IRS: CA group training Democratic female candidates must disclose donors

◼ Emerge America, a California-based group that offers candidate training to female Democrats, has lost the nonprofit status that allowed it to operate without disclosing its donors, Bloomberg News reported Thursday. - Sacramento Bee

◼ “You are not operated primarily to promote social welfare because your activities are conducted primarily for the benefit of a political party and a private group of individuals, rather than the community as a whole,” said the IRS letter telling the group it was losing its exempt status. - Bloomberg

While the nonprofit wasn’t named, it was Emerge America, its president, Karen Middleton, told Bloomberg News. The national organization is based in San Francisco and works with nine state affiliates that train Democratic women candidates....

President Barack Obama and Republican challenger Mitt Romney are benefitting from such nonprofits. Crossroads GPS was started with help from former President George W. Bush’s chief political strategist, Karl Rove. Priorities USA was co-founded by Bill Burton, a former Obama aide.

The recent IRS decision sends a signal that it may turn its attention after November’s election to major nonprofits involved in this year’s election, said Marcus Owens, a lawyer and former IRS director who oversaw nonprofits.

“The message is groups like Crossroads need to be prepared to explain to the IRS why they’re entitled to tax-exempt status,” said Owens.