Lobby Reform & Grassroots Lobby Disclosure: Good for Nonprofits

Lobby and ethics reform discussions in Congress could prove to be a significant opportunity to level the current uneven playing field, where wealthy interests have inordinate access to lawmakers and voice in public policy debate. Successful reforms would change this dynamic, giving individuals and groups lacking enormous resources, like most nonprofit organizations, a more equal chance of being heard.

Rightly, none of the bills being debated in Congress would restrict direct or grassroots lobbying by any organization, recognizing that petitioning one's government is a First Amendment right that must be preserved. Instead, lobbying disclosure has been one focal point, so that the pubic has a better understanding of the money involved--who is spending it and who are the targets in Congress. Current legislative proposals would capture just the big spenders, requiring disclosure only when more than $10,000 a quarter is spent on lobbying.

This effort is a worthwhile one that would uncover artificial grassroots or "Astroturf" lobbying funded by powerful industry interests. While charities already file reports on their grassroots lobbying with the IRS, neither industry nor their lobbyists currently do so. Unscrupulous interests are thus able to misrepresent themselves both to the public and to elected officials.

Citizens for a Sound Economy (CSE), a $16.5 million industry-funded think tank, for example, advocates legislative and regulatory deregulation efforts. In the past, CSE has financed a "grassroots" campaign against Everglades restoration with $700,000 from Florida's three biggest sugar growers and waged a "grassroots" campaign against higher cigarette taxes with more than one million dollars from Phillip Morris. None of the underwriters were disclosed. Misrepresentation becomes even more egregious with nice-sounding coalitions formed simply to funnel money to grassroots lobbying from undisclosed industry interests.

When faced with opposition from front groups, nonprofits have to work even harder to have their voice heard. Most nonprofits don't have extra dollars to spend on advocacy efforts, while these industry-funded groups can pay protesters or help fund campaigns. In addition, according to a preliminary analysis, less than .1 percent of nonprofits would be affected by new lobby disclosure rules under even the lowest threshold proposed in current legislation. Moreover, nearly half of these nonprofits have annual budgets over $10 million.

Improved lobbying disclosure is a key element of much-needed reform, but the devil is in the details. Sound principles will set us on the right track toward leveling the playing field. The language in reform legislation, for instance, should be consistent with tax code definitions that nonprofits already use, creating the same requirement for special interests as nonprofits without causing an undue burden on charities. Additionally, reporting thresholds should capture large, expense activities, which represent substantial fraud risks, not the low-cost grassroots activities of small nonprofits.

Whether it is a tobacco company hiring a public relations firm to mobilize editorial boards or a "seniors'" organization funded by the drug industry to bankroll ads against the Medicare prescription drug bill, these groups are spending millions to influence policies that affect our country and our lives, but little is known about them. Wouldn't you like to know more? We sure would.

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