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Simkins PAC forfeits illegal contribution

Friday, April 3, 2009
(Updated 7:17 am)

— A political action committee has forfeited a $5,000 donation from a nonprofit after the State Board of Elections ruled it violated the law.

The George C. Simkins Jr. Memorial political action committee, or PAC, accepted the donation last fall from Action Greensboro to aid its efforts to support Greensboro’s bond referendums. But as a 501(c)3 nonprofit, Action Greensboro is prohibited from donating to North Carolina political committees or candidates, said Adam Ragan, a state campaign official.

The PAC has turned the money over to the N.C. Civil Penalty and Forfeiture Fund.

“We weren’t trying to hide anything. Somebody complained, so we just did what was right,” said Steve Bowden, co-chairman of the PAC.

The donation was investigated after Keith Brown, writer of the blog Triad Watch, questioned it in November.

Residents were asked to approve four bond measures on the ballot last fall. Action Greensboro, a nonprofit economic development supporter, led the effort to get the bonds passed, donating $64,500 in cash and in-kind contributions to support the bond campaign committee.

In October, Action Greensboro gave $5,000 to the Simkins PAC, an African American committee that endorses candidates through direct mailings and other means.

North Carolina election law limits the amount of money that can be donated to candidates or political committees to $4,000. That rule, and the rule about nonprofits donating, do not apply to the bond committees, Ragan said.

Bowden said the money was used to help support the bonds. He said the PAC did not know the nonprofit was prohibited from donating.

April Harris, director of Action Greensboro, said the organization referred to federal tax laws when it considered donating to the PAC.

She said Action Greensboro is looking into the state law and Ragan’s conclusion about the donation.

Ragan and Guilford County Board of Elections officials said they were unaware of the PAC or Action Greensboro being cited for previous improper donations.

The Simkins PAC has been scolded by the state

in the past for not turning in its campaign reports on time.

Brown uncovered the donation while doing research for his blog. He has pointed out where politicians or committees have provided incomplete or inaccurate information.

“These are North Carolina state laws that need to be followed,” Brown said. “In Guilford County our politicians are pathetic on their reporting. It’s time to clean up.”


Contact Amanda Lehmert at 373-7075 or amanda.lehmert@news-record.com

Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

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Katbyrd

April 3, 2009 - 6:21 am EDT

"Bowden said the money was used to help support the bonds. He said the PAC did not know the nonprofit was prohibited from donating." I have to throw the flag on this comment. Steve Bowden is an attorney. What does this comment say about his skills as an attorney and knowledge of the law? I'm am sick and tired of these "groups" denying knowing something is wrong when they get caught.

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