New Online Resource Exposes National Federation of Independent Business Funding and Political Activities

The Center for Media and Democracy launched an online resource this week to help uncover the interests behind the National Federation of Independent Business (NFIB), a “trade association” that claims to represent small business and says it is nonpartisan.

A few facts about the NFIB: in 2009, the New York Times reported the group's membership had fallen by nearly 42 percent over the course of three years. Although it claims to represent small businesses, a recent poll of its membership surveyed businesses with up to 500 employees. Most people think the small business label should only apply to businesses with fewer than 100 employees.

In 2009, the largest donation the NFIB received was $21,000. Then in 2010, when NFIB challenged the Affordable Care Act in court, big-dollar donations came pouring in. NFIBexposed.org reports that:

  • NFIB received $3.7 million from Crossroads GPS, a 501(c)(4) organization linked to Karl Rove
  • NFIB received $1.15 million from Donors Trust, a contributor to the Koch brothers’ Americans for Prosperity Foundation
  • NFIB and its Legal Center received $10 million in undisclosed six-figure contributions between 2010-2011 alone

The Center for Media and Democracy notes that just four contributors in 2010-2011 provided $8.5 million of these funds. And even before the organization became heavily dependent on Karl Rove, 95 percent of its PAC money went to Republicans. In contrast, a poll released earlier this year by Small Business Majority, the American Sustainable Business Council, and the Main Street Alliance found that 50 percent of small business owners identified themselves as Republicans, 32 percent identified as Democrats, and 15 percent said they were independent.

The facts suggest NFIB can’t claim to be independent or to speak for small businesses. Read more and follow the conversation on Twitter.

This post has been updated since its original publication date.

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