CRNC 527’s and MNGOP
Written by Mark Harris on April 27th, 2005FINAL UPDATE: I talked to Grassel and he has assured me everything was done to the letter of the law and as I have dug into this more I believe it to be the case. There were lawyers involved and everything was cleared through public channels, it was just ill-wording on some people’s behalf. It was run of the mill political stuff and I applaud Jake Grassel for his quick and open response, it is that kind of things that can move the dialogue forward. So this blog at least counts Grassel on this issue on the right side of the right!
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Well folks, the rabbit hole gets deeper.
The following comment was made by someone whose IP tracks back to the Minnesota GOP HQ:
I just wanted to clear something up. Michael Davidson and Alexander are claiming that what they gather from IRS reports is that Minnesota received some $32,000 in block grant money that was sent to our state leadership as reimbursements for expenses.
In actuality we did not receive one dime in block grant money from the CRNC. Actually, we were quite successful in raising our own funds and as chair Jake Grassel raised over $132,000 of hard money. Because McCain’s crappy campaign finance reform our state exec board were advised by counsel to either spend hundreds of man hours and tens of thousands of dollars filing with the IRS or to send the money to the CRNC, we decided to send all of our money to the CRNC and be reimbursed for state grassroots operations through the money that we had raised.
We did not receive any money raised by the CRNC only that money of which we raised for ourselves. Our Chairman worked diligently to raise money to fuel our operations that grew our organization to over 10,000 members. If you have any questions for him, I’m sure that he would be more than happy to answer them in person as he has always been open and honest with us.
Comment by MNCR Exec. — 4/27/2005
Now I had originally said that this transaction, if true, was probably legal as it was a gift from donors through a non-affiliated to a 527, kinda shady but not illegal. HOWEVER, the below seems to indicate that the MNCRs are a subsidiary of the Minnesota GOP, which would make the funneling they did IF TRUE illegal. Now let’s not all jump out here calling for blood, but I do believe we need some answers. Though sadly I doubt we’ll get them.
NOTE: I am not claiming there IS a connection simply that it looks at least probable, which is why we could use some answers.
So let’s start getting some answers…
Jake Grassel listed as a staffer of the MN GOP as the CR Chair
UPDATE: Jake Grassel has offered to answer all the questions so we”ll have this sorted out soon, and I suspect there was no legal wrong doing, but still good to shed some more sunshine on operations.
27
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Nope. Individuals can work for different organizations. Collusion can be argued by ther IRS is tax court, but beyond that it’s not illegal.
Ooooh, track my IP!
27
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I said we don’t know for sure but Mr. FreeThinkerGOP don’t you think we deserve some answers?
27
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I guess. It’s no secret that Hoplin was a product of the Minnesota CRs. The only information you can rely on as fact is what the IRS says. Federations are technically under the CRNC, but in order to fundraise in the state they must register with the State Secretary. Check the MN State website for answers. They could have been laundering money to hide what the money was being used for, but that’s not illegal unless the donations were restricted in some way.
There are a lot of loopholes in the IRC code when dealing with 527s. State laws dealing with the transfer of funds between “like-caused” organizations are really open ended.
If anything, the only violation is in the form of ethical concerns.
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“NOTE: I am not claiming there IS a connection simply that it looks at least probable, which is why we could use some answers.
So let’s start getting some answers…”
Yes, answers.
27
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Let’s do our best to bring down the Minnesota CRs and get them in legal trouble so we can win a club election.
Good thing we are all on the same team.
27
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well said mike. Dont forget what happened in Michigan. That should be every reasonable CRs battle cry.
27
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My goal is not to bring down a CR chapter, but don’t we deserve some answers? I mean if everything is on the up and up this is all for the better, if there is something than only open dialogue and sunshine will clean it up. This is NOT about winning the election, this is about the ethics of it.
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Wow, people thinking about ethics that’s a big shocker, everything can be on the ‘up and up’ if you’ve got the right lawyer. I just want to know why the Minnesota CRs were able to avoid filing their taxes, that every other federation had to do.
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How about this for a battle cry: MICHAEL DAVIDSON DOESN’T STEAL FROM OLD PEOPLE!!!!
28
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Regardless of all the nitpicky particulars, when it comes right down to it, Gourley and his associates are SHADY!
28
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Alex, why haven’t you commented about Davidson’s misrepresentation of the CRNC money that was downright wrong? Check out Brian M’s post today on CR Vets for clarification, but seriously Michael is taking it to new lows misrepresenting entire budgets and I really lost a lot of respect for him that I previously had. Not once have I attacked him, but now I will say that he is wrong to misrepresent budgets for a political advantage, particularly in a half-assed attempt he made by using online records of the budget when he should have a copy. I realized why this all happened though and it was because of chronic absenteeism at national board events. He better stick to his own plan and avoid this entire misrepresentation of current situations before he comes off looking any worse than he already has after this misrepresentaiton.
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Actually, where is Michael’s IRS report? They raised $150,000 and it had to be through a 527, but where is it? I can’t find it. Can you?
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SarahBell ( ) wrote: