No Labels is abusing its nonprofit status: Advocates

LANSING, Mich. (WLNS) — The advocacy organization End Citizens United has submitted a complaint to Michigan Attorney General against No Labels, the group that is working toward a possible third-party presidential campaign.

End Citizens United advocates for campaign finance reform, including an end to “dark money” contributions.

No Labels is a self-described “common sense” centrist organization.

The complaint alleges “fraudulent misuse” of the national organizations No Labels’ 501(c)4 nonprofit status with the Internal Revenue Service, which makes it tax-exempt. Tax-exempt means the organization does not pay taxes, but donations to the (c)4 organizations are not tax deductible for donors.

The nonprofit status has enabled No Labels to “operate with limited transparency while accepting unlimited sums from an anonymous set of donors,” which formal political parties are not allowed to do, The Associated Press recently reported.

“In its attempt to run a third-party presidential ticket, No Labels is abusing its nonprofit status in Michigan and we believe Attorney General Dana Nessel should investigate and hold them accountable,” said End Citizens United President Tiffany Muller in a news release Monday.


Read more about the organization No Labels:

Will Michigan have a third political party come 2024?


End Citizens United and another advocacy group, Accountable.US, filed a complaint regarding No Labels with the IRS last week.

According to the news release, “ECU is submitting copies of the IRS complaint to the 27 states No Labels is registered to solicit charitable contributions.”

“We are continuing to work every single avenue with our partners to hold (No Labels) accountable legally, to expose them publicly and to make sure they are playing by the same rules as everyone else,” said End Citizens United president Muller, reported AP.

FILE - People with the group No Labels hold signs during a rally on Capitol Hill in Washington, July 18, 2011. More than 15,000 people in Arizona have registered to join a new political party floating a possible bipartisan “unity ticket” against Joe Biden and Donald Trump. (AP Photo/Jacquelyn Martin, File)
FILE – People with the group No Labels hold signs during a rally on Capitol Hill in Washington, July 18, 2011. More than 15,000 people in Arizona have registered to join a new political party floating a possible bipartisan “unity ticket” against Joe Biden and Donald Trump. (AP Photo/Jacquelyn Martin, File)

No Labels, in response, said the complaints were part of a “coordinated conspiracy to subvert No Labels’ ballot access and limit Americans’ choices.”

If the groups’ complaints succeed, No Labels would need to register as a formal political party with the Federal Election Commission.

The group would also lose its tax-exempt status, which means it would be forced to keep the same limits on donation amounts as other political parties, and to reveal its big-money donors.

End Citizens United is a 501(c)4 nonprofit organization whose goal is “to fix our democracy by getting big money out of politics and protecting the right to vote,” in part by working to overturn Citizens United.

Citizens United is a 2010 U.S. Supreme Court ruling that enabled corporations and other outside groups to contribute unlimited amounts of money toward elections.

The Associated Press contributed information and reporting to this article.

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