LANSING, Mich. (Michigan News Source) — The Michigan Secretary of State’s Office has issued a directive requiring Republican former gubernatorial candidate Tudor Dixon’s campaign committee to provide further details on a $502,518 campaign fund transfer to a nonprofit managed by one of her former consultants. This action follows a recent review that identified potential discrepancies in the classification of the recipient organization.
Initially, the Secretary of State’s Office approved the dissolution of Dixon’s campaign committee on May 6, 2023 — in accordance with the Michigan Campaign Finance Act — allowing the remaining funds to be redirected as first reported by The Detroit News. However, it has since come to light that the recipient, the Education Action Group, operates as a social welfare organization under Section 501(c)(4) of the Internal Revenue Code, not as a traditional charity under Section 501(c)(3), which Michigan law requires for such transfers.
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The distinction between these classifications is crucial. Traditional charities must adhere to stringent transparency requirements, while social welfare organizations do not. Moreover, charitable deductions are applicable only to contributions made to 501(c)(3) organizations.
The Secretary of State’s Office, initially unaware of this classification discrepancy, has now requested that Dixon’s campaign provide proof that the funds were transferred to a compliant charitable nonprofit. The Secretary of State’s Office sent the letter to Michigan News Source, which was also sent to the Dixon campaign committee, stating that if such proof cannot be furnished, the committee must report a reimbursement of the amount. “Please be advised that the Tudor Dixon for Governor Inc. Committee is no longer dissolved,” the Secretary of State’s Office communicated on May 27. Dixon’s campaign has been given until June 7 to respond to this directive.
Kyle Olson, the manager of the Education Action Group and a former Dixon campaign adviser, confirmed Dixon’s contributions in letters submitted to the Secretary of State’s Office and published by The Detroit News.
Olson’s correspondence praised Dixon’s educational reform initiatives: “Like you, we feel deeply concerned about Michigan’s failing education system and Gretchen Whitmer’s lack of desire to do anything to help our struggling children beyond throwing more money at union bosses,” Olson said in a letter dated May 2, 2023.
He continued, “We admired your plans to provide students with tutors, parents with more transparency and control, and all of our children with brighter futures. We are confident you will continue serving the interests of parents and students.”
Additionally, older tax forms retrieved from Guidestar reveal that Olson had received a salary from the Education Action Group. This detail could raise further concerns about potential conflicts of interest and the use of donated funds for personal compensation. Michigan News Source has reached out to Olson on two separate occasions for a comment on this story but has not received a response.
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Michigan News Source also contacted Dixon’s campaign spokesperson, who has not responded.
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