House Majority Leader Tom DeLay (R-Texas) is well-known for his hyper-aggressive fundraising tactics, but the New York Times is reporting on a new scheme that’s not only disturbing, it may also violate federal tax law.
In a devastating article today, the Times is reporting that DeLay is offering GOP donors a rare opportunity — in exchange for huge contributions, they get to spend time with him at the 2004 Republican National Convention. The problem is DeLay is making this offer under auspices of helping abused and neglected children.
Specifically, DeLay is distributing 13-page brochures with pictures of fireworks and a golf course to potential fat-cat donors. The fundraising pitch tells donors that their money will be helping a children’s charity and their contributions will therefore be tax-deductible. In truth, however, the donations will, as DeLay aides told the Times, pay for “late-night convention parties, a luxury suite during President Bush’s speech at Madison Square Garden and yacht cruises.”
As Fred Wertheimer, campaign finance reform advocate and president of Democracy 21, said that DeLay’s office is “using the idea of helping children as a blatant cover for financing activities in connection with a convention with huge unlimited, undisclosed, unregulated contributions.”
And what of the so-called children’s charity that DeLay’s fundraising efforts will reportedly help? It’s called Celebrations for Children Inc. While DeLay is not officially part of the charity, its managers are DeLay’s daughter, Dani DeLay Ferro; Craig Richardson, a longtime DeLay adviser; and Rob Jennings, a Republican fund-raiser. The Times reported that the charity “has no track record of work.”
In one sense, I should give DeLay credit for being clever. As the Times explained, “[B]ecause the money collected will go into a nonprofit organization, donors get a tax break. And Mr. DeLay will never have to account publicly for who contributed, which campaign finance experts say shields those who may be trying to win favor with one of the most powerful lawmakers in Washington.”
Of course, in exchange for unregulated contributions up to $500,000, DeLay is offering wealthy conservatives private dinners with himself and his wife, the chance to participate in a golf tournament, a late-night party with a rock group, access to a luxury suite for elected officials and donors, a yacht cruise, and tickets to Broadway shows. All of these donor perks will be available at the Republican National Convention in New York.
There’s the legal rub. If you’re selling access to powerful Republican lawmakers at a Republican political convention, aren’t you, in fact, soliciting contributions for Republicans? DeLay says no, it’s really about raising some money for the children’s charity that he helps control and that doesn’t appear to actually do anything.
And because it’s money for “charity,” contributions are tax-deductible, whereas “political” donations are not. And if you’re willing to believe that DeLay’s solicitations aren’t “political,” I know some swampland in Florida I’d love to sell you…
Just when I think my opinion of DeLay couldn’t sink any lower, he manages to surprise me.