Nunez used charities to funnel donations

I am concerned that this is another legislator on the take, rather than representing the interests of Californians. 

It is only a new story at this point in time, but this is not the first time Nunez has been involved with questionable tactics when fundraising.

What can be done to reduce the money flow in politics without violating the First Amendment?

Assembly Speaker Fabian Nuñez (D) used a small charity as a conduit to funnel almost $300,000 from companies and organizations with business in the Capitol to events that helped him politically.

By giving to the charity, the donors whom Nuñez solicited earned tax deductions for which they would not have qualified had they given directly to Nuñez’s campaign accounts. They were also able to donate more than the $7,200 maximum allowed under California‘s campaign fundraising rules.

Those donors include Zenith Insurance Co., AT&T, Verizon Communications Inc., the California Hospital Assn., the state prison guards union, Pacific Gas & Electric Co. and Blue Cross of California — all groups with high stakes in legislation.

The money was used for events including “Assembly Speaker Fabian Nuñez’s Toy Drive,” “Assembly Speaker Fabian Nuñez’s Soccerfest 2006,” “Assembly Speaker Fabian Nuñez’s Inaugural Legislative Youth Conference” and airplane flights for 50 children from Nuñez’s district for “Assembly Speaker Fabian Nuñez’s Sacramento Student Summit,” according to state documents.

That arrangement may have violated federal tax laws, according to experts. The Internal Revenue Service has a strict policy against charities serving as a pass-through for funds.

“It raises the question of whether these donors are making a contribution to a charity or simply currying favor with a politician — and getting a tax deduction for it,” said Jack Siegel, a lawyer and accountant who advises nonprofits nationwide through his Chicago firm, Charity Governance Consulting.