Lake County Gazette

Records show The Preservation Foundation of the Lake County Forest Preserves made a $95,000 donation to a political action committee (PAC) in the weeks leading up to the Nov. 5 election, despite Internal Revenue Service code that prohibits 501(c)(3) organizations from making donations to political causes, including PACs. 

The 501(c)(3) nonprofit Foundation donated the sum to the "Friends of the Lake County Forest Preserves" PAC, which supported a $155 million bond referendum aimed at funding improvements to the county’s forest preserves. 

The donation from the Preservation Foundation to the PAC was intended to help finance efforts to secure voter approval for the referendum.

As a a 501(c)(3) the Preservation Foundation of the Lake County Forest Preserves is prohibited from providing campaign donations. | Illinois Secretary of State

Internal Revenue Service code states that 501(c)(3) organizations like the Preservation Foundation cannot participate in political campaigns, including donating to PACs or efforts to influence voters on ballot measures. 

The Nov. 5 referendum ultimately passed with more than 72% of voters supporting the measure. 

The donation to the PAC was made between Oct. 7 and Oct. 8, just a month before the election in which Lake County residents were asked to approve the referendum that would raise property taxes to fund the Lake County Forest Preserves. 

Those funds will be supported by the tax hike on Lake County property owners. 

Lake County residents already pay three times higher property taxes than the national median at a median rate of 2.94%, which is higher than the Illinois state median of 2.35%—both far outpacing the national median of 0.99%.

Rebekah Snyder, the foundation’s agent and the Director of Community Engagement and Partnerships for the Lake County Forest Preserves, did not respond to multiple requests for comment from the Lake County Gazette.

While nonprofits are allowed to engage in certain non-partisan activities, such as voter education efforts and public forums, any actions that show bias toward or against a specific candidate or measure are prohibited.

Given that the Preservation Foundation used its funds to support a campaign that directly influenced the outcome of the referendum, questions are now being raised about whether this constitutes political intervention under IRS rules.

“Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office,” the IRS notes on its website. “Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.”

The foundation is listed on the Forest Preserve's official website, and its physical address is used for correspondence, lending further visibility and added scrutiny to its involvement with the publicly funded agency

The IRS states that nonprofit organizations must not engage in political activities that intervene in political campaigns in any manner and that violating these rules could result in the revocation of the organization’s tax-exempt status and potentially trigger excise taxes.

If the foundation is found to have violated the rules, it could face significant consequences, including the loss of its tax-exempt status, which could affect its ability to raise funds for conservation projects moving forward.

The referendum's approval will allow the Forest Preserves to issue bonds totaling $155 million, with funds allocated for land acquisition and habitat restoration, as well as enhancements to public access and recreational infrastructure.

Of the funds, $65 million will be used for acquiring additional land for the preserves, while $90 million will go toward restoring wildlife habitats and improving hiking and biking trails, as well as other public access improvements.  

Lake County Gazette is following this developing story.