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  Retired Rep. Ron Paul, a Texas Republican, ran for president in 2012.   Charlie Neibergall/The Associated Press

Ron Paul using campaign cash to aid his nonprofit

By Dave Levinthal

Texan Ron Paul's congressional career is over, but he's still helping himself from his well-stocked campaign account.

On March 11, the Committee to Re-Elect Ron Paul donated $150,000 to the Foundation for Rational Economics and Education, a nonprofit charitable group Paul himself founded in 1976, according to documents filed today with the Federal Election Commission. Carol Paul, his wife, is the group's president, Internal Revenue Service documents show.

The Foundation for Rational Economics and Education, which shares a Texas address with Paul's congressional committee, describes itself as "dedicated to individual liberty and free-market economics." It is also the publisher of "Ron Paul's Freedom Report," a periodic newsletter.

Additionally, it this year is publishing Paul's wonky weekly column, the most recent of which focused on the financial meltdown of Cyprus. Paul, long a backer of a gold standard and currency competition, used it to deride the island nation's "fiat paper money system combined with fractional reserve banking" and advocate that the United States "end the Federal Reserve, stay away from propping up the euro and return to a sound monetary system."

The Foundation for Rational Economics and Education's most recent filing with the Internal Revenue Service lists assets of nearly $653,000 at the beginning of 2011, up from the more than $564,000 a year earlier. Like other nonprofits, the foundation is not required to disclose its donors on its IRS filings.

Consider the Source

IRS ‘outs’ handful of donors to Republican group

By Paul Abowd

A handful of donors to the nonprofit Republican Governors Association Public Policy Committee got a rude surprise when the Internal Revenue Service mistakenly outed them by making available part of a tax form that is supposed to be kept private.

The Center obtained a copy of the group’s Form 990 from a website that displays tax returns online. The return included one page of the “Schedule B” list of donors which the IRS does not require to be made public.

The total donations on the page make up a small percentage of the $5 million the nonprofit took in for calendar 2011, but also provide a rare if limited glimpse at who — or what — funds political nonprofits.

Among the donors:

Consider the Source

Nancy Suhadolnik of Strongsville, Ohio, votes in early voting Oct. 4, 2011, in Cleveland. Nonprofit groups run by the Washington, D.C.,-based governors associations poured money into several states in 2011, including a ballot referendum on union rights in Ohio. Tony Dejak/AP Al Behrman/AP

Governors’ groups rely increasingly on 'dark money' affiliates

By Paul Abowd

The Democratic and Republican governors’ associations are increasingly relying on nonprofit affiliates to get their candidates elected and influence ballot initiatives, a move that allows them to avoid disclosing the identity of their donors.

The Washington, D.C.,-based Republican Governors Association and Democratic Governors Association are the most prolific outside spending groups in state-level elections, but as so-called 527 political organizations, they are required to make their donors public.

Their nonprofit affiliates, however, are not.

The RGA’s Republican Governors Association Public Policy Committee nonprofit spent $1.3 million between 2005 and 2009. During 2011, spending spiked to nearly $10 million, Internal Revenue Service filings indicate.

The DGA, meanwhile, established a nonprofit called America Works USA in 2011, which raised and spent $4.4 million.

The governors associations still spend far more through their 527 groups. The DGA spent $49 million and the RGA spent $77 million during the 2012 election cycle.

But rising spending by the RGA and DGA’s nonprofits, which have funded state-level battles over union rights, supreme court seats, tax policy and national healthcare reform, has gone largely unnoticed — and is likely to increase this year and next when 38 governorships are up for election.

The increase, says RGA spokesman Michael Schrimpf, is because “the number of GOP governors has increased along with the importance of their role as policy leaders.”

The 2010 Citizens United Supreme Court decision allowed nonprofits to accept unlimited donations from corporations, unions and individuals and spend the money on advertising in an attempt to elect or defeat candidates.

As spending by nonprofits and super PACs has exploded in federal elections, the same trend can be seen at the state level, says Stetson University law professor Ciara Torres-Spelliscy.

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The "Blue Angels" flight squadron guyofsmiles/Flickr CC

Air show lobbyists to buzz Capitol Hill

By Dave Levinthal

A trade group for air shows — stung in recently weeks by sequestration's grounding of military aircraft demonstrations — is launching a government affairs offensive.

Lobbying firm Van Scoyoc Associates is now representing the International Council of Air Shows, Inc., lobbying on "air shows regarding sequestration related issues," according to a U.S. Senate document filed today. It marks the first time the International Council of Air Shows has ever hired federal lobbyists.

Jennifer Cave, a former legislative aide to ex-Sen. John Warner, R-Va., is one of two lobbyists handing the account, the filing indicates. Cave also has worked as a special assistant to the National Security Council and Senate Armed Services Committee.

Michael W. Schupp will also lobby on the International Council of Air Shows's behalf.

The move to hire lobbyists is necessary because the freeze on military aircraft demonstrations, such as those conducted by the Air Force's Thunderbirds and Navy's Blue Angels, "represents a threat to our existence as an industry," said John Cudahy, the council's president.

"Dozens, maybe hundreds, of air shows across the country will go out of business if this continues," Cudahy told the Center for Public Integrity. "Some areas have had 10, 15 or 20 percent cuts they've had to deal with. We've seen a 100 percent cut in the support the U.S. military can provide air shows."

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Center invests in finance, money-in-politics coverage

The Center for Public Integrity is investing in the coverage of finance and money-in- politics issues with four new hires.

Alison Fitzgerald, a 2009 Polk Award winner, author and longtime Bloomberg economics and enterprise reporter, will oversee the Center’s financial coverage as well as much of its state money-in-politics work. She is joined by Dan Wagner, who comes to the Center from the Associated Press’ Washington bureau, where he specialized in financial regulation.

Both Alison and Dan will start, appropriately enough, on tax day, April 15.

The money-in-politics beat received a major boost this week when Ben Wieder, a computer-assisted reporting specialist, began work Monday. Ben will be joined by Alan Suderman, who has broken numerous stories on Washington D.C.’s government as a staff writer with the Washington City Paper. Alan and Ben will focus mostly on state-level political money coverage. Alan starts April 29.

Alison’s career highlights include writing the 2011 book “In Too Deep: BP and the Drilling Race that Took it Down.” Her reporting has appeared in the New York Times and International Herald Tribune, among other publications. Prior to joining Bloomberg in 2000, Alison worked as a reporter, and then international editor, for the Associated Press. She also has worked as a reporter at the Philadelphia Inquirer and Palm Beach Post in Florida.

Alison is a graduate of Georgetown University and earned a master’s degree from Northwestern University. Given her fluency in French and Italian, it’s perhaps appropriate that the long list of reporting awards she’s won includes a 2008 Overseas Press Club honor. Her coverage of secretive political donors won her a 2011 National Press Foundation Everett Dirksen Award for distinguished reporting of Congress.

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South Carolina Gov. Mark Sanford AP

Sanford gets late boost from N.Y. millionaire

By Michael Beckel

New York millionaire real estate developer Howard Rich, renowned for his support of conservative causes, has given a last-minute boost to the congressional campaign of former South Carolina Gov. Mark Sanford.

Rich and his wife, Andrea, each donated the legal maximum of $2,600 to Sanford on March 28, according to federal records. They rank among the handful of elite donors to provide such support to Sanford since he headed into today's South Carolina 1st Congressional District primary runoff with fellow Republican Curtis Bostic, according to a Center for Public Integrity analysis of Federal Election Commission filings.

Rich is a notable political player, who for decades has supported conservative causes, including term limits for politicians, limited government, property rights and school choice.

In 1992, he founded the nonprofit U.S. Term Limits, which advocates for term limits at all levels of government. In 1996, he founded another nonprofit called Americans for Limited Government. That nonprofit spent $1.4 million on independent expenditures to influence elections in 2010, according to documents it filed with the FEC.

A recent analysis by The State newspaper in South Carolina found that Rich contributed $153,000 to state legislative candidates during the 2012 election cycle. Rich used a network of limited liability companies to legally get around the state's $3,500 per person per candidate contribution limit.

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The Consider the Source e-book cover.

'Consider the Source' e-book tells story of how money dominated Election 2012

People, parties and outside political players spent more money on Election 2012 than during any other — by a significant amount.

"Consider the Source," a new interactive e-book written by the Center for Public Integrity's political reporting team, provides the narrative behind how the Supreme Court's Citizens United decision affected the first presidential election in which it was a factor. 

During the 2012 cycle, groups aided or enabled by the Supreme Court's ruling spent nearly $1 billion and voters experienced an unprecedented barrage of political advertisements.

As the nation prepares for major state-level elections in 2013 and critical midterms in 2014, the "Consider the Source" e-book also explains how professional politicking is influencing this flood of new spending.

View and download the "Consider the Source" e-book by clicking here.

The e-book is compatible with most tablet e-reader software. Click the following links for downloading directions for iBooks (iPad and iPhone) and Kindle.

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Ringling Bros. and Barnum & Bailey Circus performance. Flickr.com

No joke: Clowns have lobbyists, too

By Michael Beckel

Even clowns have lobbyists, as do acrobats and animal tamers.

Feld Entertainment, the parent company of the Ringling Bros. and Barnum & Bailey Circus, last year spent a record $335,000 on federal lobbying, according to federal records.

That's up from $280,000 in 2011 — and up from just $120,000 in 2007, according to the Center for Responsive Politics.

The entertainment company hired 10 lobbyists in 2012, including three in-house lobbyists. Lobbyists from the Alpine Group, the Livingston Group and Birch Horton Bittner and Cherot also performed work on Feld Entertainment's behalf.

Issues regarding animal welfare were the company's top concern, records show. The hot-button topic has been the focus of activity both on and off Capitol Hill.

With the backing of animal rights groups, Rep. Jim Moran, D-Va., has pushed legislation that would prohibit Asian elephants in traveling shows.

The American Society for the Prevention of Cruelty to Animals has also sued Feld Entertainment, alleging animal rights violations. A settlement was reached between ASPCA and the company in two federal lawsuits last December.

The Ringling Bros. and Barney & Bailey Circus is currently performing in Baltimore. It performed last month in Washington, D.C.

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Flickr.com

Easter has friends on K Street

By Reity O'Brien

The Easter Bunny — that cotton-tailed purveyor of egg-shaped confections — will deliver his annual baskets of goodies this Sunday.

But not without some help from K Street lobbyists.

Organizations linked to the Easter holiday and its furry mascot have ramped up their efforts to influence lawmakers, according to federal lobbying data compiled by the Center for Responsive Politics.

Consider the National Confectioners Association, the trade group for all things cream-filled and candy-coated, which spent a record $420,000 on federal lobbying in 2012.

The association hired 20 lobbyists last year to push Congress for sweet deals on bills such as the Free Market Sugar Act and the Free Sugar Act of 2011. Nine of those lobbyists have previously worked for the federal government in some capacity.  Among them is William J. Morley, of the D.C.-based Altrius Group, who also lobbied on behalf of the Central American Sugar Association and the American Chamber of Commerce in Columbia.

No traditional Easter table scape would be complete without an array of pastel-dyed eggs. 

United Egg Producers, an agricultural cooperative, made $90,000 in federal lobbying expenditures in 2012, reflecting a $40,000 increase from the previous year.

A less fragile, but equally protein-rich element of an Easter buffet is the ham — a pork product with vocal advocates in Washington.

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