Minority report observes that five 501(c)(3) and 501(c)(4) organizations appeared to do the bidding of Mr. Abramoff. Four of the five appear to be one-person operations, organizations in name only.
The Democrats on the Senate Finance Committee have released a report on the activities of the five organizations most closely associated with Jack Abramoff's lobbying. The report makes the argument that these organizations were acting as paid lobbyists themselves rather than carrying out the purposes for which they were granted exemption. The evidences varies among the groups, from just a placement of an article in a newsletter to extensive contacts with government officials on behalf of a client of Mr. Abramoff.
Because of reproduced emails and documents, the report PDF is over 600 pages (a bandwidth choking 19Mb). For the bandwidth-deprived I have stripped off the documents and offer just the text of the report itself here (64 pages, 216Kb).
Looking at these organizations' Form 990s (when available), there appears to be a close correlation between the amount of lobbying-type activity and existence of internal checks and balances in the organization. We have already talked about two of the organizations.
Americans for Tax Reform (EIN 52-1403587 Form 990), a 501(c)(4) civic organization run by Grover Norquist. As we have noted, Mr. Norquist is President and Treasurer of the organization, and one of just three directors.
The National Center for Public Policy Research (EIN 52-1226614 Form 990), a 501(c)(3) organization run by Amy Ridenour. There are six directors, Ms. Ridnour as President, her husband David Ridnour as Vice President, of which are also paid staff, and four other unpaid directors, none of whom are listed as Treasurer.
The Council for Republicans for Environmental Advocacy was founded by Italia Federici in 1997 and originally had Gail Norton and Grover Norquist as co-chairs. The Senate reports says that it is a 501(c)(4) civic organization, but there is no trace of it on Guidestar, which now has most 501(c)(4) organizations that I look for. There is this article from the Arizona Republic from last year that has the same question about the true status of CREA. It is possible that there is another organization, the Coalition for Republicans for Environmental Advocacy (also CREA), organized as a 527 political action committee. While Mr. Abramoff's emails (in other contexts) frequently express concerns about what different organizations are legally empowered to do, Ms. Federici never even mentions the possibility of organizational constraints.
Toward Tradition (EIN 52-1363952 Form 990) was a group founded and run by Rabbi Daniel Lapin. Rabbi Lapin as President took home $160,781 of the organization's $605,886 expenses in 2004 (only $145,468 for all other staff). There were more than twenty board members (including Mr. Abramoff), but the organization appears to have been operated as a personal project of Rabbi Lapin.
Citizens Against Government Waste (EIN 52-1363952 Form 990), by contrast, is a relatively large organization ($5 million) with a relatively long history (founded by Jack Anderson and J. Peter Grace in 1984 to advocate for implemetation of the Grace Report on government cost controls). Its current president Thomas Schatz earns a healthy $243,702, but there is a Senior VP Treasurer and three other staff also listed as key employees. In his emails, Mr. Abramoff expresses concern about Mr. Schatz' possible reaction to some of his proposals for getting favorable mention of his client's projects. Ultimately CAGW ran a story in its newsletter that was favorable to a position of Mr. Abramoff's client, but Mr. Schatz was able to defend it by pointing out that it tied to the organization's own concerns about government waste (and all he got for it, it appears, were tickets to a Crosby, Stills, Nash, & Young concert).
Although the report has its own conclusions about possible reforms, my conclusion is that, except for CAGW, these organizations' internal controls were not sufficient to prompt a review of the difficulties with the transactions. And of the four organizations, it appears to me that only Mr. Norquist was himself aware of the issues (in a couple of emails about ATF, Mr. Abramoff refers to activities permissible for 501(c)(4) groups but not 501(c)(3)s). Neither Ms. Ridnour, Rabbi Lapin, nor Ms. Federici appear to be aware that there are even issues to consider.
The larger implication that I think needs more attention is whether the vast majority of small charities and nonprofits have the knowledge to comply with the regulations that govern them and the management discipline to ensure compliance.
The article highlights the continued need for follow-up and review of non-profits groups nationwide, while the grand majority of groups follow the letter of the law and do great work for their communities, many do NOT follow the letter of the law, and it is very difficult to get any one to pay attention to the cases of non-profit abuse.
I am personally being sued using a SLAPP style lawsuit, that forced my web pagesite OFF the internet, due to our group speaking out on a large nationwide non-profit organizations that has very DEEP financial pockets.
Our concern was the issue of PUBLIC money being solicated for " charitable purposes " NOT being used to charitable purposes as the group in question was supposed to do.
WE need the INTERNAL REVENUE SERVICE to step and be funded and given the ability to actually do their job and police the tax exempt community. We need the US Senate Finance Cmmte to find the " backbone " to actually not surrender to special lobbying groups and actually PROTECT the public's interests and actually do the job that they were elected and sent to Congress to do.
I advocate for clear and direct financial accountability for all non-profits, from churches to political groups from IRS 501c3 to IRS 501c10 and all others as well.
We do NOT know the scope and breadth of the possible problems in this sector until we are confronted with the crisis of a scandal, would it not be better to avoid the scandal and FIX the abuses BEFORE they become a scandal.
Posted by: Paul M. Dolnier, MST | October 24, 2006 at 10:47 AM