It most certainly was a brilliant political move. From the article linked above...
Mr. Edwards, who reported this year that he had assets of nearly $30 million, came up with a novel solution, creating a nonprofit organization with the stated mission of fighting poverty. The organization, the Center for Promise and Opportunity, raised $1.3 million in 2005, and — unlike a sister charity he created to raise scholarship money for poor students — the main beneficiary of the center’s fund-raising was Mr. Edwards himself, tax filings show.
A spokesman for Mr. Edwards defended the center yesterday as a legitimate tool against poverty.
The organization became a big part of a shadow political apparatus for Mr. Edwards after his defeat as the Democratic vice presidential nominee in 2004 and before the start of his presidential bid this time around. Its officers were members of his political staff, and it helped pay for his nearly constant travel, including to early primary states.
While Mr. Edwards said the organization’s purpose was “making the eradication of poverty the cause of this generation,” its federal filings say it financed “retreats and seminars” with foreign policy experts on Iraq and national security issues. Unlike the scholarship charity, donations to it were not tax deductible, and, significantly, it did not have to disclose its donors — as political action committees and other political fund-raising vehicles do — and there were no limits on the size of individual donations.
Mr. Edwards, a former North Carolina senator, set out to keep his political options open by promoting issues he cared about, like poverty.
“He wanted to learn, travel and be in a position to be a viable candidate,” said J. Edwin Turlington, a Raleigh lawyer who was the manager of Mr. Edward’s 2003 presidential exploratory committee. “He had the ability to raise money to fund his activities. He had a vision, and he knew it would take money.”
Mr. Edwards mixed policy and politics in a way that allowed his supporters to donate to the causes he believed in — and to the organizations he had set up. He also set up two political action committees, something commonly done by politicians thinking of running for president.
But it was his use of a tax-exempt organization to finance his travel and employ people connected to his past and current campaigns that went beyond what most other prospective candidates have done before pursuing national office. And according to experts on nonprofit foundations, Mr. Edwards pushed at the boundaries of how far such organizations can venture into the political realm. Such entities, which are regulated under Section 501C-4 of the tax code, can engage in advocacy but cannot make partisan political activities their primary purpose without risking loss of their tax-exempt status.
Because the organization is not required to disclose its donors — and the campaign declined to do so — it is not clear whether those who gave money to it did so understanding that they were supporting Mr. Edwards’s political viability as much or more than they were giving money to combat poverty.
The money paid Mr. Edwards’s expenses while he walked picket lines and met with Wall Street executives. He gave speeches, hired consultants, attacked the Bush administration and developed an online following. He led minimum-wage initiatives in five states, went frequently to Iowa, and appeared on television programs. He traveled to China, India, Brussels, Uganda and Russia, and met with Prime Minister Tony Blair of Britain and his likely successor, Gordon Brown, at 10 Downing Street.
“He was not a U.S. senator; he had no office,” said Ferrel Guillory, a political program director at the Center for the Study of the American South at the University of North Carolina. “So he set up a series of entities to finance his travel, to finance a political shop and to finance an issue shop. It all adds up to a remarkable feat of keeping a presidential candidacy alive without any of the traditional bases for it.”
Mr. Edwards, who reported this year that he had assets of nearly $30 million, came up with a novel solution, creating a nonprofit organization with the stated mission of fighting poverty. The organization, the Center for Promise and Opportunity, raised $1.3 million in 2005, and — unlike a sister charity he created to raise scholarship money for poor students — the main beneficiary of the center’s fund-raising was Mr. Edwards himself, tax filings show.
A spokesman for Mr. Edwards defended the center yesterday as a legitimate tool against poverty.
The organization became a big part of a shadow political apparatus for Mr. Edwards after his defeat as the Democratic vice presidential nominee in 2004 and before the start of his presidential bid this time around. Its officers were members of his political staff, and it helped pay for his nearly constant travel, including to early primary states.
While Mr. Edwards said the organization’s purpose was “making the eradication of poverty the cause of this generation,” its federal filings say it financed “retreats and seminars” with foreign policy experts on Iraq and national security issues. Unlike the scholarship charity, donations to it were not tax deductible, and, significantly, it did not have to disclose its donors — as political action committees and other political fund-raising vehicles do — and there were no limits on the size of individual donations.
Mr. Edwards, a former North Carolina senator, set out to keep his political options open by promoting issues he cared about, like poverty.
“He wanted to learn, travel and be in a position to be a viable candidate,” said J. Edwin Turlington, a Raleigh lawyer who was the manager of Mr. Edward’s 2003 presidential exploratory committee. “He had the ability to raise money to fund his activities. He had a vision, and he knew it would take money.”
Mr. Edwards mixed policy and politics in a way that allowed his supporters to donate to the causes he believed in — and to the organizations he had set up. He also set up two political action committees, something commonly done by politicians thinking of running for president.
But it was his use of a tax-exempt organization to finance his travel and employ people connected to his past and current campaigns that went beyond what most other prospective candidates have done before pursuing national office. And according to experts on nonprofit foundations, Mr. Edwards pushed at the boundaries of how far such organizations can venture into the political realm. Such entities, which are regulated under Section 501C-4 of the tax code, can engage in advocacy but cannot make partisan political activities their primary purpose without risking loss of their tax-exempt status.
Because the organization is not required to disclose its donors — and the campaign declined to do so — it is not clear whether those who gave money to it did so understanding that they were supporting Mr. Edwards’s political viability as much or more than they were giving money to combat poverty.
The money paid Mr. Edwards’s expenses while he walked picket lines and met with Wall Street executives. He gave speeches, hired consultants, attacked the Bush administration and developed an online following. He led minimum-wage initiatives in five states, went frequently to Iowa, and appeared on television programs. He traveled to China, India, Brussels, Uganda and Russia, and met with Prime Minister Tony Blair of Britain and his likely successor, Gordon Brown, at 10 Downing Street.
“He was not a U.S. senator; he had no office,” said Ferrel Guillory, a political program director at the Center for the Study of the American South at the University of North Carolina. “So he set up a series of entities to finance his travel, to finance a political shop and to finance an issue shop. It all adds up to a remarkable feat of keeping a presidential candidacy alive without any of the traditional bases for it.”
