Tuesday, November 20, 2007
WHAT'S NEW IN PUBLIC AFFAIRS
You can tell that the year 2008 will host elections at all levels of government, including the presidency, because news about campaign finance and ethics laws - how to comply with them, how to change them, how to get around them, how to challenge them - is dominating the public affairs conversation. The Los Angeles Times reports that major political donors are now looking to get more involved in nonprofit entities because current laws allow nonprofits to be politically "aggressive," while shielding donors from disclosure. At the same time Politico reports that while current law prohibits PACs from soliciting funds from those in non-member categories, special interest PACs such as ActBlue have petitioned the Federal Election Commission for permission to serve as a "middle-man," and solicit funds for them. Finally, Roll Call reports that a little-noticed section of the recently passed lobbying reform legislation could categorize established trade associations as "stealth lobbying coalitions," forcing them to disclose any organizations that donate a minimum amount of $5,00 per quarter, and are active participants in the shaping of a lobbying campaign. Many trade associations and trade representative organizations, including the American Society of Association Executives, are threatening lawsuits if registered trade associations aren't excluded from such disclosure. These stories and more in this edition of the Public Affairs News Monitor.
HEADLINES AT A GLANCE
"Campaigns Raise Stakes on Nonprofits"
"Liberals Eye New Cash Machine"
"Associations Say Sunshine Too Bright"
"Will Lobbyists Still Party Hardy in 2008?"
"Here We Go Again: An Anti-Incumbent Wave Next Year?"
"Teaching Business Ethics: A Critical Need"
"D.C. Democrats Launch Big 527"
UPCOMING CONFERENCES
2007 Teleconference: Preparing for the 2008 Conventions
December 4, 2007 - Teleconference
As the 2008 campaign kicks off in earnest, the nation's eyes will turn to the national party conventions. For public affairs professionals, the conventions are the perfect opportunity to implement a coordinated government affairs program that influences the local, state and federal government officials in attendance - provided you are in compliance with the new lobbying, gift and ethics laws. Ken Gross will answer your questions during this teleconference.
Membership Orientation
December 5, 2007 - Public Affairs Council - Washington, DC
Learn how to get the most out of your Council membership during this free lunchtime session. We'll review all the Council's major services, including information assistance, conferences, communications, benchmarking, networking and online services.
National Grassroots Conference
January 13-16, 2008 - Key West, FL
Register by December 8 to receive the early bird discount!
The largest and most comprehensive conference for grassroots professionals brought to you exclusively by the Public Affairs Council. Join us for world-class speakers, interactive breakout sessions, countless networking opportunities and lessons from the top grassroots programs in the nation. Be part of one of the Council's longest running yearly events and learn the latest grassroots techniques and strategies from the country's best association and corporate grassroots managers.
COUNCIL SERVICES
Did you know that the Council's staff experts are available for customized presentations to your senior leadership, employees or association? Learn more at www.pac.org/speakers
copyright 2007
INFORMATION, INC.
Public Affairs News Monitor may be reproduced in hard copy form or electronically for internal circulation to Public Affairs Council member companies and associations.
"Campaigns Raise Stakes on Nonprofits"
Los Angeles Times (11/13/07); Morain, Dan
The federal crackdown on certain independent campaign organizations has major political players reconsidering the traditional nonprofit entity. Taco Bell heir Rob McKay, filmmaker Rob Reiner and billionaire George Soros are involved in the investment partnership Democracy Alliance, which is looking to serve as angels for political startups. With nonprofits, individual donors are not limited by the $2,300 cap on contributions to federal candidates, and their identity remains confidential. The law allows nonprofits to be "very aggressive politically, while shielding donors from disclosure," says former Federal Elections Commission Chairman Michael E. Toner. "That is a very attractive combination." Financiers are expected to show more interest in nonprofits, known as the 501(c)(4) under the tax code, which tend to support the positions of candidates on an issue, rather than a specific candidate. A recent Campaign Finance Institute report reveals that nonprofits, such as the AFL-CIO and Focus on the Family Action, spent $90 million on campaign-related activities in 2006. Political action committees have raised $111.2 million so far this year, up 9 percent from 2005, and 527s have raised at least $76 million, up from $60 million over the same period of the last presidential campaign. (www.latimes.com)
"Liberals Eye New Cash Machine"
The Politico (11/07/07); Vogel, Kenneth P.
Special-interest PACs continue to be a large source of funding for congressional candidates, and ActBlue, an Internet "money machine," hopes to expand that influence. ActBlue recently sought permission from the U.S. Federal Election Commission (FEC) to solicit money beyond the member rolls for the AFL-CIO and similar groups. If approved, ActBlue would become a middleman to engage even more people in the fundraising process; the funds would not necessarily be funneled only to liberal causes but also to conservative concerns. Currently, PACs are not allowed to solicit funds from non-members, but the FEC could permit ActBlue and other middlemen to do so for them. ActBlue also requested the FEC's advice on whether it could solicit PAC members for contributions and increase its fundraising coordination with those groups. However, even if ActBlue receives the green light on its requests, other groups will not necessarily be allowed to follow suit. Thus far, supporters of strict regulations regarding fundraising efforts have not come out against ActBlue's proposal, but some critics are concerned corporations will begin soliciting those employees who currently are restricted classes of donors and therefore cannot have contributions deducted from their paychecks even with permission - nor can they be solicited in the workplace. On the other hand, ActBlue will not work directly for corporation PACs, but if the FEC gives its approval indirect fundraising by member organizations for corporations could occur.(www.politico.com)
"Associations Say Sunshine Too Bright"
Roll Call (11/07/07) Vol. 53, No. 56, P. 9; Newmyer, Tory
Trade association officials are getting stirred up by a little-noticed section of the lobbying reform bill President Bush passed into law in September, and it is causing enough turmoil to give rise to threats of lawsuits that challenge its constitutionality. The section in question calls for "stealth lobbying coalitions" to disclose any organizations that donate a minimum amount of $5,000 per quarter and are active participants in the shaping of the lobbying campaign. Established trade organizations are not exempted from the provision, and Jim Clarke of the American Society of Association Executives said his group and others will probably pursue a legislative fix if disclosure forms his group is awaiting from the Secretary of the Senate and the Clerk of the House call for new disclosures from trade organizations. Meanwhile, Hank Cox with the National Association of Manufacturers verified that his group is considering filing suit to challenge the law if registered associations are not excluded. Association officials even went so far as to say that First Amendment protections for free assembly could be violated if legal groups are coerced into naming members who wish to remain anonymous. "These are real entities with real tax forms they file, and are highly regulated by the Internal Revenue Code, as opposed to ad hoc coalitions that fall off the radar screen," said Skadden, Arps, Slate, Meagher & Flom ethics compliance expert Ki Hong. "There is a basis to distinguish between them." However, a staffer for Homeland Security and Government Affairs Chairman Sen. Joe Lieberman (I-Conn.) called disclosure a positive thing, arguing that "it doesn't matter whether the group is ad hoc or established, it's important to have the information out there."(www.rollcall.com)
"Will Lobbyists Still Party Hardy in 2008?"
Roll Call (11/05/07); Palmer, Anna
Before Congress passed the new ethics bills earlier in the year, lobbying firms, corporations, and trade associations would already be busy planning parties for the upcoming Republican and Democratic national conventions. However, uncertainty regarding what is allowed under the new rules prompted many lobbyists and companies that held extravagant parties at the 2004 national conventions to opt against party planning for the 2008 national conventions. Under the new ethics rules, companies, trade associations, and lobbyists cannot throw parties honoring lawmakers not up for the presidential seat during the conventions. While many companies and lobbyists are waiting for the U.S. Senate and U.S. House ethics committees to issue advisory opinions spelling out what types of events are permitted during the conventions, some companies and lobbyists are planning fundraisers or scheduling parties either the day before or after the conventions. Meanwhile, others question whether they actually benefit from such gatherings, and they could opt out of the party circuit regardless of any clarifications issued by Congress.(www.rollcall.com)
"Here We Go Again: An Anti-Incumbent Wave Next Year?"
Real Clear Politics (10/30/07); Rothenberg, Stuart
There are rumblings that the 2008 election may be a bad year for incumbents, and Rothenberg Political Report editor Stuart Rothenberg notes the occurrence of around a dozen "partisan waves" since 1954 in which one party or the other took major losses while the other party had little to no incumbent defeats--last year's Democratic-dominated election being a case in point. Rothenberg recalls that 1992 was the worst year for incumbents, when 24 sitting House Members, including eight Republicans and 16 Democrats, were replaced. "Large numbers of incumbents lost that year because of scandals and redistricting, not because voters across the country were so angry with Capitol Hill or with politicians in general that they simply voted against incumbents, regardless of party," Rothenberg explains. He admits, however, that incumbents were impacted by a wave of negative public perception about politicians. The past nine major political surveys of public perception of Congress showed that Congress' job approval was lower than 30 percent, which makes it at least a theoretical possibility that all congressional incumbents could be voted out of office if the public deems them responsible for the nation's troubles. The anger voters feel toward Congress for its failure to strongly challenge the president over the Iraq war is primarily responsible for the low congressional job ratings, but Rothenberg writes that this anger will probably burn out. "When voters are confused about whom to blame, they either support incumbents (blaming the other representatives, not their own) or they fall back on their fundamental partisanship and vote their party," he says. "In either case, they don't vote 'against incumbents' merely because of their incumbency."(www.realclearpolitics.com)
"Teaching Business Ethics: A Critical Need"
Business Week (10/26/07); Krehmeyer, Dean
Ethics is a necessary competency for tomorrow's business leaders, and yet not all U.S. MBA programs have implemented effective business ethics programs. Business leaders are increasingly playing a part in helping to solve urgent social issues, like climate change and health care, and are faced with major challenges on a daily basis thanks to technological advances and globalization. As a result, many top businesses are devising new methods for the practical application of ethics. Meanwhile, most business schools have instituted either a stand-alone ethics course or have tacked ethics education onto other disciplines. A better approach would be for schools to offer a foundation course on ethics in addition to weaving ethics content into the other disciplines. Because the environment in business school is relatively "consequence-free," , an MBA program is an excellent place for young leaders to practice making hard business decisions in the context of ethical standards. Learning about ethical theory, gaining skills for applying ethical concepts, and improving self-awareness are all important steps for MBA students to take. Indeed, "personal ethics and integrity" was listed as one of the five most valuable attributes sought for in student hires by the corporate recruiters involved in the 2007 Wall Street Journal/Harris Interactive rankings of MBA programs. (www.businessweek.com)
"D.C. Democrats Launch Big 527"
Roll Call (11/12/07) Vol. 53, No. 58, P. 1; Murray, Matthew
Liberal activists recently filed paperwork with the IRS to establish a Democratic 527 group called The Fund for America. The organization is expected to spend at least $100 million in soft money donated by unregulated political groups. Strategists said the fund is expected to concentrate solely on issue-based television and radio campaigns, direct mail, and door-to-door canvassing, and it should differ from 2004 liberal predecessors by not having employees, while remaining in existence after the election. "They don't intend to replicate America Coming Together or the Media Fund; they intend to raise money and spend money on soft money operations, voter contact through existing organizations or new organizations," said one source. The liberal 527's rollout flies in the face of the Federal Election Commission's attempts to muzzle such organizations through fines and legislation. The relatively low severity of the fines and recent readings of free-speech issues from the Supreme Court are actually encouraging activists and rich donors to contribute via 527s, according to a Democratic source. "Our election and corporate tax system, regulations and legal decisions that have been rendered in the past couple of years provide a panoply of options for ... how [activists] can best utilize the different tax vehicle," the source explained. "Smart people on both sides are going to figure it out."(www.rollcall.com)
PAC/Campaign Finance 
