Anti-Privzatization Groups Marking Big Bucks on Social Security Debate

August 16, 2001

While critics of privatization have been quick to criticize potential profits by "Wall Street" if Social Security is privatized, the Associated Press reports that many of these groups are raising millions from seniors, using mailings that warn that retirees' benefits may be in jeopardy, then still making more money by renting the donors' names and addresses to third parties.

The National Committee to Preserve Social Security and Medicare raised more than $27.6 million last year, mostly from direct mail campaigns that warned seniors against a campaign to "tear down Social Security." These mailings often attempted to frighten seniors, warning that their benefits could be at risk, and asked for contributions to "save" the system. The National committee earned an additional $1.3 million from renting its donor list to other activist groups.

By far the biggest beneficiary of list renting was the AARP, which earned more than $18.8 million last year by renting its mailing list. Most of those renting AARP's list were commercial not political, operations, including mutual funds, credit card companies, and insurers. AARP does not conduct fund raising for specific issues, such as Social Security, but charges members an annual fee to fund its lobbying operation.

The House Ways and Means Subcommittee on Social Security is reportedly beginning an investigation of the fundraising tactics employed by some anti-privatization advocacy groups.

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