pic from Ken’s Aviation

 

Congress just might want to educate itself about its self dealing interests.

 

The Supreme Court recently overturned spending limits placed on corporations or unions for promoting their position on a candidate.  There has been a lot of complaining about the influence that the corporations and unions can now make in the outcome of elections.  While all of this complaining has been going on there has been little complaining about the many charities that congressional members have created to support their efforts.  There is no limit to what amount the corporations and unions can give to these nonprofits. 

 

These congressional nonprofit affiliates are a potential liability for the rest of the nonprofit industry.  There are too many examples of big spending by corporations with legislative bills before these same elected individuals. 

 

I found the example of corporations donating to the capital fund to pay off the Black Caucus Headquarters interesting since the brochure for the fundraiser is reported to have stated that the greater the donation, the greater the access, such as a private reception with members of congress.

 

These affiliated nonprofits seem to have one thing in common:  a means to be tied to the political process and not have limits on the amount that can be raised.

 

In most states elected officials would not be allowed to promote special access to anyone for their donation to a charity of their interest, especially if the corporation had pending legislation before an elected body.

 

It goes to the IRS’s question of whether the nonprofit has members, what benefit will members be provided and whether any board member or their immediate family will benefit.  I would not be surprised if the IRS or citizen groups take a look at these types of nonprofit organizations, causing a backlash for all nonprofits to have to deal with.

 

It might just be a good reason why elected officials choose not to serve or should not serve as board members.

This entry was posted on Thursday, February 18th, 2010 at 12:01 am and is filed under Public Policy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.