The SEC, Secret Political Donations and the Nonprofit Sector's Reputation

The lead story in today’s NYTIMES is entitled S.E.C. Gets Plea:  Force Companies to Disclose Donations.   The article discusses the furious lobbying that is being done for and against the SEC issuing regulations that would require publically traded companies to disclose all political donations.  The goal of the regulation is to allow stockholders to know the contributions companies are making to tax-exempt (501c-4 organizations) and trade associations that during the 2012 elections spent hundreds of millions of dollars trying to influence the outcomes.   You can see the entire article at

http://www.nytimes.com/2013/04/24/us/politics/sec-is-asked-to-make-companies-disclose-donations.html?hp&_r=0

It has been 40 short years since the lure of secret campaign funds proved irresistible to powerful people and led to the resignation of a sitting US President and the criminal prosecution and resignation of a sitting US Vice President. 

The Nonprofit sector should be outraged that the rules and regulations that govern its operation are being contorted to promote secret campaign spending that will sully the sector’s public standing and will inevitably erode the public’s trust.  And once the public trust in the sector is gone, soon after will go the special tax treatment that is an important financial pillar of the sector. 

Just as the most powerful business groups in the country are lining up to block the SEC’s promulgation of a campaign donation disclosure rule, nonprofits from every part of the country should be lining up to lobby for its adoption.  Literally, the sector cannot afford to stand by and let others—for their own private interests--slowly but surely sully the nonprofit sector’s reputation and debase the public’s trust in it.  

Thoughts?

Alumni Virtual Wine and Cheese Webcast a lot of “Fun”

I want to thank all the NMP/SFP alumni—15 or so--who showed up at our first Virtual Wine and Cheese Event on line.  Frankly I was surprised by the turn out but very pleased that at the end of the hour, participants were clamoring for more such events.  So send your suggestions on future “food” themes and discussion topics to me here or to Amanda Sbriscia, Director of Annual Giving & Alumni Relations, who organized the event.  Her e-mail address is asbriscia@baypath.edu

During our hour of wine and cheese, we had a short discussion about my favorite NMP/SFP topic—the abuse of the 501c-4 nonprofit legal structure for electioneering purposes.  So here is yet another media story about this topic:  a 4/9/13 NMP story on Senate Hearings calling on the Justice Department and the IRS to enforce current law to eliminate these abuses.  Listen for the Justice Department spokesperson’s lame excuses that Justice needs a better legislative definition of “coordination” between 501c4 and political campaign organizations in order to enforce current law.  Paaaalease!!!!!!!!!!

http://www.npr.org/templates/rundowns/rundown.php?prgId=2&prgDate=4-9-2013

P.S.    Next week I’ll try to do some investigative reporting to find out if OBAMA’s 501c4, Organizing for Action, has made public a list of its donors and financial reports showing where it is spending its collected money.  

Thoughts? 

Pablo Eisenberg Takes Aim at Obama's 501c-4

In preparation for our Virtual Wine and Cheese Party next Tuesday April 9th at 7:00 pm, I wanted to share this link to a commentary by Pablo Eisenberg on how Obama has missed an opportunity to ask the nonprofit sector to lobby with him for control legislation.

http://nonprofitquarterly.org/policysocial-context/22057-on-gun-control-white-house-fails-to-tap-power-of-its-own-and-other-nonprofits.html?goback=%2Egde_1536997_member_228445887

I am a big Obama fan, but I think Pablo has it just right on this issue.  What do you think?

Jeff

PS  You say, "What Virtual Wine and Cheese Party?"  For information and to sign up, contact Amanda Hoyle at ahoyle@baypath.edu