Donors to 503(c)(4) groups may remain anonymous, because 503(c)(4) groups are required to focus exclusively on social welfare. However, Republicans are using 503(c)(4) groups, like Rove’s Crossroads GPS, for political purposes illegally. They are getting away with it because of an IRS loophole. Here is the full text of an email I received yesterday.
Although the law says 501(c)(4) groups must operate “exclusively” for social welfare purposes, an IRS regulation says the groups may operate “primarily” for such purposes.
Groups like Karl Rove’s Crossroads GPS and the American Action Network (AAN) have flooded the airwaves with political attack ads secretly funded by anonymous billionaires and corporations. Joining CREW’s lawsuit is Dr. David Gill, a former congressional candidate in Illinois who lost his race last year as a result of a barrage of scurrilous attacks from AAN.
Unable or unwilling to enforce even the weakest regulations on the books, the IRS has sat on its hands for the past two election cycles. It’s time for the agency to explain its deplorable inaction to the American public.
No other organization has taken a more aggressive stance against dark money than CREW. We’ve revealed information about who funds these groups, and highlighted the failures of the agencies charged with regulating them.
Our lawsuit is a key step in exposing the special interests eroding our democracy. We know there is much more work to be done, and we need your help.
We’re honored to have you behind us as we continue to fight for a Washington that works for everyone.
Not all of us can help financially, but please spread the word and inform others about the issue, and the fine work CREW is doing.