May 9

501(c)(4) groups

"social welfare" organizations that may engage in political activities as long as activities aren't primary purpose (<49.9%) Ex: NRA

making large grants to like-minded groups

Another way they get around spending too much on politics is by

2010: SpeechNow v. FEC

Appeals Court decision allowed unlimited contributions to a new kind of "indepdependent-expenditure only" political action committees (PAC), now known as "super PACs".

Congress of Industrial Organizations (CIO), the re-election of President Franklin D. Roosevelt

First PAC was formed in 1944 by ___ to raise money for ___

U.S. Court of Appeals decision in Speechnow v. FEC in 2010

Super PACs were created after the

2007: FEC v. Wisconsin Right to Life

Supreme Court decision ruled that issue ads can be aired in the months leading up to an election.

1976: Buckley v. Valeo

Supreme Court decision that allowed unlimited campaign expenditures by individuals.

educational spending, political spending

This broad interpretation of _____ and narrow definition of _____ allows groups to spend considerable sums of money shaping voters' opinions about particular candidates

Hard Money: traditional political spending

With this kind of spending, donors must be disclosed, contribution limits apply and organizations are allowed to coordinate their efforts to help elect a candidate

Political Action Committee (PAC)

a political committee organized for the purpose of raising and spending money to elect and defeat candidates

leadership PACs

a way of raising money to help fund other candidates' campaigns

501(c)(5) groups

abor and agricultural groups and may engage in political activities, as long as they adhere to the same general limits as 501(c)(4) organizations. Ex: American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)

501(c)(6) organizations:

business leagues, chambers of commerce, real estate boards and boards of trade, which may engage in political activity, as long as they adhere to the same general limits as 501(c)(4) organizations. Ex: US Chamber of Commerce

while it mentions a candidate's name, it does not directly advocate for the election or defeat of a candidate

classified as educational because

educational, membership building

expenses by Dark Money groups that are earmarked as ____ or _____ fall outside of the requirement to report

advertising explicitly calls for viewers to vote for or against a candidate

groups will classify as political spending when

Super PACs

make no contributions to candidates or parties, but make independent expenditures in federal races

Super PAC (independent expenditure committees)

may raise and spend an unlimited amount of money and accept contributions from companies, nonprofits, unions and individuals. must identify all of their donors to the Federal Election Commission (FEC) except when donor is a shell corporation or nonprofit that doesn't disclose its donors. Cannot give money directly to candidates

business, labor or ideological interests

most PACs represent

501(c) Groups / Political Nonprofits

nonprofit, tax-exempt groups organized under section 501(c) of the Internal Revenue Code, can engage in varying amounts of political activity, and are not required to disclose their donors to the public

Hybrid PACs (Carey Committees)

not affiliated with a candidate and has the ability to operate both as a traditional PAC, contributing funds to a candidate's committee, and as a super PAC that makes independent expenditures, must have a separate bank account for each purpose

Soft money: outside political spending (independent or non-coordinated)

refers to political expenditures made by organizations and individuals other than the candidate campaigns themselves. All outside groups that aren't political parties are allowed to accept unlimited sums of money from individuals, corporations, or unions. However, these organizations are not allowed to coordinate their spending with political candidates or parties.

Dark money

refers to political spending meant to influence the decision of a voter, where the donor is not disclosed and the source of the money is unknown. Can refer to funds spent by a political nonprofit or a super PAC

There was an explosion in electioneering communications, which are issue ads made within certain pre-election and pre-convention time periods.

results of 2007: FEC v. Wisconsin Right to Life

spending grew, election spending by politically active nonprofits was in the form of direct appeals to vote for or against particular candidates grew, & groups bought lots of ads outside of periods when the ads have to be reported to the FEC

results of 2010: SpeechNow v. FEC

Limited Liability and Shell Companies

sometimes established to help disguise the identity of a donor or source of money spent on behalf of a political candidate. loopholes have made these attractive vehicles with which move political money into organizations while protecting the identity of the donor. darkest of dark money groups

2010: Citizens United v. FEC

supreme Court decision loosened restrictions on corporate spending and made it possible for Dark Money groups to ramp up their independent expenditures.

501(c)(3) groups

tax-exempt groups that operate for religious, charitable, scientific or educational purposes. not supposed to engage in any political activities, though some voter registration activities are permitted. Ex: NAACP