NCRP Decries Political Misuse of Philanthropic and Nonprofit Status

5/5/2004

From: Naomi Tacuyan of the National Committee for Responsive Philanthropy, 202-387-9177 ext. 17 or naomi@ncrp.org

WASHINGTON, May 5 - The National Committee for Responsive Philanthropy (NCRP) once again denounces the misuse of charities and nonprofits for political gain and calls for tougher provisions that prevent the use of charities for political gain. This statement comes in light of the forthcoming "Rockin' on the Dock of the Bay" concert party organized by Senator Blanche Lincoln (D-AR) during the Democratic National Convention in Boston this summer to honor seven Democrats from southern states. Proceeds will benefit CureSearch, a program of the National Children Cancer Foundation, and donor benefits include backstage passes, photo ops, and VIP lounge passes with attendees, including many Democratic lawmakers. "The involvement of politicians in charitable events undermines the long-term accountability of charities," said Rick Cohen, executive director of NCRP. "Charities should not fall prey to being used as pawns by those who want to buy political access or influence, despite short-term fundraising gains for what might be legitimate charities and important charitable needs. The long-term negative impact on the nonprofit sector's credibility is far greater." "Events like these demonstrate why Congress must reinstate the Congressional gift ban, which would help prevent politicians, lobbyists, and corporations from hiding their political dealings behind the donor privacy rules that apply to charities," Cohen added. Congress' elimination of the gift ban in 2003 opened the potential misuse by allowing members of the House of Representatives and Senate to attend all-expenses-paid charity fundraising events. Donors can make a contribution to the charity organizing the event, and then get to wine and dine with elected officials. The charity, meanwhile, is not required to disclose who attended the event or made a contribution, nor is the lawmaker required to disclose the benefit he or she and their family members might have received.

Ideally, using charitable fundraising events for political benefit should be prohibited, to preserve the integrity of the nonprofit and philanthropic sectors. At the very least, if members of Congress are involved with a charity fundraiser, Congress should require that all donors and attendees of such events, the value of all gifts and benefits to lawmakers, and the amounts and sources of donations are publicly disclosed.

NCRP's concern with the Democrats' "Rockin' in the Dock of the Bay" event is likened to our concern with House Majority Leader Tom DeLay's charity fundraising being connected to the Republican National Convention. Contributions to his charity, Celebrations for Children, were purportedly subsidizing the Republican campaign chest. In November of 2003, NCRP called for the IRS to reject DeLay's application for tax-exempt status for his charity. NCRP's statement can be found at http://www.ncrp.org/Releases/PR-11-20-2003.htm. In February of this year, NCRP joined with Common Cause to demand that the House Ethics Committee formally investigate DeLay's use of his charities to subsidize donor events at the Republican National Convention. This joint press release can be found at http://www.ncrp.org/Releases/PressRelease_ComonCause.htm.

Founded in 1976, the National Committee for Responsive Philanthropy is dedicated to helping the philanthropic community advance the traditional values of social and economic justice for all Americans. Committed to helping funders more effectively serve the most disadvantaged Americans, NCRP is a national watchdog, research and advocacy organization that promotes public accountability and accessibility among foundations, corporate grantmakers, individual donors and workplace giving programs. For more information on NCRP or to join, please visit http://www.ncrp.org or call 202-387-9177.