Cahill does good, and does well
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STATE TREASURER Timothy Cahill runs a conference aimed at helping women manage their finances. It's a worthy program - some women consider it life-changing - that was started by his predecessor, Shannon O'Brien. But the way money is raised to fund Cahill's conferences gives business as usual the usual bad name.
As detailed in the Globe last week, "The Money Conference" is underwritten by corporate sponsors such as
Federal rules prohibit them from making direct political contributions to public officials like Cahill. But they can - and do - underwrite these seminars.
The treasurer opens each conference, appearing before the gathered women and investment executives. Cahill's website features photos of him posing with speakers, volunteers, and bankers.
It's a two-fer: an educational event for attendees and a promotional event for Cahill. Actually, it's a three-fer, since participating sponsors stand to benefit, too. And that's where it can get ethically sticky.
O'Brien, who launched the conferences a decade ago, partnered with the nonprofit YWCA of New England to set up a separate financing structure to raise money, collect it, and pay expenses. Today, the YWCA is still the middleman. But the fund-raising is more centralized and Cahill's own political fundraisers are soliciting the donations.
Cahill contends that no one is pressured to contribute. But virtually all the donors do business with the treasury, and would have good reason to want to curry favor with the treasurer. Contributing to "The Money Conference" is one way to do it without running afoul of campaign finance laws. So, who is going to decline? Doesn't that add up to pressure?
Pam Wilmot, head of Common Cause Massachusetts, believes the state treasurer, via his own fund-raisers, should not be soliciting money from businesses doing business with the treasury. It's as simple as that.
If the public interest is strong enough to justify such conferences, there are ways to avoid any appearance of impropriety. Solicit sponsorships from a broad range of people, not just people doing business with the treasury; and keep an arm's-length distance between the treasury and the political fundraising. Currently, the distance between the treasury and the fund-raising is too short.
The conferences are a worthy endeavor, especially during tough financial times. So Cahill should take a step back and figure out the best way to serve the public good without compromising the public trust.
