Monday, August 13, 2007

Nonprofits and candidates

Eliza Newlin Carney writes in today's Rules of the Game column that nonprofits that are run by current candidates should be subject to greater disclosure rules:
Nonprofits have defended their right to privacy long and passionately, arguing that disclosure of donors would squelch contributions and hurt worthy causes. But such groups enjoy tax-exempt status on the grounds that they work for the public good, not for the good of politicians. Tax-exempt groups that associate themselves with candidates in a high-profile, high-dollar presidential race must be held to a higher standard of disclosure.
While she cites some high profile abuse of charities by politicians, I'm not so sure this rises to the level of crisis portrayed in the article. It is a good - not bad - that high profile people are involved in charitable causes. Would disclosure rules really stop a candidate who is already breaking tax law by supporting a campaign through a charity?

I'm not at all opposed to regulating nonprofits... it just needs to be worthwhile and effective. I'm skeptical that this proposal would do anything to stop malfeasance. It will only create additional reporting requirements for charities that are doing good work with the help of a person who happens to be running for office.

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