Vance event with Christian Right leaders may have violated tax and election laws: experts

Republican vice-presidential nominee JD Vance’s appearance at a far-right Christian revival tour last month may have broken tax and election laws, experts say.

On Sept. 28, Vance held an official campaign event in Monroeville, Pennsylvania, in partnership with the Courage Tour, a series of swing-state rallies hosted by a pro-Trump Christian influencer that combine prayer, public speakers, tutorials on how to become a poll worker and get-out-the-vote programming.

Ziklag, a secretive organization of wealthy Christians, funds the Courage Tour, according to previously unreported documents obtained by ProPublica and Documented. A private donor video produced by Ziklag said the group intended to spend $700,000 in 2024 to mobilize Christian voters by funding “targeted rallies in swing states” led by Lance Wallnau, the pro-Trump influencer.

Even before the Vance event, ProPublica previously reported that tax experts believed Ziklag’s 2024 election-related efforts could be in violation of tax law. The Vance event, they said, raised even more red flags about whether a tax-exempt charity had improperly benefited the Trump-Vance campaign.

According to Texas corporation records, the Courage Tour is a project of Lance Wallnau Ministries Inc., a 501(c)(3) charity led by Wallnau. There have been five Courage Tour events this year, and Vance is the only top-of-the-ticket candidate to appear at any of them.

Wallnau has said that Vice President Kamala Harris is possessed by “the spirit of Jezebel” and practices “witchcraft.” As ProPublica reported, Wallnau is also an adviser to Ziklag, whose long-term goal is to help conservative Christians “take dominion” over the most important areas of American society, such as education, government and entertainment.

The Vance campaign portion was tucked in between Courage Tour events, and organizers took pains to say that Wallnau’s podcast hosted the hourlong segment, not the Courage Tour. Two signs near the stage said Wallnau’s podcast was hosting Vance. And during Vance’s conversation with a local pastor, the Courage Tour’s logo was replaced by the Trump-Vance logo on the screen.

An email sent by the Courage Tour to prospective attendees promoted the rally and Vance’s appearance as distinct events but advertised them side by side:

But the lines between those events blurred in a way that tax-law experts said could create legal problems for Wallnau, the Courage Tour and Ziklag. The appearance took place at the same venue, on the same stage and with the same audience as the rest of the Courage Tour. That email to people who might attend assured them that they could remain in their same seats to watch Vance and that afterward, “We will seamlessly return to the Courage Tour programming.”

The Trump-Vance campaign promoted the event as “part of the Courage Tour” and said Vance’s remarks would take place “during the Courage Tour.” And although the appearance included a discussion of addiction and homelessness, Vance criticized President Joe Biden in his remarks and urged audience members to vote and get others to vote as well in November.

Later in the day, Wallnau took the stage and asked for donations from the crowd. As he did, he spoke of Vance’s appearance as if it were part of the Courage Tour. “People have been coming up to us, my staff, and saying we want to help you out, what can we do, how do we do this? I want you to know when we do a Courage Tour, which will be back in the area, when we’re in different parts of the country,” he said. Asking for a show of hands, Wallnau added: “How many of you would like to at least be knowing when we’re there? Who’s with us on the team? If we have another JD Vance or Donald Trump or somebody?”

An employee of Wallnau’s, Mercedes Sparks, peeked out from behind a curtain. “I just wanted to clarify: You said they came to the Courage Tour,” Sparks said. “They didn’t. For legal reasons, the podcast hosted that. It was very separate. I don’t need the IRS coming my way.”

Despite the disclaimers, Vance’s campaign appearance at the Courage Tour raises legal red flags for several reasons, according to experts in tax and election law.

Both Lance Wallnau Ministries and Ziklag are 501(c)(3) charities, the same legal designation as the Boys & Girls Club or the United Way. People who donate to charities like these can deduct their gift on their annual taxes. But under the law, such charities 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,” according to the IRS.

Internal Ziklag records lay out how the Courage Tour could influence the 2024 election. “Our plan,” one private video states, “is to mobilize grassroots support in seven key swing states through large-scale rallies, each anticipated to attract between 5,000 and 15,000 participants. These ‘Fire and Glory’ rallies will primarily target counties critical to the 2024 election outcome.” Wallnau said he later changed the name of his swing-state tour from Fire and Glory to the Courage Tour, saying the original name “sounds like a Pentecostal rally.”

Four nonpartisan tax experts told ProPublica and Documented that a political campaign event hosted by one charitable group, which is in turn funded by another charitable group, could run afoul of the ban on direct or indirect campaign intervention by a charitable organization. They added that Wallnau’s attempt to carve out Vance’s appearance may not, in the eyes of the IRS, be sufficient to avoid creating tax-law problems.

“Here, the [Trump] campaign is getting the people in their seats, who have come to the c-3’s event,” Ellen Aprill, an expert on political activities by charitable groups and a retired law professor at Loyola Law School, wrote in an email. “I would say this is over the line into campaign intervention but that it is a close call — and that exempt organization lawyers generally advise clients NOT to get too close to the line!”

Roger Colinvaux, a professor at Catholic University’s Columbus School of Law, said that regulators consider whether a consumer would be able to distinguish the charitable event from the political activity. Does the public know these are clearly separate entities, or is it difficult to distinguish whether it’s a charity or a for-profit company that’s hosting a political event?

“If it looks like the (c)(3) is creating the audience, then that again is potentially an issue,” he said.

Ziklag, Wallnau and the Vance campaign did not respond to requests for comment.

Marcus Owens, a tax lawyer at Loeb and Loeb and a former director of the IRS’ exempt organizations division, said there were past examples of the agency cracking down on religious associations for political activity similar in nature to Vance’s Courage Tour appearance.

In the 1980s, the Pentecostal televangelist Jimmy Swaggart used his personal column in his ministry’s magazine to endorse evangelist Pat Robertson’s campaign for president. Even though the regular column, titled “From Me to You,” was billed as Swaggart’s personal opinion, the IRS said that it still crossed the line into illegal political campaign intervention. Swaggart had also endorsed Robertson’s campaign for president during a religious service.

In that case, the IRS audited Swaggart’s organization and, as a result, the organization publicly admitted that it had violated tax law.

Phil Hackney, a professor of law at the University of Pittsburgh who spent five years in the IRS’ Office of Chief Counsel, said the fundamental question with Vance’s Courage Tour event is whether the 501(c)(3) charity that hosted the event covered the cost of Vance’s appearance.

“If the (c)(3) bore the cost, they’re in trouble,” Hackney said. “If they didn’t, they should be fine.” The whole arrangement, he added, has “got its problems. It’s really dicey.”

And even though Ziklag did not directly host the Vance event, tax experts say that its funding of the Courage Tour — as described in the group’s internal documents — could be seen as indirect campaign intervention, which federal tax law prohibits.

“The regulations make it clear that 501(c)(3) organizations cannot intervene in campaigns directly or indirectly,” Samuel Brunson, a law professor at Loyola University Chicago, said. “So the fact that it’s not Ziklag putting on the event doesn’t insulate Ziklag.”

Potential tax-law violations aren’t the only legal issue raised by Vance’s appearance.

Federal election law prohibits corporations from donating directly to political campaigns. For example, General Motors, as a company, cannot give money to a presidential campaign. That ban also applies to nonprofits that are legally organized as corporations.

Election experts said that if the funding for the Vance appearance did come from a corporation, whether for-profit or nonprofit, that could be viewed as an in-kind contribution to the Trump-Vance campaign.