You aren't seriously suggesting that $100 is "profit." Is everything your firm charges me above the CPA's salary profit? No, not even close. And if that $75/hr attorney is the highest paid employee who is getting this extra $100 profit? Why isn't he/she listed on the 990?
Yes, this is a business, just like RMEF, but an attorney working for $75/hour is giving up a lot of potential income. Even $175/hour is low, extemely low if you consider they don't have a 100% win rate. I guess that is one big problem I have with the your profit argument - these people could make a lot more money working elsewhere.
As far as your last comment, maybe Ben and I should change our sigs to "EAJA profiteers."
That is their choice to work where they do, for what pay they get, and what opportunity cost they choose. Last I checked, the US Taxpayer did not owe every environmental a living. None of them I know are in the streets seeking handouts. I admire that they might do what they feel is rewarding work. That said, they have made that decision with eyes wide open.
You know what attorneys make as employees? They don't make $175 per hour. We do a lot of tax returns for attorneys and their firms. At $75 per hour, the CBD attorney listed on the Form 990 is doing very well for an employee-attorney position. If they wanted to go out on their own, hire staff, drum up their own business, fund their own working capital, and take all the business risks, they might make a lot more, but that is far different than an employee who gets to "hit the files" with some billable hours and then go home.
As for how professional firm billings are structured, it is usually the rule of thirds. 1/3 allocated to employee salary/benefits, 1/3 to overhead, 1/3 to profit.
CBD is already skirting on the fringe of some tax code designed to keep non-profits as non-profits. It's called Unrelated Business Taxable Income rules. UBTI is income that you make that would be considered a profit-motive activity that competes with other for-profit businesses. A very good case could be made the CBD is competing with law firms for business in the environmental litigation arena and their reimbursements from EAJA should be considered EBTI.
You are the one who used the term "EAJA profiteer." Make of it what you want, Rob. If you refuse to believe that their is any profit centers coming from reimbursements under EAJA, then we will disagree.
And if you think the concentration of judicial/legal control is not amplified by the litigation incentives provided by EAJA, then we can disagree on that, also.
And lastly, if you think the EAJA litigation incentives are not a disincentive for collaboration and cooperation, then our disagreement is every wider. Right now, these groups doing most of the litigation have no incentive to collaborate or compromise when the process starts. They refuse, then wait to see what comes of the people they view as fools for collaborating, knowing they have the incentives to litigate no matter what the collaborators come up with.
Those who engage in collaboration in the beginning, and there are folks on both sides who try their damnedest to collaborate, are made fools of by this litigation, not matter which side it comes from. And you only get burned in your collaborative efforts a few times before you finally say Eff it and you walk away from the table. That situation is huge amplified by much of the litigation landscape, including EAJA. Those who benefit financial or from the perspective of "getting their way" find the current process just fine. I don't blame them. But, I sure don't agree with it and I am an advocate for trying to seek some reasonable change, which is not merely a focus on reimbursement and financial incentives.
Carry on ....