Politics Update: More Coverage of Mega-501(c)(4)s; Senator Whitehouse Criticizes 501(c)(3) CPI

I previously reported on commentary stimulated by recent reports of multi-billion dollar donations to 501(c)(4)s. Bloomberg Law (subscription required) has now published Ray Dalio, Koch Family Wield Powerful Tool to Give Fortunes Away highlighting additional instances of mega-501(c)(4)s controlling billions of dollars.  Here are the opening paragraphs for the story:

Ray Dalio , founder of the world’s largest hedge fund, has one. The Koch family, sitting atop a $137 billion fortune, has at least two. Still another entity, with unknown backers, owns a big stake in one of Wall Street’s fastest-growing financial technology startups.

The vehicle, long deemed a dumping ground for nonprofits like low-income housing developers, Rotary International and even the AARP, drew controversy in the past decade as a “dark money” political giving tool. Now it’s attracting billionaires who realize it offers far more.

The most important quality of the so-called 501(c)(4) organization boils down to one word: control.

Control over their business. Control over political influence. Control over disclosure. Control over taxes. And, of course, control over the crucial soft power of charitable giving.

All in one place.

In other politics and nonprofits news, U.S. Senator Sheldon Whitehouse, Chairman of the Senate Finance Taxation and IRS Oversight Subcommittee, publicly criticized the section 501(c)(3) Conservative Partnership Institute for possible political campaign intervention and private benefit. This follows an NPR report on CPI’s activities (full disclosure: I am quoted in this report as saying CPI’s reported activities raise yellow flags). It also comes at the same time as a Daily Signal report that Senator Whitehouse pressured the IRS and DOJ to investigate conservative groups.

Lloyd Mayer