Nonprofits are True Powerbrokers

NONPROFITS ARE TRUE POWERBROKERS
[SOURCE: C-Net|News.com, AUTHOR: Declan McCullagh]
As technology companies and their political rivals vie for more influence in Washington, nonprofit groups and trade associations are benefiting handsomely from the expanding war chests. A CNET News.com analysis of 47 organizations active in technology policy and legislation shows that, in total, they have assets of about $1.1 billion, annual revenue of $573 million and an average executive director salary of $332,665. Because of a loophole in federal law, nonprofit groups that receive corporate contributions are not legally required to disclose the identities of their funders. Not only do the corporations receive tax breaks, but the recipients also routinely use the money to pay lawyers to testify before Congress, draft legislation and meet privately with government officials--activities that might be viewed as lobbying if done directly by a company. A nonprofit group "should have policies not to take money from corporate interests that could overly serve to influence their stance on the issues," said Daniel Borochoff, president of the American Institute of Philanthropy, a charity watchdog organization. "Just as health groups tend to not want to take money from the cigarette companies--though of course some do." Nobody expects trade associations organized under section 501c6 of the tax code to do anything other than represent the interests of their member companies. But 501c3 groups are supposed to represent the public interest, and donations to them are completely tax-deductible for that reason. (Trade association dues are tax-deductible if not used for lobbying.)
http://news.com.com/Nonprofits+are+true+powerbrokers/2009-1028_3-6050711...