Lisa Graves

Groups File IRS Complaint Alleging ALEC is a Lobbying Vehicle, Not a Charity

The Center for Media and Democracy (CMD) and Common Cause have filed an 18-page supplemental complaint to the U.S. Internal Revenue Service (IRS) which calls for a termination of the American Legislative Exchange Council (ALEC)'s status as a 501(c)(3) non-profit organization and requests civil and criminal charges be brought against ALEC.

Leaked Documents Reveal IRS Concerns, Funding Crisis At Corporate Lobbying Group ALEC

The Guardian has published a major investigative piece that once again exposes the scandalous ways of the right wing lobbying group, American Legislative Exchange Council (ALEC). 

Among the biggest revelations: ALEC may soon face a budget crisis, and is feeling the heat of public pressure from activists and its own membership in the aftermath of the Trayvon Martin shooting by George Zimmerman in Florida. Dozens of corporations have jumped ship from what critics have coined a “corporate bill mill” for statehouses nationwide.

Another explosive revelation: ALEC State Chairs were handed a draft pledge to put ALEC's interests over its constituent's interests, asked to “act with care and loyalty and put the interests of [ALEC] first.” ALEC confirmed to The Guardian that it was “not adopted by the membership committee or by any of the state chairs.”

The Guardian obtained ALEC's Board of Directors' meeting minutes which reveal that ALEC has created a 501(c)(4) non-profit organization called The Jeffersonian Project.

Creation of the Jeffersonian Project - paralleling ALEC's self-serving branding as standing for “Jeffersonian principles” - could be seen as a tacit admission that ALEC had been illegally operating as a shadow lobbying organization on behalf of its corporate members for the past four decades.

ALEC's budget hole from the exodus of corporate members has inspired a campaign to win corporate members back to the exclusive club, calling it the biblically-inspired “Prodigal Son Project.” Desperate for more member-based funding, ALEC is considering recruiting gambling companies into its member base.

Subscribe to Lisa Graves