The Kansas Meadowlark

June 30, 2004


Non-Profit Abuse in Kansas?  
Steve Cloud Registered 
Two New Non-Profit Corporations 
at His Home Address


The Washington Post reported last week 

Charities' Tax Breaks Scrutinized
Widespread Abuses Prompt Congress to Rethink Laws

Such abuse is also present in the Kansas City area but is getting no attention from the local press.

The Greater Kansas City Chamber of Commerce uses the words "social welfare" to describe anything they want to do politically, and as a 501c(6), they appear to be using Missouri 501c(4) non-profits to hide political money related to the bistate tax issue in both 2002 and now in 2004.  What did Kansas politics have to do with the bistate issue in 2002?

The Greater Kansas City Chamber's PAC (with money obtained from the Missouri 501c(4) non-profit,  Bistate Arts and Sports Corporation) sent $20,000 to Steve Cloud in 2002 for his Johnson County Republicans for Education PAC.  Apparently "social welfare" on the Missouri side matches well with "education" on the Kansas side.  But isn't this mostly about money, power, influence, and politics, and little about "social welfare" or education?  Haven't tax exempt money and organizations been hijacked for purely political purposes?

Cloud used this $20,000 from Missouri to endorse State Rep and other candidates, and the same Republican precinct committees that his local GOP Club Committee was endorsing.  How many knew that Cloud was behind the common endorsements for precinct committees from the JCRE PAC and the GOP Club?  Cloud combined the $20,000 from Missouri with $10,000 from his wife to help his JCRE PAC.  Over half the money to JCRE PAC came from Missouri or Cloud's wife in the reporting periods prior to the elections in 2002.  Wasn't Cloud buying his position as Republican National Committeeman for Kansas?

Now in 2004 some of the same players, and some new players, are appearing on the political landscape.  The Meadowlark has previous reported about these 2004 political entities:

  • Bistate Arts and Sports Corporation, a Missouri non-profit

  • Bistate Arts and Sports Corporation, a Kansas non-profit

  • Bistate Arts and Sports Committee, a Kansas PAC and/or committee

  • Missouri Bistate Arts and Sports Committee, unknown legal status

According to documents filed with the IRS, Steve Cloud on February 17, 2004 formed two new non-profit corporations:

The stated purposes of both new non-profits according to the IRS 8871 forms is a bit puzzling:

TO CONDUCT ALL LAWFUL ACTIVITIES PERMITTED UNDER KANSAS AND FEDERAL LAW TO PROMOTE PUBLIC AWARENESS RELATED TO CERTAIN POLITICAL ACTIVITIES.

What does this mean?  Obey the laws and participate in politics?

According to the Kansas Secretary of State's Office, a PAC was started in October 2003 with the name, Responsible Republicans for Kansas.  

Responsible Republicans for Kansas PAC

  • Chair:  Kim Wells, 4412 Nicklaus Dr, Lawrence 66047

  • Treasurer:  Jack Ranson, 9324 W. Douglas Ave, Wichita 66047

So what possible connections are there between Cloud's new Responsible Republicans for Kansas non-profit corporation, and the existing Responsible Republicans for Kansas PAC? 

According to the Lawrence Journal-World (April 1, 2004):

Kim Wells [is], a former state Republican Party chairman who led two Dole Senate campaigns

The Meadowlark doesn't know much about Jack Ranson, but his wife Patricia Ranson is KS GOP Vice Chair and former state senator.  She was one of Carla Stovall's biggest supporters.  She is "a conservative on all but the abortion issue."

It's possible the Responsible Republicans for Kansas, Inc. and Responsible Republicans for Kansas PAC are to help channel money via Cloud from either the Greater Kansas City Chamber of Commerce, or possibly Wichita's Dr. George Tiller, who spent nearly $300,000 on Kansas politics in 2002 to influence Kansas elections.  But who would get this money?

Steve Cloud is the chair of both the Johnson County Republicans for Education PAC, with an address at his IBT corporation since January 2003, and the chair of the new Johnson County Republicans for Education, Inc., a Kansas non-profit at Steve Cloud's home address. This PAC received $20,000 from the Greater Kansas City Chamber in 2002 and likes to change addresses:

Time, PAC reports, and possibly IRS 990s will tell about the flow of political money. But how much is being hid from the public using non-profit 501c(4) organizations?  Don't we need better accountability from non-profits?  Shouldn't the IRS put an end to the abuse of non-profits to hide money to affect politics?

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