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Sunday, September 9, 2007

Info Post
by Kenneth P. Vogel: Newt Gingrich’s aides misled a foundation into making an improper $50,000 contribution to his political group, according to a lawyer for the foundation. Gingrich’s group, American Solutions for Winning the Future, returned the check to the Colorado-based Hasan Family Foundation after determining tax laws would bar the foundation from giving to a political organization. But Ryan Call, a lawyer for the foundation, blamed Gingrich’s group for the error. American Solutions specifically assured the foundation it could make the contribution, he said, “and that wrong answer was what the family foundation relied upon” . . . Gingrich, a former House speaker mentioned as a possible Republican presidential candidate, has objected to characterizations that his group, American Solutions, is a stealth campaign committee. He asserts the group is an apolitical vehicle to develop and advance innovative policy initiatives. But legally, American Solutions is a political organization, since it’s set up under Section 527 of the IRS code, which frees it from taxes and allows it to accept unlimited contributions campaigns cannot.

. . .as a result of the situation, which was the result of a verbal pledge by a foundation representative, the foundation has instituted stricter grant-writing guidelines. It will now require groups or individuals seeking grants to submit written proposals, including documentation of their IRS tax status, which will be put to a vote of a foundation committee. . . . Call said “the foundation has been very diligent in terms of not engaging in political activity, not giving political contributions to parties or candidates . . .. It’s a strictly nonpartisan organization.” But individual members of the Hasan family have contributed more than $700,000 since 1996 to Republican politicians and committees at the national level . . . [Read More]

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