ALEC Corporations

ALEC makes old-fashioned lobbying obsolete. Once legislators return to their state with corporate-sponsored ALEC legislation in hand, the legislators themselves become "super-lobbyists" for ALEC's corporate agenda, cutting out the middleman. Yet ALEC enjoys a 501(c)(3) classification, which allows it to keep its tax-exempt status while accepting gr... ants from foundations, corporations, and other donors. In our view, the activities that corporate members engage in should be considered lobbying by the IRS, and the entity that facilitates that effort to influence state law, ALEC, should also be considered to be engaged predominantly in lobby-related activities, not simply "educational" activities. Re-classifying ALEC as primarily engaged in lobbying facilitation would mean that donations to it would not count as tax-deductible for businesses and foundations. Common Cause filed a complaint with the IRS on July 14, 2011, setting forth evidence supporting its complaint that ALEC is engaged in lobbying despite its claims to do no lobbying.Read More