Whatever you think about ACORN, poor people and minorities may end up being hurt the most by Congress's sudden vendetta against the group.
As we told you, the House yesterday overwhelmingly backed a Republican measure to cut off all federal funding from ACORN, in the wake of a scandal in which employees were caught on camera advising two people posing as a pimp and a prostitute on how to break the law.
So we wondered: if those funds do end up getting cut off, how would ACORN be affected? The group's voter-registration work, aimed at low-income and minority (read: Democratic) voters, often seems to be the real cause of Republican ire. So would those efforts take a hit, potentially benefiting Republicans in future elections? Simply put, what does ACORN use federal money for?
According to Brian Kettenring, ACORN's deputy director of national operations, the group's voter-registration work is funded entirely through private sources -- primarily membership dues and foundation grants. So that work would be unaffected.
The same goes for ACORN's core operations -- the rent on its offices, for instance.
In recent years, ACORN has been getting around $2-3 million in federal funds annually, said Kettenring, stressing that this was a rough estimate. That's about 10 percent of its total budget for the year.
That money goes mostly to housing work: primarily fair housing programs, which fight housing discrimination; and foreclosure-prevention programs, which help low-income people obtain loan modifications so they don't lose their homes, and which educate people about preventing foreclosure.
Important work these days, you might say. Losing federal funds, said Kettenring, "would impact our ability to help people save their home."
In other words, ACORN itself, said Kettenring, won't be hurt much by Congress's action. It's the people who ACORN works with -- who tend to be among the neediest -- who will lose out.
To be sure, it's fair to question how effective those programs ultimately are, based on the evidence in the videos -- even granting that those employees may well not be typical. The offenders caught on camera were giving advice about taxes -- another area that, according to Kettenring, ACORN uses some federal funds for. It's understandable to be concerned about those funds being used to advise people on how to break the law.
But it's not as if the federal money will now go to a different group that does this work more effectively. So the ultimate result, of course, is less help for struggling Americans, in very difficult economic times. As members of both parties compete to express their outrage, that's worth keeping in mind.
Late Update: A different ACORN spokesman tells the Wall Street Journal that the group is considering cutting its voter-registration work. That's not because of any funding issue. Rather, it's a desire to avoid "political attacks."
Reports the Journal (sub. req.):
Acorn spokesman Kevin Whelan said the group was now deciding whether to focus on such lower-profile election activities as persuading registered voters to head to the polls. Its stated mission has been to register low-income Americans to vote."If you do registration on a large scale, you open yourselves up to political attack because it's inevitable that you will make some small mistakes," Mr. Whelan said.

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johnnydoughey
September 18, 2009 12:58 PM
nothing against ACORN specifically, but Congress is already being paid to help folks who need help[ preventing foreclosure... as well as a miriad of other problems duplicated by thousands of nonprofits set up to receive taxpayer's money.
the whole notion of a huge portion of grant funds going out to congressional constituents who will then support the reelection of those same congressmen is plain wrong. lst of all, 10% to 20% of those funds are spent doing nothing more than paying grant writers. Another protion is spent paying those who read the grants. Much of it does nothing more than line the pockets of university professors who are being paid to teach students, not suppliment their income with outside efforts.
Agencies around the nation now get much of their funding from grants, not the taxes set up for that purpose, so some of their time is now spent hiring folks to do nothing but come up with good and bad ideas to use grant money for instead of their normal duties.
Many of these nonprofits have grown so huge that their only purpose is to ensure they continue to get more money so they can keep their employees working... not fulfill their mission statement which actually is suppose to serve the public good.
ACORN is just one of those nonprofits which diverts funding from needed services and uses them for their own purpose. The DARE program, a 2 BILLION dollar fiasco is another. A few years ago the DARE program admitted they did absolutely no good... their program was a failure... but they would try doing something else... and they now receive more funding than before. Meanwhile, Big Brothers and Sisters, which has been around for many generations, is a proven mentoring program and is barely sustainable because funding is instead going to civil service employees running around in police cars with $30,000 paint jobs teaching our youth more about how to use drugs.
CRAZY!
But then again, the purpose of these billions of dollars never has been to help the nation solve social problems but rather to make sure those in power can pay off folks who will ensure their reelection... IMHO
BTW: BOTH mobs (Republican AND Democrat) are equal culprits, in case you actually think I'm picking on the democrats...
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Kuyleh
September 18, 2009 3:56 PM in reply to johnnydoughey
One thing you have to take into consideration, though, is that ACORN did this before the Housing bubble and subsequent bailout. And they'll probably be doing it after Congress has moved to the next huge issue it's going to "fix." So it might not be the best thing to cut off all funding. There are people out there that do need this help.
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Lalo35adm
September 18, 2009 1:29 PM
Pretty lame.
"Let's leave this racket alone, for the sake of the little people".
And I won't even mention a DOZEN careful caveats liberally sprinkled all over this post.
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ericf
September 18, 2009 2:47 PM
The way to give conservatives a "hoist by your own petard" moment is to say that now that there isn't a non-profit doing the housing work, we'll need to set up a government program.
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Campesino
September 18, 2009 3:45 PM
Oh, poor little ACORN. The BigGovernment videos have just focused attention on a sleazy organization.
http://www.nola.com/politics/index.ssf/2009/09/state_federal_officials_cut_of.html
Louisiana Attorney General Buddy Caldwell said his investigation started after he received a complaint from former members of ACORN's board of directors claiming that the group and its subsidiaries were violating state employee tax law, obstructing justice and violating the Employee Retirement Security Act, according to subpoenas issued last month by the attorney general's office.
The subpoenas state 57 liens have been filed against ACORN and affiliates by the U.S. Treasury Department and the Internal Revenue Service for failure to properly pay withholding and unemployment taxes. The total amounts due were $1.12 million.
The Louisiana Department of Revenue also has filed two liens against ACORN for failure to pay withholding taxes, amounting to about $333,000.
Caldwell said the money for ACORN's state and federal withholding taxes "went somewhere, " and his office is trying to find out what happened.
ACORN officials in New Orleans could not be reached for comment Thursday.
The subpoenas, issued in August to ACORN International in New Orleans and its bank, seek documents related to a wide range of financial records from 1998 to present, including employee wage income reports and internal memos. It also seeks documents related to Acorn International President Wade Rathke and his brother Dale Rathke, who kept the group's books.
Caldwell said ACORN officials are cooperating with the investigation.
In June, after a request by Jindal, Caldwell's office made inquiries into alleged embezzlement within ACORN 10 years ago. The group last year dealt with an internal dispute and a lawsuit involving accusations that Dale Rathke made nearly $1 million in improper credit card charges in 1999 and 2000. The brother and a donor repaid the money.
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Campesino
September 18, 2009 3:49 PM
Embezzelers are us
http://blog.nola.com/tpmoney/2008/10/acorn_dirty_laundry_to_be_aire.html
ACORN dirty laundry to be aired
Now ACORN, the venerable 38-year-old social justice organization, faces the fight of its life over an embezzlement scandal and leadership crisis that hits Orleans Parish Civil District Court today at 9 a.m.
In late May, the group's board was shocked to learn that the brother of ACORN founder Wade Rathke had stolen nearly $1 million from the organization and its affiliates eight years ago.
"It was like a bomb. Things just went bonkers, " said Bertha Lewis, director of the group's New York office, who has taken over Rathke's duties on an interim basis. "Nothing like that had ever happened before."
The news has attracted national scrutiny of ACORN, which was founded in Arkansas in 1970 and maintains a strong political presence in New York, New Orleans and Washington. In fact, early versions of the Wall Street bailout under consideration by Congress called for the routing of some profits from the sale of troubled assets to activist groups like ACORN. That provision emerged as an early sticking point in the plan's passage, in part because of the current scandal.
The imbroglio dates to 1999 and 2000, when the nonprofit was calling for local increases in the minimum wage and trying to unionize hospitality workers in New Orleans. Dale Rathke, the founder's brother, was serving as comptroller through a related organization called Citizens Consulting Inc., and Lewis said he abused his authority by using the group's credit cards to buy things that were unrelated to its work.
A co-worker alerted Wade Rathke, who consulted with a few of ACORN's national leaders. When the group's longtime accountants at the New Orleans firm Duplantier, Hrapmann Hogan & Maher conducted an audit and found that $948,507 had been stolen, the Rathke family set up a formal repayment schedule. Dale Rathke was removed as comptroller at CCI, but he stayed on as a consultant at ACORN.
Lewis said the 51-member board did not know about the apparent theft until an ACORN financial supporter heard about it this spring and raised questions about whether its contributions had been misappropriated.
National board members were furious at the disclosure, and they have asked for a full airing of how the money was stolen and why it was kept secret from group for so long.
Dale Rathke resigned in early June. Wade Rathke also resigned from his position as chief organizer but remains with an affiliated group, New Orleans-based ACORN International, which does human rights work overseas.
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JefferyK
September 18, 2009 4:34 PM
Well, that's the objective of harassing ACORN, isn't it? Preventing ACORN from helping the poor, most of whom are not white?
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hawaiian
September 18, 2009 5:05 PM
"Funded Prostitution Zone"
I saw this on a street corner in Los Angeles, near the airport.
Is this part of the Stimulis package? Oh wait, maybe it is NEA art?
Obama Change We can believe in..
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Veneita
September 20, 2009 8:24 PM
Is it just me or does this ACORN "sting" stink? Pimps and ho's no longer dress in the fashion of the "actors" in this video and I'm sure that African Americans aren't so stupid that they would be duped by these folks coming in to get "business" help. You can't be a pimp and be stupid. Therefore my conclusion is that the ACORN employees were not folks who were committed to this the principles of the organization and therefore were willing to accept conservative pimp money to make this hidden camera "expose." That being said, ACORN management has been too cavalier in their button-up approach and have given people who were either venal, or willing to be corrupted by venal individuals jobs in their organization. So they've lost their financial support because of it when they should have remembered, as Tavis Smiley has said, "all my skinfolk ain't my kinfolk."
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lousgirl84
September 21, 2009 10:47 AM in reply to Veneita
No its not you and it does stink like real bad poop to me too. Acorn has always been a target of the right wing. Any organization that helps the poor is demonized.
This was a set up and a sting. Were there some quesitonable employees at Acorn yes, but was this a organization wide problem no. We all know what happened here. Let's be honest.
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Clavis
September 21, 2009 10:32 AM
I see no reason to give Republicans and conservatives the benefit of a doubt on this. They only engage in investigations and entrapment and gotcha politics when they're out of power. They did everything from complain about the politicization of Socks the Cat's Xmas card mailing list to claiming (falsely) that Clinton had stolen all the "W"s on his way out of the White House.
I don't care how corrupt ACORN is -- that's not why right-wingers are going after them. They will defame and smear any organization, any individual, in their ruthless pursuit of power. They live for character assassination -- you can see how much they love personal destruction in their ads and their rhetoric and how they turn "liberal" and Nancy Pelosi into demons...
If I right-winger came up to me and offered me a cookie because he'd accidentally baked too many and didn't want to throw them away, I would have NO CHOICE but to assume that they had an ulterior motive. I wouldn't eat that cookie.
As right-wingers might say, I don't want to *have* to assume the worst about their motivations... and unlike a right-winger, I don't have to assume anything. They prove their character every day. All I have to do is not be a sucker and roll over for it the way the DC Dems constantly are.
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