Public Interest Watch
Encyclopedia
Public Interest Watch was established in September 2002 by Mike Hardiman. The PIW website states that the group was created "in response to the growing misuse of charitable funds by nonprofit organizations and the lack of effort by government agencies to deal with the problem." In March 2006 the Wall Street Journal reported that PIW received approximately 95% of its funding from Exxon
Exxon
Exxon is a chain of gas stations as well as a brand of motor fuel and related products by ExxonMobil. From 1972 to 1999, Exxon was the corporate name of the company previously known as Standard Oil Company of New Jersey or Jersey Standard....

Mobil
Mobil
Mobil, previously known as the Socony-Vacuum Oil Company, was a major American oil company which merged with Exxon in 1999 to form ExxonMobil. Today Mobil continues as a major brand name within the combined company, as well as still being a gas station sometimes paired with their own store or On...

 during the fiscal year ended July 31 2004.

History

PIW claims that it "works to fight charitable trust abuse by exposing individual cases of abuse and advocating for stronger governmental oversight, including requirements for greater financial disclosure by charitable organizations".http://www.publicinterestwatch.org/about.htm

In comments to the IRS
Internal Revenue Service
The Internal Revenue Service is the revenue service of the United States federal government. The agency is a bureau of the Department of the Treasury, and is under the immediate direction of the Commissioner of Internal Revenue...

 on possible changes to information required to be disclosed on Form 990 for non-profit groups, PIW flagged some changes it wanted. US citizens, taxpayers and shareholders "are entitled to know as much about the tax-exempt entities to which the federal government provides tax subsidies, contracts or access to policy debates as they do about publicly traded corporations," they wrote. Key changes they sought to achieve this included:
  • requiring non-profits to submit with their annual return copies of all fundraising materials as a way of potentially facilitating early legal actions - such as for misleading promotion, libel, trade libel or 'tortious interference'
  • provide a list of individual financial contributors and the total annual contributions
  • disclose grants to overseas organizations or individuals
  • publish decision making processes
  • file quarterly financial returns


PIW's proposals echo the views advanced by Gary Johns
Gary Johns
Gary Thomas Johns is a former Australian politician.Johns was born in Melbourne, Victoria and received a Bachelor of Economics and a M.A. from Monash University. He was elected as the member for Petrie in 1987, and held it for the Australian Labor Party until his defeat in 1996...

 from the Australian corporate think-tank, the Institute of Public Affairs
Institute of Public Affairs
The Institute of Public Affairs is a public policy think tank based in Melbourne, Australia. It advocates free market economic policies such as privatisation and deregulation of state-owned enterprises, trade liberalisation and deregulated workplaces, climate change skepticism , and the...

 at an American Enterprise Institute
American Enterprise Institute
The American Enterprise Institute for Public Policy Research is a conservative think tank founded in 1943. Its stated mission is "to defend the principles and improve the institutions of American freedom and democratic capitalism—limited government, private enterprise, individual liberty and...

 seminar. In particular, PIW proposed tax-exempt organizations disclose the "(i) the nature and extent of its claims to expertise, other than membership interest; (ii) the qualifications of those who will speak or act on behalf of the organization; (iii) the research undertaken by the tax-exempt organization; and (iv) whether the research has been assessed by independent peer review."

In September 2003 PIW complained to the Internal Revenue Service claiming that Greenpeace
Greenpeace
Greenpeace is a non-governmental environmental organization with offices in over forty countries and with an international coordinating body in Amsterdam, The Netherlands...

 tax returns were inaccurate and breached the law. PIW asked the IRS to investigate the complaint.

In a column filed with the Copley News Service Doug Bandow
Doug Bandow
Douglas Bandow is a former columnist with Copley News Service and a senior fellow at the Cato Institute. He resigned from Cato in 2005 due a scandal involving payments for columns from lobbyist Jack Abramoff and wrote about it in the Los Angeles Times. As of March 2009, Bandow is again working at...

, a senior fellow at the Cato Institute
Cato Institute
The Cato Institute is a libertarian think tank headquartered in Washington, D.C. It was founded in 1977 by Edward H. Crane, who remains president and CEO, and Charles Koch, chairman of the board and chief executive officer of the conglomerate Koch Industries, Inc., the largest privately held...

 and James Madison Scholar with the American Legislative Exchange Council
American Legislative Exchange Council
The American Legislative Exchange Council is a politically conservative 501 non-profit Policy Organization, consisting of both state legislators and members of the private sector. ALEC's mission statement describes the organization's purpose as the advancement of free-market principles, limited...

, while conceding the Greenpeace had a right to advocate its beliefs, railed against non-profit groups having a tax-deductible 501c(3) entity that can transfer funds to a non-deductible 501 c (4) entity. "What they shouldn't be able to do is manipulate the tax system to advance their agenda," Bandow complained. Bandow endorsed PIW's claim that foundations that provided grants should verify how funds were spent.

PIW’s attack on Greenpeace was also taken up by Californian Republican Assemblyman Ray Haynes
Ray Haynes
Raymond Neal Haynes, Jr. is a Republican politician from the state of California.After Haynes graduated from University of Southern California Law School, he moved to Moreno Valley and practiced law in Riverside. He started a solo law practice in 1988.Haynes was first elected to the California...

, who urged that State Attorney-General Lockyer prosecute Greenpeace under various laws, including the state's unfair-business-practice law.

The Public Interest Watch report was also covered by Marc Levin, a lawyer and president of the American Freedom Center. After reviewing a number of incidents of damage to property attributed to the Animal Liberation Front and Earth Liberation Front, Levin sought to equate Greenpeace with ecoterrorism. "While these acts of ecoterror are clearly illegal, few people realize that the money used to commit many of these crimes may have been illegally laundered through tax-exempt organizations whose donors - individuals and nonprofit foundations unaware of the laundering - receive tax deductions," he wrote in the New Jersey Law Journal.

In May 2004 under interim Executive Director Lewis Fein, PIW were targeting Greenpeace once more claiming that they had found what they claimed was the ‘secret’ location of the Greenpeace actions warehouse in Washington, D.C. http://www.publicinterestwatch.org/press_5_19_04.htm The media release was picked up by the Washington Times.http://www.washingtontimes.com/national/20040520-104812-6679r.htm

In a letter to the editor in the Washington Times, Greenpeace’s operations manager, Bill Richardson, ridiculed PIW’s claim that the warehouse location was secret. "What extraordinary detective skills it must have taken to notice the mailbox with the name "Greenpeace" on the front of the building. Thanks for the giggle," he wrote. http://www.washtimes.com/op-ed/20040524-090325-4132r.htm

Funding

In a January 2003 letter to the IRS – as well as on its website – PIW states that it "has been established as a 501(c)4 nonprofit organization, which means contributions to PIW are not tax-deductible." Asked whether PIW had filed an anuual return with the IRS since the organisation was formed Fein said "I believe so".

On its website PIW states that "initial funding for PIW has been provided by business organizations". http://www.publicinterestwatch.org/about.htm In September 2003, the then PIW Executive Director, Mike Hardiman, rejected calls from Greenpeace that PIW disclose its funding sources. "I don't have to reveal my funding because I am not mooching off the taxpayer. Contributions to Public Interest Watch are not tax-deductible," he said. http://www.cnsnews.com/ViewNation.asp?Page=%5CNation%5Carchive%5C200309%5CNAT20030923b.html

(For more details on the Internal Revenue Service provisions for non-profits groups - including on the 501c(3) and 501c(4) provisions see The U.S. tax code and non profits).

Personnel

  • Lewis Fein, Executive Director (interim)
  • Jim McCarthy Board member
  • Michael Hardiman
    Michael Hardiman
    Michael Hardiman founded Hardiman Consulting, a public relations and lobbying company in 1999 after a seven-year stint working as a policy and communications adviser for United States Congressman Richard Pombo on endangered species and other natural resources issues...

    http://www.michaelhardiman.com founding Executive Director. Resigned from PIW in January 2004 to work in Iraq as a civilian employee of the Defense Department.


In an interview, Fein said he was unable to disclose who the members of the board of directors were. "With media inquiries when I have been called to discuss the board or the individual members themselves, many are with very well established biographies, I just need to clear it with them," he said.

Nor could Fein comment on whether the street address listed on their website was in fact a residential address and not an office at all. "It is just standard policy that I have to apply. I’m not trying to be evasive or not answer your question. It's just that if the board say its OK to answer these questions then I can get back to you with the information," he said. To date there has been no further information forthcoming by email.

Contact information

Public Interest Watch

1425 P Street, NW

Suite 706

Washington, DC 20005

http://www.publicinterestwatch.org/

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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