Groups Ask Congress to Initiate Ethics Investigation of Delay Charity - February 9, 2004 Vol.5, No.3

February 9, 2004 Vol.5, No.3:

Published: 02/09/2004

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Groups Ask Congress to Initiate Ethics Investigation of Delay Charity

Common Cause and the National Committee for Responsive Philanthropy have called on members of the House to “urge the Ethics Committee to formally rule on the legality of a plan closely associated with Rep. Tom DeLay (R-TX) to establish a children’s charity as a fundraising vehicle to subsidize donor events at the Republican National Convention.”

In a Feb. 5 letter to House members the two groups noted that the charity, Celebrations for Children, is linking donations to access to Rep. DeLay and others at the Republican National Convention in New York this summer. The letter also notes that only members of the House can ask the Ethics Committee to initiate an investigation, and urges each member to contact Chairman Joel Hefley (R-CO) and ranking member Alan Mollohan (D-WV) to urge them to take action.

In Dec. the Washington Post reported that a brochure published by the group offers donors of $500,000 or more benefits including sponsorship of a dinner with DeLay, and tickets to “the Members reception before/during/after Presidential acceptance speech,” and a private yacht cruise with DeLay. Smaller donors are offered similar, but less substantial, benefits. If the IRS approves Celebrations for Children’s application for recognition of exempt status as a charity these donations will be deductible.

Common Cause, Democracy 21, the Campaign Legal Center and the National Committee on Responsive Philanthropy have filed complaints against Celebrations for Children with the IRS, asking that it be denied exempt status as a charity under Section 501(c)(3). The Common Cause/NCRP letter says, “We believe the overt partisanship of these activities is inappropriate for a charitable non-profit 501(c)(3) organization.”