[Dialogue] Conservatives Waging War on Nonprofits

[Harry Wainwright]

Published on Friday, February 16, 2007 by the Baltimore Sun
<http://www.baltimoresun.com> 

Conservatives Waging War on Nonprofits 

by Robert Koulish

 

The Bush administration's proposed 2008 budget, which threatens elimination
of 141 programs, is a reminder of another war - the one against nonprofits. 

Since 9/11, nonprofits have been financially starved, privatized out of
business and even criminalized, under the "material aid" provisions of the
Patriot Act. The Bush budget attempts to escalate this low-intensity
conflict against nonprofits. 

The seeds for the war on nonprofits lay in the 1971 "Powell Memo" penned by
corporate lawyer and future Supreme Court Justice Lewis F. Powell. The memo
instructed the U.S. Chamber of Commerce to confront nonprofit critics of the
business community, personified by Ralph Nader and the American Civil
Liberties Union. It urged forming right-wing think tanks and philanthropies,
hiring intellectuals and confronting progressives. 

The Powell Memo has been credited with providing a blueprint for
conservative dominance after the 1978 midterm elections as well as the surge
in right-wing think tanks and civic organizations, and the "K Street
Project" for conservative domination of lobbying firms. 

After 9/11, confrontational strategies against nonconservatives took an
unprecedented turn with funding cuts, financial audits and National Security
Agency surveillance of political opponents. Suddenly, policy wonks, social
workers and civil litigators were subject to investigation as if they were
suspected terrorists. 

According to The Chronicle of Philanthropy, audits of 501(c)3's engaged in
social programming have risen sharply, with Greenpeace, Advocates for Youth
and the National Endowment for the Arts enduring such politically inspired
harassment. The ACLU and the Center for Constitutional Rights report that
Greenpeace and dozens of other progressive nonprofits have also been
targeted for NSA and Pentagon spying. 

Another strategy is to deprive nonprofits of resources. Recent Bush budgets
have drastically cut such strategic initiatives as Community Development
Block Grants, Community Outreach Partnership Centers and the Community
Reinvestment Act. The evisceration of these programs has had the effect of
securing the demise of nonprofits. 

Privatization provides another means of accomplishing this. In New Orleans,
multinationals such as KBR have replaced nonprofits in delivering services.
Federal funds earmarked for emergency social programs - funds ordinarily
channeled to nonprofits - ended up in Halliburton's bank account. 

Regrettably, the nonprofit sector has adapted to these attacks by emulating
conservative strategies - and turning these strategies not on the
conservatives but on itself. 

The nonprofit sector increasingly boasts a "big box," one-size-fits-all
culture. Look no further than the Red Cross in post-Katrina New Orleans. New
York City's Foundation Center says the Red Cross, which raised perhaps $2
billion for Katrina relief despite widespread accusations of mismanagement,
"ranked as by far the largest named recipient of contributions from
foundation and corporate donors in response to hurricanes Katrina and Rita."


To its credit, the Red Cross is favored for its convenience, economy of
scale and historical legacy. Unfortunately, its economy of scale is
responsible for sucking the air from donors, crushing smaller nonprofits,
and making decisions that are not responsive to local concerns. The "big
box" phenomenon overlooks grassroots organizations with records of
responsiveness and accountability. 

Conservatives have won an enormous amount of turf in their war on
nonprofits. Progressives must take back the nonprofit sector and its mission
of caring for people. 

We need a progressive version of the Powell Memo that calls on adherents to
create a movement that goes beyond what liberal think tanks are doing. This
movement should include progressive media programming, progressive news
sources funded by foundations and philanthropists, new think tanks and
political strategies that solidify progressive values and lead to political
success at the local, state and national levels. 

Congress must be urged to reverse the damage to the nonprofit sector and
establish a new progressive agenda that supports local associational life
and a government committed to the things the private sector cannot do. 

The alternative is a nonprofit agenda that will continue to strengthen and
perpetuate the very conservative system that seeks its demise. 

Robert Koulish is a political scientist and France-Merrick professor of
service learning at Goucher College. His e-mail is rkoulish at goucher.edu.
<mailto:rkoulish at goucher.edu>  

Copyright C 2007, The Baltimore Sun 

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