Howard Rich - Criticism and Controversy

Criticism and Controversy

Criticism from the Left. Rich has been described as being attacked by left-leaning activists; one reporter wrote "'Howie Rich from New York City' has become the Left’s latest whipping boy." One pamphlet accused Rich of "dirty tactics, hidden money streams, and shadowy operatives." He's been accused of being a "special interest group" and of operating a "tangled extremist web." Rich responded: "I have been fortunate enough to have been successful in business, and I want to do something in this life to advance liberty." Rich said: "It’s very difficult in many of these states, and very expensive, to get these measures on the ballot ... All I have done here, for the most part, is provide seed money. All of these initiatives are left up to the voters. That’s what these people, who consider money evil, are not willing to address. It’s the voters in these states who ultimately make the decisions."

Secrecy or openness? A news report from National Public Radio on the show NOW on PBS accused Rich and his organizations of "secretly providing major funding for ballot measures." Rich was accused of using his political advocacy as a means to "shield his portfolio from sticky-fingered bureaucrats" but he countered "It’s a crock" and said "I own no real estate in any of the 12 states where we had property-rights initiatives on the ballot." Rich has been vocal about his financial support of libertarian-related causes. The San Francisco Chronicle wrote "real estate mogul Howie Rich ... makes no secret of his desire to rein in the power of government."

Letters to donors controversy. In 2004, advocacy groups such as right-wing Swift Boat Veterans For Truth and left-wing MoveOn.org played a role in the presidential election contest of 2004. 527 money kept John Kerry going after cash dried up after the convention, and 527 money paid for the "infamous Swift boat ads, which painted Mr. Kerry’s military service in shameful hues, with little regard for documented history." Questions about donations to these groups led to the Federal Election Commission sending subpoenas to donors requesting further information. According to an account in NPR about these investigations of contributions, "donors didn't like it." Later, a letter campaign in August 2008 by the left-leaning organization Accountable America to donors of right-leaning organizations warned the donors about possible repercussions for contributing to right-wing organizations that might possibly be illegal; in another instance, a $100,000 reward was offered for information about "unlawful conduct by business-oriented or conservative" nonprofit groups and promised to publicize the "'political and business relationships and corrupt activities' of donors to these causes." Later, perhaps as a response to this activity by the left, Rich launched a donor-surveillance letter campaign aimed at liberal donors. Rich's mailing was "two months behind the Democrats" letter campaign. One estimate was that Rich sent 11,000 letters to left-leaning supporters of liberal causes. According to an account in NPR, he was "watchdogging all those limousine liberals with their checkbooks". Rich's letters to prominent liberal contributors of liberal causes told them that he's watching these donations; the letter read as follows: "As a donor to one or more of these organizations and efforts, you have been able to engage in these activities without notice, operating in relative obscurity ... I am writing to inform you that this will no longer be the case." There was a threat of exposing donations which violated laws or which were being funneled for illegal purposes. According to a newspaper account afterwards, the letters from both sides tried to discourage donors to so-called 527 groups which is "lightly regulated money" that "swamped the 2004 election." Both liberals left-wing groups such as Accountable America and advocates such as Rich were criticized for "trying to chill free speech" with efforts to intimidate donors to political causes.

Motivation. In an interview in South Carolina, a reporter asked Rich: "I don't know anyone who invests the kind of money without getting something in return?" Rich replied:

There is great satisfaction. I went to public schools. My wife did. My two sons did. Here's an opportunity to give back something where kids will have an opportunity and parents will have an opportunity to go to a school of their choice not some school mandated by government. If every proposal that I have favored over the last 20 years got enacted, whether its term limits or school choice or property rights or any area – I get no personal benefit out of it. I don't make a nickel. Here in South Carolina I own no property. I have no businesses down here. So there's no real monetary benefit.