Senator Grassley's Review of Six Tax-Exempt Ministries Charlene
GRASSLEY 1 Congressional Oversight of the Nonprofit Sector: Senator Grassley’s Review of Six Tax-Exempt Ministries Charlene D. Orchard University of Utah * Draft Date: March 22, 2013. Abstract In a 2011 press release, Senator Charles Grassley stated, “The tax-exempt sector is so big that from time to time, certain practices draw public concern. My goal is to help improve accountability and good governance so tax-exempt groups maintain public confidence in their operations.” Since his election to the Senate in 1980, the Iowa Republican has developed a reputation for being a “good government guy,” and one instance of his work in this area was a multi-year review of six tax-exempt ministries. This paper discusses challenges faced in providing oversight of the nonprofit sector generally and of churches in particular. The case of Grassley’s investigation of tax-exempt ministries reveals the promise but mostly the perils of such a crusade, especially if reelection is a goal. Key Words: nonprofit organizations, nonprofit sector, governance, accountability, the electoral connection GRASSLEY 2 Congressional Oversight of the Nonprofit Sector: Senator Grassley’s Review of Six Tax-Exempt Ministries Private jets, $350,000 Bentleys, multiple vacation homes, Rolls Royces, cosmetic surgeries, a $23,000 marble top for a commode, $20 million headquarters, and multi-million dollar mansions for CEOs. These are not characteristics one would expect of tax-exempt, nonprofit organizations and certainly not of religious institutions. Yet reports of lavish lifestyles among leaders of some churches have come into Senator Charles Grassley’s office over the years. As a leading member and former chair of the Senate Finance Committee, Grassley investigated nonprofits such as the Nature Conservancy, the United Way, and the Red Cross, and has been the go-to member of congress for all things nonprofit and tax-exempt.
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