When is a corporation not a corporation? When it's giving money to Pennsylvania politicians who aren't allowed to take money from corporations, apparently.
Take United Homes Builder LLC, which donated $10,000 to City Council President Darrell Clarke on May 16, 2011 (the day before Clarke's barely challenged victory in the primary election).
According to Pennsylvania Department of State's "Frequently Asked Questions," the donation might appear to be, well, patently illegal: Question — "May a corporation ... make a contribution to a candidate or political committee?" Answer — "No."
Strange, given the United Homes Builder case — or that of First Republic Abstract LLC, a Norristown company that donated $80,000 to the Philadelphia Democratic Campaign Committee in May; or The Tasty Braons LLC, of Ocean City, N.J., which gave $25,000 to the campaign of judge candidate Giovanni Campbell; or Mercator Advisors LLC, which donated $8,000 to Mayor Michael Nutter's re-election campaign.
Turns out, though, there's a loophole: Section 1633, Paragraph D — a little clause that, after emphasizing that corporations can't make contributions, says, "A limited liability company that makes a contribution" — huh? — "shall affirm to the recipient candidate or committee that ... the contribution from the limited liability company does not contain corporate funds." So, a corporation can make a contribution, as long as it's personal money — apparently without disclosing the person(s?) whose money it is.
But if the donation is personal, shouldn't it be subject to the city's $2,600 limit on individual campaign contributions? Or could there be multiple anonymous individuals making donations in the name of the corporation? Most importantly, who's checking?
No one, apparently. City Commissioners finance specialist Tim Dowling says he tells campaigns to collect the "affirmations" that the donations are not corporate money — but they need not be included in campaign finance reports.
