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Research reveals corporations use charitable donations to influence politicians, disguising lobbying as philanthropy. This tax-exempt activity potentially amounts to billions in politically motivated giving, raising concerns about transparency and democratic fairness.
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December 3, 2018 0 Michael S. Goldberg What’s wrong with this scenario? In 2014, a charitable foundation established by the agriculture company Monsanto gave $1,350 to a nonprofit arm of the University of Northern Iowa, whose trustees included Iowa Republican Senator Charles Grassley. Monsanto was one of 11 corporate foundations that gave to charities with ties to Grassley. This sounds like a win-win-win. A senator volunteers for charities. Corporate foundations give to those charities. The charities help those in need. But corporate philanthropy is not as straightforward—or as philanthropic—as it might seem, says Boston University economist Raymond Fisman. In his 2018 study, “Tax-Exempt Lobbying: Corporate Philanthropy as a Tool for Political Influence” (circulated as a National Bureau of Economic Research working paper), Fisman and three colleagues investigated the business-oriented motivations of philanthropic foundations established by companies. They looked specifically at Fortune...
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