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4/8/08 Bill would give FTC oversight over Nonprofits. On April 8, 2008, Senators Daniel Inouye (D-HI) and Byron Dorgan (D-ND) introduced the Federal Trade Commission Reauthorization Act of 2008. This would be the first reauthorization of the FTC since 1996. Encouraged by congressional hearings on nonprofit governance, the bill’s adds a section 6 which grants sweeping FTC authority to police alleged abuse by charities. Unlike the last FTC Reauthorization bill introduced in 2005 which merely sought to increase the FTC’s budget, this new bill, [S.2831] would expanded the FTC’s oversight authority to 501(c)(3) and 501(c)(4) nonprofits. S.2831. This oversight is currently the authority of the Internal Revenue Service. Granting another federal agency sweeping investigatory authority over nonprofits would create additional federal “red tape” for nonprofits, many of whom have small staffs and budgets and would be adversely impacted. The FTC is attempting to regulate organizations that operate beyond the scope of the FTC’s expertise. Section 501(c)(3) organizations include hospitals, educational institutions, charitable trusts, religious congregations, amateur sports leagues, foundations, and disease cure organizations, many of whom do not engage in “trade” as is commonly regulated by the FTC. Essentially charities and telecommunications firms differ significantly and can not be regulated in the same manner. Uniformity is not an adequate justification. The FTC has insufficient staff experienced in nonprofit governance. The bill was referred to the Senate Committee on, Commerce Science, and Transportation on 4/8/08.
Political Action Committees:
Campaign Finance Report (Form DSEB-502) and instructions
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The law governing political activities of PACs in Pennsylvania
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