Political Charity—Tricks of the Trade

I take a break from my TakeAction series to examine the inner workings of another progressive Minnesota-based political charity, the Alliance for a Better Minnesota (ABM).  Like TakeAction, ABM consists of a series of interlocking non-profit corporations, including a 501(c)(3) charity, a 501(c)(4) non-profit, and a 527 state Action Fund.  [For more information about the distinctions between these different types of legal entities, see the discussion in TakeAction, Part 1.]

ABM has been the subject of extensive media coverage for its decisive roles in both the 2010 and 2012 elections in Minnesota, the prodigious amounts of money it raises, the byzantine network of organizations it has spun off, and the accompanying lack of transparency.  [See this, this, this, this, and this for starters.]  I will not re-plow that ground in this Follow the Money post.  Instead, I will focus on the smallest and least-noticed entity in the ABM empire, the charity arm, and reveal some of the tricks of the trade for political non-profits.

Why a political non-profit to begin with?  Recently, the website Politico interviewed Ken Martin—current Chair of the Minnesota Democrat Party and former Director at ABM[1]—regarding another political charity, President Obama’s Organizing for Action.  Politico quotes Martin on the reasons for forming a political charity,

“I’m not a dummy,” he said. “I understand post-Citizens United the necessity to set up vehicles for different types of money to flow”[2]

Among the “different types of money” that can flow to 501(c) non-profits are anonymous and tax-deductible.

We Are the 98.4%

ABM’s 501(c)(3) unit was founded in 2007 and is called the Alliance for a Better Minnesota Education Fund.  In 2008, the unit took in total revenue of $35,581.[3]  Of that amount, $35,000 (98.4%) was contributed by the San Francisco-based Tides Foundation.  According to its website the Tides Foundation was founded in 1976.  Its mission statement reads as follows,

“Tides actively promotes change toward a healthy society, one which is founded on principles of social justice, broadly shared economic opportunity, a robust democratic process, and sustainable environmental practices. Tides believes healthy societies rely fundamentally on respect for human rights, the vitality of communities, and a celebration of diversity.”

In 2010, the Tides Foundation donated $25,000 to ABM’s Education Fund.[4]  In 2011 the Tides Foundation donated $20,000 to ABM’s 501(c)(4) unit, for “legislative issues analysis.”[5]

[Tides has also been a donor to the ABM-related political charity WIN Minnesota.  In 2008 Tides donated $55,000, in 2009 $15,000, and in 2010 $40,000.]

What did Tides’ generosity buy?  In 2008, on an income of $35,581, the ABM Education Fund managed to spend $77,115, working down some of the excess remaining from the previous year.[6]  Some of the funds went to paying part of the salary of then Executive Director Denise Cardinal.[7]

Three other activities are described on ABM Education Fund’s 2008 IRS Form 990, as follows,

• “Shared some costs of 3 statewide polls conducted in 2008 by its sister org—Alliance for a Better MN.  This info was shared with other nonprofit organizations participating in civic engagement activities.  Key areas of research included: how people felt about education, health care, nonpartisan budget policy & the r[obscured on form]”[8]
• “Hosted a downtown space for bloggers, reporters, and other nonprofit groups to convene and hold panel discussions on a variety of issues including health care, veterans rights, the economy, environment, and green jobs.”[9]
• “Conducted several trainings—including those hosted by Camp Wellstone, the New Organizing Institute, & media organizations (bloggers) and the groups around the civic engagement table in MN.  Trainings focused on communications strategies & use of new technologies to improve effectiveness & reach.”[10]

Polling on hot political issues, hosting reporters, and training on “progressive political action”—these efforts may not run afoul of partisan activity prohibitions, but I would not describe those endeavors as charitable.  Certainly all three activities, plus staff salary support, would contribute to the more overt political activities of the other ABM units.

In 2009, the ABM Education Fund had better luck in fundraising, taking in more than $103,000.[11]  Again, it supported part of the Executive Director’s salary.[12]  Its other activities included the following,

• “Organized/Hosted Netroots Minnesota[13]
• “Educated the public about the need to count every vote during the 2008 U.S. Senate recount conducted through paid online advertising and online activities.[14]
• “Provided training on new media technologies to nonprofit groups for them to improve their activities.[15]

“Count every vote,” indeed.  As you will recall, Al Franken trailed Senator Norm Coleman by 215 votes after the first count was completed in the 2008 election.  After the recounts were completed in June 2009, Franken was declared the winner by 312 votes.

By 2010 Alliance for a Better Minnesota Education Fund had increased its income to more than $137,000.[16]  As before, the charity supported part of the Executive Director’s salary.[17]  That year, its other activities included “shared some costs of state wide polls,”[18] “hosted a conference for bloggers, reporters”[19] and “conducted an issue advocacy campaign around taxation.”[20]

As noted above, the ABM’s 2009 IRS filing mentioned Netroots Minnesota.  ABM’s blog entry for January 13, 2011, includes this description of the 2011 Netroots Minnesota conference,

“How can progressives work together to move a progressive agenda given the current political environment?

This Saturday January 15th, you have the chance to find out when Netroots Minnesota brings together progressives from across the state to learn, connect, and organize for the progressive struggles in 2011 and beyond.

House Minority Leader Paul Thissen and State Senator John Marty will be on hand to discuss the way forward in the legislature.

During this special lunch briefing, they'll be joined by Senator Al Franken who will give us the latest on what's happening in Washington, DC and how we move forward after the midterm elections.

Netroots Minnesota is your chance to engage in substantive conversation with our elected officials. Much like the annual national Netroots Nation conference, Netroots Minnesota will have trainings, panels, and plenty of opportunities to learn, re-charge, socialize, and strategize with other progressives.”

The bold headings for the featured guests were included in the original post.  Any guess as to the political party all three represent?

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[1] See Alliance for a Better Minnesota Education Fund 2010 IRS Form 990-EZ, filed September 15, 2011, Part IV.

[2] Hohmann, James, “Dem officials fret over new Obama nonprofit,” Politico, January 23, 2013.

[3] See Alliance for a Better Minnesota Education Fund 2008 IRS Form 990-EZ, filed February 5, 2010, Part I, line 9.

[4] See Tides Foundation 2010 IRS Form 990, filed June 28, 2011, Schedule 1, Part II.

[5] See Tides Foundation 2011 IRS Form 990, filed August 10, 2012, Schedule 1, Part II, page 2.

[6] Alliance for Minnesota Education Fund 2008 IRS Form 990-EZ, filed February 5, 2010, Part I, line 17.

[7] Ibid., Part IV, line 17.

[8] Ibid., Part III, line 28.

[9] Ibid., Part III, line 29. 

[10] Ibid., Part III, line 30.

[11] Alliance for a Better Minnesota Education Fund 2009 IRS Form 990-EZ, filed August 13, 2010, Part I, line 9.

[12] Ibid., Part IV.

[13] Ibid., Part III, line 28.

[14] Ibid., Part III, line 29.

[15] Ibid., Part III, line 30.

[16] Alliance for a Better Minnesota Education Fund 2010 IRS Form 990-EZ, filed September 15, 2011, Part I, line 9.

[17] Ibid., Part IV.

[18] Ibid., Part III, line 28.

[19] Ibid., Part III, line 29.

[20] Ibid., Part III, line 30.