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How Can Cities and Chambers Interact?
Chambers of Commerce are designated 501(c) 6 – according to the IRS, a Business League; an association of persons having a common business interest. Just as in the more common 501 (c) 3 organizations, Chambers are not allowed to participate in elections for candidates or in the campaigning for them. But Chambers, again like the (c) 3’s, are allowed to legally participate in supporting or opposing issues, causes, and measures, on or off a ballot. This year, the Richmond Chamber campaigned against Measure T, the Business License Tax, as vigorously as the Chamber supported and campaigned for measures for the schools, the East Bay Regional Parks, and Doctors Medical Center, even the 2% raise in the City Utility Tax, in the last few years.
RichPAC, which is the fully registered Political Action Committee formed several years ago by the Chamber, supported its slate of candidates for Mayor, City Council and School Board, just as it was formed to do and just as the law decrees.
We have to live with the legal ruling that says the City cannot contribute to an organization that gets involved with political issues. Many in the Chamber world agree, saying you can’t accept money from the City if in so doing, you can’t do your job. That job is representing Business. If it is illegal for the City to contribute tax dollars to membership in the Chamber as long as we take political positions, then we accept that ruling. Because we will never stop being political.
Let’s face it: there is probably no more important function for chambers than to be the voice for business. Think about it for a minute. Who in our community speaks for business? We are the leading voice on public policy as it affects the business community. There is a Point Richmond Business Association, a 23rd Street Business Association, a Board of Realtors, for instance. They each speak for their members, but we represent all of them. If the voice of business is to be heard, we must be the ones to do it. If it is illegal for the City to belong to the Chamber because we are political, then so be it.
We must be a strong voice for business. We do the day-to-day work that businesspeople do not have the time to do, especially those with small businesses who do not have the time to keep up with the issues much less speak out on them. We do them a great service by being their eyes and ears and their voice. If the City’s membership in any way hinders that, then we need to find other ways for the City to support the work of the Chamber.
