During his November 14 show, Newsradio 850 KOA host “Gunny” Bob Newman falsely stated that the family-planning services provider Planned Parenthood is a “for-profit organization.” In fact, according to Planned Parenthood Federation of America's (PPFA) 2005 Form 990 filing with the Internal Revenue Service, PPFA is a 501(c)(3) entity, which the IRS classifies as nonprofit. The national organization's website also identifies PPFA as a 501(c)(3) organization and notes the IRS 501(c)(4) status -- which also applies to nonprofits -- of its political and lobbying arm, Planned Parenthood Action Fund.

Planned Parenthood's Colorado chapter, Planned Parenthood of the Rocky Mountains, is classified as a “nonprofit corporation” by the Colorado Secretary of State.

Newman was interviewing Colorado for Equal Rights founder Kristi Burton, who is leading efforts for a statewide ballot initiative to amend the state constitution. If approved by voters, the measure “would extend constitutional protections from the moment of conception, guaranteeing every fertilized egg the right to life, liberty, equality of justice and due process of law,” according to a November 14 Denver Post article. The article reported on the Colorado Supreme Court's November 13 decision allowing Burton's organization to collect signatures for placing the measure on the ballot.

After suggesting to Burton that she should “apply for a grant because that's going to help you ... get the word out” about her initiative, Newman asserted, “Planned Parenthood has received in the last eight years nearly 2 billion -- with a 'b' -- dollars of our tax dollars so that they can improve their abortion mill system.” He added, “I would think that if the government was willing to give them, a for-profit organization -- they average 34, 35 million in profit every single year -- I would think that your organization could get some money.”

However, according to PPFA's 2005-2006 annual report, “Planned Parenthood Federation of America, Inc., is a tax-exempt corporation under Internal Revenue Service code section 501(c)(3) and is not a private foundation (Tax ID #13-1644147). Contributions are tax-deductible.” The IRS states, “To be tax-exempt under section 501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual." According to its latest annual report, in the fiscal year ended June 30, 2006, PPFA had total revenue of $902.8 million and expenses totaling $847 million.

From the November 14 broadcast of Newsradio 850 KOA's The Gunny Bob Show:

NEWMAN: Kristi, has Colorado for Equal Rights applied for any grants or contracts of some sort from the government?

BURTON: No. No. Certainly not.

NEWMAN: Well, I would think that you would. I would think you would apply for a grant because that's going to help you, you know, get the word out and stuff like that. You're a nonprofit, right?

BURTON: Actually we can't be nonprofit on a political issue. We can't form a 501(c)(3); we have to have an issue committee.

NEWMAN: OK. OK. Are you a not -- could you be a not-for-profit?

BURTON: As far as I understand, we have to be an issue committee, which means it's not tax-deductible.

NEWMAN: Well, I'd apply anyway. Try to get some money. Because Planned Parenthood, Planned Parenthood has received in the last eight years nearly 2 billion -- with a “b” -- dollars of our tax dollars so that they can improve their abortion mill system. I would think that if the government was willing to give them, a for-profit organization -- they average 34, 35 million in profit every single year -- I would think that your organization could get some money.

BURTON: I wish. But -- and that's the unfortunate thing. Planned Parenthood is unfortunately about money and we're about life and equal rights. And there's a big difference there.

NEWMAN: And there, there is the difference.