May 28, 2019
VIA E-MAIL: eoclass@irs.gov
IRS EO Classification
Mail Code 4910DAL
1100 Commerce St.
Dallas, TX 75242-1198
Re: Tax-Exempt Organization Complaint Against Susan B. Anthony List, Inc.
(Referral)
EIN: 54-1850126
Dear Sir or Madam:
Campaign for Accountability (“CfA”)1 respectfully submits this Tax-Exempt Organization
Complaint (Referral) and supporting documentation to the Internal Revenue Service (“IRS”)
regarding the activities of Susan B. Anthony List, Inc. (EIN: 54-1850126), a tax-exempt
organization under Section 501(c)(4) of the Internal Revenue Code of 1986, as amended (the
“Code”). Form 13909 is enclosed with this letter.
Background
The original Susan B. Anthony List, Inc. was formed by Rachel MacNair and incorporated
as a Minnesota nonprofit on August 12, 1992.2 Ms. MacNair, an anti-abortion Quaker activist,
created the organization to be a counterweight to the pro-choice Emily’s List Political Action
Committee (“PAC”).3 Ms. MacNair’s organization purportedly aimed to promote and support
female anti-choice candidates from both main political parties. Filings submitted to the Federal
Election Commission (“FEC”) indicate that the organization operated as a PAC in the 1994, 1996,
and 1998 election cycles.4
1

CfA is a Code Section 501(c)(3) tax exempt organization (EIN:54-1850126) that serves as a non-partisan, nonprofit
ethics watchdog.
2
Original Article of Incorporation available on file with and available from the Office of Minnesota Secretary of State.
Accessible at https://mblsportal.sos.state.mn.us/Business/SearchDetails?filingGuid=c0e856d1-add4-e011-a886001ec94ffe7f#orderselected.
3
Emily’s List primarily supports female pro-choice candidates. See e.g., Kate Sheppard, Susan B. Anthony List
Founder: Republicans Hijacked My PAC!, MOTHER JONES, (February 22, 2012), available at
https://www.motherjones.com/politics/2012/02/susan-b-anthony-list-sharp-right-turn-rachel-macnair/. Unlike SBA
List, Emily’s List is registered as a political organization; acknowledging that its “primary activity” is participation in
political campaigns, and that it is subject to the rules of the Federal Election Campaign Act.
4
Susan B. Anthony List PAC, Inc. 1997-1998 Financial Summary, Federal Elections Commission, available at
https://www.fec.gov/data/committee/C00280057/.

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SBA List Complaint
May 28, 2019
Page 2
In 1993, shortly after Susan B. Anthony List’s original formation, Marjorie Dannenfelser,
a Washington, D.C. based political operative, joined the organization as its executive director.5 At
around the same time, another Washington, D.C. political operative, Jane Abraham, became the
organization’s president. In 1996, Ms. MacNair entered a psychology PhD program and left the
Susan B. Anthony List, Inc. under the direction and control of Ms. Dannenfelser and Ms. Abraham.
Under the leadership of Ms. Dannenfelser and Ms. Abraham it appears that Susan B.
Anthony List, Inc. was reorganized and relocated closer to Washington, D.C., and that the original
Minnesota entity was abandoned. On April 21, 1997 the Minnesota-registered organization
changed its name to the “Susan B. Anthony List PAC, Inc.” (hereinafter “SBA List PAC”),6 and
less than a month later, on May 12, 1997, a Virginia corporation named the “Susan B. Anthony
List, Inc.” (“SBA List”) was formed.7 SBA List PAC, the original entity, was involuntarily
dissolved by the state of Minnesota on December 22, 1999 for failure to submit the required annual
renewal reports after December 6, 1995, and remains inactive.8
When Ms. Dannenfelser and Ms. Abraham launched the “new and improved” SBA List in
1997 they created a tax-exempt social welfare organization organized under Internal Revenue
Code Section 501(c)(4), rather than a political organization.9 The IRS approved SBA List’s
501(c)(4) tax-exempt status in 2001. At approximately the same time Ms. Dannenfelser and Ms.
Abraham also created an affiliated Political Action Committee (“PAC”) called the Susan B.
Anthony List Candidate Fund (“Candidate Fund PAC”) and in 1998 the Candidate Fund PAC filed
its first report with the FEC.10
Although purportedly a social welfare organization, SBA List’s main objective has been
supporting anti-choice candidates in elections at both the state and federal levels. In 1998 SBA
List changed its endorsement criteria and began supporting male anti-choice candidates, even
when they ran against pro-choice female candidates.11 In 2010, SBA List specifically targeted
twenty anti-abortion Democratic candidates who represented “swing” districts, including
women.12 Additionally, despite its initial intention of supporting anti-choice female candidates

5

See Marjorie Dannenfelser, Exotic Fruits of Grace, CRISIS MAGAZINE, (January 1, 1997), available at
https://www.crisismagazine.com/1997/exotic-fruits-of-grace.
6
See Ex. A, (Amendment of Articles of Incorporation for Susan B. Anthony List, Inc., filed with the Minnesota
Secretary of State, (Apr. 21, 1997)).
7
See Ex. B, (Certificate of Incorporation for Susan B. Anthony List, Inc., filed with the State Corporation Commission
of the Commonwealth of Virginia, May 12, 1997).
8
See Ex. C, (Certificate of Involuntary Dissolution filed by the Minnesota Secretary of State, (Dec. 22, 1999)).
9
See History of SBA List, (Oct. 1, 2009), available at https://web.archive.org/web/20091001171130/http://www.sbalist.org/site/c.ddJBKJNsFqG/b.4137933/k.EEF4/History_of_SBA_List.htm.
10
Susan B. Anthony List Candidate Fund, Committee Filings with the Federal Elections Commission, available at
https://www.fec.gov/data/committee/C00332296/?cycle=1998&tab=filings.
11
Monica Potts, Susan B. Anthony’s Hit List, THE AMERICAN PROSPECT, Feb. 15, 2012, available at
https://prospect.org/article/susan-b-anthonys-hit-list.
12
Notably SBA List did not target other anti-abortion Democrats who represented non-swing districts. Id.

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SBA List Complaint
May 28, 2019
Page 3
from both main political parties, over 99 percent of the 209 candidates that SBA List has endorsed
for office since 2012 have been Republican.13 Under half have been women.14
SBA List operated from its Virginia headquarters from 1997 until 2010, when it relocated to
Washington, D.C. Soon thereafter, in 2011, SBA List created a tax-exempt 501(c)(3) organization,
the Charlotte Lozier Institute, to conduct “original and interpretive research” aimed at supporting
anti-abortion arguments. In 2012, conservative hedge fund manager Sean Fieler joined the board
of SBA List.15 Feiler is also chairman of, and a primary donor to, the tax-exempt organization
American Principles Project (“APP”).16 APP was founded by Francis “Frank” Cannon, who
resigned his position as SBA List Treasurer in 2012 in order to run APP. Mr. Cannon did not
receive a salary from SBA List while the organization’s treasurer, but he now is compensated
handsomely for his reported full-time work for the organization as a consultant. Robert Kania,
who took over as SBA List treasurer when Mr. Cannon left, does not receive an SBA List salary.17
SBA List and APP share board members,18 collaborate on anti-abortion campaigns,19 and donate
13

See Appendix 1 (Party and Gender of SBA List Endorsed Candidates by Year). In at least three instances since
2012 SBA List has decided to endorse and/or fund a Republican candidate over an anti-abortion Democrat. Id.
14
Id.
15
SBA List Inc., IRS Form 990-EZ, 2012, filed on July 16, 2013, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
16
American Principles Project, IRS Form 990-EZ, 2017, filed on Oct. 11, 2018, available at
https://projects.propublica.org/nonprofits/organizations/264613397/201802849349300610/IRS990.
17
See,
e.g.,
SBA
List’s
FY
2012
Form
990,
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
Mr. Kania is the subject of a campaign finance complaint in Pennsylvania filed by Campaign for Accountability.
Letter from Alice Huling, Counsel, Campaign for Accountability, to Stephen Zappala, Allegheny County District
Attorney,
and
Alleghany
County
Board
of
Elections
(Apr.
8,
2019),
available
at
https://campaignforaccountability.org/wp-content/uploads/2019/04/Kania-Campaign-Finance-Complaint-4-819_.pdf. Shortly after the complaint was filed, Pennsylvania Governor Tom Wolf removed Mr. Kania from his
position on the Allegheny County Port Authority Board. See Ed Blazina, After Transit Group’s Urging, Gov. Wolf
Replaces Port Authority Board Member, PITTSBURGH POST-GAZETTE, April 11, 2019, available at https://www.postgazette.com/news/transportation/2019/04/11/Pittsburghers-for-Public-Transit-group-Gov-Wolf-replace-PortAuthority-board-member-robert-kania/stories/201904110081. On April 17, 2019 CfA called on the SBA List Inc.to
remove Mr. Kania from their Board of Directors. Letter from Alice Huling, Counsel, Campaign for Accountability,
to Marjorie Dannenfelser, President, Susan B. Anthony List, Inc., et al. (Apr. 17, 2019), available at
https://campaignforaccountability.org/wp-content/uploads/2019/04/CfA-Letter-SBA-List-Kania-Board-4-17-19.pdf.
On May 7, 2019 the Candidate Fund PAC submitted a new Statement of Organization to the Federal Election
Commission removing Mr. Kania from his position as treasurer. See Susan B. Anthony List Inc., Candidate Fund,
Statement of Organization, Federal Election Commission, May 7, 2019, available at http://docquery.fec.gov/cgibin/forms/C00332296/1329829/.
18
See Appendix 2 (Overlapping SBA List, APP, and American Principles Project Foundation Staff and Board
Members by Year).
19
SBA List and APP, along with five other organizations, joined the Life and Marriage Coalition in 2012. See Brian
Tashman, Religious Right Groups Launch the ‘Life and Marriage Coalition,’ RIGHT WING WATCH, Aug. 28, 2012,
available at http://www.rightwingwatch.org/post/religious-right-groups-launch-the-life-and-marriage-coalition/. In
2014, SBA List contributed $400,000 to American Principles Project in Action, an APP affiliated PAC, for “general
support.” See SBA List Inc., 2014 IRS Form 990, Schedule I Part II, filed Sept. 28, 2015, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412. In
2015, SBA List and APP, together, asked Republican presidential hopefuls to pledge to ban abortions after 20 weeks,

 IRS EO Classification
SBA List Complaint
May 28, 2019
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to the other organizations’ PACs.20 SBA List relocated its headquarters back to Arlington,
Virginia in 2018, moving into an office suite adjacent to the APP offices.21
In 2012 SBA List also created a Super PAC called Women Speak Out PAC,22 which has
become SBA List’s primary PAC.23 The Women Speak Out PAC’s board of directors consists of
several SBA List officers, including SBA List President Ms. Dannenfelser, Executive Director
Emily Buchanan, and Treasurer Mr. Kania, as well as SBA List board members Jane Abraham
and Susan Hirschmann.24
SBA List created a fourth affiliated PAC, called the Susan B. Anthony List Action PAC,
on October 4, 2018.25
Since its inception, SBA List’s organization has morphed from a single PAC overseen by
the Federal Election Commission to a tax-exempt social welfare nonprofit linked to multiple
political committees and other nonprofit organizations. It appears SBA List has abused its taxexempt status and committed several tax law violations.

if elected. See David Weigel, Chris Christie Endorses Ban on Abortions After 20 Weeks, BLOOMBERG, Mar. 30, 2015,
available at https://www.bloomberg.com/news/articles/2015-03-30/chris-christie-endorses-ban-on-abortions-after20-weeks.
20
Sean Fieler has made numerous contributions to the Women Speak Out PAC, one of SBA List’s affiliated Super
PACs. See Appendix 3 (Sean Fieler Contributions to the Women Speak Out PAC).
21
See Ex. D, (Renewal Certificate of Registration filed with the State of Oklahoma Office of Secretary of State (Feb.
12, 2018)).
22
See Ex. E, (Women Speak Out PAC Statement of Organization filed with the Federal Election Commission (Sept.
28, 2012)).
23
Id. SBA List board member, Mr. Feiler, himself has donated over $500,000 directly to the Women Speak Out PAC
since its organization in 2012. Sean Fieler contributed $75,000 in 2012. Sean Fieler’s Contributions to the Women
Speak
Out
PAC,
FEC
2011-2012
filings,
(Oct.
11,
2012),
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2012&c&data_type=processed&committee_id=C
00530766&contributor_name=FIELER,+SEAN&min_date=01%2F01%2F2011&max_date=12%2F31%2F2012;
Sean Fieler contributed $385,946.12 in 2014. Sean Fieler’s Contributions to Women Speak Out PAC, FEC 2013-2014
filings,
(July
9,
2014),
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2014&c&data_type=processed&committee_id=C
00530766&contributor_name=FIELER,+SEAN&min_date=01%2F01%2F2013&max_date=12%2F31%2F2014;
Sean Fieler contributed $75,000 to the Women Speak Out PAC in 2015. Sean Fieler’s Contributions to the Women
Speak
Out
PAC,
FEC
2015-2016,
(Aug.
3,
2015)
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2016&c&data_type=processed&committee_id=C
00530766&contributor_name=FIELER,+SEAN&min_date=01%2F01%2F2015&max_date=12%2F31%2F2016;
24
Women Speak Out PAC, 2018 Annual Report, Commonwealth of Virginia State Corporation Commission, July 31,
2018, available at https://sccefile.scc.virginia.gov/07805708/AnnualReport/218531207.pdf.
25
See Ex. F, (SBA List Action PAC Statement of Organization filed with the Federal Election Commission (Oct. 4,
2018)).

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SBA List Complaint
May 28, 2019
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Alleged Violations
SBA List Appears to Have Improperly Withheld Information from the IRS
on its Form 1024 Application for Tax-Exempt Status
The IRS recognized SBA List as a tax-exempt organization under section 501(c)(4) in
2001in response to SBA List’s September 1997 filing of a Form 1024, on which SBA List failed
to provide complete and accurate information.
First, Part II Line 3 of the Form 1024 required the organization to provide “information
about [its] governing body,” specifically the names, addresses, titles, and annual compensation of
its officers, directors, and trustees.26 SBA List named eight individuals: Marjorie Dannenfelser
(chairman), Susan Hirschmann (vice chairman), Kate Hinton (secretary), Larry Ruggiero
(treasurer), Susan Gibbs, Mary Hallan, Mike Hudome, and Susan Lataif.27 SBA List did not
include titles for half of the identified individuals and failed to provide the annual compensation
of any of the listed members of its governing body.28 Further, an SBA List brochure attached to
the organization’s Form 1024 application identifies Jane Abraham as the organization’s President
and Jennifer Bingham as its Executive Director.29 It appears that, as an officer and director,
respectively, both of these women should have been identified as members of SBA List’s
governing body, but neither was included.
Second, Part II, Line 4 of the August 1997 Form 1024 stated:
If the organization is the outgrowth or continuation of any form of
predecessor, state the name of each predecessor, the period during
which it was in existence, and the reasons for its termination. Submit
copies of all papers by which any transfer of assets was effected
[sic].30
SBA List wrote that this was “[n]ot applicable” to its application and did not provide any
information regarding the Susan B. Anthony List, Inc. registered in Minnesota in 1992.31 Instead,
SBA List claimed to have formed on May 12, 1997.32 Yet several of the SBA List solicitation
letters and brochures attached to the organization’s Form 1024 application reference its

26

See Ex. G, at 10 (SBA List, Inc Authorization Letter of Tax Exempt Status Attaching Original Form 1024
Application, Form 1024 Part II(3), (Sept. 7, 1997)).
27
See id. at 14 (SBA List response to Form 1024, Part II(3), (Aug. 7, 1997)).
28
Id.
29
See id. at 22 (SBA List: Training Pro-Life Women in the Political Arena Brochure, (Aug. 7, 1997)).
30
See id. at 10 (SBA List Tax Exemption Application, Form 1024, Part II(4), (Sept. 7, 1997)).
31
See Ex. H, (Certification of Incorporation, filed with the State of Minnesota Secretary of State, (Aug. 12, 1992)).
32
See Ex. G, at 9 (SBA List. Application for Tax Exempt Status, Form 1024, Part II(5), (Aug. 7, 1997)).

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SBA List Complaint
May 28, 2019
Page 6
“successes” from the 1994 and 1996 election cycles, which, necessarily, must have been achieved
by the original, Minnesota-registered organization. 33
Further, many of the individuals listed as officers and board members on SBA List’s Form
1024 application also were involved with the original Minnesota-registered organization. For
example, SBA List chairman, Marjorie Dannenfelser, served as executive director of the original
Susan B. Anthony List.34 Similarly, SBA List president, Jane Abraham, also had been president
of the original organization.35
In addition, according to SBA List’s 1997 solicitation letters, the Minnesota-based Susan
B. Anthony List, Inc. raised over $313,000 in 1996.36 Based upon SBA List’s own literature
discussing the 1996 fundraising efforts, it appears likely that SBA List may have succeeded to the
assets and activities of the original Susan B. Anthony List, Inc. SBA List was required to provide
copies of any documents relating to such a transfer in its application for tax-exempt status, but
failed to do so.
In sum, it appears SBA List is an “outgrowth or continuation” of its predecessor Susan B.
Anthony List, Inc., yet in its application for tax-exempt status, SBA List omitted information
identifying its predecessor organization or any assets transferred from it, while simultaneously coopting that predecessor’s accomplishments as its own.
Third, Part II Line 5 of the August 1997 Form 1024 reads:
If the applicant organization is now, or plans to be, connected in any
way with any other organization, describe the other organization and
explain the relationship (e.g., financial support on a continuing
basis; shared facilities or employees; same officers, directors, or
trustees).37
In response, SBA List wrote simply “SBA List plans to have an internal political action
committee (PAC).”38 Indeed, on January 8, 1998 SBA List filed a Statement of Organization for
33

“During the past two elections, the SBA List’s political committee helped ten pro-life women get elected to the U.S.
House of Representatives.” See id. at 23, (SBA List Candidate Information Letter (July 31, 1999)); “In 1996, with our
members’ support, we increased our membership 350% from 1,000 to 3,500.” See id. at 25 (SBA List “Bash on Capitol
Hill” Invitation Letter, (Aug.15, 1997)); “During the past two elections, ten pro-life women were elected to the U.S.
House of Representatives. . . In 1996 alone Susan B. Anthony List’s political committee increased its membership
350% to 3,500 and we raised over $313,000, an increase of 525% from the previous year.” See id. at 31, (SBA List
Fundraising Letter (Aug. 27, 1997)).
34
See Marjorie Dannenfelser, Exotic Fruits of Grace, CRISIS MAGAZINE, (January 1, 1997), available at
https://www.crisismagazine.com/1997/exotic-fruits-of-grace.
35
See Ex. A, (Amendment of Articles of Incorporation, filed with the State of Minnesota Secretary of State (Apr. 21,
1997)).
36
See Ex. G, at 23 (SBA List Candidate Information Letter (July 31, 1999)).
37
See id. at 10 (SBA List Tax Emption Application, Form 1024, Part II(5), (Aug. 7, 1997)).
38
See id. at 14 (SBA List Response to Form 1024, Part II(5), (Aug. 7, 1997)).

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SBA List Complaint
May 28, 2019
Page 7
an affiliated PAC called Susan B. Anthony List Candidate Fund.39 It appears that once formed the
Candidate Fund PAC shared the same president, Ms. Abraham, and the same Alexandria, Virginia
mailing address with SBA List. None of this was disclosed to the IRS.
Further, in April 1997, less than a month before SBA List was formed, Ms. Abraham signed
paperwork to change the name of the original Minnesota-based Susan B. Anthony List, Inc. to
“Susan B. Anthony List PAC, Inc.” SBA List did not identify the Susan B. Anthony List PAC as
a connected or affiliated organization on its Form 1024, and in fact failed to describe SBA List’s
relationship with the PAC in any way.
Fourth, Part II Line 15 of the August 1997 Form 1024 reads:
Has the organization spent or does it plan to spend any money
attempting to influence the selection, nomination, election, or
appointment of any person to any Federal, state, or local public
office or to an office in a political organization?
If “Yes,” explain in detail and list the amounts spent or to be spent
in each case.40
SBA List checked the “No” box, indicating it had not and did not plan to spend money
influencing any elections. An SBA List brochure attached to the organization’s Form 1024
application, however, includes quotes from five Republican members of Congress describing how
SBA List has helped them and other anti-abortion candidates win elections.41 Another attachment,
an SBA List fundraising letter that also was attached to the organization’s Form 1024 application
stated its “pro-life women legislators will host a reception for the Susan B. Anthony List, a
501(c)(4) membership organization dedicated to helping elect pro-life women candidates to the
US House and Senate” and explained “[t]he purpose of the reception is to raise much needed funds
to help the Susan B. Anthony List prepare for the 1998 Election cycle.”42 Therefore, it is clear
that contrary to SBA List’s claim on its Form 1024, the organization had spent money and planned
to continue spending money to influence elections.

SBA List’s Primary Purpose Appears to be Directly and
Indirectly Supporting Political Activity
Ms. Dannenfelser and Ms. Abraham’s re-organization of SBA List from the original
Minnesota-registered organization to the Virginia-registered one appears to have been part of a
39

See id. at 11 (SBA List Tax Exemption Application, Form 1024, Part II(5), (Aug. 7, 1997)); See Ex. [. ] (SBA List
Candidate Fund Statement of Organization filed with the Federal Election Commission (Jan. 7, 1998)).
40
See Ex. G, at 11 (SBA List Tax Exemption Application, Form 1024, Part II (15), (Aug. 7, 1997)).
41
See id. at 21 (SBA List: Training Pro-Life Women in the Political Arena Brochure, (Aug. 7, 1997)).
42
See id. at 31, (SBA List Fundraising Letter signed by Jane Abraham (Aug. 27, 1997).

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SBA List Complaint
May 28, 2019
Page 8
concerted effort to obtain tax-exempt status under section 501(c)(4). Yet it appears that even after
its re-organization the primary purpose of SBA List continued to be engagement in political
campaign activity, and that the new organization’s activities were not meaningfully different from
those of its predecessor, which was organized as a PAC.43
A section 501(c)(4) organization may participate in political activities provided that those
activities are not the primary purpose of the organization.44 In determining whether a particular
activity is political campaign activity, the IRS will look at all relevant facts and circumstances.45
Accordingly, some activities that are not regulated under state or federal campaign finance law
may be still be considered to be political campaign activities under the Code. Factors that the IRS
will considering whether an activity should be treated as political campaign activity include:
•
•
•
•

is an individual identified in her capacity as a candidate instead of as a public
official;
does the activity occur during an electoral campaign, targeted at voters in a
particular election;
does it identify a candidate’s position on a public policy issue that has been raised
during the campaign to distinguish the candidate from others; and,
is it not part of an ongoing advocacy campaign on public policy issues.46

The limitation on political activity is implicit in the statutory requirement that a section
501(c)(4) organization must be “operated exclusively for the promotion of social welfare” and that
political activity is not promoting social welfare.47
IRS regulations state that “operated
exclusively” means “primarily engaged in” but no exact percentage or test has been provided to
determine when an organization may be found to operating with a political purpose instead of one
for the betterment of social welfare. While “primarily” suggests that political activity must at least
be less than 50 percent, it may be an even a lower percentage depending on the particular facts and
circumstances of an organization’s activities. Moreover, direct political expenditures are only one
factor to consider and are likely to be an indication of additional, unreported political activities.
Within the meaning of section 501(c)(4), the promotion of social welfare does not include
direct or indirect participation or intervention in political campaigns on behalf of or in opposition
to any candidate for public office.48 The “About” section of the SBA List website, however,
describes its mission as explicitly political: “SBA List’s mission is to end abortion by electing
43

The original Susan B. Anthony List, Inc. operated as the Susan B. Anthony List PAC, Inc. in the 1994, 1996, and
1998 election cycles. Susan B. Anthony List PAC Inc., Federal Election Commission Filings through 1998, available
at https://classic.fec.gov/finance/disclosure/metadata/metadata_pac_pty_report_summary.shtml.
44
Treas. Reg. § 1.501(c)(4)-1(a)(2).
45
Rev. Rul. 2004-6 I.R.B. (Jan. 26, 2004). See also Rev. Rul. 2007-41, 2007-25 I.R.B. (June 18, 2007) (discussing
what is “political” activity under the Code in the context of prohibited activities by a section 501(c)(3) organization).
46
Rev. Rul. 2004-6 I.R.B. (Jan. 26, 2004).
47
Treas. Reg. § 1.501(c)(4)-1(a)(2)(ii).
48
26 C.F.R. § 1.501(c)(4)-1(a)(2)(ii).

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SBA List Complaint
May 28, 2019
Page 9
national leaders and advocating for laws that save lives, with a special calling to promote pro-life
women leaders.”49 The SBA List further clarifies: “We combine politics with policy. . .”50
Furthermore, immediately below these statements, SBA List includes a video entitled “Susan B.
Anthony List Ground Game: Winning,” which opens with a screen crawl reading:
In the last three elections
Susan B. Anthony List has gone on offense to win
a pro-life Senate
a pro-life White House
and a pro-life Supreme Court
through the largest grassroots campaign in the history of the pro-life
movement. . . .51
The video continues to explain SBA List’s political campaign activities in greater detail,
and specifically includes voter canvassing information and calls for members to vote for or against
specific named political candidates for public office.52 Of particular note, none of these political
campaign activities or political mission are attributed to any PAC or other 527 political
organization affiliated with SBA List. The website expressly ascribes the political mission and
activities to SBA List, a social welfare section 501(c)(4) organization – not a political
organization.53
Further, according to figures provided on SBA List’s annual Forms 990, in election years
SBA List’s political expenditures frequently exceed 30 percent of the organization’s annual
expenditures, and have reached as high as 42 percent. Additionally, these reported amounts likely
do not include political activities that are not required to be included on a campaign finance report.
Political campaign expenditures that explicitly make up a third or more of an organization’s total
expenses, specifically in election years, appear to indicate that engagement in political activity
continues to be the organization’s primary purpose.

49

About Susan B.Ap Anthony List, (last accessed May 8, 2019), available at https://www.sba-list.org/about-susan-banthony-list.
50
Id.
51
Video available at https://www.youtube.com/watch?v=OAc_P2_lrPg. Published on SBA List’s YouTube account
on December 18, 2018.
52
Id.
53
Treas. Reg. Section 1.501(c)(4)-1(a)(2).

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SBA List Complaint
May 28, 2019
Page 10
A

B

C

D

E

F

Year

Political
expenditures
by SBA List
as reported
on Form
99054 (aka
SBA List’s
direct
political
expenditures)

Transfers by SBA
List to other
organizations for
political
expenditures as
reported on Form
99055 (aka SBA
List’s indirect
political
expenditures)

Total political
campaign
expenditures
(Column B plus
Column C)

Total
expenses
reported on
Form 99056

Political campaign
expenditures as a
percent of total
expenses

2016

$632,549

$402,000

$1,034,549

$8,114,611

12.75%

2015

$0

$500,000

$500,000

$6,124,741

8.16%

2014

$736,834

$1,575,109

$2,311,943

$7,688,369

30.07%

2013

$34,382

$247,348

$281,730

$3,903,209

7.22%

2012

$1,994,718

$426,730

$2,421,448

$5,736,973

42.21%

2011

$4,936

$10,000

$14,936

$3,531,134

0.42%

2010

$2,239,557

$4,500

$2,244,057

$7,000,004

32.06%

Similarly, while donations to SBA List ebb and flow year to year, the donations received
by SBA List consistently rise significantly in election years. This may indicate that the message
communicated in SBA List’s fundraising activities is that donations will support a political
purpose. Moreover, the organizations’ donors may be much more likely to value and monetarily
support SBA List’s work during election years, further indicating that political campaign activity
continues to be SBA List’s primary purpose.

54

Amounts directly expended by SBA List and treated as Section 527 (political organization) exempt function
activities (IRS Form 990, Schedule C, Part I-C, Line 1).
55
Amounts contributed to other organizations and treated as Section 527 (political organization) exempt function
activities (IRS Form 990, Schedule C, Part I-C, Line 2).
56
SBA List, Inc. IRS Form 990 from 2010 through 2016, Part I (18), available at
https://projects.propublica.org/nonprofits/organizations/541850126.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 11
Year

Election Year

Contributions and
Grants

Percentage Change
from Prior Year

2016

Yes

$8,664,61557

55.7%

2015

No

$5,563,96058

-31.3%

2014

Yes

$8,095,90059

95.8%

2013

No

$4,134,09660

-28.0%

2012

Yes

$5,740,48061

53.%

2011

No

$3,738,89162

-45.7%

2010

Yes

$6,884,82563

N/A

In addition to its own direct political expenditures, SBA List has at least four affiliated
PACs: (i) Susan B. Anthony List Inc. PAC,64 (ii) Susan B. Anthony List Inc. Candidate Fund
PAC,65 (iii) Women Speak Out PAC,66 and (iv) Susan B. Anthony List Action PAC.67 Women
57

SBA
List,
Inc.,
2016
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990.
58
SBA
List,
Inc.,
2015
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2017_02_EO%2F54-1850126_990O_201512.
59
SBA
List,
Inc.,
2014
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412.
60
SBA
List,
Inc.,
2013
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_11_EO%2F54-1850126_990O_201312.
61
SBA
List,
Inc.,
2012
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
62
SBA
List,
Inc.,
2011
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2012_07_EO%2F54-1850126_990O_201112.
63
SBA
List,
Inc.,
2010
IRS
Form
990,
Part
I
(8),
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2011_07_EO%2F54-1850126_990O_201012.
64
This PAC is the original Susan B. Anthony List, Inc. that was renamed on April 21, 1997. This PAC is no longer
active, and the organization was involuntarily dissolved by the state of Minnesota on December 22, 1999 for failure
to submit the required annual renewal reports after December 6, 1995. Susan B. Anthony List PAC Inc., Federal
Election
Commission
Filings
through
1998,
available
at
https://classic.fec.gov/finance/disclosure/metadata/metadata_pac_pty_report_summary.shtml; See Ex. C, (Certificate
of Involuntary Dissolution filed by the Minnesota Secretary of State, (Dec. 22, 1999)).
65
This PAC was created on January 7, 1998. Susan B. Anthony List Inc. Candidate Fund PAC, Statement of
Organization, available at http://docquery.fec.gov/pdf/810/98032582810/98032582810.pdf.
66
This PAC was created on September 19, 2012. Women Speak Out Super PAC, Statement of Organization, available
at http://docquery.fec.gov/pdf/180/12030891180/12030891180.pdf.
67
This PAC was created on October 4, 2018. Susan B. Anthony List Action Super PAC, Statement of Organization,
available at http://docquery.fec.gov/pdf/255/201810049124287255/201810049124287255.pdf.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 12
Speak Out PAC and Susan B. Anthony List Action PAC are Super PACs68 that can receive
contributions from SBA List. Susan B. Anthony List Inc. Candidate Fund PAC is a traditional
PAC that may contribute to or coordinate directly with parties or candidates but cannot receive
contributions directly from SBA List. The Susan B. Anthony List Inc. PAC was dissolved in 1999.
There is significant overlap between the directors, officers, and contact information for SBA List
and its affiliated PACs, which all share a headquarter. See Appendix 1 for complete listing of
organizational overlap between SBA List and its affiliated groups.
SBA List’s most active Super PAC, the Women Speak Out PAC, has spent over $8 million
on elections since its formation in 2012.69 SBA List’s contributions to its Women Speak Out PAC,
which total over $3.6 million, account for almost half of the committee’s total political
disbursements.70

68

Letter from the Women Speak Out PAC to the Federal Election Commission, Re: Form 1, Statement of Organization
- Unlimited Contributions, available at http://docquery.fec.gov/pdf/180/12030891180/12030891180.pdf; Susan B.
Anthony List Action Super PAC, Statement of Organization at 5 (Oct. 4, 2018) , available at
http://docquery.fec.gov/pdf/255/201810049124287255/201810049124287255.pdf.
69
Total Disbursements by Women Speak Out PAC, Federal Election Commission, available at
https://www.fec.gov/data/committee/C00530766/?tab=filings&cycle=2012.
70
Total Individual Contributions from Susan B. Anthony List Inc to the Women Speak Out PAC, Federal Election
Commission,
available
at
https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2018&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2017&max_date=12%2F31%2F2
018.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 13
Two-Year Period
Ending:

Total Federal
Disbursements by
Women Speak Out
According to FEC
filings

Contributions from
SBA List to
Women Speak Out
According to FEC
filings

Contributions from
SBA List to
Women Speak Out
According to IRS
filings

Dec. 31, 2018

$1,461,399.5571

$87,571.1372

Not yet available

Dec. 31, 2016

$1,913,396.9573

$991,682.4374

$900,00075

Dec. 31, 2014

$3,810,901.3076

$1,836,290.5077

$1,819,95778

Dec. 31, 2012

$907,077.8379

$407,20080

$407,30081

SBA List’s contributions to its affiliated PACs constitute indirect participation in political
campaigns.
Although there are no numerical guidelines as to the precise level of political campaign
activity that would be impermissible for a 501(c)(4) organization, the IRS’s creation of a
71

Women Speak Out Super PAC, 2017-2018 Financial Summary, Federal Election Commission, available at
https://www.fec.gov/data/committee/C00530766/?cycle=2018.
72
SBA List Inc., contributions to Women Speak Out PAC, Transaction Time Period of 2017-2018, Federal Election
Commission,
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2018&data_type=processed&committee_id=C005
30766&contributor_name=SUSAN+B+ANTHONY+LIST,+INC&min_date=01%2F01%2F2017&max_date=12%2
F31%2F2018.
73
Women Speak Out Super PAC, 2015-2016 Financial Summary, Federal Election Commission, available at
https://www.fec.gov/data/committee/C00530766/?cycle=2016.
74
SBA List Inc., contributions to Women Speak Out PAC, Transaction Time Period of 2015-2016, Federal Election
Commission,
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2016&data_type=processed&committee_id=C005
30766&contributor_name=Susan&min_date=01%2F01%2F2015&max_date=12%2F31%2F2016.
75
Susan B. Anthony List Inc. contributed $500,000 in 2015 and $400,000 in 2016. SBA List, 2015 IRS Form 990,
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2017_02_EO%2F541850126_990O_201512; SBA List, Inc., 2016 IRS Form 990, (Schedule C), available at
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990ScheduleC.
76
Women Speak Out Super PAC, 2013-2014 Financial Summary, Federal Election Commission, available at
https://www.fec.gov/data/committee/C00530766/?cycle=2014.
77
SBA List Inc., contributions to Women Speak Out PAC, transaction Time Period of 2013-2014, Federal Election
Commission,
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2014&data_type=processed&committee_id=C005
30766&contributor_name=Susan&min_date=01%2F01%2F2013&max_date=12%2F31%2F2014.
78
SBA List Inc. contributed $244,848 in 2013 and $1,575,109 in 2014. SBA List 2013 Form 990, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_11_EO%2F54-1850126_990O_201312;
SBA
List
Inc.,
2014
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 14
streamlined application option available to certain section 501(c)(4) applicant organizations offers
some indication of acceptable spending and activity levels. Organizations can receive 501(c)(4)
status more quickly if they can certify: (i) they devote 60 percent or more of their spending and
time on activities that promote social welfare, and (ii) political campaign intervention consumes
40 percent or less of both their spending and time.82 SBA List cannot make such a certification,
especially during election years.
In total, SBA List’s direct political campaign expenditures, indirect contributions to its
PACs, and other associated expenses that make these political expenditures possible, appear so
significant that SBA List does not operate primarily for the promotion of social welfare. Instead,
a facts and circumstances analysis likely will demonstrate that a political purpose is the primary
motivation behind:
•
•
•
•

the reason for and manner in which SBA List conducts its activities;
how SBA List uses its resources;
the time devoted to activities by SBA List employees and volunteers; and,
the amount of funds received for and devoted to particular activities.83

SBA List Does Not Accurately Report its Political Campaign
Activity to the IRS, the FEC, or Potentially Both
Neither the total political campaign expenditures nor the direct political spending
(excluding transfers to other groups) reported on SBA List’s Form 990, Schedule Cs match the
figures SBA List has reported to the FEC. Neither do the amounts reported on the Schedule Cs
match the amounts SBA List has reported to the FEC as direct political campaign spending when
it engaged in independent expenditures in its own name.84

79

Women Speak Out Super PAC, 2011-2012 Financial Summary, Federal Election Commission, available at
https://www.fec.gov/data/committee/C00530766/?cycle=2012
80
Susan B. Anthony List Inc. contributions to Women Speak Out PAC, Transaction Time Period of 2011-2012, Federal
Election
Commission,
available
at
https://www.fec.gov/data/receipts/?two_year_transaction_period=2012&data_type=processed&committee_id=C005
30766&contributor_name=susan&min_date=01%2F01%2F2011&max_date=12%2F31%2F2012.
81
Susan B. Anthony List Inc. contributed $407,300 in 2012. SBA List Inc., 2012 IRS Form 990, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
82
IRS Fact Sheet 2013-8, IRS Offers New Streamlined Option to Certain 501(c)(4) Groups Caught in Application
Backlog, June 2013 (FS 2013-8, 06/24/2013).
83
See the factors outlined in Priv. Ltr. Rul. 201224034 (March 21, 2012) (finding that a section 501(c)(4) organization
had failed to establish that its primary activity was not political).
84
SBA List’s website indicates that SBA List is involved not only in federal campaigns, but also in state campaigns.84
Thus, the numbers reported to the FEC may not capture all of SBA List’s political activities because only federal
campaign expenditures are reported to the FEC. In years when SBA List’s political expenditures reported to the IRS
exceed those reported to the FEC, expenditures on state campaigns may explain a portion of the difference.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 15

A

B

C

D

E

Two-year
FEC
Reporting
Period

Total political
expenditures by SBA
List (including all
transfers to other
organizations) as
reported on Form 990

Political
expenditures by
SBA List
(excluding any
transfers to
other
organizations)
as reported on
Form 990

Total Independent
Expenditures by
SBA List, according
to the FEC

Difference in
SBA List’s
direct
political
expenditures
reported to
IRS and FEC
(column C
total minus
column D)

2009-2010

2011-2012

85

2009

(Form left
blank)85

(Form left blank)86

2010

$2,244,05787

$2,239,55788

Total

$2,244,057

$2,237,557

2011

$14,93690

$4,93691

2012

$2,421,44893

$1,994,71894

Total

$2,436,384

$1,999,654

$1,718,841.8089
$518,715

$1,547,146.8192
$452,507

SBA
List
Inc.,
2009
IRS
Form
990,
Schedule
C,
available
https://projects.propublica.org/nonprofits/display_990/541850126/2010_08_EO%2F54-1850126_990O_200912.
86
SBA
List
Inc.,
2009
IRS
Form
990,
Schedule
C,
available
https://projects.propublica.org/nonprofits/display_990/541850126/2010_08_EO%2F54-1850126_990O_200912.
87
SBA List Inc., 2010 IRS Form 990, Schedule C Part I-A (2), available
https://projects.propublica.org/nonprofits/display_990/541850126/2011_07_EO%2F54-1850126_990O_201012.
88
SBA List Inc., 2010 IRS Form 990, Schedule C Part I-C (1), available
https://projects.propublica.org/nonprofits/display_990/541850126/2011_07_EO%2F54-1850126_990O_201012.
89
SBA List Inc., 2009-2010 Financial Summary, Federal Election Commission, available
https://www.fec.gov/data/committee/C90011313/?cycle=2010.
90
SBA List Inc., 2011 IRS Form 990, Schedule C Part I-A(2), available
https://projects.propublica.org/nonprofits/display_990/541850126/2012_07_EO%2F54-1850126_990O_201112.
91
SBA
List
Inc.,
2011
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2012_07_EO%2F54-1850126_990O_201112.
92
SBA List Inc., 2011-2012 Financial Summary, Federal Election Commission, available
https://www.fec.gov/data/committee/C90011313/?cycle=2012.
93
SBA
List
Inc.,
2012
IRS
Form
990,
Schedule
C
Part
I-A(2),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
94
SBA
List
Inc.,
2012
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.

at
at
at
at
at
at
at
at
at
at

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 16

2013-2014

2015-2016

2013

$281,73095

$34,38296

2014

$2,311,94398

$736,83499

Total

$2,593,673

$771,216

2015

$500,000100

2016

$1,034,549103

Total

$1,534,549

$469,958.7197

$301,257

$756,165.52102

- $123,617

$0101
$632,549104
$632,549

Even contributions that SBA List purports to have made to specific entities and detailed in
its reports to the IRS and FEC do not match. For example, SBA List itemized its contributions to
its Women Speak Out PAC on both its Forms 990s and its FEC filings, but the amounts of political

95

SBA
List
Inc.,
2013
IRS
Form
990,
Schedule
C
Part
I-A(2),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2014_11_EO%2F54-1850126_990O_201312.
96
SBA
List
Inc.,
2013
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2014_11_EO%2F54-1850126_990O_201312.
97
SBA List Inc., 2013-2014 Financial Summary, Federal Election Commissions, available
https://www.fec.gov/data/committee/C90011313/?cycle=2014.
98
SBA
List
Inc.,
2014
IRS
Form
990,
Schedule
C
Part
I-A(2),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412.
99
SBA
List
Inc.,
2014
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412.
100
SBA
List
Inc.,
2015
IRS
Form
990,
Schedule
C
Part
I-A(2),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2017_02_EO%2F54-1850126_990O_201512.
101
SBA
List
Inc.,
2015
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/display_990/541850126/2017_02_EO%2F54-1850126_990O_201512.
102
SBA List Inc., 2015-2016 Financial Summary, Federal Election Commission, available
https://www.fec.gov/data/committee/C90011313/?cycle=2016.
103
SBA
List
Inc.,
2016
IRS
Form
990,
Schedule
C
Part
I-A(2),
available
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990ScheduleC.
104
SBA
List
Inc.,
2016
IRS
Form
990,
Schedule
C
Part
I-C(1),
available
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990ScheduleC.

at
at
at
at
at
at
at
at
at
at

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 17
expenditures reported to the FEC do not equal the figures reported to the IRS, as summarized in
the following table:

Year

Contributions from
SBA List to Women
Speak Out PAC on
Form 990, Schedule
C105

Contributions from
SBA List to Women
Speak Out PAC, as
reported to the FEC

Discrepancy

2012

$407,300

$407,200106

$100

2013

$244,848

$0107

$244,848

2014

$1,575,109

$1,835,791108

-$260,682

2015

$500,000

$500,000109

$0

2016

$400,000

$491,682110

-$91,682

Under applicable federal income tax reporting requirements, all “direct and indirect
political campaign activities” must be reported on an organization’s Form 990, Schedule C.111
Under applicable FEC reporting requirements, whenever a person, inclusive of organizations but
105

SBA List Inc., 2012-2016 IRS Form 990, Schedule C, Part I-C(5), available at
https://projects.propublica.org/nonprofits/organizations/541850126
106
Women Speak Out PAC, 2012 Individual Contributions, Federal Election Commission, available at
https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2012&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2012&max_date=12%2F31%2F2
012.
107
According to the Federal Election Commission database, Susan B. Anthony List Inc did not contribute to Women
Speak Out PAC in 2013. Women Speak Out PAC, 2014 Individual Contributions, Federal Election Commission,
available at https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2014&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2014&max_date=12%2F31%2F2
014.
108
Women Speak Out PAC, 2014 Individual Contributions, Federal Election Commission, available at
https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2014&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2014&max_date=12%2F31%2F2
014.
109
Women Speak Out PAC, 2015 Individual Contributions, Federal Election Commission, available at
https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2016&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2015&max_date=12%2F31%2F2
015.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 18
excluding political committees, makes independent expenditures aggregating over $250 with
respect to a given election in a calendar year, the entity is required to submit FEC Form 5 and
report, among other things, the identity of the person to whom the expenditure was made along
with the amount, date, and purpose of each expenditure.112 Given the parallel requirements to
report political campaign expenditures to both the IRS and the FEC, the amount of political
spending reported by SBA List to the two agencies should have been the same.

SBA List Has Failed to Properly Disclose its Business Transactions with Certain Interested
Persons in Violation of Prohibitions on Private Inurement
Section 501(c)(4) organizations’ net earnings cannot inure to the benefit of a private
shareholder or individual.113 To ensure no private inurement, organizations are required to disclose
transactions with certain covered individuals on their Form 990s, including: (a) current or former
officers, directors, trustees, or key employees, (b) family members of any of the foregoing, or (c)
entities in which any of the foregoing serve as officers, directors, trustees, or direct or indirect
owners (collectively, “Interested Persons”).114
Prior to 2013, SBA List annually disclosed one series of business transactions: annual
payments ranging from $5,000 to $96,305 made by SBA List to Capital City Partners, a for-profit
public affairs company partially owned by SBA List’s then-serving treasurer, Francis “Frank”
Cannon.115 Since 2012, however, SBA List has answered “no” in response to Form 990, Part IV,
110

Women Speak Out PAC, 2016 Individual Contributions, Federal Election Commission, available at
https://www.fec.gov/data/individualcontributions/?+two_year_transaction_period=2012&two_year_transaction_period=2016&committee_id=C005307
66&contributor_name=SUSAN+B+ANTHONY+LIST&min_date=01%2F01%2F2016&max_date=12%2F31%2F2
016.
111
Instructions for schedule C (Form 990 or 990-EZ), Internal Revenue Service, 2018l available at
https://www.irs.gov/pub/irs-pdf/i990sc.pdf.
112
Instructions for Preparing FEC Form 5 (Report of Independent Expenditures Made and Contributions Received to
be Used by Persons Other Than Political Committees), Federal Election Commission, (Revised Sept. 2013), available
at https://www.fec.gov/resources/cms-content/documents/fecfrm5i.pdf.
113
Code § 501(c)(4)(B). This prohibition on private inurement effectively represents an extension of the Code Section
501(c)(3) private inurement rule to Code Section 501(c)(4) organizations. Committee Report for House Report No.
104-506 (P.L. 104-168), pp. 52-53 ("To ensure that the advantages of tax-exempt status ultimately benefit the
community and not private individuals, the bill extends the present-law section 501(c)(3) private inurement prohibition
to nonprofit organizations described in section 501(c)(4) and provides for intermediate sanctions that may be imposed
when nonprofit organizations described in section 501(c)(3) or 501(c)(4) engage in transactions with certain insiders
that result in private inurement. The bill also enhances the oversight and public accountability of nonprofit
organizations through additional reporting of information by nonprofit organizations to the Internal Revenue Service
(IRS) and increased public access to documents filed by such organizations with the IRS.")
114
See IRS Form 990, Part IV, Line 28; see also IRS Form 990, Schedule L.
115
The disclosed transactions were as follows:
• In 2012, SBA List paid $196,305 to Capital City Partners for consulting services;
• In 2011, SBA List paid $145,096 to Capital City Partners for consulting services;

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 19
Line 28(a), (b), and (c) and has not attached a Schedule L disclosing any such business
transactions.
In fact, SBA List should have indicated it had disclosures to report and should have
attached Schedule L disclosures. SBA List engaged in, but failed to report, the following business
transactions:
1. On its 2017 Form 990, SBA failed to disclose that it had hired Political Social Media, LLC
(doing business as “uCampaign”) to develop its official mobile app called “Life Impact.”
SBA List director Sean Fieler provided the startup capital for uCampaign’s creation in
2014 and may still own a portion of the company.116
2. On its 2017 Form 990—which spans from July 2017 through June 2018—SBA failed to
disclose that it had retained Direct Technology Solutions (“DTS”), owned by SBA List
Treasurer Robert J. Kania II, 117 for IT consulting services around June of 2018. 118

•
•
•

In 2010, SBA List paid $132,856 to Capital City Partners for consulting services;
In 2009, SBA List paid $139,263 to Capital City Partners for consulting services;
In 2008, SBA List paid $5,000 to Capital City Partners for consulting services.
SBA
List
Inc.,
2008-2012
IRS
Form
990,
Schedule
L,
Part
IV,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126. Aside from the business transactions with
Capital City Partners from 2008 through 2011, SBA List did not disclose any other business transactions on its Form
990s for those years. Id.
116
Natasha Singer and Nicholas Confessore, Republicans Find a Facebook Workaround: Their Own Apps, THE NEW
YORK TIMES, Oct. 20, 2018, available at https://www.nytimes.com/2018/10/20/technology/politics-appsconservative-republican.html. Sean Fieler manages his wealth through a network of investment funds, primarily
Mason Hill Advisors, Equinox Partners, Kuroto Fund International, and Nehemiah Investments. An employee of
Nehemiah
Investments,
created
the
uCampaignapp.com
website
using
the
email
address
jpaff@nehemiahinvestments.com. See Ex. I, (UCampaignApp.com, Domain Report, DomainTools, Apr. 12, 2019).
117
Louie Torres, Investor Claims He’s Owed Returns from Direct Technology Solutions, PENN RECORD, Dec. 19,
2016, available at
https://pennrecord.com/stories/511057009-investor-claims-he-s-owed-returns-from-directtechnology-solutions.
118
See, Ex. J, at 8, (Wijesinha v. Susan B. Anthony List, Inc., Case No. 1:18-cv-22880-JEM, Doc. 22, Defendant Susan
B. Anthony List, Inc’s Motion to Dismiss (Oct. 26, 2018)). Mr. Kania is the subject of a campaign finance complaint
in Pennsylvania filed by Campaign for Accountability. Letter from Alice Huling, Counsel, Campaign for
Accountability, to Stephen Zappala, Allegheny County District Attorney, and Alleghany County Board of Elections
(Apr. 8, 2019), available at https://campaignforaccountability.org/wp-content/uploads/2019/04/Kania-CampaignFinance-Complaint-4-8-19_.pdf. Shortly after the complaint was filed, Pennsylvania Governor Tom Wolf removed
Mr. Kania from his position on the Allegheny County Port Authority Board. See Ed Blazina, After Transit Group’s
Urging, Gov. Wolf Replaces Port Authority Board Member, PITTSBURGH POST-GAZETTE, April 11, 2019, available
at https://www.post-gazette.com/news/transportation/2019/04/11/Pittsburghers-for-Public-Transit-group-Gov-Wolfreplace-Port-Authority-board-member-robert-kania/stories/201904110081. On April 17, 2019 CfA called on the
Susan B. Anthony List to remove Mr. Kania from their Board of Directors. Letter from Alice Huling, Counsel,
Campaign for Accountability, to Marjorie Dannenfelser, President, Susan B. Anthony List, Inc., et al. (Apr. 17, 2019),
available at https://campaignforaccountability.org/wp-content/uploads/2019/04/CfA-Letter-SBA-List-Kania-Board4-17-19.pdf.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 20
3. On its 2013, 2014, 2015, 2016, and 2017 Form 990s, SBA List failed to disclose it has
retained Hewell Events Group, LLC to plan its annual galas since 2013.119 The Event
Manager of Hewell Events Group’s four-person team is Natalie Valentine.120 Ms.
Valentine’s husband, William Valentine, is SBA List’s Vice President of Policy121
(formerly the Director of Government Affairs)122 and is one of the organization’s highest
compensated employees.123 Ms. Valentine herself also serves as SBA List Special Projects
Coordinator and is the Development Coordinator for the Charlotte Lozier Institute, SBA
List’s research and education arm.124
The penalty for private inurement may include fines imposed under Code 4958125 and/or
revocation of the organization’s tax-exempt status.126 The IRS should investigate whether SBA
List failed to properly disclose business transactions involving certain persons on its Forms 990 in
order to avoid alerting the agency to potential private inurement and/or excess benefit transactions
that could lead to revocation of SBA List’s tax-exempt status or excise taxes, or both.
SBA List Appears to Have Inaccurately Described the Working
Arrangements and Hours of an Organization Insider
Francis Cannon (who appears as “Frank” on certain Forms 990 and other documents)
served as SBA List’s Treasurer from 2007 through the beginning of 2012 and, according to the
990s, was only compensated for his time in 2012, and then only received $12,000.127 During the
119

IRS Form 990 or 990-EZ Schedule L Part IV details Business Transactions with Interested Persons. Susan B.
Anthony List Inc. neglected to complete a Schedule L portion from 2013-2016. SBA List Inc., 2013 – 2016 IRS
Form 990s, available at https://projects.propublica.org/nonprofits/organizations/541850126; Patrick Gavin, Events
Chief
Fights
Drab
D.C.
Parties,
POLITICO,
August
2,
2013,
available
at
https://www.politico.com/story/2013/08/events-chief-fights-drab-dc-parties-095116.
120
Hewell Events Group, Our Team webpage, available at https://www.hewellevents.com/our-team (last accessed
May 7, 2019.
121
Billy Valentine Employee Webpage, Susan B. Anthony List, available at https://www.sba-list.org/billy-valentine
(last accessed May 7, 2019a).
122
SBA
List
Inc.,
2016
IRS
Form
990,
Part
VII,
Section
A,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990.
123
Id.
124
See Natalie Valentine Employee Bio, Susan B. Anthony List, available at https://www.sba-list.org/natalievalentine-2 (last accessed May 7, 2019).
125
The penalty excise taxes are imposed on the “disqualified persons” of the social welfare organization, as defined
in Code Section 4958(f)(1), as well as the organization’s managers who knowingly participated in the “excess benefit
transaction,” as defined in Code Section 4958(c), unless their participation was not willful and had reasonable cause.
See 26 U.S.C. § 4958.
126
See 26 C.F.R. § 1.501(c)(3)(1)-1(f)(2)(ii).
127
SBA List Inc., 2007 IRS Form 990, Part V-A, filed Aug. 13, 2008, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2008_09_EO%2F54-1850126_990O_200712;
SBA List Inc., 2008 IRS Form 990, Part VII, A(1a)(A), filed Aug. 14, 2009, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2009_09_EO%2F54-1850126_990O_200812;
SBA List Inc., 2009 IRS Form 990, Part VII, A(1a)(A),
filed June 24, 2010, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2010_08_EO%2F54-1850126_990O_200912;

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 21
same period, Mr. Cannon was also a partial owner of Capital City Partners, a for-profit public
affairs consulting company that SBA List paid for consulting services up until 2012. 128 Since
2012, SBA List has paid Mr. Cannon an annual compensation that has grown from $108,600 to
$203,974 in 2017, purportedly for performing full-time political consulting work.129 Mr. Cannon’s
annual salary since giving up his position as treasurer has largely fallen within the same ranges as
the consulting payments SBA List made to Capital City Partners pre-retirement. SBA List reports
that its current Treasurer, Robert Kania, does not receive a salary.130
In addition to his current full-time consulting for SBA List, Mr. Cannon is President of
both American Principles Project (“APP”),131 another 501(c)(4) organization, and the related
American Principles Project Foundation (“APPF”),132 a 501(c)(3) organization. APP/APPF and
SBA List have their headquarters in neighboring suites on the same floor of the same building. As
shown below, Forms 990 filed by SBA List, APP, and APPF, respectively, suggest that Mr.
Cannon works full time for both the SBA List and the APP/APPF groups, while also conducting
private businesses in his spare time:

SBA List Inc., 2010 IRS Form 990, Part VII, A(1a)(A), filed June 13, 2011, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2011_07_EO%2F54-1850126_990O_201012;
SBA List Inc, 2011 IRS Form 990, Part VII, A(1a)(A), filed June 27, 2012, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2012_07_EO%2F54-1850126_990O_201112;
SBA List Inc., 2012 IRS Form 990, Part VII, A(1a)(A), filed July 16, 2013, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212.
128
See, supra note 18.
129
Mr. Cannon purportedly works for SBA List 40 hours per week. See SBA List 2017 Form 990, Part VII, A(1a)(B),
filed
Nov.
15,
2018,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201843199349300809/IRS990.
130
Id.
131
APP, 2017 IRS Form 990, Part VII, A(1a)(A),
filed Oct. 11, 2018, available at
https://projects.propublica.org/nonprofits/organizations/264613397/201802849349300610/IRS990.
132
APPF, 2017 IRS Form 990, Part VII, A(1a)(A), filed Oct. 11, 2018, available at
https://projects.propublica.org/nonprofits/organizations/264442148/201812849349300611/IRS990.

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 22
Year

2012133
2013134
2014135
2015136
2016137
2017138
133

Hours worked per week
SBA APP APPF Total
List
hours
worked
per
week
50
10
15
65
0
20
20
40
40
20
20
80
40
35
5
80
40
35
5
80
40
20
5
65

SBA
List

$0
$108,600
$134,600
$162,550
$160,200
$203,974

Reportable compensation
APP
APPF
Total
Compensation

$0
$105,000
$174,059
$170,108
$171,264
$172,097

$0
$75,000
$0
$0
$0
$0

$0
$288,600
$308,659
$332,658
$331,464
$375,471

The 2012 Form 990 for APP and APPF do not agree on Mr. Cannon’s hours worked. In 2012, the APP Form 990
states that Mr. Cannon worked 10 hours per week for APP and 0 hours per week for any related organizations.
However, in 2012, the APPF Form 990 states that Mr. Cannon worked 15 hours per week for APPF and 0 hours per
week for any related organizations. SBA List Inc., 2012 IRS Form 990, filed July 16, 2013, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2014_01_EO%2F54-1850126_990O_201212;
American Principles in Action, 2012 IRS Form 990, filed Oct. 29, 2013, available at
https://projects.propublica.org/nonprofits/display_990/264613397/2013_10_EO%2F26-4613397_990O_201212;
American Principles Project, 2012 IRS Form 990, filed Oct. 1, 2013, available at
https://projects.propublica.org/nonprofits/display_990/264442148/2013_10_EO%2F26-4442148_990_201212.
134
In 2013, SBA List reportedly paid Mr. Cannon $108,600 for working zero hours per week. SBA List Inc., 2013
IRS Form 990, available at https://projects.propublica.org/nonprofits/display_990/541850126/2014_11_EO%2F541850126_990O_201312; American Principles in Action, 2013 IRS Form 990, filed Nov. 13, 2014, available at
https://projects.propublica.org/nonprofits/display_990/264613397/2014_12_EO%2F26-4613397_990O_201312;
American Principles Project, 2013 IRS Form 990, filed Nov. 12, 2014, available at
https://projects.propublica.org/nonprofits/display_990/264442148/2014_12_EO%2F26-4442148_990_201312.
135
SBA
List
Inc.,
Inc.
2014
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2015_10_EO%2F54-1850126_990O_201412;
American Principles in Action, 2014 IRS Form 990, filed Aug. 6, 2015 available at
https://projects.propublica.org/nonprofits/display_990/264613397/2015_09_EO%2F26-4613397_990O_201412;
American Principles Project, 2014 IRS Form 990, filed Aug. 6, 2015, available at
https://projects.propublica.org/nonprofits/display_990/264442148/2015_09_EO%2F26-4442148_990_201412.
136
SBA
List
Inc.,
2015
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/display_990/541850126/2017_02_EO%2F54-1850126_990O_201512;
American Principles Project, 2015 IRS Form 990, filed Aug. 12, 2016, available at
https://projects.propublica.org/nonprofits/display_990/264613397/2016_12_EO%2F26-4613397_990O_201512;
American Principles Project Foundation, 2015 IRS Form 990, filed Aug. 12, 2016, available at
https://projects.propublica.org/nonprofits/display_990/264442148/2016_12_EO%2F26-4442148_990_201512
137
SBA
List
Inc.,
2016
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990ScheduleC;
American Principles Project, 2016 IRS Form 990, filed Sept. 5, 2017, available at
https://projects.propublica.org/nonprofits/organizations/264613397/201742689349300104/IRS990;
American
Principles Project Foundation, 2016 IRS Form 990, filed Sept. 5, 2017, available at
https://projects.propublica.org/nonprofits/organizations/264442148/201702689349300105/IRS990.
138
SBA
List
Inc.,
2017
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201843199349300809/IRS990;
American
Principles
Project,
2017
IRS
Form
990,
filed
Oct.
11,
2018,
available
at

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 23
It is theoretically possible that Mr. Cannon has provided 80 hours of service per week
collectively to SBA List, APP, and APPF, as the organizations report, given that there are 168
hours in a week, but it is highly unlikely. The IRS should investigate whether Mr. Cannon did,
indeed, work the reported hours and whether his compensation was reasonable, or whether he was
paid for some other services.
Payment of unreasonable amounts of compensation can constitute private inurement,
private benefit, and/or an excess benefit transaction and, as discussed above, under section 4958,
a 501(c)(4) organization may be subject to intermediate sanctions on excess benefit transactions
or incur revocation of its tax-exempt status for an unlawful private inurement.139 In general,
“reasonable compensation” is the amount that would be paid for like services by like enterprises
(whether taxable or tax-exempt) under like circumstances factoring in all of applicable facts and
circumstances.140 Further, provision of compensation or other benefits, even if they are modest,
is not reasonable compensation where no services are performed.141 Thus, if Mr. Cannon’s
compensation was based on reported hours that he did not actually work his compensation may be
per se unreasonable.
SBA List has Entered Into Contracts with Third Party
Professional Fundraisers with Unduly Generous Terms
SBA List consistently has entered into fundraising contracts that have resulted in
remarkably small percentages of funds raised going to the group’s coffers.
•

In 2009, SBA List entered into a fundraising contract with MDS Communications
Corporation, allowing MDS to retain 90 percent of all funds raised;142

•

In 2012, SBA List entered into a fundraising contract with Confluent Impact
Communications guaranteeing SBA List only 1 percent of the total gross receipts;143

•

In 2017, SBA List entered into a fundraising contract with Capitol Resources, Inc., also
known as Campaign Headquarters, guaranteeing SBA List a minimum of 1 percent of the
gross revenues.144

https://projects.propublica.org/nonprofits/organizations/264613397/201802849349300610/IRS990;
American
Principles Project Foundation, 2017 IRS Form 990, filed Oct. 11, 2018, available at
https://projects.propublica.org/nonprofits/organizations/264442148/201812849349300611/IRS990.
139
TD 8978, Taxes on Excess Benefit Transactions, Preamble to Final Treasury Regulations under Code Section 4958
(Jan. 22, 2002).
140
Treas. Reg. Section 53.4958-4(b)(1)(ii).
141
Canada v. Comm'r, 82 TC 973 (1984).
142
See Ex. K, at 8, (Susan B. Anthony List, and MDS Communications Corporation Contract Services Agreement,
North Carolina Department of The Secretary of State, (signed Mar. 19, 2009)).
143
See Ex. L, at 2, (Susan B. Anthony List and Confluent Impact Communications, LLC, Solicitor Contract Checklist,
North Carolina Department of The Secretary of State, (signed May 30, 2012)).
144
See Ex. M, at 7, (Susan B. Anthony List, and Capitol Resources, Inc., Solicitor Contract Checklist, North Carolina
Department of The Secretary of State Solicitor, (signed Jan. 5, 2017)).

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 24
It appears that not infrequently SBA List collects close to the minimum permitted under its
contracts with third-party fundraisers. In 2017, SBA List received only $3,795.93 out of
$52,252.50 raised by Capitol Resources, Inc., just 7.26 percent of the total amount raised in its
name.145 Even more egregious, in 2016 SBA List received only $2,125.75 out of $109,022.45
raised by Capitol Resources, Inc., just 1.95 percent of the fundraising total.146 Capital Resources
appears to do business as Campaign Headquarters, and claims to be the “Best Conservative Call
Center in America.”147
In 2016 and 2017 SBA List also contracted with InfoCision, Inc., an Ohio telemarketing
company that got its start in Christian fundraising.148 In 2016, InfoCision raised only $931 for
SBA List while accumulating $17,057 in expenses. In 2017 InfoCision pocketed $10,451 of the
total $11,083 that the company raised purportedly on SBA List’s behalf, leaving SBA List with
only $632.149 In total, SBA List kept little more than 5 percent of the money InfoCision raised on
its behalf in 2016 and 2017. Furthermore, SBA List chose to use InfoCision despite the company
having paid $75,000 to settle an Ohio Attorney General investigation focused on, among other
issues, the company’s failure to disclose to consumers the percentage of the money it raised that
actually went to the charities for which it fundraised.150

145

See Ex. N, (Capitol Resources, Inc., North Carolina Solicitation Campaign Financial Report, Final Accounting,
(filed May 18, 2018)). In accordance with North Carolina law, Capital Resources President Nicole Schlinger signed
and filed the required Solicitation Campaign Financial Report with the Charitable Solicitation Licensing Division.
Id.; see also, Nicole Schlinger biography, Campaign HQ, (last accessed May 27, 2019), available at
https://www.campaign-headquarters.com/pages/nicole-schlinger.aspx. The fundraising returns submitted by Ms.
Schlinger to the North Carolina Charitable Solicitation Licensing Division differ drastically from the fundraising
returns submitted to the IRS by SBA List, which indicate that the organization collected $40,623 in fundraising from
Capital
Resources.
See
SBA
List
Inc.,
2017
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201843199349300809/IRS990.
146
See Ex. O (Capitol Resources Inc., North Carolina Solicitation Campaign Financial Report, Final Accounting,
(filed Apr. 3, 2017)). In accordance with North Carolina law, Capital Resources President Nicole Schlinger signed
and filed the required Solicitation Campaign Financial Report with the Charitable Solicitation Licensing Division.
Id.; see also, Nicole Schlinger biography, Campaign HQ, (last accessed May 27, 2019), available at
https://www.campaign-headquarters.com/pages/nicole-schlinger.aspx. The fundraising returns submitted by Ms.
Schlinger to the North Carolina Charitable Solicitation Licensing Division differ drastically from the gross receipts
and fundraising returns submitted to the IRS by SBA List, which indicate that Capital Resources’ fundraising efforts
raised $115,801 in gross receipts and that SBA List collected $100,195 of the funds raised. See SBA List Inc., 2016
IRS
Form
990,
available
at
https://projects.propublica.org/nonprofits/organizations/541850126/201712369349301206/IRS990ScheduleC.
147
Campaign Headquarters, Home Page, (last accessed May 9, 2019), available at https://www.campaignheadquarters.com/ - services.
148
InfoCision: Your Trusted Brand Ambassadors, We Are InfoCision, (last accessed May 9, 2019), available at
http://www.infocision.com/about-us/ - about-us__intro.
149
SBA List Inc., 2017 IRS Form 990, Schedule G, Part I (2b), available at
https://projects.propublica.org/nonprofits/organizations/541850126/201843199349300809/IRS990ScheduleG.
150
Press Release, Attorney General DeWine Announces Settlement Agreement with Professional Solicitor Company
InfoCision,
OFFICE OF ATTORNEY GENERAL OF OHIO,
Apr.
20,
2012,
available
at
https://www.ohioattorneygeneral.gov/Media/News-Releases/April-2012/Attorney-General-DeWine-AnnouncesSettlement-Agree; In Re: InfoCision Management Corporations, Case No. 12MS000289, Assurance of

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 25
Relatedly, in 2014, InfoCision paid $1.7 million to settle a class action lawsuit alleging it
had misrepresented, among other things, the percentage of the donations it raised that was passed
on to charities.151 More recently, in 2018 InfoCision paid a $250,000 civil fine to settle an FTC
investigation into its misleading telemarketing practices.152
In general, if a 501(c)(4) organization pays a non-exempt individual or entity a price for
goods or services that exceeds the fair market value of those goods or services, then it is engaged
in impermissible private inurement, private benefit, and/or excess business benefit transactions.153
Typically, when an organization purchases assets from an independent third party, a presumption
exists that the purchase price, presumably arrived at through negotiations, represents fair market
value.154 However, when there is a close relationship between the two at the time of sale, there is
no such presumption because the elements of an arm's length transaction are not present.155 Given
that SBA List has collected only a tiny fraction of the amount solicited by its fundraisers, it appears
their fundraisers are receiving an impermissible private benefit. If any of these fundraisers are
insiders of SBA List, then contracts that excessively benefit them and not SBA List may constitute
excess benefit transactions or impermissible private inurement and could lead to the revocation of
SBA List's tax-exempt status.156

Discontinuance (Apr. 17, 2012), available at https://www.ohioattorneygeneral.gov/Media/News-Releases/April2012/Attorney-General-DeWine-Announces-Settlement-Agree/InfoCision-Assurance.aspx.
151
Jim Mackinnon, InfoCision Settles Class-Action Lawsuit Over Charity Telemarketing, AKRON BEACON JOURNAL
(Jul. 22, 2014), available at https://www.ohio.com/akron/business/infocision-settles-class-action-lawsuit-overcharity-telemarketing.
152
Eric Heisig, InfoCision Agrees to Pay $250,000 to Settle Investigation Over Misleading Telemarketing Practices,
CLEVELAND.COM
(Jan.
10,
2018),
available
at
https://www.cleveland.com/courtjustice/2018/01/infocision_agrees_to_pay_25000.html.
153
See e.g. Anclote Psychiatric Center Inc., TC Memo 1998-273 (sustaining the revocation of a hospital’s tax-exempt
status on the grounds that an asset sale to a for-profit corporation, whose shareholders were directors of both the
corporation and the hospital, for less than fair market value resulted in private inurement); Bob Jones University
Museum and Gallery, Inc., TC Memo 1996-247 (explaining that “the principal inquiry in determining whether rental
arrangements create private benefit or inurement is whether the rental payments are excessive”); see also Treas. Reg.
§§ 53.4958-4(a)(1), 53.4958-4(b)(1)(i). Though SBA List is a 501(c)(4) organization, the laws prohibiting its
engagement in private inurement are comparable to those governing 501(c)(3) organizations. See, supra, n. 113.
154
Rev. Rul. 76-91, 1976-1 CB 149.
155
Id.
156
United Cancer Council, Inc. v. Comm'r, 109 TC 326 (Dec. 2, 1997), rev'd and rem'd on other issue 165 F.2d 1173
(7th Cir. Feb. 10, 1999).

 IRS EO Classification
SBA List Complaint
May 28, 2019
Page 26
Conclusion
In summary, CfA asks the IRS to investigate whether SBA List has:
1. Made material misrepresentations and omissions on its application for
501(c)(4) tax-exempt status;
2. Had as its true primary purpose participating directly and indirectly in
political campaigns, rather than promoting social welfare;
3. Failed to accurately report its political campaign expenditures to the IRS,
the FEC, or both;
4. Failed to report business transactions with interested persons as required on
the Form 990, Schedule L, which may constitute private inurement;
5. Inaccurately reported the amount of time worked by a certain highly
compensated former officer, which may constitute an improper private
inurement; and
6. Entered into contracts with third-party professional fundraisers that were
not reasonably beneficial to SBA List and may constitute improper private
benefit to those fundraisers.
Tax-exempt status is a privilege and the IRS has the responsibility of ensuring that organizations
comply with all applicable tax laws. Therefore, CfA looks forward to your prompt investigation
of what appears to be SBA List’s pattern of legal violations.

Sincerely,

Alice C.C. Huling
Counsel
Enclosure:
Form 13909

 Appendix 1
Party and Gender of SBA List Endorsed Candidates by Year
2018 Election Cycle
SBA List Endorsed Candidate
Party
1. Alex Mooney
Republican
2. Andy Barr
Republican
3. Ann Wagner
Republican
4. Barbara Cegavske
Republican
5. Barbara Comstock
Republican
6. Ben Cline
Republican
7. Bill Schuette
Republican
8. Brian Kemp
Republican
9. Brian Mast
Republican
10. Candius Stearns
Republican
11. Carol Miller
Republican
12. Cathy McMorris Rodgers
Republican
13. Chris Smith
Republican
14. Cindy Hyde-Smith
Republican
15. Claudia Tenney
Republican
16. Dan Lipinski
Democrat
17. Danny Tarkanian
Republican
18. Dave Brat
Republican
19. David Schweikert
Republican
20. David Young
Republican
21. Dean Heller
Republican
22. Deb Fischer
Republican
23. Debbie Lasko
Republican
24. Denver Riggleman
Republican
25. Diane Harkey
Republican
26. Dino Russi
Republican
27. Don Bacon
Republican
28. Don Young
Republican
29. Galvin Clarkson
Republican
30. Greg Gianforte
Republican
31. Greg Pence
Republican
32. Guy Reschenhaler
Republican
33. Henry McMaster
Republican
34. Jackie Walorski
Republican
35. Jake LaTurner
Republican
36. Jamie Beutler
Republican
37. Jay Webber
Republican
38. Jim Banks
Republican
1

1

Gender
Male
Male
Female
Female
Female
Male
Male
Male
Male
Female
Female
Female
Male
Female
Female
Male
Male
Male
Male
Male
Male
Female
Female
Male
Female
Male
Male
Male
Male
Male
Male
Male
Male
Female
Male
Female
Male
Male

SBA List 2018 Election Report, available at https://www.sba-list.org/2018-election-report.

 39. Jim Jordan
40. Jim Renacci
41. John Carter
42. John Culberson
43. John James
44. Jon Husted
45. Josh Hawley
46. Karen Handel
47. Karin Housley
48. Katie Arrington
49. Kay Ivey
50. Keith Rothfus
51. Kelly Armstrong
52. Kevin Cramer
53. Kim Reynolds
54. Kimberlin Brown
55. Kimberly Yee
56. Kristi Noem
57. Larry Buchson
58. Leah Vukmir
59. Lena Epstein
60. Leslie Rutledge
61. Lisa Posthumus Lyons
62. Liz Cheney
63. Maria Elvira Salazar
64. Marsha Blackburn
65. Martha McSally
66. Martha Roby
67. Matt Rosendale
68. Mia Love
69. Michelle Garcia Homes
70. Mike Bishop
71. Mike Braun2
72. Mike DeWine
73. Mike Miller
74. Mike Waltz
75. Mimi Walters
76. Pamela Evette
77. Patrick Morrisey
78. Paul Pate
79. Randy Hultgren
80. Rebecca Kleefisch
81. Rick Saccone
2

Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican

Grey shading indicates a Republican candidate running against a pro-life Democrat.

Male
Male
Male
Male
Male
Male
Male
Female
Female
Female
Female
Male
Female
Male
Female
Female
Female
Female
Male
Female
Female
Female
Female
Female
Female
Female
Female
Female
Male
Female
Female
Male
Male
Male
Male
Male
Female
Female
Male
Male
Male
Female
Male

 82. Rick Scott
83. Rob Blum
84. Rodney Davis
85. Ross Spano
86. Saundra McDowell
87. Steve Chabot
88. Steve King
89. Steve Knight
90. Steve Pearce
91. Susan Brooks
92. Ted Budd
93. Tim Walberg
94. Tom McClintock
95. Troy Balderson
96. Vicky Hartzler
97. Virginia Foxx
98. Wendy Rogers
99. Wink Hartman
100.
Young Kim
101.
Yvette Herrell
Totals:

Candidates
101

Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
Republican
% of republicans
99.01%

Male
Male
Male
Male
Female
Male
Male
Male
Male
Female
Male
Male
Male
Male
Female
Female
Female
Male
Female
Female
% of women
42.57%

 2016 Election Cycle
SBA List Endorsed Candidate3
Party
1. Ann Wagner
Republican
1. Barbara Comstock
Republican
2. Cathy McMorris Rodgers
Republican
3. Chris Smith
Republican
4. Chuck Grassley
Republican
5. Claudia Tenney
Republican
6. Dan Frost
Republican
7. Danny Tarkanian
Republican
8. Diane Black
Republican
9. Eric Greitens
Republican
10. Frank Guinta
Republican
11. Greg Gianforte
Republican
12. Hans Reigle
Republican
13. Ileana Ros-Lehtinen
Republican
14. Jackie Walorski
Republican
15. Jaime Herrera Beutler
Republican
16. Jay Ashcroft
Republican
17. John McCain
Republican
18. John Mica
Republican
19. Josh Hawley
Republican
20. Kelly Ayotte
Republican
21. Kristi Noem
Republican
22. Lee Zeldin
Republican
23. Liz Cheney
Republican
24. Lloyd Smucker
Republican
25. Lynn Jenkins
Republican
26. Mac Warner
Republican
27. Marco Rubio
Republican
28. Mark Mioscia
Republican
29. Marsha Blackburn
Republican
30. Martha Roby
Republican
31. Mia Love
Republican
32. Mike Bishop
Republican
33. Mimi Walters
Republican
34. Pat McCrory
Republican
35. Pat Toomy
Republican
36. Richard Burr
Republican
37. Rob Portman
Republican
38. Rob Blum
Republican
39. Roy Blunt
Republican
40. Susan Brooks
Republican
3

Gender
Female
Female
Female
Male
Male
Female
Male
Male
Female
Male
Male
Male
Male
Female
Female
Female
Male
Male
Male
Male
Female
Female
Female
Female
Male
Female
Male
Male
Male
Female
Female
Female
Male
Female
Male
Male
Male
Male
Male
Male
Female

SBA List 2016 Election Report, available at https://www.sba-list.org/2016-election-report.

 41. Tim Walberg
42. Tom Garrett
43. Tonia Khouri
44. Trey Hollingsworth
45. Vicky Hartzler
46. Virginia Foxx
Totals:

Candidates
46

Republican
Republican
Republican
Republican
Republican
Republican
% of republicans
100%

Male
Male
Female
Male
Female
Female
% of women
45.65%

 2014 Election Cycle
SBA List Endorsed Candidate4
Party
1. Ann Wagner
Republican
1. Barbara Cegavske
Republican
2. Barbara Comstock
Republican
3. Bill Cassidy
Republican
4. Bobby Schilling
Republican
5. Candice Miller
Republican
6. Cathy McMorris Rodgers
Republican
7. Curt Clawson
Republican
8. Cynthia Lummis
Republican
9. Darlene Senger
Republican
10. David Perdue
Republican
11. Diane Black
Republican
12. Elise Stefanik
Republican
13. Ileana Ros-Lehtinen
Republican
14. Jackie Walorski
Republican
15. Jamie Herrera Beutler
Republican
16. Joni Ernst
Republican
17. Kay Ivey
Republican
18. Kim Reynolds
Republican
19. Kristi Noem
Republican
20. Leslie Rutledge
Republican
21. Marilinda Garcia
Republican
22. Marsha Blackburn
Republican
23. Martha Roby
Republican
24. Mia Love
Republican
25. Mimi Walters
Republican
26. Mitch McConnell
Republican
27. Pam Bondi
Republican
28. Pat Roberts
Republican
29. Renee Ellmers
Republican
30. Steve Daines
Republican
31. Steve Pearce
Republican
32. Steve Southerland
Republican
33. Suzanne Scholte
Republican
34. Terri Lynn Land
Republican
35. Thom Tillis
Republican
36. Tom Cotton
Republican
37. Tom MacArthur
Republican
38. Vicky Hartzler
Republican

4

Gender
Female
Female
Female
Male
Male
Female
Female
Male
Female
Female
Male
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Female
Male
Female
Male
Female
Male
Male
Male
Female
Female
Male
Male
Male
Female

SBA List 2014 Election Report, available at https://www.sba-list.org/2014-election-report.

 39. Virginia Foxx
40. Wendy Rogers
Totals:

Candidates
40

Republican
Republican
% of republicans
100%

Female
Female
% of women
72.5%

 2012 Election Cycle
SBA List Endorsed Candidate
Party
5
1. Alecia Webb-Edgington
Republican
2. Ann Duke6
Republican
7
3. Ann Wagner
Republican
4. Bette Grand8
Republican
9
5. Bobby Schilling
Republican
6. Cherilyn Eagar10
Republican
11
7. Jackie Walorski
Republican
12
8. Jim Renacci
Republican
9. John Koster13
Republican
14
10. Jonathon Paton
Republican
11. Karen Harrington15
Republican
16
12. Kevin Kramer
Republican
13. Martha McSally17
Republican
18
14. Mia Love
Republican
19
15. Ovide Lamontagne
Republican

5

Gender
Female
Female
Female
Male
Male
Female
Female
Male
Male
Male
Female
Male
Female
Female
Male

SBA List Candidate Fund Announces New Congressional Candidate Endorsements, Susan B. Anthony List, May
8, 2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-newcongressional-candidate-endorsements.
6
Susan B. Anthony List Candidate Fund Announces First Round of 2012 Endorsements, Susan B. Anthony List,
Dec. 6, 2011, available at https://www.sba-list.org/newsroom/press-releases/susan-b-anthony-list-candidate-fundannounces-first-round-2012-endorsements.
7
Id.
8
Id.
9
SBA List Candidate Fund Announces Next Round of Candidate Endorsements, Susan B. Anthony List, Apr. 3,
2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-next-roundcandidate-endorsements.
10
Id.
11
Susan B. Anthony List Candidate Fund Announces First Round of 2012 Endorsements, Susan B. Anthony List,
Dec. 6, 2011, available at https://www.sba-list.org/newsroom/press-releases/susan-b-anthony-list-candidate-fundannounces-first-round-2012-endorsements.
12
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.
13
Id.
14
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.
15
SBA List Candidate Fund Announces New Congressional Candidate Endorsements, Susan B. Anthony List, May
8, 2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-newcongressional-candidate-endorsements.
16
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.
17
Id.
18
SBA List Candidate Fund Announces New Congressional Candidate Endorsements, Susan B. Anthony List, May
8, 2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-newcongressional-candidate-endorsements.
19
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.

 16. Rebecca Kleefisch20
17. Ron Desantis21
18. Steve King22
19. Tommy Thompson23
20. Vernon Parker24
21. Wendy Long25
Totals:

20

Candidates
21

Republican
Republican
Republican
Republican
Republican
Republican
% of Republicans
100%

Female
Male
Male
Male
Male
Female
% of women
47.62%

SBA List Candidate Fund Announces Next Round of Candidate Endorsements, Susan B. Anthony List, Apr. 3,
2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-next-roundcandidate-endorsements.
21
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.
22
Susan B. Anthony List Candidate Fund Announces First Round of 2012 Endorsements, Susan B. Anthony List,
Dec. 6, 2011, available at https://www.sba-list.org/newsroom/press-releases/susan-b-anthony-list-candidate-fundannounces-first-round-2012-endorsements.
23
SBA List Candidate Fund Announces Additional Endorsements, Susan B. Anthony List, Oct. 17, 2012, available
at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-additional-endorsements.
24
Id.
25
SBA List Candidate Fund Announces Next Round of Candidate Endorsements, Susan B. Anthony List, Apr. 3,
2012, available at https://www.sba-list.org/newsroom/press-releases/sba-list-candidate-fund-announces-next-roundcandidate-endorsements.

 Appendix 2

Sean
Fieler

Francis
Cannon4

1

Year
2017
2016
2015
2014
2013
2012
2017
2016
2015
2014
2013
2012

Overlapping Staff and Board Members
SBA List1
APP2
Director
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
Chairman
Director
*Not listed
Former Treasurer5
President
Former Treasurer
President
Former Treasurer
President
Former Treasurer
President
Former Treasurer
Director
Treasurer (Partial
President/Director
2012)

APP Foundation3
Chairman
Chairman
Chairman
Chairman
Chairman
Director
President
President
President
President
President
President/Director

Susan B. Anthony List Inc., Tax Filings By Year, available at
https://projects.propublica.org/nonprofits/organizations/541850126.
2
American Principles Project, Tax Filings By Year, available at
https://projects.propublica.org/nonprofits/organizations/264613397.
3
American Principles Project Foundation, Tax Filings By Year, available at
https://projects.propublica.org/nonprofits/organizations/264442148.
4
When Francis Cannon co-founded American Principles Project with Robert George, and Jeffrey Bell in 2009,
Cannon was simultaneously advising Susan B. Anthony List through his public affairs firm, Capital City Partners
LLC. See Greg Pierce, Abortion Gap, THE WASHINGTON TIMES, May 29, 2009; Susan B. Anthony List Inc., 2009
Form 990, filed June 24, 2010, available at
https://projects.propublica.org/nonprofits/display_990/541850126/2010_08_EO%2F54-1850126_990O_200912.
Cannon’s firm, Capital City Partners, received $139,263 in consulting fees from SBA List in 2009 while Cannon is
listed as the Treasurer of the organization. Id.
5
Between 2012 to 2017 Francis Cannon has received a salary from the Susan B. Anthony List, Inc., despite being
listed as former treasurer, Francis Cannon has received a salary from Susan B. Anthony List ranging from $108,600
$203,974 between 2013 to 2017 while receiving a salary from the American Principles Project. See Susan B.
Anthony List Inc., Tax Filings By Year, available at
https://projects.propublica.org/nonprofits/organizations/541850126.

 Appendix 3
Sean Fieler Contributions to the Women Speak Out PAC
Election Cycle
Receipt Date
Amount
1
Jan. 1, 2015 – Dec. 31, 2016
Aug. 3, 2015
$75,000
Jan. 1, 2013 – Dec. 31, 20142
July 9, 2014
$385,946.12
3
Jan 1, 2011 – Dec. 31, 2012
Oct. 11, 2012
$75,000

1

Sean Fieler Individual Contributions 2015-2016, Federal Election Commission, available at
https://www.fec.gov/data/receipts/individualcontributions/?two_year_transaction_period=2016&committee_id=C00530766&contributor_name=Fieler,+Sean&
min_date=01%2F01%2F2015&max_date=12%2F31%2F2016.
2
Sean Fieler Individual Contributions 2013-2014, Federal Election Commission, available at
https://www.fec.gov/data/receipts/individualcontributions/?two_year_transaction_period=2014&committee_id=C00530766&contributor_name=Fieler,+Sean&
min_date=01%2F01%2F2013&max_date=12%2F31%2F2014.
3
Sean Fieler Individual Contributions 2011-2012, Federal Election Commission, available at
https://www.fec.gov/data/receipts/individualcontributions/?two_year_transaction_period=2012&committee_id=C00530766&contributor_name=Fieler,+Sean&
min_date=01%2F01%2F2011&max_date=12%2F31%2F2012.