What Happens When the Feds Target a Nonprofit? Lessons from Mother Jones

This article by Monika Bauerlein, CEO of the Center for Investigative Reporting, examines how the IRS has historically targeted nonprofit newsrooms for political reasons and offers guidance for organizations facing similar threats.

Bauerlein recounts how Mother Jones magazine faced a politically motivated IRS audit in the 1980s that threatened to revoke their nonprofit status, drawing parallels to current concerns about potential government harassment of nonprofits under the Trump administration. The piece details how the magazine successfully fought back against what appeared to be a coordinated effort to "defund the left" during the Reagan era, ultimately winning their case when the IRS acknowledged the publication operated at a loss and made editorial decisions that limited profitability.

• The IRS has historically been weaponized against nonprofit newsrooms, with Mother Jones and Big Mama Rag being the only two known cases of attempted defunding
• Destroying a nonprofit requires proving the organization violated its purpose or law, which can be appealed through IRS channels and courts
• Nonprofit newsrooms are particularly vulnerable due to small budgets, with median annual revenue under $500,000, making legal costs potentially devastating
• Organizations should prepare by ensuring financial compliance, securing legal resources, building alliances, and most importantly, not compromising their values preemptively