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Consumer Group Challenges Governor’s Nonprofit Fund

A consumer group is asking the IRS to reconsider its ruling granting tax-exempt status to a political fund run by Governor Schwarzenegger.

The Foundation for Taxpayer and Consumer Rights claims Schwarzenegger´s group is allowed to raise money, lobby lawmakers and conduct polls without disclosing its source of money.

Tom Hiltachk, Schwarzenegger´s attorney, says the complaint is untrue.

He said the governor has disclosed all his political contributions in the past and will continue to do so.

The issue comes forward as Schwarzenegger steps up his fund-raising activities. Last week he helped raise close to one million dollars for himself and other candidates.

This week an event he headlined brought in close to two million dollars for the California Republican Party.