Legal Framework
Every action AFNPT takes is grounded in federal and state law. This page documents the legal authorities, IRS codes, and regulatory frameworks that govern our work and the entities we examine.
Table of Contents
Educational Purpose Disclaimer
All content published by Americans For Non-Profit Transparency (AFNPT) is presented for educational and informational purposes only.
The analyses, opinions, and commentary expressed on this platform represent AFNPT's educational interpretation of publicly available government records. This content does not constitute:
- Legal advice or legal opinion
- Accusations of criminal wrongdoing against any individual or entity
- Statements of proven fact beyond what is documented in cited government records
- Tax advice or guidance on compliance matters
- Endorsement or opposition to any political candidate or party
All individuals and entities discussed on this platform are presumed to have acted lawfully unless determined otherwise by competent legal authority. AFNPT presents public records and raises questions about transparency — we do not make legal determinations.
Where AFNPT offers analysis, interpretation, or opinion, it is clearly labeled as such (typically in boxes marked "AFNPT Educational Analysis"). Readers are encouraged to review the cited source documents independently and form their own conclusions.
If you believe any content on this platform contains a factual error, please contact us and we will promptly review and correct the record.
First Amendment Protections
AFNPT's publications constitute protected speech under the First Amendment. The Supreme Court has consistently held that commentary on matters of public concern — including the operations of tax-exempt organizations that benefit from public subsidies — receives the highest level of constitutional protection.
Key precedents supporting our work:
- •New York Times Co. v. Sullivan, 376 U.S. 254 (1964) — Public figures must prove "actual malice" to prevail in defamation claims. Organizations that solicit public donations and enjoy tax-exempt status are subject to heightened public scrutiny.
- •Hustler Magazine v. Falwell, 485 U.S. 46 (1988) — Opinion and commentary about public figures and public organizations are protected, even when provocative.
- •Milkovich v. Lorain Journal Co., 497 U.S. 1 (1990) — Statements of opinion based on disclosed facts are protected speech when the underlying facts are accurately presented.
AFNPT takes care to distinguish factual claims (sourced to government records) from our analytical opinions (clearly labeled). This practice provides robust legal protection under established First Amendment jurisprudence.
California Anti-SLAPP Statute
California's Anti-SLAPP statute (Code of Civil Procedure §425.16) provides a powerful procedural mechanism to dismiss frivolous lawsuits filed to silence public participation and free speech. "SLAPP" stands for Strategic Lawsuit Against Public Participation.
Why this matters for AFNPT: As a California-governed organization publishing educational commentary about matters of public concern (nonprofit transparency, use of tax-exempt funds, foreign influence), AFNPT's publications fall squarely within the Anti-SLAPP statute's protection. Any defamation suit filed against AFNPT for its educational analysis of public records would be subject to a special motion to strike under §425.16, with mandatory fee-shifting to the plaintiff if the motion is granted. Over 30 states and the District of Columbia have enacted similar Anti-SLAPP protections.
Read CCP §425.16 (California Legislature) ↗IRS Code — Tax-Exempt Organizations
26 U.S.C. §501(c)(3) — Charitable Organizations
Section 501(c)(3) of the Internal Revenue Code grants tax-exempt status to organizations "organized and operated exclusively for religious, charitable, scientific, testing for public safety, literary, or educational purposes."
Why this matters: When a 501(c)(3) organization's expenditures appear inconsistent with its stated educational mission — such as payments to shell-like entities for vague "research" or undisclosed foreign activities — these are legitimate areas for public inquiry under the "exclusively" requirement.
Read full text at Cornell Law Institute ↗26 U.S.C. §501(c)(4) — Social Welfare Organizations
Section 501(c)(4) grants tax-exempt status to civic leagues or organizations "operated exclusively for the promotion of social welfare." Unlike 501(c)(3) organizations, 501(c)(4)s may engage in political activities as long as that is not their primary purpose.
Why this matters: 501(c)(4) organizations are frequently used as "sister organizations" to 501(c)(3)s, allowing activities that the charitable arm cannot legally conduct. Understanding the relationship between a 501(c)(3) and its affiliated 501(c)(4) is essential for transparency.
Read full text at Cornell Law Institute ↗IRS Form 990 — Annual Reporting Requirements
Under 26 U.S.C. §6033, most tax-exempt organizations must file an annual information return (Form 990) with the IRS. These filings are public records available through the IRS, ProPublica Nonprofit Explorer, and other databases.
Public access: Under 26 U.S.C. §6104(d), tax-exempt organizations must make their Form 990 available for public inspection. AFNPT accesses these filings through legitimate public databases and analyzes them for educational purposes.
Foreign Agents Registration Act (FARA)
The Foreign Agents Registration Act (22 U.S.C. §611 et seq.), enacted in 1938, requires persons acting as agents of foreign principals in a political or quasi-political capacity to make periodic public disclosure of their relationship with the foreign principal, activities, receipts, and disbursements.
FARA registrations are public records maintained by the DOJ's National Security Division and available at efile.fara.gov. AFNPT downloads, analyzes, and presents these public records for educational purposes.
Why this matters for nonprofit transparency: When domestic nonprofit organizations have financial or operational connections to entities registered under FARA as agents of foreign governments, the American public has a legitimate interest in understanding those connections — particularly when the nonprofit's stated mission is domestic education and the foreign agent's contract involves influence campaigns targeting American citizens.
California Nonprofit Law
California has some of the most comprehensive nonprofit oversight laws in the United States, administered by the California Attorney General's Registry of Charitable Trusts.
Why California law matters: Many of the entities examined in AFNPT's investigations are incorporated in or solicit donations from California. The Show Faith by Works LLC FARA registration (targeting California churches) and various nonprofit entities operating in California are subject to these state-level oversight requirements.
