Excerpt taken from the article.
Yum Brands, the company that owns Taco Bell and Pizza Hut, says it's the latest corporation to break ties with the American Legislative Exchange Council--a group that brings state lawmakers and corporate lobbyists together to write legislation.
Liberal groups are pressuring corporations to abandon ALEC, and a dozen companies have now dropped out.
This week, ALEC did some damage control. It said it is shutting down its task force on public safety and elections, which wrote controversial measures on voter ID, "stand your ground" and immigration reform.
But another issue remains. ALEC is a 501(c)(3) charity under the tax code. That means it's not supposed to do any "substantial" lobbying--and its donors get a tax-write-off for their contributions.
As a 501(c)(3) charity--similar to the Red Cross or a religious congregation--ALEC is allowed to do some lobbying. The rule of thumb is up to about 20 percent of the budget. But on ALEC's annual tax returns, where it asks if the organization engaged in any lobbying activities, ALEC officers check "no." Marcus Owens
, a tax attorney and the former head of the Internal Revenue Service division on tax-exempt organizations, says it seems that "what ALEC does is either lobbying, or it isn't. And it appears to be all of what ALEC does. So it's kind of...a zero-sum game here."
ALEC said it's being demonized by its ideological opponents.Click here to read the full article on questions regarding ALEC's 501(c)(3) status