NEW HANOVER COUNTY — A local conservative advocacy group is under scrutiny for alleged violations of its nonprofit status, including failures to disclose political campaign expenditures supporting New Hanover County commissioner candidates.
READ MORE: Forum fact-check: House, Senate candidates on PFAS, redistricting, vouchers, and more
Progressive nonprofit Carolina Forward — a 501(c)4 that endorses Democratic political candidates — submitted a complaint against another 501(c)4, the Wilmington-based Tide Turners NC, which supports conservative candidates. Carolina Forward filed it to the State Board of Elections Monday, alleging Tide Turners NC violated federal and state campaign finance and nonprofit laws in its 2024 campaign advocacy.
A 501(c)4 nonprofit is defined as a “social welfare” organization by the IRS. Unlike 501(c)3 nonprofits, 501(c)4’s are allowed to engage in political campaigns as long as political activity doesn’t constitute their primary purpose.
In addition to supporting conservative candidates, Tide Turner’s mission statement notes it works to “educate and equip conservatives to defend our constitutional rights and conservative values.” Its website said the nonprofit builds strong relationships with conservative groups to strategically support candidates, drive conservative voters to the polls, and develop content to reach independent voters and counter mainstream messaging.
501(c)4 nonprofits are required to report spending money explicitly advocating for or against a candidate. Tide Turners has not reported expenditures to the North Carolina Board of Elections since 2022.
However, Tide Turners’ advertisements from the 2024 campaign season contain statements that it paid for them, but they were not authorized by any candidate or candidate’s campaigns. The ads include “common sense county leadership” signs and signs for three Republican commissioner candidates.
“Tide Turners has promoted and openly coordinated with three Republican candidates for New Hanover county commission: Dane Scalise, John Hinnant and Bill Rivenbark,” Carolina Forward wrote on its blog. “This includes fundraising for and spending funds to directly promote these candidates without any disclosure.”
Hinnant told PCD neither he nor his campaign coordinated with any outside organization and did not know details about the allegations.
Commissioner Scalise said: “Any allegations of wrongdoing against me or my campaign are false and denied.”
Rivenbark did not respond to Port City Daily’s request for comment.
Tide Turners also has video ads on social media against three Democratic New Hanover County commissioner candidates — Cassidy Santaguida, Jonathan Barfield, and Stephanie Walker — and at the end also states it paid for them.
“You can tweet about [support or opposition to a political candidate] all you want but that doesn’t cost any money,” Carolina Forward executive director Blair Reeves said. “But they are producing and printing signs. That is an electioneering expense. We have a whole list of evidence where they are organizing and paying for events featuring the candidates. Not only can they not report it, they can’t report it because their committee PAC was closed for non-compliance.”
No one from Tide Turners responded to Port City Daily’s request about Carolina Forward’s complaint — which also includes Tide Turners’ sponsorship of recent campaign events:
- A June public conversation with Yolanda Robinson to support gubernatorial candidate Mark Robinson at Coastal Community Baptist Church
- The September “Make Waves Rally” at the Fort Fisher Aquarium with 14 local Republican candidates
- An August fundraiser for Superior Court candidate Max Ashworth
- A May meet-and-greet with John Hinnant paid for by Hinnant’s campaign
- A May fundraiser at Masonboro Yacht Club for board of education candidate Nikki Bascome
Live Free Chiropractic owners Bradley and Becky Walter formed Tide Turners as an independent expenditure political committee in October 2021. The organization reported a total of $22,094 in expenditures for the 2022 election, spent on Facebook and Instagram ads, candidate videos, billboards, and print material.
The State Board of Elections voted to administratively close Tide Turners PAC at its September meeting this year for failing to submit recent financial disclosure reports.
Treasurer Bradley Walter asked the NCBOE to close the committee in a June 2023 email.
“[Tide Turners] has been inactive since June of 2022,” he wrote. “I have no intention or desire to maintain this organization. Attached is the disclosure report cover and summary for 2023 that shows no activity.”
In July 2022 Walter filed to incorporate Tide Turners NC Inc. as a nonprofit with the Secretary of State to “educate and empower others to live their American dream.” The IRS granted the organization tax-exempt status in April 2023. The organization stated it received less than $50,000 in its 2023 and 2024 filings; the IRS allows nonprofits receiving under $50,000 to submit forms without detailed financial data.
Reeves said he believed Tide Turners decided to use a 501(c)4 rather than a committee PAC for privacy because 501(c)4s do not require disclosures of individual donors. He argued Tide Turners blurred the line between appropriate PAC and nonprofit activities, potentially allowing improper use of tax-exempt resources.
“I think there is a bit of ignorance of the law here,” he said. “And naïveté about how this stuff works.”
Tide Turners’ most recent April 2024 filing lists Bryan S. Ford — former owner of Bryan Ford Contracting — as president and Walter as registered agent. Ford donated $3,516 to the group, Brad and Becky Walter contributed a cumulative total of $4,528, and former treasurer Kim Rudder gave $1,527.
Tide Turners’ other top donors for the 2022 election — the last year it provided campaign finance reports — include:
- Tim Milam — $5,000
- Perry’s Emporium — $5,000
- Logan Homes owner D Logan — $2,500
- Brett Tanner — $2,000
- Alan Brown — $1,000
Reeves told Port City Daily he’d received confirmation from a North Carolina Board of Elections attorney that the agency would investigate the nonprofit; NCBOE spokesperson Pat Gannon said he could not confirm or deny campaign finance investigations under state law.
Tips or comments? Email info@localdailymedia.com
Want to read more from PCD? Subscribe now and then sign up for our newsletter, Wilmington Wire, and get the headlines delivered to your inbox every morning.
