NCRP Statement

FOR IMMEDIATE RELEASE 

Tuesday, August 31, 2004                                       

Contact: Naomi Tacuyan

202-387-9177, ext. 17

naomi@ncrp.org

Frist's RNC Charity Fundraiser Really a Political Fundraiser in Disguise, Philanthropic Watchdog Charges 

Frist's Political Staff Manage AIDS Nonprofit, Selling Political Access in the Name of Charity

WASHINGTON—The National Committee for Responsive Philanthropy (NCRP) once again condemns a federal lawmaker's blatant disregard for the integrity of the nonprofit sector and arrogant circumvention of federal campaign laws, specifically as demonstrated by Senator Bill Frist's charity fundraiser at the Republican National Convention, which provides well-heeled donors access to Republican senators

Proceeds of the RNC fundraiser gala at the Rockefeller Center would go toward the Senate Majority Leader's recently established charity, World of Hope, which would then disburse the funds to five AIDS-related organizations. The gala will consist of a concert, reception, and a VIP reception, which purportedly would feature Republican senators. The gala package, consisting of ten tickets to the VIP reception, 50 tickets to the concert, and entry into a separate Frist reception, costs a hefty $250,000.

Donors to Frist's fundraiser would buy invaluable face time with Republicans and, because their contributions go to a nonprofit, would simultaneously circumvent federal lobbying regulations and dodge public disclosure requirements. This political transaction would leave no paper trail—nonprofits do not have to identify their donors, and donors do not have to disclose their donations. Sen. Frist's promise of not accepting money from lobbyists attending the World of Hope gala is virtually useless, as representatives from corporations do not have to be official lobbyists to be able to donate to a nonprofit such as Frist's.

"With Congress's inaction or inability to act on the surge of federal lawmakers' creation of charities, NCRP calls on the nonprofit sector to take a stance against federal lawmakers' misuse of charitable groups for events where the primary beneficiaries are political motivated donors who masquerade as concerned philanthropists, but who are actually buying political access with members of Congress with whom they want to curry favor," said Rick Cohen, executive director of NCRP.

Despite the front of a universal and supposedly nonpartisan cause such as AIDS, closer investigation has revealed that World of Hope staff consists of Frist's political operatives, and not AIDS services professionals, and that the AIDS charities to benefit from the fundraiser have close right-leaning political ties. One is run by the son of evangelist Billy Graham, and another is run by a Philadelphia City pastor known for his high-profile support of President George W. Bush's faith-based initiatives.

NCRP is further concerned that Republicans at the RNC are using charitable endeavors with popular themes as the front for these political fundraisers, as opposed to using themes more logically associated with the Republican Party's values. "It's hard to imagine that the RNC is loaded with well-intentioned donors who have been regularly donating money to the fight against AIDS prior to the convention. To be truly convinced of the sincerity of this sudden wellspring of RNC-related philanthropy, we should see charity events that focus on traditional Republican themes of slashing taxes, shredding the social safety net, and attacking women's reproductive rights or gay marriage. But those themes don't play as well with the public as preventing AIDS and improving children's health," said Jeff Krehely.

NCRP also previously condemned Congressman Tom DeLay's plan for an RNC-scheduled fundraiser and Democratic Senator Blanche Lincoln's "Rockin' on the Dock of the Bay" fundraiser scheduled during the DNC for the same basic reasons, and sees no significant differences that make Senator Frist's fundraiser any less objectionable than DeLay's or Lincoln's, both of which were cancelled after multiple criticisms from watchdogs such as NCRP.

In November of 2003, NCRP called for the IRS to reject DeLay's application for tax-exempt status for his charity. NCRP's statement can be found at http://www.ncrp.org/Releases/PR-11-20-2003.htm. In February of this year, NCRP joined with Common Cause to demand that the House Ethics Committee formally investigate DeLay's use of his charities to subsidize donor events at the Republican National Convention. This joint press release can be found at http://www.ncrp.org/Releases/PressRelease_ComonCause.htm.

Founded in 1976, the National Committee for Responsive Philanthropy is dedicated to helping the philanthropic community advance the traditional values of social and economic justice for all Americans.  Committed to helping funders more effectively serve the most disadvantaged Americans, NCRP is a national watchdog, research and advocacy organization that promotes public accountability and accessibility among foundations, corporate grantmakers, individual donors and workplace giving programs.  For more information on NCRP or to join, please visit www.ncrp.org or call 202-387-9177.