A large congressional delegation is heading for Israel. During three weeks of recess, 55 Republicans and 26 Democrats will enjoy “educational” trips funded by the American Israel Education Foundation, a tax-exempt nonprofit located in the same Washington, D.C., building as the American Israel Public Affairs Committee (AIPAC). Absent AIPAC’s influence on pro-Israel campaign contributors, members of Congress would probably skip international travel this year to meet the pressing needs of their districts or to venture to places of actual importance to the U.S., such as Europe, China, or Latin America. Instead, because AIPAC is always watching members of Congress, our representatives go to Israel. But this raises an important question: Who is really behind AIPAC?
AIPAC’s last IRS list of contributors claims the organization now has only two major donors [.pdf]. As a tax-exempt 501(c)(4) organization (a category intended for civic leagues, social welfare organizations, and local associations of employees) AIPAC files an IRS Form 990. AIPAC has long structured its fiscal year end in such a way that it languidly files 2-year-old data while other nonprofits are rushing to report their previous year. Therefore, the AIPAC Form 990 listed as “year 2010″ at Guidestar.org, the officially designated website to consult such data, is actually year 2009 data [.pdf]. It also lacks the most important data in Form 990 — donor contributions.
Unlike the far more numerous nonprofit 501(c)(3) organizations, which have to continually “means test” that they have a wide public funding base in order for contributor donations to be tax-deductible, contributions to 501(c)(4) organizations such as AIPAC (which actively lobbies Congress, the executive, and numerous government agencies) are not tax-deductible. There are no contribution limits to 501 (c)(4) nonprofit groups. Individuals, foreign nationals, partnerships, associations, and other organizations may contribute whatever amount they like to a 501(c)(4).
Given AIPAC’s oversize clout in U.S. Middle East policy, it’s always informative to see just how many people are giving — and how much. When AIPAC’s founder, Isaiah Kenen, was dispatched in the early 1950s from his job at the Israeli Ministry of Foreign Affairs with orders to lobby the U.S. Congress for guns and diplomatic support as an American (rather than the U.S. State Department as an Israeli foreign agent), it was supposed to be only a six-month gig. As that operation morphed into a semi-permanent Washington institution run outside the normal purview of the Foreign Agents Registration Act office, AIPAC was forced to tap a very small base of wealthy donors (some with criminal records) while simultaneously receiving covert support from the quasi-governmental Jewish Agency in Jerusalem.
