Independent Sector Statement on Senate Finance Committee Minority Staff Report on Jack Abramoff’s Use of Tax-Exempt Organizations

(Washington, D.C., October 13, 2006) – Independent Sector is deeply concerned about the alleged misconduct by several nonprofit organizations in their dealings with lobbyist Jack Abramoff, as reported in a study released yesterday by Senator Max Baucus (D-MT), ranking member of the Senate Finance Committee. The investigation found that five tax-exempt organizations may have violated the law by being “willing to provide services to Mr. Abramoff’s clients in exchange for payments.” This kind of activity is inconsistent with accepted standards of practice by charitable organizations. The alleged abuse has the potential to undermine the public trust in charitable organizations as they work to improve lives and communities.

Independent Sector will be studying carefully the legislative reforms proposed by Senator Baucus. We commend him for this investigation and the attention it has focused on this conduct. Independent Sector has consistently supported efforts to strengthen the stewardship of charitable organizations and has worked with many others to develop the kinds of proposals to enhance governance of these organizations that are reflected in the work of the Panel on the Nonprofit Sector. Independent Sector will work closely with Congress to ensure that any legislation is consistent with the good governance recommendations from the Panel and that it also preserves the ability of charitable organizations to engage with lawmakers on policy matters on a nonpartisan basis.

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Independent Sector is a nonprofit, nonpartisan coalition of approximately 600 charities, foundations, and corporate philanthropy programs, collectively representing tens of thousands of charitable groups in every state across the nation. Its mission is to advance the common good by leading, strengthening, and mobilizing the charitable community.