Long Island Nonprofit Hosted Fundraiser for Democratic Lawmaker in Apparent Tax Law Violation
A registered Long Island nonprofit organization hosted and promoted a campaign fundraiser for a Democratic state lawmaker in an event that appears to run afoul of federal tax laws governing tax-exempt entities.
Long Island Youth Development Inc., a registered 501(c)(3) organization, held an October 3 event for New York State Assemblywoman Rebecca Kassay, a Democrat representing Suffolk County. According to a social media post promoting the gathering, followers were urged to do all they can to support the lawmaker and care for local communities.
The promotional post stated that the reception was held to celebrate the contributions Kassay has made to the Long Island Youth Development organization and the Asian community on Long Island. The nonprofit is headed by Dr. Yanping Yu. The event took place as the Democrat secured a substantial state grant for the organization.
An accompanying flyer featured Kassay’s campaign logo and noted that donations were appreciated but not required. Ticket prices for the event ranged from $50 to $500, and the promotional materials included a link to a page for donating directly to Kassay’s campaign alongside a campaign email address.
The promotional material also highlighted New York State’s public financing program, pointing out that in-district donations can be matched up to 12 times. Kassay has been utilizing the state campaign matching program, which allows donations under $250 to trigger matching funds of up to $250 from state coffers.
The flyer further instructed attendees to join a reception featuring Yu alongside Suffolk County lawmaker Jonathan Kornreich.
Under federal tax codes, registered 501(c)(3) entities are strictly prohibited from engaging in political activities, which includes soliciting financial contributions for or on behalf of any political candidate. Violations of this prohibition can expose organizations to severe penalties, including fines or the complete revocation of their tax-exempt status.
Legal experts pointed out the clear nature of the infraction. Patrick Sternal, counsel at Holtzman-Vogel, noted that the event clearly constituted participating in a campaign, which is a prohibited activity for a 501(c)(3) organization.
Financial and professional ties between the lawmaker and the nonprofit head have been documented publicly. Yu has personally contributed $2,500 to Kassay’s campaign since September 2025. Additionally, Kassay has made multiple appearances at events hosted by the nonprofit, as reflected on her social media accounts.
Kassay has previously recognized Yu with official proclamations and honors, including a women of distinction award and designating her a Women’s History Month honoree. Social media posts also showed the two together in Albany earlier this year.
Representatives for Kassay’s office and the nonprofit did not respond to requests for comment regarding the event. The Instagram post publicizing the fundraiser was removed on Tuesday after inquiries were made to Kassay’s office.
Kassay is currently running for a second two-year term representing the Assembly’s third district in Suffolk County, facing Republican challenger Will Sussman in the November 3 election.
Sussman called for a thorough investigation by the New York State Attorney General’s office, which holds oversight authority over charitable nonprofits operating within the state.
State lawmakers in New York receive an annual salary of $142,000.
