Earmarked Fundraising and the Labor Solidarity Fund

by THE SOCIALIST MAJORITY STEERING COMMITTEE

At their January 14th meeting, the National Political Committee approved a resolution entitled “Temporary Suspension of Earmarked Fundraising Initiatives,” with two amendments. The process of amending the resolution was somewhat chaotic, resulting in confusion and misinformation on social media surrounding the proposal’s effects, particularly its potential impact on the National Labor Commission’s Labor Solidarity Fund. 

These misleading social media posts are unhelpful and only increase tensions within our organization, especially as we navigate a large budget deficit and grapple with potential cuts to keep DSA afloat. Although the amendment process was difficult to follow, there was never any attempt to dissolve the Labor Solidarity Fund, as some have claimed.

To clarify the resolution’s actual effects, Socialist Majority NPC members Colleen and Renée, along with members of Groundwork and Red Star, have drafted a new “Resolution to Clarify Earmarked Fundraising Resolution.” We hope this can provide clarity about what the NPC actually decided concerning earmarked fundraising and the Labor Solidarity Fund.

What happened?

A rough timeline:

1. NPC member John L. submitted to the NPC for its January meeting a resolution for a “Temporary Suspension of Earmarked Fundraising Initiatives.” This original version suspended “all earmarked fundraising activities,” meaning any solicitation of donations to a specific national DSA project, rather than our general fund. The original resolution specifically exempted the NLC’s Labor Solidarity Fund.

2. At the meeting, John offered a verbal amendment to his resolution that substituted a requirement that the NPC approve earmarked fundraising activities in advance for the “suspension” language. This amendment passed, but its new language was not immediately reflected in the document.

3. Colleen offered her own amendment, which passed. This amendment:

1. Struck the exception for the Labor Solidarity Fund, meaning that solicitation of funds to that Fund would also be subject to NPC approval. 

2. Kept the Labor Solidarity Fund separate from DSA’s general fund for FY2024. 

3. Allowed the Labor Solidarity funds to be used for other “NLC projects.” This was intended to authorize a separate proposal from Colleen to pay the NLC co-chairs using Labor Solidarity funds, one that ultimately failed to pass

4. The resolution passed with both John and Colleen’s amendments. However, some of the language was contradictory and the public document was not updated to match the final version until later.

5. Later in the meeting, Colleen’s separate proposal to provide stipends for the NLC co-chairs with Labor Solidarity funds failed to pass.

What are we proposing?

The “Resolution to Clarify Earmarked Fundraising Resolution” clarifies the exact effects of the first resolution:

1. National DSA bodies (including the NLC) can still make fundraising solicitations for earmarked funds. The only requirement is that they have to submit a proposal to the NPC for approval first.

2. The Labor Solidarity Fund’s donation page and recurring donations are unaffected.

3. The Labor Solidarity Fund still exists as a separate fund and no money has currently been allocated for other purposes.

4. The language from Colleen’s amendment about spending Labor Solidarity funds on other NLC projects was intended to authorize a separate proposal to provide stipends for the NLC co-chairs. Because that proposal failed to pass, this language has no current effect.

SMC continues to support the resolution as enacted, as earmarked fundraising reduces democratic accountability, creates financial fiefdoms, and cannot be used toward staff time or other universal expenses. We look forward to continuing the discussion of fundraising and budget priorities at future NPC meetings.