A nonprofit that’s sent volunteers and money to Surf City’s libraries for decades could soon be under investigation at the city’s request as city council members say the group violated laws by donating money to a political campaign opposing their ideas for the library.
This upcoming Tuesday, Huntington Beach City Council members are expected to consider calling on state and federal officials to investigate the political contribution activity of the Friends of Huntington Beach Library.
The nonprofit has been around since 1972, regularly supplying volunteers who run the library’s used bookstore and gift shop along with fundraising hundreds of thousands of dollars that go back to the libraries.
“In 2019 volunteer hours totaled over 56,000, which is the equivalent to 27 full-time employees,” states the organization’s website. “This volunteer contribution provides a combined annual savings of nearly $1,300,000 to the City of Huntington Beach.”
But the group began spending on various ballot initiatives in Huntington Beach over the past two years, potentially putting it at odds with the IRS.
“A section 501(c) (3) organization may not make a contribution to a political organization described in section 527 (such as a candidate committee, political party committee or political action committee (PAC)),” reads the website.
However, the website also states that nonprofits can spend on ballot measures like the ones up for voters next month.
“A section 501(c)(3) organization may make a contribution to a ballot measure committee (committees supporting or opposing ballot initiatives or referenda), but it must include such contributions in its lobbying calculations,” reads another page of the website.
On Thursday evening, the nonprofit issued a statement calling the accusations “false, misleading and baseless.”
“These false allegations are a political stunt intended to distract from the fact that the overwhelming majority of Huntington Beach residents want our beloved Library – one of the finest in the country – to remain public, free of government censorship, and a civic resource available to all city residents and families,” wrote Martha Elliott, president of the nonprofit.
The Friends of the Library donated over $23,000 to a political action committee called Citizens for Good Governance last year.
Citizens for Good Governance was formed to oppose a previous set of ballot measures in Huntington Beach, but was reincorporated last year to be a standing committee without a focus on any specific measures.
The Friends of the Library’s donations came after the group was reincorporated.
Citizens for Good Governance then donated $10,000 to a committee dubbed “Our Library Matters, Vote Yes on A&B, sponsored by Friends of the Huntington Beach Public Library,” earlier this year.
In a special election next month, Huntington Beach voters are set to determine a slate of issues at the library through Measures A and B, including the creation of a book review committee, the library’s existing restricted section and whether or not city leaders can look to outsource the library’s operations.
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But several city council members are accusing the Friends of the Library of putting their thumb on the scale improperly with their donations.
“We have conducted an informal independent investigation of the financial dealings of the Friends of the Huntington Beach Public Library,” wrote Mayor Pat Burns and Councilmen Chad Williams and Butch Twining in a letter to their colleagues.
Williams is the treasurer for the chief committee opposing Measures A and B, while Twining has contributed over $8,000 of his own money to the same committee.
In their letter to their colleagues, Williams, Twining and Burns said they should refer the case to the Fair Political Practices Commission, California’s chief elections watchdog, and the IRS to see if the Friends of the Library violated their nonprofit status by spending on politics.
“These financial dealings suggests potential violations of IRS law,” they wrote. “In addition, the California Political Reform Act may have been violated.”
Noah Biesiada is a Voice of OC reporter and corps member with Report for America, a Groundtruth initiative. Contact him at nbiesiada@voiceofoc.org.
Correction: An earlier version of this story stated Citizens for Good Governance reincorporated earlier this year. While they did reincorporate to register as a county committee, they’d already reincorporated previously to become a general purpose committee before Friends of the Huntington Beach Library donated to them. We regret the error.