Potential Cabinet Secretary Faces Questions About Charity Travel

Former Sen. Tom Daschle, whom President Obama has nominated to become secretary of health and human services, will probably have to respond to inquiries from the Senate Finance Committee today over whether he inappropriately accepted gifts from charities he was involved with, reports The Wall Street Journal.

A Finance Committee memo distributed to members on Friday said, “Committee staff still is reviewing whether travel and entertainment services provided to the Daschles by EduCap Inc., Catherine B. Reynolds Foundation, Academy Achievement, and Loan to Learn should be reported as income,” the newspaper said.

According to those familiar with the case, the travel in question involves two flights that Mr. Daschle took aboard a corporate jet belonging to EduCap to vacation destinations to meet with members of the board of directors of the Academy of Achievement, a related charity. Federal tax law forbids individuals involved with a charity to accept anything of personal value from the charity that isn’t related to the organization’s main mission.

A spokesman for Mr. Daschle said he did not violate any tax rules in connection with the trips.

The newspaper said the real issue appears to be the tax-exempt status of EduCap, a student-loan lender. The newspaper did not receive a comment from the organizers of the charity on that concern.