Monday, March 24, 2014

The link between Economic Inequality and the rise of 501-c4 "superpacs"

Over the last two weeks, there have been one, two, three, four, five interesting and, by my thinking, disturbing articles in the NYTIMES about the increasing disparity in wealth in the US and the increasing use of 501c-4 nonprofits to hide from the public the massive amounts of “secret” money being spent to influence the outcome of political elections. An explicit link between the two trends isn't made within the articles--but the link is not hard to make. .  


One the one hand, the increasing concentration of wealth is giving a relatively small portion of the electorate the capacity to make outsized campaign contributions and 501c4 organizations are providing this wealthy minority the means to do so in secret.   Nonprofit leaders should not allow the sector to be the instrument of such anti-democratic practices.   They should be demanding that the IRS implement rules that return the nonprofit sector to its traditional role of advocacy and greatly curtail its role in financing political campaigns.  To wit, one of the articles mentions the overwhelming opposition there is to the proposed IRS regulations that would be a first step toward accomplishing that. 

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