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City Beat
Complaint against WG business association is dropped
Organization is allowed engage in political activity
By Kate Carter
A plan to file a complain with the Internal Revenue Service, regarding District 6 city council candidate Ken Yeager's campaign ad in the Willow Glen Business and Professional Association's business directory, fell through when it was discovered that the association did not violate its tax-exempt status.
The full-page ad in the September directory that was distributed to all Willow Glen residents, and is available in many Willow Glen businesses, was a source of contention for opponent Kris Cunningham and her supporters, who said that they did not receive the same opportunity to advertise.
Yeager campaign manager Denelle Fedor said that the campaign advertised in the directory after she noticed an announcement about the advertising opportunity posted on the community board at the Willow Glen Coffee Roasting Company.
John Karamanos, second vice president of the business association, was in charge of the directory and said that they did not extend either candidate a specific invitation to advertise.
Cunningham supporter Phil Rossignol, who is not officially a member of her campaign, said that he thought that, because of the association's tax-exempt status, it was not allowed to endorse any political candidate or become involved in any political campaign. By allowing Yeager to run an ad without offering Cunningham the same chance, Rossignol thought the business association was violating the restrictions placed on tax-exempt organizations.
Rossignol told The Resident that he was going to file a complaint with the IRS, but after speaking to an agent he learned that the business association is registered with the IRS as a business league and is permitted to engage in some political activities.
Unlike charitable nonprofits, which have a 501(c)(3) tax-exempt designation, business leagues can register as 501(c)(6) organizations and participate in political activities, such as lobbying in order to promote their interests.
Rossignol said he is still trying to determine what to do next but he has not yet given up trying to prove that the business association acted in an inappropriate way.
"This is a really close race and an advertisement like that could tip the scales," Rossignol said.
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Willow Glen, California Since 1992
