Chamber of Commerce Accused of Using Foundation Money for Politics

A union-backed watchdog group has filed a complaint with the Internal Revenue Service charging that the U.S. Chamber of Commerce, which has emerged as a leading opponent of President Obama’s domestic policies, channeled donations from a charitable foundation into its political work, reports The New York Times.

U.S. Chamber Watch, a group formed four months ago with financial support from labor unions, alleges that some $18-million in loans and grants from the Starr Foundation to a charitable affiliate of the Chamber of Commerce were mixed with the chamber’s own funds and used for political activity. The Starr Foundation is led by Maurice R. Greenberg, former head of the insurance giant A.I.G.

Stan Harrell, the chamber’s chief financial officer, said the Starr Foundation’s grants and loans complied with all relevant tax laws and that Chamber Watch’s complaint, filed Friday, was politically motivated.

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