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Overview:

National Education Association (NEA) Stated Purpose: Serve as the national voice for education. Tax Status: 501(c)(5) Political Orientation: Democratic Profile: September 2004 — The National Education Association (NEA), a union consisting of 2.7 million members who work in public education, is one of the few 501(c) groups that is known to have come under investigation by the IRS for allegedly failing to report its political expenditures accurately.1 The NEA has reported to the IRS that it had zero political expenditures from its fiscal year 1999 through its fiscal year 2002, the last year for which its tax forms are available.2 3 The IRS investigation was prompted by a year 2000 complaint by the Landmark Legal Foundation, a Virginia-based group dedicated to combating "powerful interest groups and unions."4 Landmark alleged that NEA publications "reveal the overwhelming importance the NEA attributes to political activity as a core purpose of the union's existence." For example, Landmark's complaint said, "The NEA has published a series of 'how to' handbooks designed to educate its affiliates and members in the art of politics." In one handbook, Landmark said, the NEA advised local affiliates to consider such practices as naming political action committee members to the local association board and combining PAC fundraising with the association's membership drive.5 Public Citizen faxed the NEA a chart showing nine congressional races in which the union was reported to have sent out direct mail or telemarketing messages in 2002. NEA Assistant Treasurer Fred Suman said that each of the mailings and telephone calls was directed only to NEA members.6 Federal regulations are ambiguous as to whether 501(c) organizations are required to treat communications with members as political expenditures. However, the IRS said in an e-mail to Public Citizen that the groups have the option of whether to declare the cost of political communications with members as "political" expenditures, pending a revision to the regulations.7 The NEA has an affiliated federally regulated PAC8 and a 527 committee.9 1   Jerry Seper, "NEA's Political Spending Investigated; Official 'Confident' of Exoneration," Washington Times, Nov. 25, 2003. 2   National Education Association 990 forms, 1999-2002. 3   The NEA reported one payment of $17,063 that the organization said was inadvertently paid out of general funds, and was subsequently refunded by its Section 527 organization. 4   Landmark Legal Foundation Web Site. (Available at www.landmarklegal.org. Accessed on June 29, 2004.) 5   Landmark Legal Foundation, "2000 Complaint v. NEA," undated. 6   National Education Association Assistant Treasurer Fred Suman, conversation with Public Citizen Senior Researcher Taylor Lincoln, May 17, 2004. 7   IRS spokeswoman Nancy Mathis e-mail message to Public Citizen Senior Researcher Taylor Lincoln, Aug. 5, 2004. 8   FEC Form 3X, Oct. 17, 2002 to Nov. 5, 2002. (Available at at www.fec.gov. Accessed on June 29, 2004.) 9   IRS Web Site, Political Organiztions Section. (Available at www.irs.gov/charities/political/index.html. Accessed on June 24, 2004.)