In ignoring the spirit of the recent ban against earmarks, which excluded corporations, but allows non-profits to apply, Corporations have been establishing non-profit organizations at a fast clip.

The New York Times notes “companies have shown remarkable ingenuity in skirting the rule or veiling their requests through nonprofit organizations.”  They reported by way of example on four such schemes that are all the more egregious given the number of educational and social services organizations being starved out of existence by the lack of public funding and having little earmark acumen and zero funds to grease the pump.

Here are the examples provided in the New York Times article of July 5, 2010.

¶The Virtual Reality Medical Center, a California-based company that sells visual simulation headgear as an experimental form of medical therapy, had sought nearly $6 million in earmarks before the ban. Soon after, company officials instead proposed that the money go to the Interactive Media Institute, a nonprofit group controlled by the center’s top executives, which had been set up to sponsor educational conferences.

¶In Pennsylvania, General Electric is likely to get as much as 80 percent of a $2 million earmark proposed by Pennsylvania State University for research on clean-burning GE locomotives. At the suggestion of the company and the university’s lobbyist, according to a Penn State professor, the university is listed as the lead player in the collaboration instead of GE, as was done previously. GE executives made a series of political contributions to Representative Kathy Dahlkemper, Democrat of Pennsylvania, days after she submitted the earmark request.

¶In New York, the Copper Development Association, a nonprofit group controlled by copper manufacturers, is pursuing a $4.1 million earmark to hire suppliers to install its members’ copper products in New York City subway cars, asserting that the metal has qualities that inhibit the spread of infectious diseases.

¶And a group called the Solar Energy Consortium in Kingston, N.Y., is pursuing nearly $30 million in earmarks, with the help of Representative Maurice D. Hinchey, Democrat of New York. The group, working out of a tiny office above a machine shop, does not perform its own research. Instead, it plans to pass on most of the earmark money to local businesses, some of which directly collected federal earmarks for solar projects this year but would no longer qualify.

All legal, but is it ethical?