Friday, June 15, 2012


A couple of days ago I reported on an article that was out there trying to defend ALEC.

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In that post I noted the following items:
Mr. Frizzell also said the Common Cause whistle-blower suit is baseless because ALEC is registered with the IRS as a "501(h)," which allows a nonprofit to spend up to $1 million a year on lobbying.

Q: What is the American Legislative Exchange Council?
A: The American Legislative Exchange Council (ALEC) is a 501(c)(3) non-profit organization.  It provides a constructive forum for state legislators and private sector leaders to discuss and exchange practical, state-level public policy issues.

ALEC operates as a nonprofit, tax-exempt §501(c)(3) organization that, as permitted by the Internal Revenue Code and regulations, provides member-approved, nonpartisan research, analysis and model legislation addressing important public policy issues.

As noted in ALEC latest propaganda to state legislators – to destroy the constitution
ALEC is classified by the Internal Revenue Service as a 501(c)(3) nonprofit, public policy and educational organization. Individuals, philanthropic foundations, corporations, companies, or associations are eligible to support ALEC’s work through tax-deductible gifts.

501(h) – since when?
Is that 501h paperwork hidden in some secret Koch/ALEC vault?

501h - REALLY?????????
Then why is ALEC not registered as a lobbyist in ANY of the states?
Just because you may talking about becoming a 501h – does NOT mean you are a 501h.  

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Well yesterday there was an interesting update to that interview in AdAge article.
And well - it's an OOPS for ALEC.

UPDATE Thursday – June 14, 2012
Common Cause is calling on the American Legislative Exchange Council (ALEC) to square longstanding claims that it does not lobby with its president’s apparent admission last week that it does just that.

 “Through President David Frizzell, ALEC is now acknowledging the obvious – that the organization has long engaged in profit-driven lobbying while claiming to operate as a charity,” said Common Cause President Bob Edgar. “It’s curious that a group that touts its devotion to private enterprise expects the public to subsidize its lobbying with a tax exemption.”

In an interview with Advertising Age magazine, Frizzell last week criticized a tax “whistleblower” complaint filed against ALEC in April by Common Cause. The ALEC leader appeared to back away from years of tax filings – submitted under oath – asserting that ALEC does not lobby; instead Frizzell said the group operates under a section of tax law, 501(h), that he claimed would permit it to spend up to $1 million annually on lobbying.

 “Mr. Frizzell has some explaining to do to the IRS,” Edgar said. “For years, ALEC has tried to justify its tax exemption by arguing that it does not lobby; now it claims an exemption under a section of the law that permits it to lobby but which it spurned as recently as 2010.”

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