The proposed stringent rules for lobbying non profit organizations
After a second day of hearings on the practices of the American Association of Retired Persons, senators of both parties today proposed that Congress strengthened standards for granting tax exemptions to non-profit organizations, lobbies on Capitol Hill.
Senator Alan K. Simpson, Republican of Wyoming, suggested that organizations tax welfare should not be allowed to benefit from federal subsidies. These groups should not be allowed to finance their activity entirely consistent with these activities, he said, it should be necessary for a portion of their income from membership dues.
B. Horace Deets, Director General of the association, said the group to guide any changes that Congress. But Sara E. Melendez, president of the independent sector, a coalition of non-profit organizations and foundations, said in an interview that Mr. Simpson’s proposals have been overestimated.
Mr. Simpson is chairman of the Finance Committee Subcommittee on Social Security and family policy. The American Association of Retired Persons has chosen, not as witnesses of last week, said he had a time considered Board Meeting in Portland, Ore..
But man learning I. Eugene, president of the association, testified before the subcommittee today denied that members of his group was wrong, “against the Federal Republic of tax law or to abuse the privileges of its mailing,” says Simpson.
Mr. male teacher, said the group business - Self-insurance, homeowners, health insurance, life insurance, credit cards, investment funds, medicines and travel services - to members of ‘be fair.
But Senator John McCain, Republican of Arizona, said: “The AARP is much less interest in ensuring that the elderly can be round, when it was his own Bottom-Line” . Mr. McCain said the association lobbyists in Washington “have acted intentionally, contrary to the wishes of its members” - for example by the support of President Clinton, the health during the last year and development of the disease to cover catastrophic illnesses during the year 1988.
The outcome of the hearings is that Senator Simpson has tarnished the image of the club, but of state and government heads of the organization said they would not be the silence of the investigation.
Senator John B. Breaux, Democrat of Louisiana, to the surprise expressed by the variety of commercial activities sponsored by the Association. He said, new standards might be needed on the activities eligible non-profit groups.
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