Wednesday, February 27, 2013

OBAMA's 501c-4 Organizing For Action: "Fish" or "Fowl" or "Something Else"


So what is a very liberal Democrat to do when my candidate, President Obama, seems to be adopting methods that I have criticized conservative Republicans for using?   In particular, below is a link to a 2/23/13 NYTIMES article about the expansive agenda being formulated by Organizing for Action (OFA), Obama’s new 501c-4 “social welfare” organization. 

http://www.nytimes.com/2013/02/23/us/politics/obamas-backers-seek-deep-pockets-to-press-agenda.html?hpw&_r=0


While OFA states that it will make public the names of its donors and at least initially seems to be focused on direct and grassroots organizing, OFS looks like an overtly political organization that will try to directly influence election outcomes if this is deemed necessary to advance the President’s legislative agenda.   This goes beyond the IRS’s permissable boundaries for 501c-4 organizations.   What I don’t understand is why Obama is choosing to achieve his legislative goals by setting up a separate 501c-4 rather than using and building upon the existing Democratic Party structure.  Where is the appropriate line for nonprofit organizations between legitimate lobbying designed to influence legislation, and nonprofit electioneering designed to influence who is in the legislature casting the critical votes?  Can someone help me out here?  

Wednesday, February 20, 2013

NPR STORY ON NEW OBAMA 501c4

If you've followed my blog, you'll know that I am very concerned about the negative influence new politically active 501c4s are having on our democracy and the image of the nonprofit sector.  Below is a link to an NMP story that aired on 2/12/13.  It discusses the increasing number and expanding scope of these organizations including the recently formed Organizing for Action created by political operatives of President Obama to support his "agenda".  What worries me is that the line between nonprofit lobbying--which is perfectly legal--and wholesale nonprofit electioneering--which is not legal--is being totally obliterated.  Currently, the nonprofit legal structure is being used to circumvent the campaign finance laws that were developed to protect the integrity of our election process and to keep it financially transparent.  Thoughts?

http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=171837297&m=171837286


Monday, February 4, 2013

The Conservative Victory Project--Not Your Father's 501c4


The speed with which 501c4 nonprofits are being transformed from lobbying groups that attempt to influence legislation into political action committees that attempt to influence election outcomes is breath-taking and potentially devastating for the public’s trust in the sector. 

A front page article in yesterday’s NYTIMES documents that American Crossroads—itself a 501c-4--is forming a new “superpac” to influence the outcomes of Republican primary elections:

“The biggest donors in the Republican Party are financing a new group to recruit seasoned candidates and protect Senate incumbents from challenges by far-right conservatives and Tea Party enthusiasts who Republican Leaders worry could complicate the party’s efforts to win control of the Senate.

The group, the Conservative Victory Project, is intended to counter other organizations that have helped defeat establishment Republican candidates over the last two election cycles.  It is the most robust attempt yet by Republicans to impose a new sense of discipline on the part, particularly in primary races.”   (The actual legal designation of CVP is not specified in the article.)


Historically, 501c-4 nonprofits have served the public good by providing citizens an easy and unlimited way to lobby their legislators.   At the same time, the IRS has severely limited the participation of these nonprofits in elections.

However, since the Supreme Court’s Citizen’s United Decision asserted the rights of all corporations to spend unlimited amounts of money on election activities, 501c4 organizations have been formed with the stated purpose of influencing election outcomes.   This is quickly transforming the role that nonprofits play in our society.   No longer are nonprofits being used to merely influence legislation, they are being used to directly influence who is being elected and in office writing the legislation. 

My concern is simple:  “Why should the public continue to support the tax advantages granted the entire sector and critical to the financial health of 501c-3 charities when many high-profile nonprofit groups are simply political campaign organizations?”  Thoughts?