PELTIER: PUBLIC CHARITY? PART 2, INUREMENT

Dear Supporters:

This may be the proverbial smoking gun (certainly, no pun intended) in Peltier’s decades long quest to fill his coffers ostensibly for charitable activities but are clearly to pad an alleged need to fund his flagging and arguably non-existent legal defense. 

Peltier has pointed that gun at his own foot and loaded it with a bullet that has  “Inurement” written on it.

Peltier’s alleged charitable activities, and there have been many claims, when brought into the sunlight hardly stand up to scrutiny. (Footnote 1)

Based on years of myth and folklore Peltier has offered himself as the

warrior/victim, as a prophet of sorts for Native rights, but based on his continued cash-centric efforts has become more the prophet of profits.

Peltier has claimed many times that donations to his cause were tax-deductible (often removing, yet returning to the tax deductible mantra; however, there is an explanation for these on-and-off-again claims) but this time adding an extra layer that they are indeed legitimate and under the guise of a “Public Charity” with 501(c)3 status.

The Internal Revenue Service is very clear about the requirements for tax deductible activities of “E.O.” or Exempt Organizations and granting 501(c)3 status.

The Application for Recognition of Exemption, I.R.S. Form 1023, clearly states:

“Section 501(c)3 requires that your organizing document state your exempt purpose(s), such as charitable, religious, educational, and/or scientific purposes.”

I.R.S. regulations make it clear that:

Private Benefit and Inurement : A public charity is prohibited from allowing more than an insubstantial accrual of private benefit to individuals or organizations. This restriction is to ensure that a tax- exempt organization serves a public interest, not a private one. If a private benefit is more than incidental, it could jeopardize the organization’s tax-exempt status. No part of an organization’s net earnings may inure to the benefit of an insider. An insider is a person who has a personal or private interest in the activities of the organization such as an officer, director or a key employee. This means that an organization is prohibited from allowing its income or assets to accrue to insiders.

And further:

If a public charity provides an economic benefit to any person who is able to exercise substantial influence over its affairs (that exceeds the value of any goods or services provided in consideration), the organization has engaged in an excess benefit transaction. (Emphasis added.)

There is no dispute that Leonard Peltier and his committee have more than a casual or symbiotic relationship. They are one in the same, mirror images with common links and goals. Peltier has made it clear that he is in charge and none of the committee’s public pronouncements and activities exist without his approval. Peltier is the insider. Without Peltier there would be no need for a committee as Peltier unquestionably exercises substantial influence over its affairs. There is an ongoing and lengthy history supporting this conclusion.

To further reveal this assertion in July 2016 the ILPDC publicly posted the following:

“There is only one Committee. The ILPDC is planning/managing the only official freedom campaign for Leonard Peltier (in concert with Leonard Peltier and his attorneys). You may see public or Internet-based fundraising efforts not endorsed or managed by the ILPDC. Beware. These are not approved actions and the fundraising isn’t being done on behalf of the Committee. Only credentialed chapters of the ILPDC and selected partners are authorized to raise funds in Leonard’s name. Therefore, we encourage donors to always ask for a fundraiser’s credentials and/or check with the ILPDC as to the legitimacy of any fundraising effort conducted by an individual or organization other than the ILPDC. Thank You.” (Emphasis added)

Yet, with the legal requirement that a 501(c)3 be established for charitable, religious, educational and/or scientific purposes the committee offers these notable public statements:

“There’s some good news on the Tax front as we received word from the IRS that we’ve received our 501c3 status! So, all of you that have been waiting to send your donations can use them as a tax right off (sic) –now is the time.”

“In addition, the timing couldn’t be better as we are struggling in our fundraising for the office and Leonard’s legal fund.” (8/31/18)

“This move forward will entail us requesting Leonard’s supporters to help make this a reality by contributing to Leonard’s legal fund. And we can let you know that we can send you a tax deduction for your donation as our 501(c)3 has after much struggle become a reality!”  (10/8/18)

It has been hectic here at the National Office, and I want to bring you all up to date on our needs for financial help. We need help on paying Leonard’s legal fees  for his transfer and his First Amendment case in Washington State. We are estimating that we will need to raise $5,000 by the end of 2018. For supporters that need a tax deduction we are a 501c3 organization and will happily send you a tax statement for 2018 tax year.  (11/20/18)

Mandated within the I.R.S. Form 1023 application is the “Required Provisions in Your Organizing Document.”

The application referenced that provision as being “Page 1 Article II Paragraph 1.”

However, that section of the ILPDC By-Laws states the following:

Article II. Purposes 

The purposes for which the corporation is organized are: 

To bring together through intersecting learning circles the indigenous knowledge and traditions of the original inhabitants of North America with governing society procedures and practices. On this most heterogeneous of continents, with intertwined histories of its peoples evolving from all parts of the globe, the International Leonard Peltier Defense Committee will work to blend cultures and traditions through mutually respectful identification and acknowledgement of shared universal needs and values to help support and strengthen socially responsible and equitably administered democratic nations. 

Said organization is organized exclusively for charitable, religious, educational, and scientific purposes, including, for such purposes, the making of distributions to organizations that qualify as exempt organizations described under Section 501(c)(3) of the internal Revenue Code, corresponding section of any future federal tax code. (Emphasis added)

Sounds notable, even beneficent but also a bit conspicuous that nowhere in the By-Laws or on the Form 1023 does it state they are raising “tax deductible” donations for the legal fund of a convicted double murderer. 

It’s more likely than not that the I.R.S. would not have granted the 501(c)3 if the organizing document or the Form 1023 spelled out the apparent purpose of raising money for Peltier’s legal fund as their highly public pronouncements indicate.

That approved 501(c)3 would hardly serve a public interest but obviously a private one, that of Leonard Peltier, who without qualification has a personal or private interest in the activities of the organization.

* * *

Fortunately, the I.R.S. has a process to report concerns regarding Exempt Organizations.

IRS.gov provides a Tax-Exempt Organization Complaint (Referral) Form 13909 that requests certain information (Fn. 2):

Name of referred organization: International Leonard Peltier Defense Committee, 116 W. Osborne Ave., Tampa, Florida, 33603.

Employer Identification number (EIN): 81-5117989.

Nature of violation: The Form 13909 provides a list of boxes that can be checked where appropriate.

Names of persons involved: Jean Roach (Chairperson), Gerri Timmons (Treasurer), Dan Battaglia, (Secretary), Stephanie Autumn (Director), Yvonne Swan (Director), Paulette Dauteuil (Co-Director)

Dates: The I.R.S. letter 947 approving public charity and 501(c)3 status for the ILPDC was dated August 22, 2018, however the Effective Date of Exemption was backdated to December 15, 2017. (Note the dates of the public fund raising notifications listed above.)

Submitter information: On the form the submitter information has a box that can be checked to not disclose the submitter’s identity.

* * *

The above is provided for background and informational purposes.

Supporters may take whatever action they feel appropriate concerning Peltier and the ILPDC’s 501(c)3 and whether it is appropriate for a convicted double murderer to be entitled to such tax exempt status.

“In the Spirit of Coler and Williams”

Ed Woods

Footnotes:

1) http://www.noparolepeltier.com/debate.html#fraud

(2004-2007 and needs to be updated, however, the 501(c)3 issue is timely)

2) https://www.irs.gov/pub/irs-pdf/f13909.pdf

PELTIER: TAX DEDUCTIBLE & LEGAL ISSUES, PART III

Dear Supporters:

Regarding the ILPDC 9/19/2017 press release, let’s be very clear about who is responsible for this information. The original Leonard Peltier Defense Committee (LPDC) that morphed into the Leonard Peltier Defense Offense Committee (LPDOC), that mutated into the International Leonard Peltier Defense Committee (ILPDC) has made it unmistakable over the years—from Peltier himself, that nothing is released or published without his approval. So, although this message is signed from “Paulette,” Leonard Peltier owns it. (Footnote 1)

The message begins with the caveat to “…please at least read the end of this letter—our good friend Leonard Peltier has a serious need.” (More on that in a moment.)

Among other things, Peltier wants the ILPDC relocated from Fargo, ND to somewhere near USP Coleman near Tampa, Florida.  (If it occurs, it will be one of many moves over the years.)

There is a “strategy for legal work” and the “legal team has generated a solid multi-faceted approach which outlines several avenues which may lead to Leonard’s release.” The goal is to get Peltier’s “case back into the court.” But Peltier also wants $125,000 for legal fees.

Legal Issues: 

This is a familiar refrain and it will be extraordinarily interesting to see what the solid multi-faceted legal strategy will be, a strategy that’s prompting a hundred-plus grand for attorney’s fees. The legal history of Peltier’s conviction is as transparent as glass and has been under a proverbial neutron microscope for over four decades where every issue (legitimate and frivolous) has been raised and resolved—none in Peltier’s favor. As for representation, the Eighth Circuit Court of Appeals acknowledged, “Peltier was equally well-represented at trial and on appeal.”

Since then, Peltier has had many capable and concerned attorneys who dedicated hundreds, if not thousands of hours of pro bono efforts exploring all avenues of potential relief, all without success. Some of these attorneys, well intentioned and dedicated, have been literally kicked to the curb after having to deal with what appears to be Peltier’s ungrateful and taxing personality.

Although, there have been a few exceptions, like an attorney who absurdly stated publicly  “…they (the FBI and government) don’t have any creativity, they don’t come up with anything new. They don’t have any greater ability to explain their justification for their position. It’s a very wooden position, kill an FBI agent and live the rest of your life in prison. I don’t think that’s going to impress very many people who aren’t already of the same opinion.” This was a nonsensical and moronic rhetorical statement that proved its own misguided premise. Yes, no mistaking that when you kill (two) FBI agents it triggers (no pun intended) spending one’s life in prison.  Hopefully, this effort was pro bono. Or, an attorney who when called upon to provide sworn testimony in a peripheral matter, took the fifth.

* * *

This blog was started after the 9/19/17 press release but wasn’t completed before the ILPDC sent out another message on 9/30/17 spelling out the hotly anticipated solid multifaceted legal strategy. (Fn.  2) The strategy was broken down into three categories:

1) Habeas Corpus: “On the grounds that Leonard’s incarceration is unconstitutional.” That road has been driven down many times by capable attorneys. There are no “new grounds.” It’s a dead end. But with comments like, “may be difficult” and “there is no guarantee,” at least there’s a hint of reality that this is a waste of time and billable hours.

2) Parole: It should be fairly clear that parole is off the table for Peltier with the 2009 fifteen-year reconsideration hearing (being flopped until 2024). Peltier, by his own admission has not been a model inmate, having served over five years in solitary. He has received many disciplinary actions; even transfers and no one should forget the armed escape from Lompoc Penitentiary. For which, by the way, Peltier has to serve an additional seven consecutive years.  (Peltierites always seem to forget that little nugget.)

3) Compassionate release: “The possibility…based on declining health,” “...intended for prisoners with terminal illnesses,” “no definitive regulations,” “Leonard’s medical condition does not make a release on this basis possible although hiring of outside medical experts may be necessary,” “…open to interpretation,” all paint a an obviously unproductive and bleak picture.

Nevertheless, how’s this for compassion? Show Peltier as much compassion as he gave to Jack Coler and Ron Williams. That would be absolutely, none!

The solid multifaceted legal strategy seems a little weak in the knees and has about as much likelihood of success as Satan ice skating to work. Although, the strategy does make it sound urgent and dire for the unsuspecting to fork over some cash.  At least that’s what it sounds like.

* * *

Tax deductible and the IRS:

The 9/19/17 message ended with:

“Please consider a ttax-deductible (sic) donation to Leonard’s legal team. The ILPDC will insure (sic) your gift goes 100% toward the pursuit of Leonard’s freedom.” And, “Please send what you can today! Don’t hesitate. Don’t depend on someone else. Please lend a hand today. Let’s do this together and position Leonard’s legal team for success!” (Both statements contain links directly to Peltier’s website.)

Calling donations a “gift” is a humorous misnomer when combined with the claim that monies sent are “tax-deductible” and just as critical, 100% will go to Peltier’s legal team and defense.

Let’s explore—again—why Peltier is not a charity case and soliciting tax-deductible donations for a convicted incarcerated felon is against IRS regulations as required by law.

IRS regulations are fairly clear about who can and cannot make a claim for tax-deductible donations:

To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual…The organization must not be organized or operated for the benefit of private interests, and no part of a section 501(c)(3) organization's net earnings may inure to the benefit of any private shareholder or individual.

A section 501(c)(3) organization must not be organized or operated for the benefit of private interests, such as the creator or the creator's family, shareholders of the organization, other designated individuals, or persons controlled directly or indirectly by such private interests. No part of the net earnings of a section 501(c)(3) organization may inure to the benefit of any private shareholder or individual. A private shareholder or individual is a person having a personal and private interest in the activities of the organization.

(Fn. 3)

(On 9/25/17 a polite email was sent to the ILPDC advising of potential issues with claiming tax-deductible donations. As of this blog, no response has been received. Fn. 4)

Concerned citizens, exercising their First Amendment rights are able to inquire of the IRS whether it is legal for a convict serving consecutive life sentences—for a brutal double murder—can claim that any money sent to an organization funded on his behalf can solicit those donations as “tax-deductible.” Likewise, under the guise of a 501(c)3, redirect money for the same purpose to an individual and/or his family for an alleged legal fund.

The IRS makes the process very simple utilizing #13909, Tax-Exempt Organization Complaint (Referral) form, available on the irs.gov website. (Fn. 5)

Leonard Peltier is a classic example of the whim of Peltierites who avoid knowledge that conflict with the myth and folklore. Knowledge that interferes with short-term interests to milk the cash cow dry.

The 9/30/17 release ended with an issue of cancelled visitor days at USP Coleman:

“Leonard was very upset as he say’s ‘time is too short for me, and to not see my great grandson is very upsetting.’ Leonard has very few pleasures in life, the most important is his visits with family and friends.”

Pleasures? Life? Upsetting? Time, thanks to the vicious acts of convicted felon Leonard Peltier, was violently ended for Jack Coler and Ron Williams and how important it would have been for them to see their family and friends.

“In the Spirit of Coler and Williams”

Ed Woods

Footnotes:

1) goo.gl/PEiCCH

2) goo.gl/tsASo5

3) https://www.irs.gov/charities-non-profits/charitable-organizations/exemption-requirements-section-501c3-organizations

https://www.irs.gov/charities-non-profits/charitable-organizations/inurement-private-benefit-charitable-organizations

4) From: Ed Woods

Subject: Paulette posting 9/19/17

Date: September 25, 2017 at 10:39:27 AM EDT

To: Dauteuil Paulette

Dear Ms. Dauteuil:

I know that I am not the most popular person to hear from, but please give me a moment to share some information. 

Your recent posting was very sincere and heartfelt and I understand and appreciate your commitment, however, when in comes to Leonard, we will just have to agree to disagree on certain matters.

Although, and perhaps you were not aware and may have done it for altruistic reasons,  but advertising tax-deductible donations for Leonard’s legal fund and attorney’s fees is against IRS laws and could create legal issues for him, the ILPDC and the IRC (see below). The IRC, even as a 501(c)3 is cloaking its "tax-deductible” advertising by also funneling funds for other purposes. 

Leonard and his supporters are entitled to raise as much as they can in donations but he also needs to avoid potential issues with the IRS.

Please let me know your thoughts.

Regards,

Ed W.

(Note: The 9/30/17 press release did not include that solicitations are tax-deductible.  Perhaps Ms. Dauteuil took heed of the advice. However, that does not alter the fact that for many years Peltier has possibly violated IRS regulations regarding tax-exempt organizations and tax-deductible donations.)

5) https://www.irs.gov/pub/irs-pdf/f13909.pdf

Buddy can you spare a dime?

Dear Supporters:

The LPDOC is asking to give Peltier a helping hand for his upcoming 66th birthday by sending “funds” (no cash, checks or contraband please, just money orders) to his commissary account, c/o Federal Bureau of Prisons, Leonard Peltier #89637-132, P.O. Box 474701, Des Moines, Iowa 50947-0001.

This raises two issues Peltier supporters should be wary of, and a challenge.

1) When will Peltier and the LPDOC come clean (as was promised years ago; remember there was supposed to be “transparency” concerning Peltier’s finances?),1 and tell his supporters how much money he has already scammed from unwitting supporters and how and where it was spent? The NPPA has been down this road with Peltier many times. Please see Editorial Essay #24, Peltier Donations: Scam, Fraud?2 Peltier supporters should not be shy about asking the same questions.

(By the way, any donations made are NOT tax deductible. Contrary to any opinions out there, Peltier is NOT a charity case.)3

2) It’s apparent that the money trough, along with Peltier’s support network, is dwindling and in very short supply if he has to revert to begging for commissary money. But that comes as no surprise.

Challenge: No, make it a double-dog dare (more on that in a later blog):

The NPPA will make a $500 donation to the LPDOC if:

 They post on whoisleonardpeltier.info, Peltier’s last five years (2005-2009) of federal and state tax returns, and;

 Federal and state tax returns for the LPDC (2005-2008) and the LPDOC (2009).

The check is waiting.

“In the Spirit of Coler and Williams”
Ed Woods

1) Editorial Essay #19: http://www.noparolepeltier.com/debate.html#free
2) Editorial Essay: Peltier Donations: http://www.noparolepeltier.com/debate.html#fraud
3) Editorial Essay #18: http://www.noparolepeltier.com/debate.html#shambles