Obama’s Secret Transition Team Can Take Unlimited Donations, Doesn’t Have To Disclose Anything

This is an unprecedented move by Obama, and it’s (perhaps not surprisingly giving the fawning reporting that surrounds everything he does) not being reported by the media.

Lost amid all of the jubilation of the Obama victory was the announcement by the Obama transition team that it had set up a separate transition program beyond the one that is paid for by the American taxpayer. Called the “Obama/Biden Transition Project,” it is a 501(c)4 tax-exempt organization, with no limits on the contributions it can receive and no requirements to divulge the names of individuals or organizations that give it money.
Traditionally, the victorious campaign has set up inaugural funds, as well as funds to deal with legal costs and other expenses to close down the campaign. Others have set up quasi-corporate offices to deal with transition issues, such as in 2000, when, with the election in doubt, the Bush-Cheney team set up a private transition office in McLean, Virginia, covering the costs from campaign contributions and other fundraising. Ultimately, the federal government, headed by the Government Services Administration, covers the cost of the transition staff, providing it with office space and all equipment.
No one is certain that any political organization has ever set up a tax-exempt entity that would be shrouded in such secrecy, particularly when Obama claimed he would be more transparent about the way things were done.
“To my knowledge, it’s never been done, and people should be asking why the Obama people chose to do it this way,” says a longtime Washington Republican, who has been involved in transitions for the Reagan and Bush campaign teams.

From a campaign that accepted an unprecedented amount of money in small-dollar, non-disclosed contributions and was plagued by evidence of fraudulent fund raising to a President-elect who sets up secretive fund raising organization that doesn’t have to disclose anything. I don’t think anyone will ever accuse Barack Obama of being an “open government” candidate.
People should be asking questions about this. But the people whose job it is to ask those questions aren’t. Because they’re too busy patting themselves on the back for getting Obama elected.
(via Wing Chung Geologist)

Tags:


«
»
  • http://Array 2Hotel9

    I am still waiting for him to disclose where all his campaign money came from. They have disclosed the sources of only a tiny fraction so far. Not to mention the sweetheart, bargain basement deals he got from the networks for those 30 minute primetime commercials he ran.

  • jpe

    Some links for the Bush-Cheney Presidential Transition Foundation Inc: here (GWU: “By mid-December about a hundred staff and volunteers were working out of the McLean offices. The transition had raised $3 million in private funds”), and here (CNN: “Bush team forms tax-exempt organization to fund transition”).

    As CNN notes, it was a 501(c)(4), and the identities of the donors aren’t open to the public. I recall that in 2000, Clinton signed a law that provides a lot of funds to the incoming president. It could be that the (c)(4) structure is just a convenient way to centralize functions and streamline administration.

  • jpe

    It’s just that Obama’s the only one who has set it up so that contributions to it fall outside federal transparency laws.

    Bush’s did. I’d think that all of them would, since transparency in donors isn’t a hallmark of exempt organizations.

    Neiman: no disagreement here. It’s pretty silly if accurately reported.

  • richNJ

    “honest leadership, open Government” This is one scary guy. Whoever is pulling his strings most be having a great laugh.

  • Puzzlefeet

    Rob lies! Obama’s transition team is not a secret. Just google it and you will find out who is on his transition team. Rob lies!

  • jpe

    I just found the Bush-Cheney Transition Foundation’s site via the Wayback Machine (here). I can’t seem to access anything other than the front page, but the front page does say this: “In keeping with Governor Bush’s ‘full disclosure’ policy, contributions will be posted online.”

    So it looks like they may have done disclosures. Y’know, it’s stuff like that made me almost vote for Bush in ’00. At a minimum, I wasn’t worried that he’d be a bad president, and figured he might do quite a bit of good. As has been noted quite a bit among conservatives lately, Bush had a great opportunity, and totally blew it. I’m obviously no conservative, but I have the same intuition. Heck, I almost voted for him in ’00.

    Well, at any rate, looks like you win this one.

  • Puzzlefeet

    Brucie, right back atcha. Read Rob’s headline!

  • http://www.valleydeals.com/cgi-bin/board2/YaBB.pl Kevin

    Welcome to the way things are done by the Daley machine.

  • 2Hotel9

    So, you can not defend the secret fund raising and call Rob a liar, yet again.

    Perhaps you would like to explain how private individuals are allowed to use a webpage at a .gov address to raise money? Lets us hear it, puzz.

  • http://massbackwards.blogspot.com/ Bruce

    Puzzlefeet, you have the reading comprehension level of damp sawdust.

    …no requirements to divulge the names of individuals or organizations that give it money.

  • jpe

    Sorry for all these comments, first.

    That said, it looks like the AmSpectator did what I did: they saw the Obama (or Bush) transition teams are starting 501(c)(4)s, know that those orgs don’t require disclosure, and then noted that the donations would be secret.

    Where both I and the Am Spectator were wrong is that, as the CNN article from ’00 notes, “Presidential Transition Act of 1963…requires full public disclosure of the private donations.”

  • Seth

    Not sure if you liked Reagan, or think he had a “secret” transition fund, but turns out he did.

    “Reagan in 1980 raised $1.25 million for his transition activities without reporting where he got or spent the money”

    http://www.politico.com/news/stories/1108/15439.html

  • jpe

    No problem. It’s this weird OCD thing: if there’s something legal-y, I can’t rest until I get to the bottom of it. Funny trait in someone that isn’t a practicing lawyer, but there it is.

    The upshot, though, of all this is that Obama must disclose private donations if they take public money authorized by the law.

    As far as I can tell, the Spectator is just reporting that Obama set up a (c)(4), and knows nothing else. I checked out the Obama transition site, and they’re not taking private donations period. So it looks to me like the Spectator missed the ball on this one.

  • http://ndgoon.blogspot.com/ goon

    Rabid that is funny…

  • jpe

    (just saw the Office of President Elect thing. Yeah, that’s goofy.)

  • 2Hotel9

    Oh, yea, we all know that.

    Hey, its been many a year since I lived in Atlanta, and your report on Fulton County brings back all kinds of memories. All of them exactly as you described. Although, I do miss Josea Williams, one of the few honest men in Atlanta politics.

  • 2Hotel9

    And spark supports his boy Barri stealing as much as he can. He thinks his welfare payment will go up accordingly.

  • http://www.rabidamerican.net/ Rabid American

    Change is a-comin’……….

    To them, it’s of no concern to the “Little People”….

  • jpe

    The Bush administration set up the exact same organization in December ’00. It was the Bush-Cheney Presidential Transition Foundation Inc.

  • Neiman

    jpe: That is not the question I asked at all. It is the idea that there is or can exist an entity know as The Office of the President Elect, a Transition Committe or office sure, but an official Office of the President Elect? Coem on, what an ego this guy has!

  • di butler

    Hotel,

    Don’t hold you breath, never going to happen.

  • http://sayanythingblog.com robport

    Bush’s did.

    Can you prove that? As far as I know it wasn’t, but I’m willing to admit I’m wrong if you can prove it.

  • http://sayanythingblog.com robport

    I was pretty confident that Bush/Cheney did full disclosure.

    Thanks for looking it up.

  • http://sayanythingblog.com/readers/author/sparkiearbuckle sayanything-81

    Rob wants regulation, an end to secrecy!

    Hanky?

  • http://sayanythingblog.com robport

    Sure, all Presidents set up foundations to facilitate inauguration expenses and such.

    It’s just that Obama’s the only one who has set it up so that contributions to it fall outside federal transparency laws.

Create a SAB Readerblog


Recent Comments

Powered by Disqus

Blog Advice and Support
Installs and Upgrades
Theme Modifications
Custom Plugins
Theme Design
Conversions and Relocations
Hacked Site Recovery
Mobile Apps Development