Better Government Association

Good clean fund? Not if charities, politics mix

Editorial - Chicago Sun-Times
April 12, 2005

When investigators from the Better Government Association began to look under the veneer of the 17th Ward Democratic Organization, probing questionable political contributions from Chicago Housing Authority contractors, they uncovered something they hadn't expected to find. What they learned, alarmingly, was that nonprofit groups, churches and other tax-exempt organizations in Illinois were breaking federal law.

These religious and nonprofit groups were jeopardizing their tax-free status by making political contributions to aldermen, state politicians and political organizations. "We were perplexed by what we found," says the BGA executive director, Jay Stewart. But it was all there in black and white: Catholic parishes made political contributions, including cash and tickets for fund-raisers; Baptist churches donated to a West Side group that has close connections with Ald. Michael Chandler (24th); the University of Chicago gave money to Ald. Leslie Hairston (5th), and Illinois State University gave $1,050 worth of basketball tournament tickets and hotel accommodations to Rep. Dan Brady (R-Bloomington).

As the BGA notes, this is an issue that includes politicians of every stripe: Republicans, Democrats and independents. At least 220 tax-exempt churches, charities, colleges and foundations donated $186,475 to local and state politicians and political organizations since 1999. Politicians can accept these donations because there is no state prohibition. But charities and churches are bound by IRS rules. Luckily for them so far, the IRS doesn't seem to have been paying much attention.

Rev. Michael Pfleger of St. Sabina says his church's outlay of $2,500 to send parishioners to a dinner and $1,500 for a golf outing, both sponsored by the 17th Ward Democratic Organization, was not illegal. "The perception was that Saint Sabina is funding candidates and taking church donations to do so," Pfleger said in a letter to the Sun-Times. "Neither is true." But as BGA director Stewart notes: "You have to ask, 'Who were these events hosted by and where did the profits go?' "

Events like these are meant to raise political cash, and a church's contribution crosses the already murky divide between state and religion. It's one thing for a church group to join a street protest to encourage social change and quite another to pay for attendance at a dinner sponsored by a political group. The rules about this are clear.

Attorney General Lisa Madigan acted promptly by sending out information to tax-exempt groups who may not be aware they're breaking federal tax laws. There is little else she as a state law enforcer can do. If these groups lose their precious tax-exempt status, they will likely lose most of their funding and the communities they support will suffer. And that would be a terrible loss for our city.