Complaint lodged over school interest group's actions

Oct. 22—GUILFORD COUNTY — The Democratic chair and vice chair of the Guilford County Board of Education are calling for state and local officials to halt the political activities of a nonprofit group associated with a slate of Republican school board candidates.

But partisan political activity is prohibited under the federal tax code, so it's a matter for the Internal Revenue Service, not the state, said Pat Gannon, public information officer for the State Board of Elections in Raleigh.

"The North Carolina State Board of Elections does not enforce federal laws or regulations regarding an organization's tax-exempt status," Gannon said in a prepared statement.

The group, Take Back Our Schools-GCS, organized in August 2021 as a charitable organization under section 501©(3) of the Internal Revenue Code but has been engaging in political activity prohibited by that nonprofit filing status, says a letter sent by school board chair Deena Hayes and vice chair Winston McGregor to Attorney General Josh Stein, Secretary of State Elaine Marshall and the chairmen of the State Board of Elections and the Guilford County Board of Elections.

"They are endorsing candidates, raising funds, contributing to campaigns, and coordinating campaign strategy and fundraising. They have been banned from Facebook twice in the last month for posting false information," the letter says. "While we have endured harassment and outright lies about our schools, educators, students and district leaders, we cannot stand by and allow illegal activity to persist and damage such a critical electoral process."

But the treasurer of Take Back Our Schools, Gene Parker, told The High Point Enterprise Friday afternoon that "we have always held ourselves out to be a 501©(4)." Parker supplied documentation about Take Back Our Schools' tax status.

Parker acknowledged to The Enterprise that he mistakenly checked the wrong box on the August 2021 form that inadvertently identified Take Back Our Schools as a 501©(3). But all other tax paperwork has listed the group as a 501©(4), Parker said.

"The people who support us — many — are aware that their contributions are not tax deductible," Parker said.

According to the IRS, all section 501©(3) organizations "are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office." The consequence for violating that prohibition is losing tax-exempt status.

Take Back Our Schools is associated with a slate of four candidates running under the banner of New Vision, New Direction: Tim Andrew, Crissy Pratt, Demetria Carter and Linda Welborn, who is the only incumbent among the four.

Hayes is running for reelection but has no opponent on the fall general election ballot.

McGregor's term is expiring, but she is not running for reelection.

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