From other media outlets, state attorneys general, and state legislators.
Organizations categorized as public charities under § 501(c)(3) of the Internal Revenue Code, which are tax-exempt and receive tax-deductible contributions, are making thousands of political contributions in New York elections, according to a recent study by the Albany, N.Y.-based Times Union’s Emilie Munson. This conclusion was based on a simple review of public records in New York.
To retain their (c)(3) status, these groups have to disclose on their federal tax form each year whether or not they were involved in political activities, and if they were, that status is jeopardized. Many of them, the Times Union finds, have brazenly made direct contributions to candidates.
The shocking revelations in Munson’s report should spark several responses. First, other local and regional media outlets in other states should try to replicate the study and see if nonprofits in their area are also being so brazen. While New York groups may be more aggressive in this practice, I suspect that you can find similar evidence in California, Illinois, Pennsylvania, Georgia, and Florida. The Times Union has received positive national attention for its work; other media outlets can also burnish their profile and reputation by uncovering similar malfeasance in their localities.
Second, state attorneys general should take the evidence as an indication that it may be time for them to be more vigilant and active in enforcing state and federal laws concerning the role of nonprofits in politics. There are many signs that the problem is common. The Georgia State Ethics Commission recently fined the New Georgia Project, led by a former gubernatorial candidate, for channeling money into campaigns. Other, more-sophisticated operations are undoubtedly using various “dark-money” channels to transform charitable resources into political cash. With a few exceptions, attorneys general have shown little interest in this complicated, but vitally important area of the law.
Finally, state legislators should also take up the challenge and begin pushing for hearings on the nexus between charity and politics. Federal hearings are already in the works. There must be an ambitious state senator or representative in Florida or Ohio who could make a name for him- or herself by uncovering how tax-deductible donations to tax-exempt charities become the fuel of political campaigns.This issue is not new. The whole regulatory framework for nonprofits was shaped by similar concerns in the late 1960s because of evidence about how foundations and other nonprofits were influencing local elections. Now is the time to renew that inquiry and begin to build a strong wall between charitable and political activities.
