FOR IMMEDIATE RELEASE
CONTACT: Dana Lanza, Chief Executive Officer
May 5, 2016, New York – Philanthropic organizations representing over $5.5B in assets under management are taking a more direct approach to promoting transparency in corporate political spending. Twenty-five foundations and investment firms have signed a joint letter to President Obama calling for an executive order requiring full disclosure of political spending by business entities receiving federal government contracts. The number of anonymous dollars going to political candidates is an urgent problem that must be addressed head-on. Philanthropies, which face a variety of restrictions on political lobbying, generally participate in the democratic process via the nonprofits they support—until now.
Since the 2010 US Supreme Court ruling in Citizens United v. FEC, staggering sums of “dark money” have been raised to influence political elections and government contracting. This ‘dark’ness of dollars invested in US elections allows donors to remain anonymous. The anonymity of these dollars invested in US elections subverts voters’ concerns to those of the people and interests to whom candidates are beholden. Corporate political transparency is necessary for the efficient functioning of our capital markets and as a risk management tool for shareholders, corporate management, and directors. Corporations claim this spending is necessary to protect their interests, but shareholders have no way to monitor these activities, or assess their risks.
Confluence Philanthropy’s letter notes that an executive order shining a light on political spending by contractors would attack the perception and the reality of such “pay-to-play” arrangements. It need simply require that every federal contractor disclose its political spending and that of its senior management and affiliated political action committees postcontract award. By requiring this, the public may judge for themselves whether contracts are being awarded and administered based on merit rather than political favors, as the Court in Citizens United desired.
In addition, trade associations and similar groups have become significant conduits for ‘indirect’ corporate political spending. These organizations are not required to disclose the source of their funding, often leaving companies in the dark about the use of their money as well as exposing them to unnecessary and dangerous risks. “Transparency anchors the brand of the U.S. financial markets,” added Clara Miller, president of the Heron Foundation. “Without it we lose our edge. This is a no-brainer.”
Confluence Philanthropy and its members believe it is imperative for President Obama to take action given the increasing evidence that the dominance of undisclosed corporate spending continues to corrupt our democracy, and that corporate political transparency is necessary for the efficient functioning of our capital markets, and as a risk management tool for shareholders, corporate management, and directors.
Dana Lanza, CEO of Confluence Philanthropy (CP), in emphasizing the critical nature of this call to action that has ignited so many of CP members in taking this momentous action, stated “The flip side of transparency is secrecy and the threat of millions of dollars in secret campaign cash driving our democracy is coming from companies that derive much of their wealth from government contracts. Philanthropy is charged with upholding the common good, without transparency in government spending, our jobs become impossible.”
About Confluence Philanthropy Confluence Philanthropy is a non-profit investors’ network that promotes environmental sustainability and social equality by helping to move philanthropy in the direction of missionaligned investing. Confluence supports and catalyzes its members’ efforts to align asset management with organizational mission. Its international membership, representing over $400 billion in philanthropic assets, includes private, public, and community foundations, individual donors, as well as investment firms.
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