DC FAQs
By WSCA Staff
Why can’t the WSCA fund the Trust? I thought part of my dues went to the Trust?
How does the Trust use its funds?
The WSCA, like most professional associations, is a nonprofit entity organized under section 501(c)(6) of the Internal Revenue Code. By having that filing status, we are a tax-exempt entity, and so we are subject to certain limitations on our political activities. Like any individual, corporation, or other group, we’re free to express political opinions and to support political candidates. However, there is a limit to how much of our funding that is derived from our members in the form of dues can be used to support political activities. You’ve probably seen the declaration on the bottom of your invoices that says up to 10% of your dues go toward legislative advocacy. That portion of your dues is used to pay a portion of the salary of our full-time lobbyist. But federal law says we can’t use any more than that for legislative advocacy. It can’t be spent directly or indirectly by us on legislative advocacy, so that also precludes us from giving any Association money to the Trust.
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Although the Trust is its own separate legal entity, it is best to think of it as a bank account. It’s an account from which campaign contributions can be made directly to candidates on behalf of the Association. Because they’re separate entities, it’s not officially “from” the Association, but the contributions are made at its direction. Trust funds can also be used to advertise political issues and positions, although the Trust generally doesn’t do that—and of late, doesn’t have the resources to do that. So, when you donate to the Trust, you’re helping to fund the account that funds our campaign contributions. Those contributions are absolutely vital to our success in the legislative session, as lawmakers give more time and attention to those interest groups that have supported their campaigns. (It seems undemocratic, and it is, but it’s the way the system works. Good, bad, or otherwise, it’s how the system works and no matter how much we’d like it to be different, it’s not.)
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