The Chair of the Revenue Committee released its report on LR 384. It was introduced in 2024 in order to begin inquiring into the involvement of nonprofits – particularly private foundations and 501(c)(3) organizations – in advocacy/lobbying activities that impact Nebraska’s democratic processes.
The report is especially concerned with the advocacy/lobbying activities of Stand for Schools, OpenSky Policy Institute, Nebraska Civic Engagement Table, and Civic Nebraska, as well as these organizations’ intimate connections to the Sherwood and Weitz Family foundations. While the Sherwood Foundation claims that it does not fund “lobbying or [attempts] to influence legislation”, the amount in tax-exempt funds given in the form of grants by these foundations, which have made their way into advocacy/lobbying activities is potentially in the millions of dollars. The results are twofold: (1) an unfortunate misuse of tax benefits intended to encourage genuine charitable activities and (2) a loss of revenue to the State of Nebraska.
After extensive research into the matter, the Committee has drawn several conclusions:
- 501(c)(3) organizations funded by Sherwood and Weitz Family foundations, such as Stand for Schools, OpenSky Policy Institute, and Nebraska Civic Engagement Table, are engaged in advocacy/lobbying to attempt to influence legislation.
- Stand for Schools is substantially involved in advocacy/lobbying, such that they should be classified as an ‘action organization’, which is incompatible with the organization’s 501(c)(3) status. Moreover, the activities of OpenSky Policy Institute raise serious questions around the extent of the organization’s involvement in advocacy/lobbying.
- The Sherwood and Weitz Family foundations work through the aforementioned organizations to influence public policy with nontaxable funds intended for charitable purposes.
Despite the clear and singular influence that private foundations of a few Nebraska families have over public policy in Nebraska through the methods described in this report, the activities of these organizations, as well as those they fund and influence, are underreported and often pass unnoticed.