Dubious Donations
Legislation seeks greater disclosures about politicians' charities.
May 31, 2006 at 08:00 PM
4 minute read
It's not illegal for a member of Congress to create a charity, raise funds for it and then hand out checks to deserving causes, usually in his or her district or state. Many high-profile politicians such as Rep. Tom Delay, Sen. Bill Frist, Sen. Rick Santorum and Sen. Ted Stevens have such charities. But not everybody thinks they are as benign as they appear. In March Sen. Max Baucus, D-Mont., proposed a set of limits on how members of Congress use their own charities, but his amendment never got out of the Senate Finance Committee.
What could possibly be wrong with a congressman or senator having “another strategy for public service,” as Steve Gunderson, president of the Council on Foundations, describes such charities? While these charities often do noble work, they can serve an ignoble purpose when they are too closely connected to a politician's political activities. Rick Cohen, executive director of the National Committee for Responsive Philanthropy, points out that these charities often become conduits for cash from and face-time with lobbyists.
These 501(c)(3) non-profits are an appealing alternative to PACs for politicians because campaign finance rules don't require them to disclose donations to charities. As a result, some politicians are using non-profits as a way around efforts to clean up campaign financing abuses. According to Cohen, we can preserve both current campaign-finance regulations and the spirit of philanthropy simply by requiring members of Congress to disclose who contributes to their charities. He also supports other provisions of the now-failed Baucus amendment such as the one that would prevent members, their spouses or staff from collecting salaries from such charities. He also would prevent such charities from writing checks to individuals or firms having any links to a member's PAC. And he would prevent those charities from paying travel expenses for the member if any part of the trip is used for political fundraising.
At different times in my career I have been a political operative and a lobbyist, so I completely understand the physics of campaign money and face-time. If there is a way to give money to or spend time with an incumbent, politicos and lobbyists will use it. If the donation or meeting can be kept confidential, so much the better. That's why so much money is flowing into charities run by senators and congressmen. It's not because the Washington K Street establishment suddenly succumbed to a charitable impulse.
It's important to note that neither Sen. Baucus nor Rick Cohen would prohibit members of Congress from having charities. They would merely require the members to adhere to a new set of rules assuring full transparency with regard to the transactions involved and keeping all of them separate from political activities. Such rules would do nothing to interfere with a member's desire to have “another strategy for public service” if that is indeed the member's real purpose in creating the charity.
The obvious reason to treat charitably inclined congressmen differently from anybody else with a charitable impulse is that, unlike you and me, a congressman has the power to make laws, prevent laws and allocate trillions of dollars. That vast power gives the rest of us sufficient reason to ask a few questions about the donations being made to our elected representatives.
If Bono and Britney Spears receive anonymous contributions to their charities, we really don't care because neither of them can raise our taxes, limit our civil liberties or spend our money. And even if those anonymous donors caused Bono and Britney to perform their jobs differently–say, change their set lists–it would not affect the fate of the Republic. It's not the same thing when our senators get anonymous contributions to their charities. A little more disclosure wouldn't hurt philanthropy and it would certainly help the Republic.
——–
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllUS Reviewer of Foreign Transactions Sees More Political, Policy Influence, Say Observers
Pre-Internet High Court Ruling Hobbling Efforts to Keep Tech Giants from Using Below-Cost Pricing to Bury Rivals
6 minute readPreparing for 2025: Anticipated Policy Changes Affecting U.S. Businesses Under the Trump Administration
Senate Panel Postpones Vote on Reconfirmation of Democrat Crenshaw to SEC
Trending Stories
- 1Call for Nominations: Elite Trial Lawyers 2025
- 2Senate Judiciary Dems Release Report on Supreme Court Ethics
- 3Senate Confirms Last 2 of Biden's California Judicial Nominees
- 4Morrison & Foerster Doles Out Year-End and Special Bonuses, Raises Base Compensation for Associates
- 5Tom Girardi to Surrender to Federal Authorities on Jan. 7
Who Got The Work
Michael G. Bongiorno, Andrew Scott Dulberg and Elizabeth E. Driscoll from Wilmer Cutler Pickering Hale and Dorr have stepped in to represent Symbotic Inc., an A.I.-enabled technology platform that focuses on increasing supply chain efficiency, and other defendants in a pending shareholder derivative lawsuit. The case, filed Oct. 2 in Massachusetts District Court by the Brown Law Firm on behalf of Stephen Austen, accuses certain officers and directors of misleading investors in regard to Symbotic's potential for margin growth by failing to disclose that the company was not equipped to timely deploy its systems or manage expenses through project delays. The case, assigned to U.S. District Judge Nathaniel M. Gorton, is 1:24-cv-12522, Austen v. Cohen et al.
Who Got The Work
Edmund Polubinski and Marie Killmond of Davis Polk & Wardwell have entered appearances for data platform software development company MongoDB and other defendants in a pending shareholder derivative lawsuit. The action, filed Oct. 7 in New York Southern District Court by the Brown Law Firm, accuses the company's directors and/or officers of falsely expressing confidence in the company’s restructuring of its sales incentive plan and downplaying the severity of decreases in its upfront commitments. The case is 1:24-cv-07594, Roy v. Ittycheria et al.
Who Got The Work
Amy O. Bruchs and Kurt F. Ellison of Michael Best & Friedrich have entered appearances for Epic Systems Corp. in a pending employment discrimination lawsuit. The suit was filed Sept. 7 in Wisconsin Western District Court by Levine Eisberner LLC and Siri & Glimstad on behalf of a project manager who claims that he was wrongfully terminated after applying for a religious exemption to the defendant's COVID-19 vaccine mandate. The case, assigned to U.S. Magistrate Judge Anita Marie Boor, is 3:24-cv-00630, Secker, Nathan v. Epic Systems Corporation.
Who Got The Work
David X. Sullivan, Thomas J. Finn and Gregory A. Hall from McCarter & English have entered appearances for Sunrun Installation Services in a pending civil rights lawsuit. The complaint was filed Sept. 4 in Connecticut District Court by attorney Robert M. Berke on behalf of former employee George Edward Steins, who was arrested and charged with employing an unregistered home improvement salesperson. The complaint alleges that had Sunrun informed the Connecticut Department of Consumer Protection that the plaintiff's employment had ended in 2017 and that he no longer held Sunrun's home improvement contractor license, he would not have been hit with charges, which were dismissed in May 2024. The case, assigned to U.S. District Judge Jeffrey A. Meyer, is 3:24-cv-01423, Steins v. Sunrun, Inc. et al.
Who Got The Work
Greenberg Traurig shareholder Joshua L. Raskin has entered an appearance for boohoo.com UK Ltd. in a pending patent infringement lawsuit. The suit, filed Sept. 3 in Texas Eastern District Court by Rozier Hardt McDonough on behalf of Alto Dynamics, asserts five patents related to an online shopping platform. The case, assigned to U.S. District Judge Rodney Gilstrap, is 2:24-cv-00719, Alto Dynamics, LLC v. boohoo.com UK Limited.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250