For Some, It’s Better Not to Give

Members of the Asian American Senior Citizen Assn. believed they were simply participating in democracy when they contributed to the campaigns of three Westminster City Council candidates.

Instead, the Vietnamese immigrants got an unexpected civics lesson on what a nonprofit group can--and cannot--do politically.

The flap started at a City Council meeting last month when Bob Crossley, a former council candidate and council watcher, revealed that the nonprofit group had contributed $575 to Mayor Margie L. Rice and Councilman Frank Fry Jr. in the last two years.

The revelation came two weeks after the council had voted unanimously to award the senior citizens association $198,560 in federal funds for a new center, scheduled to open in March. The money came from the Community Development Block Grant program.

The trouble was, the contributions to the officeholders were made with two checks from the association, a violation of state and federal tax exemption laws. Immediately, critics charged that the group had engaged in the age-old practice of buying votes with $325 given to Fry and $250 to Rice.

“I was pretty shocked by it,” said Councilman Kermit Marsh. “They’ve been trying to get this money from the city for a number of years.”

Suddenly, the project was awash in controversy. Fry and Rice promptly returned the contributions, saying that they had no idea the money had come from a nonprofit group.

Failed council candidate Andy Quach, a Westminster employee, said he has also returned a $100 contribution the group made to his campaign. Quach said he learned of the questionable contribution at the same council meeting that Fry and Rice learned about theirs.

Bewildered, members of the group wondered why it was wrong to give money to politicians they support.

Fry and Rice had fund-raisers and several seniors wanted to attend, said Kathy T. Diep, association founder. They pooled individual contributions of $25 and gave the money to the group’s treasurer, who cut a single check for each candidate from the association’s checking account.

Now, Diep and the others know exactly why that was wrong. They also know a lot more about campaign contribution laws, particularly as they pertain to nonprofit groups.

Until it received the federal funds, the association depended on individual contributions. Last year, it raised $44,904. Its current center is a cramped, converted retail space in a strip mall on Bolsa Avenue. There, the group sponsors cultural events and provides seniors with a gathering place. At the beginning of the flu season, the association gave free shots to Westminster residents of all ages.

“We got very scared when we found out it was wrong. We were afraid that the federal funds would be taken away from us. But now we know the law. Politics is very confusing sometimes,” Diep said.

Association Vice President Tan Vu managed to find humor in their predicament. Being free in America does not always mean one is free to do as he wants, especially in politics, he said.

“America means being free to do this and do that. But not to give money to politicians if you are a [nonprofit] group. We didn’t know we were breaking the law. In America, everyone gives money to politicians. It’s natural. We thought we were showing our support for people we like,” Vu said.

The seniors, who are all on fixed incomes, consider themselves loyal Americans. Recently, they scraped together $1,440 for the victims of the Sept. 11 terrorist attacks.

Fry agreed that the seniors did not know they were breaking the law when they used the association’s checking account to contribute to his campaign.

“Nobody ever gave this a thought until it was raised at the council meeting. The mayor and I had no idea the money came from a nonprofit group. These folks simply thought they were participating in the process by giving us money. Their $325 didn’t buy them a thing,” he said.

The fact that the seniors group made no attempt to hide the contributions shows that it was an honest mistake, Fry said.

City Atty. Richard D. Jones said he knows of no legal action or investigation of the group. Still, the City Council voted to have the funds returned to the city if the group loses its nonprofit status.