Project Veritas Admits Excess Benefit Transaction

December 28, 2022

Project Veritas, the right-wing group known for its sting operations, reported in its latest filing to the I.R.S. that it provided a prohibited “excess benefit” last year to its founder, James O’Keefe. Every year, the I.R.S. asks nonprofits to report if their executives received undue or excessive benefits. In its 2021 filings with federal and state regulators, Project Veritas said yes, reporting $20,512 in excess benefits to Mr. O’Keefe. In those tax filings, submitted in November and posted online by charity regulators in Hawaii, Project Veritas did not describe the benefits. On Monday, the executive director of Project Veritas, Daniel Strack, said the spending related to Project Veritas staff who accompanied Mr. O’Keefe when he starred in an outdoor production of “Oklahoma!” staged at a farm in Roseland, Va. “The disclosure on our 990 pertains to Project Veritas staff helping film behind the scenes and staff who were on site to accommodate James,” Mr. Strack wrote in a statement issued through a spokesman, referring to the filing with the I.R.S. As a result, the group said, Mr. O’Keefe had incurred a tax equal to 25 percent of the excess benefit, or $5,128. Mr. Strack, through the spokesman, said the tax “has been paid.”

Hmmmmm. You can read the organization’s 990 here but I gotta tell you this is the kind of loose string that resulted in Richard Nixon’s resignation, even if the organization is valuing the excess benefit at only about $20,000, and the 4958 excise tax at $5,000. It looks innocuous enough (why would Veritas even bother to report this, I wonder) and the explanation is ho hum. But why was the CEO moonlighting as a Broadway wannabe anyway? I’m thinking, maybe we ought to follow the money! Now I’m not one to spread rumors, but one needs to ask what other expenses were paid by Veritas whilst its CEO was off chasing the bright lights, an extra salary, and using Veritas to film and prepare advertisements for the play. Were his expenses paid by Veritas, and did he take some Veritas staff with him as though he was working towards Veritas’ charitable mission? Veritas’ website has a link to this headline: James O’Keefe Lands Lead Role in Off-Broadway Outdoor Production of “Oklahoma!” Performing in Solidarity with Artists Who’ve Been Cancelled. And the web has it all over that O’Keefe is actually a frustrated would-be Broadway actor, disguised as a right wing charitable “educational” organization CEO. Seems to me that Veritas is not hurting that cause, I’m just saying! The Veritas website looks like the play (Oklahoma) is actually sponsored by Veritas and the link takes readers to a page from which they may order tickets. Another loose string that ought to generate curiosity at National Tax is the sharing of expenses and personnel (with its 501(c)(4) action organization through which much of its actionable or illegal “sting” operations are conducted) hinted at on Schedule R. I am just asking questions here is all.

dkj

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