Association management: there is always room for honest leadership to speak out.(OPINION)

Much of the sniping between the presumptive presidential nominees on the campaign trail in recent weeks illustrates a perception problem in America today when it comes to lobbying--that most ignoble of professions, now frequently blamed for all things untoward on Capitol Hill.

Both John McCain and Barack Obama take turns discrediting each other for connections to lobbyists and debating who is more likely to change a culture of undue influence that pervades politics in the nation's capital. Obama has repeatedly touted that he does not accept money from federal lobbyists or special interest political action committees (PACs), though he does count former lobbyists among his advisors. McCain has long railed against special interests in Washington, D.C., as well, and has been purging his staff of lobbyists lately to avoid any appearances of impropriety that could be used against him by the Obama camp.

This is of course all residual trickledown from the influence-peddling scandal involving the discredited lobbyist Jack Abramoff and the investigation that revealed ties to numerous administration and Congressional officials. The Abramoff scandal has led to prosecutions and resignations of more than a few individuals in Congress and the administration, and rightfully outraged the public when the connections were revealed in the press.

The now infamous golf trips to Scotland paid for and arranged by Abramoff called to mind the caricature of the fat-cat lobbyist with deep pockets and shallow morals, out to corrupt the nation's lawmakers on behalf of a secret list of rich corporate clients. It also meant Congress had to do something to clean up its image.

Since the Abramoff trial, Congress has passed the Honest Leadership and Open Government Act of 2007 (HLOGA) that, among other things, bans members of Congress and staffers from accepting any gifts from lobbyists and introduced a number of new disclosures and rules for lobbyists and congressional offices to follow. Prompted by the scandals in Washington, many state legislatures have passed lobbying and ethics reform legislation as well.

This era of reform is justifiable, if the end result is a restored public faith in the political process. But the continued treatment of lobbyists as whipping boys and girls is not helping the nation enact better legislation and it will not end the practice of lobbying--which is a constitutionally-protected right. Aside from the bad actors, lobbying is not an unscrupulous profession. It is a necessary one.

In fact, now is the time, more than ever, for association and other tax-exempt leaders to step up their advocacy efforts to the extent that the law allows, for today's legislative and regulatory environment holds more challenges and scrutiny of nonprofit activities than ever before.

The current environment in Washington, D.C., is rife with implications for associations and other types of tax-exempt organizations. There is a persistent concern about the governance of nonprofit groups, an increasing demand for transparency when it comes to executive compensation and other information, and an occasional tendency to pigeonhole associations as merely "special interest" groups that happen to enjoy a favored tax status.

Some of this scrutiny is warranted, as is the case when abuse is uncovered. But most associations and nonprofit organizations operate with the highest degree of integrity and make positive economic and social contributions in states across the United States. We need to speak up when the scrutiny of our profession threatens to interrupt the ability of our organizations to carry out their vital missions.

The push for more oversight and more authority to take nonprofit groups to task has the industry of associations, collectively, on the defensive, and coping with the increasing administrative burden that comes with more scrutiny and more disclosure.

Last year, the Internal Revenue Service (IRS) initiated the first major rewrite in nearly 30 years of the Form 990 return filed by most tax-exempt organizations. And while the American Society of Association Executives (ASAE) and others have been complimentary of the IRS's efforts to listen to and incorporate feedback from the exempt sector in drafting the new form, practitioners are estimating that significantly more time will be needed to file.

The new form, with the input of the filing community, is improved from earlier drafts, but still delves into areas that are not only concerning to many of ASAE members, but are duplicative with other filings.

For example, the IRS asks a number of questions on the new form about governance, which many would say is an area outside the agency's statutory authority to enforce the nation's tax laws. A separate schedule for political and lobbying activities is also duplicative with organizations' filings with the Federal Election Commission (FEC).

More duplicative reporting by nonprofits will be required if Congress adopts a major legislative proposal to expand the oversight of the Federal Trade Commission (FTC) to include section 501(c)(3) charities and foundations--groups that do not engage in "trade" as defined by common usage and that, in fact, already answer to the IRS as to whether their activities are related to their exempt purpose. Projecting how the commission would craft rules and regulations for the diverse organizations that fall under the 501(c)(3) classification--a sector it is admittedly unfamiliar with--is worrisome, to say the least.

ASAE's role is to keep watch over the legislative and regulatory landscape, and identify the potential consequences of various proposals for our community. It is sometimes unavoidable that legislative or regulatory policy carries consequences for our members--some of it unintended--but it is ASAE's responsibility to speak out when the situation warrants. Our voice is louder when it's joined by the collective association community.

Policymakers need to understand the role that associations and other tax-exempt organizations play nationally and closer to home in their own states and districts. They should also know how our organizations operate, and how bad policy hampers us from carrying out our vital missions.

We also need to know the rules, and make sure we play by the book. President Harry Truman once said, "Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better."

Let's be honest leaders for the association and nonprofit communities, and let's make sure the unique expertise available through our organizations and our members is held in high regard when it comes to the drafting of new laws and policies in this country.

JOHN H. GRAHAM IV, CAE

John H. Graham IV, CAE, is the president and CEO of the American Society of Association Executives (ASAE), whose 23,000 members manage leading trade associations, individual membership societies, and voluntary organizations across the United States and in 50 countries around the globe. ASAE also represents industry partners and consultants to the association community.

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