St. Helens Councilor Keith Locke violates IRS rules by using nonprofit van as campaign billboard
By Darryl Swan
The South County Spotlight, Oct 22, 2008
AN IRS NO-NO – The St. Helens Community Foundation’s van, complete with “Keith Locke for City Council” banners on the front, sits outside Locke’s St. Helens home. Using the van for campaigning is a violation of federal Internal Revenue Service law.
St. Helens Councilor Keith Locke says he didn’t consider whether using the nonprofit St. Helens Community Foundation’s van as the billboard for his campaign posters violated tax and campaign laws.
As it turns out, it violates one, but not the other.
The van is parked at his personal residence on Columbia Boulevard in St. Helens. Two posters soliciting his re-election bid to the St. Helens City Council are affixed to the van’s front grill.
The St. Helens Community Foundation is a nonprofit 501c3 organization formed specifically to promote community events, such as the Fourth of July fireworks display, 13 Nights on the River, the Riverside Arts Festival and the Christmas Festival of Lights.
Last year, the foundation’s revenue totaled $76,372, according to the federal nonprofit tax form filed with the Internal Revenue Service.
Federal tax code prohibits such nonprofits from engaging in political activity like campaign contributions and endorsements.
“I didn’t even think about it at the time,” Locke said when asked Monday about using the van for his posters. “You know, now that you mention it, you’re probably absolutely right.”
He said he would remove the posters as soon as possible.
Locke serves as the foundation’s vice president. The foundation’s president is Charles Grant, who is also running for re-election to the St. Helens City Council. Several messages for Grant were not returned.
Whether Locke’s use of the van for his own political purposes has compromised the foundation is unclear.
The IRS typically tries to work with the offenders to educate against future violations, according to information found on its Web site. In some cases the IRS will revoke tax-exempt status, or even levy an excise tax to cover the amount of money spent on the activity.
Less than half of such violations result in an examination, however, according to an IRS release in April.
Jennifer Hertel, a compliance specialist for the Oregon Secretary of State Elections Division, said Locke’s use of the van does not constitute a campaign finance violation because the sign space is not an in-kind contribution with a dollar value.
To date, Locke has not filed any campaign expenses, a requirement that kicks in when a candidate spends $300 or more.
Copyright 2008 Pamplin Media Group, 6605 S.E. Lake Road, Portland, OR 97222 • 503-226-6397
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