A report by the minority staff of the Senate Committee on Environment and Public Works contends that left-wing environmental groups and nonprofits are exploiting loopholes in nonprofit fiscal sponsorship regulations.
Louisiana Sen. David Vitter, the ranking Republican on the committee, told reporters Wednesday that the report raises questions about tax-deductible contributions from nonprofit groups eventually funding political activity.
According to the report, billionaire environmentalists funnel large amounts of money to environmental groups to lobby on behalf of the Environmental Protection Agency.
In exchange for their lobbying efforts, the groups receive generous tax write-offs and federal grants and funding. The money is channeled through a complex, multilayered web of organizations, with little to no disclosure, making it almost impossible to track, according to the report.