Dark Money / Super PACs

Question 1

The term “dark money” is often applied to spending from politically active nonprofits because _____

Answer 1

these groups do not have to disclose the sources of their funding – though a minority do disclose some or all of their donors, by choice or in response to specific circumstances.

Question 2

Politically active nonprofits can receive _____ that they do not have to make public, and though their political activity is supposed to be limited, the IRS – which has jurisdiction over these groups – by and large _____ to enforce those limits.

Answer 2

1. unlimited corporate, individual, or union contributions

2. has done little

Question 3

Dark Money refers to _____. Depending upon the circumstances, Dark Money can refer to _____ [what or what].

Answer 3

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

Question 4

Political nonprofits are under _____ obligation to disclose their donors. When they choose not to, they are considered _____.

Answer 4

1. no legal

2. Dark Money groups

Question 5

What are 501(c) Groups?

Answer 5

These are nonprofit, tax-exempt groups organized under section 501(c) of the Internal Revenue Code. These groups can engage in varying amounts of political activity. And because they are not technically political organizations, they are not required to disclose their donors to the public. These groups, like super PACs, cannot coordinate with political parties or candidates and therefore are allowed to raise unlimited sums of money from individuals, organizations and corporations.

Question 6

What are 501(c)(4) groups?

Answer 6

These are commonly referred to as “social welfare” organizations. They may engage in political activities, as long as these activities do not become their primary purpose. The IRS has never defined what “primary” means, or how a percentage should be calculated, so the current de facto rule is 49.9 percent of overall expenditures, a limit that some groups have found easy to circumvent. Donations to these groups are not tax-deductible.

Question 7

The NRA, Planned Parenthood, and the Sierra Club are examples of _____ groups

Answer 7

501(c)(4)