Mini Grants to Change the Relationship Between Congress and the People

By Ellen Rice, The Sunlight Network

This is a very interesting program. I received this email a few days ago. Some of you out there should totally try to get some of these grants. This ties in nicely with what Gordon from Community Media does. You might even think about getting some money to have him come out and work with you to get more attention from your Congressman/woman.

 Hello, my name is Ellen Rice and I recently visited your blog and see that you cover various political issues.  I have an exciting opportunity that your organization/blog or one you know may benefit from: MINIGRANTS for local congressional coverage.  You’re perfect for them!

 The Sunlight Network is announcing a series of four to six "mini-grants", in the $1,000 to $5,000 range, for nonprofit organizations and non-affiliated groups who have creative and innovative approaches to strengthening the relationship between members of congress and the citizens they represent. The focus of the work must be to enable a better, more open and accountable relationship between members of Congress and citizens. Ideally, this work will be executed on a local or regional level.

 We encourage applications from existing small nonprofits, local or regional chapters of national organizations and groups of individuals. Grants are available to augment existing projects or to jumpstart new ones. Grants will be made available on a rolling basis starting July 15th.  Apply early!

 The Sunlight Network was founded as the 501 (c)(4) of the Sunlight Foundation in January, 2006. Both organizations are designed to foster a more positive relationship between lawmakers and their constituents, using technology, transparency, and local communities. Sunlight believes that open, honest, sincere representation is possible, and that only engaged citizens can make it happen.

 Please send a one-page summary of your proposed project, a budget (including the amount requested from Sunlight) and contact information to Zephyr Teachout, National Director, Sunlight Foundation (zteachout@sunlightfoundation.com).

 Feel free to call Ellen Rice at the Sunlight Foundation 202-742-1520 or email here sunlightuser3@sunlightfoundation.com if you have questions that you need answered before applying.

 Projects will be judged on their creativity, their likelihood of success, and the degree to which they match Sunlight’s goals. We strongly favor efforts that are themselves open and democratic in their internal structure.

 Grants will be announced on a rolling basis between August and September1. Sunlight will be available to provide consulting support to recipients of these mini grants.

 Best Regards,

 Ellen Rice

Graduate Intern

Sunlightuser3@sunlightfoundation.com

202-742-1520

 P.S. please forward this notice to anyone who could benefit from a “minigrant”

 Here are some hypothetical examples of the kinds of projects we might fund:

 Local citizen journalism site seeks $1,000

 An Austin, TX website that aggregates news and commentary on local issues and blogs about it seeks funding to do more work related to their federal representatives. The money is for travel, a video camera, lexis-nexis access.

 Miami, Florida students want to investigate controversial landfill and moneyed-interests behind it seek $1,000

 Students seek grant to pay for research (travel, small stipend) for four people to show how business interests may have previously supported local politicians and distorted decision making. Wants to do investigative report and post on the web.

 Farmers in “Rural Pennsylvania” (an incorporated nonprofit) seek $1,500

 A small nonprofit incorporated to represent farmers interests in PA seeks funding to send five people to Washington DC to meet with representatives and to attend hearings on agricultural issues. They plan to blog about their trip and their experience.

 Citizen Porkbusters in Kansas seek $2,000

 Creative “web heads” in Kansas have video idea that mocks the money interests behind ethanol. They want to develop the video to educate other citizens by placing the video on Utube.

 Senior of Pasadena, CA seek $1,000

 A politically active informal group that calls themselves the “Little Old Ladies of Pasadena” seek $1,000 to hold open houses at their Congressman’s office. They bake cookies and lemonade and give it away, camped outside Congressman’s local office to people who will come and meet their congressman. The money goes towards food funding and a website that details an announces the action. They hope to inspire all citizens everywhere.

  DFIA Incorporation Update

By Jeffrey Goetz

I have had an opportunity today to speak with one of my law partners, Gordon Fischer (formerly Chair of the Iowa Democratic Party), Chris Warshaw (Political/Field Director for DFA in Burlington, VT) and Mark Naccarto (Democracy for Tennessee). Here is what I found out.

1)  The earlier concerns I and many others had back in 2004 regarding "coordination" between the Democratic Party and "527" organizations (like Moveon.org and ACT)is not a problem today and is not likely to be a problem in the future.  "Coordination" (in the 2004 context) meant the Democratic Party (county, state or national) and Moveon.org couldn't work together (like, we'll canvas the southern part of the county, and you canvass the northern part of the county).   There was no, and there is no "coordination" in the context of a party "volunteer" (like a member of a county central committee or precinct captain) "volunteering" to do some door-knocking for Moveon.org.

2)  Those who attended the DFA training in Iowa City last year might remember that I specifically raised the exact issue above at our session, and it was specifically addressed by Jim Dean and Chris Warshaw.  There are no problems or issues raised if I volunteer my time as a precinct captain and/or my precinct's representative on my county democratic central committee, (or do any other volunteer work for my county or state or national party) and also contribute money or volunteer my time to Moveon.org, ACT, Progressive Democrats, NARAL, ACLU (or any of the other progressive groups that I give money to, belong to, or volunteer time with).

3)  Remember, "527" organizations were "born" as a result of the federal McCain/Feingold reform act, and were so named because they had no other way to describe then (other than they were "political organizations" as defined by Internal Revenue Code Section 527).  Additionally, 527 organizations are "federal" organizations, and are "ruled" by the federal political rules (Federal Election Commission).  They are not "state" organizations (per se).

4) On the issue of formally incorporating DFIA, if the decision is made to "incorporate" DFIA in the State of Iowa, there are just 2 choices: as a "for-profit" domestic stock corporation, or as a "not-for-profit" corporation.  If the decision is to incorporate as a "not-for-profit" corporation (that's my recommendation at this point), then the next issue is whether the corporation will be "run" by only a board of directors (my recommendation at this time), or "owned" (and I use that word very loosely) by its "members" and "run" by its board of directors.  Even if the "board-only" option is selected, that does not mean there can't be "members" of DFIA.  For example, (if the decision is made), an individual could be a "member" of DFIA simply by "registering" and saying you want to be a member, or a "membership fee" or other obligation could be imposed (like you have to give your email address or attend a meeting to be a member, for example). Some of these decision points would have to be made soon, others later on.

5) Some may get confused about what it means to be a "not-for-profit" corporation.  We are all most familiar with the "charity" or "educational"-type of non-profit.  Those are technically called "tax-exempt" organizations.  In order to be one of those, the organization would have to submit a detailed application to the IRS and ask to be "tax-exempt" under Internal Revenue Code Section 501(c)(3).  That means "money given" to that type of organization entitles the "giver" to claim a "charitable tax deduction" on their personal income tax returns.  We do not want DFIA to be that type of non-profit, because a 501(c)(3) specifically can not do anything political.

6)  There are many other types of non-profits (neighborhood organizations, clubs, labor unions, social welfare or civic organizations), which, depending on the type, either the money received by the organization is "tax-exempt" or the money spent by the organization is "tax exempt".

7)  If DFIA is incorporated as a non-profit, and it is a "political organization" (as opposed to a social welfare or civic organization or club), and if (and only if) it both "receives" money, and "spends" money, then its tax status will be "ruled" by IRS Section 527.  For the sake of this discussion, the money given to DFIA would not be "tax exempt" (no personal tax deduction for the giver), but the money "spent" by DFIA would be "tax-exempt".  That means DFIA will not pay any income or other taxes to the IRS (provided it strictly does "political" things). 

8)  Going back to "what if" DFIA is incorporated, it could then make application to the IRS for a Federal Tax Identification Number "FEIN" (the functional equivalent of a Social Security Number for a non-individual, such as a corporation).  With an FEIN, DFIA could then open a bank account in its own name.  If DFIA did nothing else, it would have no obligation to file a state or federal tax return, or file any documents with the Iowa Ethics and Campaign Disclosure Board, or the FEC.  If DFIA received money or raised any money, it may have to file a "informational tax return" with the state and the IRS (but again, not have to pay any taxes provided it only does political things).

9) If at any point DFIA "spends" more than $750 on a state political candidate or issue, then it could be classified as a "State PAC", and then it would have to make a filing with the Iowa Ethics and Campaign Disclosure Board.  If it doesn't spend any money for (or provide a benefit to a State or local candidate or issue), it would not have any filing obligations.

10)  If at any point DFIA provides any money or anything of benefit to a "federal" candidate, then it would have an obligation to file a Federal campaign finance disclosure form.  Everyone I have spoken to says you don't even want to think about doing this, because once you do, the FEC will keep its eye on you.  Plus the reporting requirements are so intense, that it will cost more to do the filing and maintain the compliance, than you are ever likely to give any candidate.  Chris Warshaw at DFA told me today they have 2 fulltime people there that just do their FEC filings and compliance.

11)  But this does not mean DFIA couldn't "help" federal (or any other) candidates or issues.  The FEC has said "websites" have no "value". Therefore, Blog for Iowa (as DFIA's mouthpiece) could exort its "members" or followers or readers to "support" anybody or anything, with money from their personal wallets, or time volunteering.  That type of action is completely allowed. (thank god for free speech (atleast while we still have it)).

12)  Chris (in her comments below) relayed her concerns about people who "work" for a non-profit, who are then told they must stop their outside political "party activities" once they got hired.  I am not sure exactly what that situation involves, but it may have to do with the political activities prohibitions that truly "charitible" or "educational" organizations can't get involved in.  In the DFIA example, there would be no-such prohibitions (Isn't Jesse Jackson engaged in political activities and also involved with the Rainbow Coalition and his church?).  Chris, I want to assure you, you can be a member of, or on the Board of Directors of DFIA, and continue to be a member of the Polk County Democratic Central Committee, and a member and Chair of any State Party Caucuses.  You could even work as a paid employee of DFIA (if it ever gets large enough to hire employees) and continue your volunteer work for the county or state Democratic Party's (or vice versa).

It has been my intent here to shine some light on several rather complex issues.  I just hope that I didn't muddy up the waters even more. (apologies in advance for spelling, punctuation and gramatical errors)  Jeff. 

P.S.  My telephone call to Mark Naccarto of Democracy for Tennesse was very interesting and enlightening. One important point he made was how enviable of position Democracy for Iowa and Democracy for New Hampshire are in, for being first in the nation, and how all the candidate come to us first and often.  He had many good ideas on how we (as progressives) can capitalize on these facts.

Jeff.