VIRGINIA BEACH — Two candidates running for Virginia Beach City Council and Mayor Bobby Dyer are returning campaign donations from a local nonprofit at the request of the donor who says she unwittingly didn’t follow federal tax rules.
Dyer, who is running for reelection, council member Michael Berlucchi and candidate Stacy Cummings each received $10,000 from BHL Community Service Inc. in July, according to campaign finance reports compiled by the Virginia Public Access Project.
BHL Community Service Inc. is a 501(c)(3) nonprofit Virginia corporation that holds federal tax-exempt status, and is therefore barred from giving campaign donations due to IRS regulations.
“I wasn’t aware that was a nonprofit,” Berlucchi said by phone Thursday.
The issue came to light after The Virginian-Pilot published a Sept. 22 article focused on Hampton Roads mayoral candidates and campaign fundraising.