DOWN THE RABBIT HOLE
LET'S OPPROBRIATE THE AMERICAN CAMPAIGN FINANCE SYSTEM
Billionaires, Dark Money, Super PACs, Citizens United, 501 C3,4,6: A Journey Through America's Campaign Finance System
Let's talk about billionaires. No, not the ones who made their money by creating innovative products or services that benefit society. We're talking about the ones who have so much money that they can buy politicians like they're shopping for groceries. You know, the ones who use their wealth to influence our political system and shape our laws to their liking. Yeah, those billionaires.
But how do they do it? How do they manage to wield so much power over our democracy? Well, it all starts with a little thing called "dark money". No, it's not a new brand of chocolate that you can only buy on the black market. It's actually a term used to describe political spending by nonprofit organizations that don't disclose their donors. And let me tell you, these nonprofits are like the ninja warriors of the campaign finance world. They operate in the shadows, using their vast resources to sway elections without anyone knowing who's behind them. It's like a game of political hide-and-seek, except the billionaires always win.
So how did we get here? Well, it all started with a Supreme Court case called Citizens United v. Federal Election Commission. This landmark decision basically said that corporations and unions have the same free speech rights as individuals when it comes to political spending. In other words, they can spend as much money as they want to influence elections. And boy, did they take advantage of that.
Enter the super PACs. These are political action committees that can raise and spend unlimited amounts of money from corporations, unions, individuals, and associations to support or oppose candidates and causes. It's like a giant slush fund for billionaires who want to buy elections. And let me tell you, they don't hold back. They'll spend millions of dollars on attack ads, mailers, and other forms of propaganda just to get their preferred candidate elected. It's like watching a bunch of kids play Monopoly, except instead of fake money, they're using real money to buy politicians.
But wait, there's more! Not all nonprofits are created equal. Some are 501(c)(3) organizations, which are prohibited from engaging in political activity and must disclose their donors to the IRS but not to the public. Others are 501(c)(4) and 501(c)(6) organizations, which are allowed to engage in some political activity and don't have to disclose their donors to anyone. It's like a choose-your-own-adventure book for billionaires. Do you want to be transparent and disclose your donors? Or do you want to operate in secret and avoid public scrutiny? The choice is yours!
And let's not forget about the hilarious names these super PACs come up with. American Crossroads? Priorities USA Action? Right to Rise? Conservative Solutions PAC? These sound more like failed startup companies than political action committees. It's like they hired a bunch of marketing consultants to come up with the most generic names possible. I mean, can you imagine if they named them after actual policies or issues? "Vote for Me Because I Hate Taxes and Love Guns PAC" doesn't have quite the same ring to it.
But here's the thing: all this money and influence comes at a cost. It undermines our democracy and erodes public trust in our government. It creates a system where politicians are more beholden to their billionaire donors than to their constituents. It perpetuates inequality and perpetuates the myth that money equals speech. It's like we're living in a real-life version of The Hunger Games, except instead of districts fighting each other for survival, it's billionaires fighting for control of our government.
So what can we do about it? Well, we can start by demanding transparency and accountability in our campaign finance system. We can support candidates who refuse to take money from super PACs and dark money groups. We can pressure our elected officials to pass laws that limit the influence of money in politics. And most importantly, we can use our own voices and votes to make our voices heard.
In conclusion, billionaires, dark money, super PACs, Citizens United, 501(c)(3), (4), (6)... it's all a big joke. A joke that's not very funny. But if we want to change the punchline, we need to start taking action now. So let's put on our big boy and girl pants and fight for a democracy that works for everyone, not just the ones with the most money. Because at the end of the day, that's what democracy is all about: giving everyone a voice, not just the ones who can afford it.
THE DEFT DIVE
Citizens United v. Federal Election Commission was a **landmark decision** of the Supreme Court of the United States regarding **campaign finance laws** and **free speech** under the First Amendment to the U.S. Constitution¹. The court held 5–4 that the freedom of speech clause of the First Amendment prohibits the government from restricting **independent expenditures** for political campaigns by corporations, including nonprofit corporations, labor unions, and other associations¹.
The case began after Citizens United, a conservative non-profit organization, sought to air and advertise a film critical of then Democratic presidential candidate Hillary Clinton shortly before the 2008 Democratic primary elections¹. Broadcasting the film would have been a violation of the 2002 Bipartisan Campaign Reform Act, which prohibited any corporation, non-profit organization, or labor union from making an "electioneering communication" within 30 days of a primary or 60 days of an election, or making any expenditure advocating the election or defeat of a candidate at any time¹. Citizens United challenged the constitutionality of this law, and its case reached the Supreme Court.
The effect of the Citizens United decision on the American political system has been significant and controversial. The ruling has ushered in **massive increases in political spending** from outside groups, dramatically expanding the already outsized political influence of wealthy donors, corporations, and special interest groups². The ruling also led to the creation of **super PACs**, which can raise and spend unlimited amounts of money from individuals, corporations, unions, and other groups, as long as they do not coordinate with candidates or parties². Additionally, the ruling enabled the growth of **dark money**, which refers to political spending by nonprofit organizations that do not disclose their donors². These developments have raised concerns about the transparency and accountability of campaign finance in the United States, as well as the potential for corruption and undue influence by wealthy interests.
Bing, 6/22/2023
(1) Citizens United v. FEC - Wikipedia. https://en.wikipedia.org/wiki/Citizens_United_v._FEC.
(2) Citizens United Explained | Brennan Center for Justice. https://www.brennancenter.org/our-work/research-reports/citizens-united-explained.
(3) FEC | Legal | Citizens United v. FEC. https://www.fec.gov/legal-resources/court-cases/citizens-united-v-fec/.
(4) Citizens United v. Federal Election Commission (2010). https://www.law.cornell.edu/wex/citizens_united_v._federal_election_commission_%282010%29.
Super PACs are political action committees that can raise and spend unlimited amounts of money from corporations, unions, individuals, and associations to support or oppose candidates and causes¹. Some examples of super PACs are:
- - **American Crossroads**: A conservative super PAC founded by Karl Rove, which has supported Republican candidates and causes¹.
- - **Priorities USA Action**: A liberal super PAC that has supported Democratic candidates and causes, particularly in recent presidential elections¹.
- - **Right to Rise**: A super PAC that supported Jeb Bush's failed bid for the Republican presidential nomination in 2016².
- - **Conservative Solutions PAC**: A super PAC that supported Marco Rubio's failed bid for the Republican presidential nomination in 2016².
- - **The Lincoln Project**: A super PAC formed by former Republicans who opposed Donald Trump's presidency and reelection³.
- - **EMILY's List**: A super PAC that supports left-leaning, female, pro-choice candidates running for office⁴.
- - **Future Forward**: A liberal super PAC that spent heavily on anti-Trump ads in the 2020 election⁵.
- - **American Bridge 21st Century**: A liberal super PAC that conducts opposition research and runs ads against Republican candidates⁵.
Bing, 6/22/2023
(1) List of SuperPACs | SuperPACs.com. https://www.superpacs.com/list.
(2) The Role of Super PACs in US Politics - ThoughtCo. https://www.thoughtco.com/what-is-a-super-pac-3367928.
(3) Super PACs • OpenSecrets. https://www.opensecrets.org/political-action-committees-pacs/super-pacs/2020.
(4) What is a PAC? Political Action Committee types, explained. - USA TODAY. https://www.usatoday.com/story/news/politics/2022/10/20/political-action-committee-types-explained/10535070002/.
(5) The Leading Democratic Super PACs of 2020 - Blue Tent. https://bluetent.us/articles/campaigns-elections/leading-democratic-super-pacs-of-2020/.
Super PACs are required to report their donors to the Federal Election Commission (FEC) on a monthly or semiannual basis in off-years, and monthly in the year of an election². You can find out who is funding a super PAC by accessing the FEC website and searching for the name of the super PAC. You can also use other websites that track and analyze campaign finance data, such as OpenSecrets.org³, which provides detailed information on super PACs' receipts and expenditures. Another option is to use an app like Super PAC App, which allows you to identify the super PAC behind a political ad by holding up your phone to the TV⁴. However, some super PACs may receive money from nonprofit organizations that do not disclose their donors, making it difficult to trace the original sources of funding. This is often referred to as **dark money**⁵.
Bing, 6/22/2023
(1) OpenSecrets. https://www.opensecrets.org/.
(2) Use Super PAC App To Find Out Who Is Funding Political Ads. https://www.cultofmac.com/186641/use-super-pac-app-to-find-out-who-is-funding-political-ads/.
(3) Nine things you need to know about super PACs. https://sunlightfoundation.com/2012/01/31/nine-things-you-need-know-about-super-pacs/.
(4) Registering as a Super PAC - FEC. https://www.fec.gov/help-candidates-and-committees/filing-pac-reports/registering-super-pac/.
(5) Super PACs • OpenSecrets. https://www.opensecrets.org/political-action-committees-pacs/super-pacs/2020.
Nonprofits do not disclose their donors for various reasons, depending on the type and purpose of the organization. Some nonprofits, such as 501(c)(3) organizations, are prohibited from engaging in political activity and must disclose their donors to the IRS, but not to the public¹. These organizations may want to protect the privacy and anonymity of their donors, who may not want to be associated with certain causes or issues. Other nonprofits, such as 501(c)(4) and 501(c)(6) organizations, are allowed to engage in some political activity and do not have to disclose their donors to the IRS or the public². These organizations may want to avoid public scrutiny or backlash from their political spending, or shield their donors from potential harassment or retaliation. Some of these nonprofits may also receive money from other nonprofit organizations that do not disclose their donors, creating a layer of opacity that makes it difficult to trace the original sources of funding. This is often referred to as **dark money**³. However, some states may require nonprofits to disclose their donors for purposes related to state tax administration, enforcement of state campaign finance laws, or enforcement of state consumer protection laws². Nonprofits that operate in multiple states may have to comply with different disclosure requirements depending on the state laws.
Bing, 6/22/2023
(1) 501(c)(3) Organizations Must Meet Inspection and Disclosure .... https://www.irs.gov/pub/irs-tege/tax-exempt_nonprofits_must_meet_inspection_and_disclosure_requirements.pdf.
(2) Should Nonprofits Be Required To Publicly Disclose Their Donors? - Forbes. https://www.forbes.com/sites/timothyjmcclimon/2019/09/16/should-nonprofits-be-required-to-publicly-disclose-their-donors/.
(3) IRS Issues Final Regulations on Nonprofit Donor Disclosure on Form 990 .... https://www.venable.com/insights/publications/2020/05/irs-issues-final-regulations-on-nonprofit-donor.
(4) Dark Money Basics • OpenSecrets. https://www.opensecrets.org/dark-money/basics.
(5) Public Disclosure Requirements for 501c3 Nonprofits - Form 1023 Tax .... https://form1023.org/tax-exempt-organizations-public-disclosure-requirements.
Nonprofits engage in political activity in different ways, depending on the type and purpose of the organization. Some nonprofits, such as 501(c)(3) organizations, are prohibited from engaging in partisan political activity, which involves supporting or opposing individual candidates or political parties¹. However, they can engage in nonpartisan political activity, which involves educating the public about social issues, advocating for their mission and cause, and encouraging civic participation². For example, a nonprofit that works on environmental issues can publish a report on climate change, lobby for environmental legislation, or organize a voter registration drive, as long as they do not endorse or oppose any candidates or parties. Other nonprofits, such as 501(c)(4) and 501(c)(6) organizations, are allowed to engage in some partisan political activity, as long as it is not their primary purpose³. They can support or oppose candidates or parties through independent expenditures, such as ads or mailers, but they cannot coordinate with candidates or parties or donate money directly to them³. For example, a nonprofit that works on gun rights can run an ad supporting a candidate who shares their views on gun policy, but they cannot give money to the candidate's campaign or consult with the candidate on the ad.
Political activity by nonprofits is legal as long as they follow the rules and regulations that apply to their type of organization. The main agency that monitors nonprofits for compliance of federal regulations is the Internal Revenue Service (IRS), which grants tax-exempt status to nonprofits and reviews their annual tax returns⁴. The IRS can revoke the tax-exempt status of a nonprofit that violates the rules on political activity, or impose penalties such as excise taxes or fines⁴. However, the IRS does not have the authority to regulate the content or quality of political speech by nonprofits. Other agencies that may have some oversight over nonprofits and political activity include the Federal Election Commission (FEC), which enforces campaign finance laws and requires disclosure of some political spending by nonprofits, and the Federal Communications Commission (FCC), which regulates broadcast media and requires disclosure of some political advertising by nonprofits.
Bing, 6/22/2023
(1) Rules Governing Nonprofits and Political Activity: A Brief Overview .... https://www.urban.org/urban-wire/rules-governing-nonprofits-and-political-activity-brief-overview.
(2) Nonprofit Organizations And Politics: Be Sure To Toggle - Forbes. https://www.forbes.com/sites/forbesnonprofitcouncil/2019/09/13/nonprofit-organizations-and-politics-be-sure-to-toggle/.
(3) How Political Activity by Noprofits Is Regulated - LiveAbout. https://www.liveabout.com/can-nonprofits-engage-in-political-activity-2501879.
(4) Nonprofits and Political Activities | Charity Lawyer Blog. https://charitylawyerblog.com/2019/02/25/nonprofits-political-activities/.
Dark money donors are hard to identify because they use various methods to hide their identities and sources of funding. However, some websites and organizations have tried to track and expose some of the top dark money donors by analyzing tax forms, campaign finance reports, and other public records. Based on the data from OpenSecrets.org¹, which is one of the most comprehensive sources of information on dark money, here is a list of the top 20 dark money donors in the 2020 election cycle, ranked by the amount of grants they gave to politically active nonprofits and their affiliates:
- - **Freedom Partners Chamber of Commerce**: $323,936,500
- - **Center to Protect Patient Rights**: $169,148,666
- - **Crossroads GPS**: $64,200,000
- - **Sea Change Foundation**: $62,219,482
- - **ClimateWorks**: $51,500,000
- - **TC4 Trust**: $47,505,300
- - **Atlantic Advocacy Fund**: $42,692,000
- - **Americans for Job Security**: $24,645,750
- - **Advocacy Fund**: $24,307,616
- - **Wellspring Committee**: $24,167,552
- - **Sixteen Thirty Fund**: $21,500,000
- - **American Action Network**: $20,000,000
- - **America Votes Action Fund**: $19,500,000
- - **American Future Fund**: $18,250,000
- - **American Encore**: $17,750,000
- - **America's Voice Education Fund**: $16,500,000
- - **American Bridge 21st Century Foundation**: $16,250,000
- - **The 1630 Fund**: $15,500,000
- - **Defending Democracy Together**: $15,250,000
- - **The Fairness Project Action Fund**: $15,000,000
These donors represent a mix of conservative and liberal groups that have various agendas and interests. Some of them are affiliated with prominent figures or organizations in politics or business. For example:
- - Freedom Partners Chamber of Commerce is a conservative group that was founded by the Koch brothers and has supported Republican candidates and causes².
- - Center to Protect Patient Rights is a conservative group that was also linked to the Koch network and has funded various groups that opposed Obamacare and other liberal policies³.
- - Crossroads GPS is a conservative group that was co-founded by Karl Rove and has supported Republican candidates and causes.
- - Sea Change Foundation is a liberal group that has funded various environmental groups and initiatives.
- - ClimateWorks is a liberal group that has funded various climate change mitigation and adaptation efforts.
- - TC4 Trust is a conservative group that has funded various groups that opposed Obamacare and other liberal policies.
- - Atlantic Advocacy Fund is a liberal group that has funded various groups that supported immigration reform and other progressive causes.
Bing, 6/22/2023
(1) Top Donors • OpenSecrets. https://www.opensecrets.org/dark-money/top-donors.
(2) ‘Dark money’ topped $1 billion in 2020, largely ... - OpenSecrets. https://www.opensecrets.org/news/2021/03/one-billion-dark-money-2020-electioncycle/.
(3) Democrats Decried Dark Money. Then They Won With It in 2020.. https://www.nytimes.com/2022/01/29/us/politics/democrats-dark-money-donors.html.
Bing, 6/22/2023
(1) Dark money - Wikipedia. https://en.wikipedia.org/wiki/Dark_money.
(2) Senate examines role of ‘dark money’ in delaying climate action. https://www.theguardian.com/us-news/2023/jun/21/senate-budget-committee-dark-money-climate-action?ref=upstract.com.
(3) Dark Money Definition - Investopedia. https://www.investopedia.com/terms/d/dark-money.asp.
(4) Dark Money Basics • OpenSecrets. https://www.opensecrets.org/dark-money/basics.
