Type of Activity: Project
Grantee: Shared Ascent Fund
Amount: $30,000 in 2020
What is the Shared Ascent Fund?
Shared Ascent Fund is a nonprofit designed to provide sustained support for efforts to confront the growing threat to our democracy. This work cannot succeed without advancing economic, racial, and gender equity. Shared Ascent Fund assists skillful leaders and organizations as they strive to move beyond the zero-sum economics and politics that impoverish communities and deepen divides.
Why do we think this project is important?
In order to defend the ability of 501(c)(3) organizations to share resources with their partner 501(c)(4) organizations without jeopardizing the tax status of the (c)(3) organizations, Shared Ascent Fund mobilized a congressional response to the IRS’s private letter rule 134894-18.
In January 2020, the U.S. Internal Revenue (IRS) released a private letter ruling that could undermine the ability of 501(c)(3) organizations to share resources, including office space and employees, with their partner 501(c)(4) organizations without jeopardizing the tax status of the (c)(3) organizations.
Through this project, the Shared Ascent Fund defended this long-established, legally sound practice, which has been integral to the growth and effectiveness of nonprofit advocacy. As is the case now, the (c)(3) and (c)(4) organizations would continue to observe the legal formalities of their separate incorporations and separate financials to avoid violating their different lobbying and electoral rules. The existing legal structures have allowed non-profit organizations to pursue outcomes that serve the public interest on a range of priorities that are core the future of an open and just democracy.
How is Democracy Fund Voice supporting Shared Ascent Fund?
In 2020, Democracy Fund Voice approved a grant of $30,000 to Shared Ascent Fund.