2nd Aug 2012 at 07:00 | By Aaron Gardner
Tax-Exempt Liberal Groups Exploit Gray Areas of Financial Disclosure Law
Colorado Common Cause, a political non-profit which aims to serve “the public interest, rather than the special interests,” is a political powerhouse with revenues of more than $6 million in 2011 alone. It first registered to operate in Colorado on October 4, 2002, and spent the next ten years raising money and directing it to liberal causes and candidates. Despite operating in the state as a clearly political entity since its inception, records show that Colorado Common Cause has failed to consistently file required disclosure reports with the state since 2003.
But Common Cause is not alone when it comes to refusing to file required disclosure reports. Liberal organizations in Colorado have been exploiting gray areas surrounding a 2005 amendment to a key financial disclosure law, intentionally refusing to file required periodic reports on time. Before the law was amended, any organization that failed to file its financial disclosure reports on time could be administratively dissolved.
Since October of 2005, entities which fail to file periodic reports with the Secretary of State are designated as “Delinquent,” but no action is taken to dissolve the entity. Instead, the state now attempts to bring delinquent organizations back into compliance with a sternly written letter or small fine assessment.
The change in the law — specifically the removal of any real consequence for refusing to file the required disclosure reports — did not go unnoticed by numerous left-leaning political organizations in Colorado.
Organizations such as Colorado Common Cause, The Colorado Conservation Voters, Clean Water Action, Environment Colorado, and ProgressNow Colorado refused to file the required disclosure forms for several years, from 2009 through 2011. Many of these organizations were also deemed “delinquent” charitable organizations according to an analysis of records provided by the Secretary of State.
Records available on the Secretary of State’s charitable organization search show Colorado Common Cause receiving three extensions to filing deadlines in 2009; the organization was finally listed as “Delinquent” in September of 2009. In 2010, the Secretary of State issued four separate reminders and one extension to Colorado Common Cause and eventually listed the organization as delinquent once again. The pattern continued to a lesser extent in 2011, with Colorado Common Cause being issued a mere two reminders and being listed as delinquent once. Additionally, Colorado Common Cause failed to file its required periodic business reports between December of 2008 and March of 2009, as well as December of 2009 through March of 2010.
ProgressNow Colorado’s record is similar to that of Colorado Common Cause. It was assessed fines in two instances and was fully suspended in 2009. In 2010 ProgressNow Colorado received two reminders and two extensions from the Secretary of State’s office, and in 2011 the Secretary of State issued three reminders, two extensions, and eventually listed the organization as delinquent in August of 2011.
Ambiguity in the law, the removal of real tangible consequences, and the resulting empowerment of policymakers to interpret the law according to their whims created an environment of non-compliance by groups eager to hide their finances and operations.
During his short tenure as Secretary of State, Democrat Bernie Buescher – a co-sponsor of the 2005 amendment when he served in the legislature — exploited the ambiguity and allowed the groups guilty of non-compliance to continue operating as if nothing happened. The non-compliant groups appear to be less confident in the willingness of current Secretary of State Scott Gessler to look the other way when it comes to their disclosure violations.
Since his election, many of the non-compliant organizations – including Colorado Common Cause – have managed to come back to full compliance as of May 2012 for their periodic business reports. ProgressNow Colorado and Clean Water Action are currently operating under an extension on their required charitable reports, while Colorado Common Cause cured their delinquency in November 2011.
Related Articles | You may also like
-
Great Education Colorado Lines Employees’ Pockets While Pushing for Higher Taxes
-
6 Women Aurora Sentinel Editor Dave Perry Might Call Terrorists
-
Allies of Senator Morse Launch Misleading Website, Radio Ads to Deter Recall
-
Renewable Power Advocates Present Deceptive Rate-Hike Arguments in Colorado House Committee
-
State Senator’s Sponsorship Of Trial Lawyers Legislation Reveals Conflict of Interest
-
State Agency Has Paid Planned Parenthood $3 Million Since 2008 Despite Lack of Regulation
Discussion | 1 Comment
Leave a Comment
Your reply will be added to the comment above (Below any other replies to this comment) -
Gradivus said
Aug 2, 2012 at 9:48 AM
Most people don’t realize that the Common Cause “nonprofits” of the various states are calling on other corporations to curb political spending, while they themselves are also corporations that budget millions of dollars for political spending. That’s right, there is a noun that actually follows the adjective “nonprofit” (although you wouldn’t know it from reading Common Cause literature), and that word is “corporation.” Common Cause is a political advocacy nonprofit corporation, just as Citizens United is a political advocacy nonprofit corporation.