Nonprofits, Elections, and an Issue Advocacy Campaign
by Amanda Adams*, 11/13/2007
The LA Times reports on an option for political campaign donors that is expected to become more popular as time closes in on the presidential election, donating to a nonprofit. "It is the 501(c)(4), named for the tax code that defines it, that seems to have struck a chord with people looking for new ways to organize their independent fundraising."
And the New York Times mistakenly cautions that the Supreme Court's decision in the Wisconsin Right to Life (WRTL) case can partly be to blame for the influx in "soft money" donations to nonprofits prior to an election season. The article considers some efforts to fund ads as attempts "to plot ways of channeling money into advertisements and get-out-the-vote activities."
"Last week, as the first step in that effort, a group including John Podesta, the chief executive of the Center for American Progress, a liberal research center, and a former chief of staff for President Bill Clinton, and Anna Burger, a senior official of the Service Employees International Union, filed papers to form a nonprofit group." Actually the group formed a 527, The Fund for America, the topic in a recent Roll Call ($$) article. The Fund for America was formed to raise money and fund existing organizations. "The strategists said it's too early to know which specific campaigns the new group will underwrite but that it is expected to focus exclusively on issue-based television and radio campaigns, door-to-door canvassing and direct mail." Unlike 501(c)(3)s or 501(c)(4)s, the purpose of 527s is to get involved in elections, but they are not supposed to expressly advocate for or against a federal candidate, unless they comply with FEC rules.
Yet we must remember, that even though some nonprofits are set up immediately prior to an election, they still may establish a genuine issue campaign. Foundations are now becoming more involved with independent campaigns that seek candiates' stance on issues, as the Chronicle of Philanthropy ($$) reports. The article highlights foundations that are investing in new advocacy campaigns to accomplish its policy goals and to get candidates to talk about their issues. An example of organizing the public and presidential candidates to promote an issue is the Ed in '08 campaign.
Douglas W. Nelson, the Casey foundation's president, says the grant maker took great care to ensure the antipoverty campaign did not unintentionally promote any particular candidates. "It's not necessarily a legal concern, as much as it is, Does this have enough integrity so we would not be accused of being a stalking horse for anybody or anything?" he says.
