San Eli Candidate Threatens Non-Profit's Tax-Exempt Status

A candidate that is a close political ally of controversial mayor of San Elizario, Texas Miguel Chacon, appears to have violated the 501(C)3 tax-exempt status of not one, but TWO non-profit organizations in San Elizario. 

San Elizario is currently undergoing an election involving the mayor and his slate of political allies. 

Here is a political ad that was shared on a San Elizario page by an admin who is another political ally of the mayor:

The ad very clearly depicts the image of a candidate, the inclusion of the names of two non-profits Ayuda Inc and Familias Triumfadoras, and a plea to vote for the candidate - Debra Venegas. The non-profits and the plea to vote for the candidate are outlined in red with red arrows pointing in their direction. Those do not appear on the original post and are added to emphasize the violation. 

(Additionally the portion pleading to vote for Venegas is also a violation of Texas Election Code because it does not include the word "for", falsely giving the impression that Venegas is already a member of council. )

The problem with doing so is that according to Ayuda’s tax records, they are a 501(C)3 tax-exempt non-profit - which means they don’t have to pay taxes to the federal government. The requirement for such a privilege is that they are expressly prohibited from political activity as a non-profit. 

The Internal Revenue Service (IRS) states: 

“Under the Internal Revenue Code, all section 501(c)(3) organizations are absolutely prohibited from directly or indirectly participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office. Contributions to political campaign funds or public statements of position (verbal or written) made on behalf of the organization in favor of or in opposition to any candidate for public office clearly violate the prohibition against political campaign activity.  Violating this prohibition may result in denial or revocation of tax-exempt status and the imposition of certain excise taxes.”

Tax records indicate clearly that Ayuda, Inc. is specifically claiming 501(C)3 status:

Violations could mean the revocation of tax-exempt status - which would affect its ability to apply for most grants, and the imposition of excise taxes on the organization. 

Mayor Chacón is Venegas’ political ally, is encouraging people to vote for her, is the Executive Director of the non-profit organization, and is a frequent author of posts appearing on the social media page where the ad appeared and is therefore aware of the ad. 

Venegas is also being criticized in San Elizario for comments she made about San Elizario, its people, and a gay slur used toward the spouse of her opponent, Alderman Thomas Black. Venegas also appears to be critical of Alderman Black’s wife’s physical appearance. 

Venegas said in a previous social media post that, “SAN ELI is beautiful but the people are Ghetto…San Eli people are trashy.”

About the Alderman’s spouse she used a gay slur stating about her appearance that she was “BUTCHY” and had “skunk hair”.

Many have been critical of the blurring of the lines between the Mayor's role in San Elizario and his role as the Executive Director of the non-profit. 

The Mayor currently lives in a home that received government-funded upgrades through the aforementioned non-profit. 

Mayor Chacón has also been under fire for his role in the awarding of a sweetheart contract to a close personal friend in which fake documents were used to give the appearance of a fair process by a former city staffer to which the Mayor granted her access to city documents after her termination in an effort to assist her in a suit against the City. 

He is also under fire for sexually explicit comments he made to city staffers about his sex life, the gentalia of multiple members of city staff, and how he enjoys to have his “torta licked”. 

No confirmation on exactly what having one’s torta licked actually means. 

Mayor Chacón was actually ineligible to be mayor when he first won election because he didn’t meet the city’s residency requirements nor was he registered to vote in San Elizario before the filing deadline, but no-one found out until well after he was already in office. 

Mayor Chacón will likely win reelection handily due to the fact that he is facing a sub-standard opponent.