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Dan Epstein, director of the conservative Cause of Action, said in a statement that the report also speaks to a problem of “fiscal sponsorship” – where charities effectively sell nonprofit status to others, in turn receiving charitable donations for another group.


“Cause of Action has asked the IRS to take simple steps to define the rules for fiscal sponsorship, but they refused to do so, protecting their political friends, while targeting their political enemies,” Epstein said.