Non-profit money-channeling reforms eyed

Non-profit money-channeling reforms eyed
Double fines proposed for inappropriate political activity
By Joel Seidman
Producer
NBC News
Updated: 13 minutes ago

WASHINGTON - In the wake of the Abramoff influence-peddling scandal, Sen. Chuck Grassley, R-IA, chairman of the Committee on Finance, announced several reforms today designed to improve the transparency and governance of tax-exempt groups.

Non-profits groups played a major role in Abramoff's schemes to hide funds and avoid taxes. The Finance committee is proposing to double the fines and penalties for non-profit groups engaged in inappropriate political activity.
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The documents (pdf), released last week as part of the Indian Affair's Committee's final report on the Abramoff affair, shed new light on how the disgraced lobbyist secretly routed his clients' funds through tax-exempt organizations with the knowledge and agreement of those in charge, including prominent conservative activist Grover Norquist.

Non-profit connections questioned
Among the organizations used by Abramoff was Norquist's Americans for Tax Reform. ATR was used as a "conduit" for funds that flowed from Abramoff's clients to secretly finance grass-roots lobbying campaigns. E-mails released last week show that as the money passed through Norquist's organization, he kept a small cut.
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http://www.msnbc.msn.com/id/13598408/