bypass is lined with many Lakeside For Sale signs. In the right of way.
Jerry McConnell says
It’ll be interesting to see what kind of response you get from county council candidates and others for your demands for public disclosures, explanations, and confessions.
Actually it looks more like you need to do some homework or maybe a little bit of common sense research instead of posing rhetorical and suggestive questions about black and white issues. Or, maybe hire a private investigator and a real lawyer to substantiate your obviously unbalanced opinions.
Wade Strickland says
Interesting article and even more interesting possible implications regarding Talbot Integrity Project’s actions. I didn’t fall for their political games in their fishing expedition while looking for candidates to “endorse”. I answered their pertinent questions and posted the responses in this publication for the readers and voters to decide for themselves. We as political candidates must follow campaign law while running for office, as should any organization looking to inject themselves into the political process. I for one, have not requested, accepted, nor will accept any endorsement from the Talbot Integrity Project. Growth is a sincere concern for our lifestyle and must be addressed, but it is only one of many issues we are facing as a community. We must choose our elected officials from their wide range of attributes and qualifications, not a singular viewpoint.
Thank you,
Wade Strickland
Candidate for Talbot County Council
Dan Watson says
“Meddling?” Really? The word means “intrusive or unwarranted interference.” To the best of my knowledge every single TIP donor, and the vast majority of TIP supporters, are Talbot County citizens or property owners—though we have fans in Dorchester and Caroline Counties, and elsewhere as well. I myself have lived here 28 years, and don’t feel that working for the protection of Talbot County’s unique character is “meddling” in any fashion.
As to TIP’s status, it is a properly formed 501c4 corporation and I am confident there are no improprieties with respect to Maryland campaign finance law. (Contributions to The Talbot Integrity Project are not tax deductible, by the way.)
Dan Watson
Acting Chairman
The Talbot Integrity Project
Eugene Lopez says
Mr. Geib needs to read up on what 501(c)(4) organizations are permitted to do. They can seek information from candidates regarding how a candidate would act on issues of importance to the organization. They can inform the general public of candidate views on issues. They can endorse candidates and encourage voters to vote for or against particular candidates. Talbot Integrity has done a great job in getting Council candidates to go on the record about where they stand on development concerns related to Lakeside.
Wade Strickland says
Mr Watson,
I believe the intent of the author was to have TIP clarify their status, PAC or Non-Profit, or both? The document provided through this publication was that you have APPLIED for your Non-Profit Status. Have you received your approval to act as a 501(c)(4), and if so, please produce this document. As candidates, we are held to high standards during this democratic process and we only ask any groups participating do the same. I don’t think the requests of the author are excessive, only probative.
Thank you,
Wade Strickland
Candidate for Talbot County Council
Jerry McConnell says
Apparently some folks running for public office (county council in this case) think they should toss comments and demands out there (Strickland in this case) without a basic understanding of the technical/ detail parts of the issue.
Those folks ( Strickland in this case) should re-evaluate their eligibility to function properly in the position they are seeking.
Leslie Steen says
It typically takes several years for the IRS to fully approve or disapprove an application for nonprofit status because it is understaffed. In the meantime the IRS gives such applicants the authority to do their work on an acting basis.
Wade Strickland says
Interesting concept. Conduct your business and agenda, and then possibly denied. No harm, no foul? Agenda fulfilled!!! Interesting indeed……..
Wade Strickland
Candidate for County Council
Leslie Steen says
A 501c4 is a social welfare organization. Donations to a 501c4 are not tax deductible, whereas donations to a 501c3 are. A 501c4 can engage in political activities. A 501c3 cannot.
The IRS states: “To be tax-exempt as a social welfare organization described in Internal Revenue Code (IRC) section 501(c)(4), an organization must not be organized for profit and must be operated exclusively to promote social welfare.” Read more here:
https://www.irs.gov/charities-non-profits/other-non-profits/social-welfare-organizations#:~:text=To%20be%20tax%2Dexempt%20as,exclusively%20to%20promote%20social%20welfare
To my knowledge the tests of this nonprofit status are tests made after the fact. The tests are about how funds are used and what activities are undertaken, so it is appropriate that the review by IRS is done a later time so that it can make a real determination.
Eva M. Smorzaniuk MD says
Thank for injecting some facts into this biased and politically motivated rant.