Disinformation Inc: Conservative blacklist network accused in IRS complaint of violating law

Gabe Kaminsky

May 04, 02:54 PM May 04, 03:18 PM

EXCLUSIVE — A pair of U.S. nonprofit groups tied to the Global Disinformation Index, a British entity covertly blacklisting conservative media, are being slapped with an IRS complaint for allegedly violating federal law.

The charity Disinformation Index Inc., and its affiliated private AN Foundation, also known as the Disinformation Index Foundation, cited an obscure federal "harassment" exemption law in providing the Washington Examiner in late March with heavily redacted copies of its 2021 tax forms. The National Legal and Policy Center, a conservative watchdog, is now accusing both State Department-funded groups of running afoul of several federal rules and regulations, calling on the IRS to "revoke their tax-exempt status," according to a complaint filed Thursday with the agency.

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"This complaint is based on information regarding the questionable activities of these two organizations by investigative reporter Gabe Kaminsky in a series of recent news stories in the Washington Examiner and information found in their respective Form 990s and other public reports," the watchdog wrote in its complaint. "As will be demonstrated herein, both the Disinformation Index, Inc. and its related AN Foundation (formerly Disinformation Index Foundation) have violated a number of IRS rules and regulations."

GDI pocketed roughly $960,000 combined between 2020 and 2022 from both the State Department's Global Engagement Center, an interagency under fire from House Republicans for funding purported disinformation tracking initiatives, and the National Endowment for Democracy, a nonprofit group authorized by the government that is funded almost entirely through congressional appropriations. This revelation has resulted in lawmakers, including House Oversight and Accountability Committee Chairman James Comer (R-KY), launching investigations into GDI to uncover government records.

In mid-April, the Washington Examiner reported on how the AN Foundation and its charity affiliate redacted or omitted key details from public disclosure copies of their 2021 tax forms, including the names of board members, officers, and in the case of the private group, the source of a $115,000 donation. Multiple experienced tax experts claimed this maneuver fails to comply with federal disclosure laws despite GDI alleging that it is "withholding" information due to regulations on "harassment campaigns" against tax-exempt groups.

But it remains unclear whether GDI has been approved by the government for the exemption, which tax experts say does not allow groups to redact their financial disclosures from public view. GDI has not replied to numerous Washington Examiner requests for a ruling on receiving the exemption it cited.

In its Thursday complaint, the NLPC alleged that the two GDI U.S. groups are skirting IRS disclosure rules by not listing their relationship to the British group on federal tax forms. Upon receiving complaints, the IRS mails acknowledgments to referral groups but does not provide them with updates due to confidentiality laws, according to the agency, which occasionally assesses financial penalties.

Among a swath of other demands, the watchdog seeks an investigation into whether the British group's executive director, Danny Rogers, who is listed interchangeably in Delaware corporate records with GDI CEO Clare Melford as a board member and officer for the two U.S. groups, received "excessive and unreasonable compensation."

NLPC is referring to the fact that the U.S. charity disclosed on 2021 federal disclosures paying its unnamed president, who, according to 2020 forms, is Rogers, almost $60,000, plus over $8,100 in additional compensation “from the organization and related organizations." However, the forms also say the president worked two hours per week, which, according to the watchdog, amounts to a whopping $1,300 per hour.

"It is hypocritical that a group whose mission is to censor conservative media for alleged 'disinformation' is itself guilty of hiding its funding sources and redacting the names of its officers from public view," said Paul Kamenar, counsel to the watchdog, which filed several a complaint in April 2022 against the Black Lives Matter Global Network Foundation for allegedly misusing donor funds.

Moreover, the watchdog took aim in the IRS complaint at the AN Foundation for not reporting the entity that gave it $115,000 in 2021. Private foundations, unlike charities, are ordinarily required to disclose their contributors, according to the IRS.

With regard to the tax form redactions, the NLPC called on the IRS to fine both the AN Foundation and Disinformation Index for not handing over an "exact copy" of their federal disclosures as filed with the IRS. Tax-exempt groups are supposed to provide the public with copies mirroring those provided to the federal government, according to the agency.

Marcus Owens, a lawyer representing GDI, claimed in an April 6 letter to the Washington Examiner that "families" of the groups, and its "personnel," have been targeted with "multiple threats and hacking attacks, including threats of violence against their children." Owens added that GDI is "working [with] appropriate law enforcement authorities, telecommunications and Internet organizations" and "has appropriately withheld information that could lead to furtherance of this behavior."

However, the watchdog's complaint further noted that GDI's stated reason for these tax form omissions "has nothing to do with the inundation of Form 990 requests in a coordinated harassment campaign, but rather the claim that its officers and children are being threatened and subject to hacking attacks."

The regulation GDI cited as evidence of a purported harassment campaign typically pertains to an instance in which hundreds, if not thousands, of parties are requesting tax forms from a group and making it difficult for the entity to stay afloat, according to tax experts. The Washington Examiner is not aware of whether other entities have also requested GDI's tax forms.

"But if that were truly the reason to redact the officers' and accountants' names, that information is publicly available in their prior disclosure reports and on GDI’s website," the complaint read. "In any event, in order to obtain the exemption, the group has to document the harassment campaign and get approval for withholding the forms, information which Mr. Owens has yet to provide."

GDI and the IRS did not return a request for comment.

Disinformation Inc: 12 Republicans press State Department over grants to Global Disinformation Index

Gabe Kaminsky

March 11, 07:05 AM March 11, 07:05 AM

This is part of a Washington Examiner series on self-styled 'disinformation' tracking groups that are blacklisting and trying to defund conservative media. Here is where you can read other stories in the series.

EXCLUSIVE — A dozen Republican members of Congress are demanding answers from the State Department over it bankrolling a "disinformation" tracking group that the Washington Examiner revealed is blacklisting and trying to shut down conservative websites.

Republicans have continued to press Secretary of State Antony Blinken over two State Department-backed entities, the Global Engagement Center and the National Endowment for Democracy, granting $665,000 between 2020 and 2021 to the Global Disinformation Index. Led by Rep. Andrew Clyde (R-GA), 12 lawmakers sent a Saturday letter to Blinken that requested grant information and why the agency funded a "foreign organization that polices and suppresses domestic American information."

STATE DEPARTMENT MISSES DEADLINE TO PROVIDE INFO ON CONSERVATIVE BLACKLISTS

"These grants have real world implications, chilling freedom of expression and speech with impunity," the Republicans wrote. "For example, considering the Energy Department and FBI's new determination that the Coronavirus most likely arose from a Wuhan lab leak, this taxpayer funded British outfit pressured advertising companies to 'punish' websites that dared to report on the entirely legitimate lab leak theory."

GDI, a British organization with two linked U.S. nonprofit groups, compiles a "dynamic exclusion list" with at least 2,000 sites it deems to be the foremost disinformation peddlers. The Washington Examiner learned exclusively that it is on this list, which advertising companies subscribe to in order to choose which sites to defund.

Separately, GDI has said that the 10 "riskiest" news sites are the Federalist, the American Conservative, the Daily Wire, RealClearPolitics, the New York Post, and other right-leaning outlets.

Most of the State Department-linked money handed to GDI came from the National Endowment for Democracy, which is funded almost entirely through congressional appropriations. Between 2020 and 2021, NED granted roughly $545,000 to GDI for it to develop disinformation "risk ratings" in foreign countries.

However, NED announced last month that it will no longer support GDI in order "to avoid the perception" that it's working on "any work domestically, directly or indirectly," since it focuses on foreign matters. Still, the State Department's Global Engagement Center, which granted $100,000 to GDI in 2021 as part of the U.S. Paris Tech Challenge, a program to fight "disinformation" overseas, has not made a similar commitment.

In their Saturday letter, the Republicans asked the State Department whether it finds it "appropriate for a de facto foreign organization or individual to police" U.S. media outlets. They listed a March 30 deadline for all questions.

"How does funding efforts to counter 'disinformation' by a foreign agent in the amount of $665,000, through the two State Department-backed entities named herein, advance America's national security and diplomatic interests?" asked the lawmakers.

The lawmakers also questioned the State Department over whether it was "involved or consulted" in connection to GDI's various analyses of alleged disinformation, including a Dec. 16, 2022, report titled "Disinformation Risk Assessment: The Online News Market in the United States." The December report notably included GDI's lists of the "riskiest" and "least riskiest" news outlets.

In addition, Clyde and the Republicans want to know whether the State Department was directed to fund GDI by President Joe Biden, the White House, ex-House Speaker Nancy Pelosi (D-CA), the Democratic National Committee, or any government official.

Co-signers of the letter were Rep. Alex Mooney (R-WV), Rep. Dan Bishop (R-NC), Rep. Andy Biggs (R-AZ), Rep. Paul Gosar (R-AZ), Rep. Bill Posey (FL), Rep. George Santos (R-NY), Rep. Andy Ogles (R-TN), Rep. Scott Perry (R-PA), Rep. Kat Cammack (R-FL), Rep. Matt Rosendale (R-MT), and Rep. Barry Moore (R-AL).

"Federal agencies should never weaponize taxpayer dollars to fund government-by-proxy censorship efforts," Clyde told the Washington Examiner. "Given the alarming evidence of nefarious activity by this State Department-backed group, Congress must demand answers and fully investigate the matter to provide accountability to the American people."

"It’s time for Secretary Blinken to be transparent about the State Department’s involvement and knowledge of the GDI’s dangerous blacklisting and censorship efforts so we can ensure this violation of Americans' First Amendment freedoms never happens again," he added.

The letter to Blinken comes one day after the State Department missed a deadline request by Rep. James Comer (R-KY) for documents in connection to GDI grants. The House Oversight and Accountability Committee chairman demanded on Feb. 23 that the department turn over information by end-of-day March 9.

A spokesperson for the Oversight Committee told the Washington Examiner that the department is "working on identifying and producing documents." However, the committee will "continue to press" the agency for answers, said the spokesperson.