Will the Revolution Be Monetized? Bernie Sanders' 'Dark Money' Org

[lapucelle]

27. It's the very definition of dark money.

501(c)(4): Also known as “dark money groups,” these make up some of the most relevant political nonprofits today. Technically deemed “social welfare organizations,” these groups can’t have political activity — such as making ads advocating for or against candidates — as their “primary purpose”; this has unofficially been interpreted to mean they must spend less than 50 percent of their activities on politics or elections. But they can raise unlimited amounts of cash from individuals and organizations alike — without having to disclose who contributed that money. Here’s a disclosure form for Crossroads GPS, a conservative 501(c)(4) that spent more than $120 million on the 2012 elections — note the $22.5 million donation with no name attached. One thing to keep in mind when trying to track the political activity of these groups: (c)(4)s that spend money directly advocating for or against a candidate (an independent expenditure) or make electioneering communications must report that to the FEC.

Despite the unwritten rules, many 501(c)(4)s do engage in significant political activity, and since the Tea Party targeting scandal a few years ago, the IRS has been very timid about regulating this; in 2016, they are expressly forbidden from issuing new rules on political activity that would enable them to regulate it. To determine which activities constitute “social welfare,” the FEC has little guidelines and will only look at each case on an individual basis.

A common practice in the post-Citizens United world is to link a 501(c)(4) to an affiliated super PAC. This allows the super PAC to receive unlimited amounts of money without the true donor being revealed. They also can share staff and other resources, like American Bridge 21st Century and American Bridge 21st Century Foundation, a liberal super PAC and its affiliated 501(c)(4), respectively.

https://sunlightfoundation.com/2016/02/17/a-glossary-of-campaign-finance-in-the-u-s/#501(c)(4)