It was a big week for lifting the veil – at least a little – on the secretive world of conservative groups funding political campaigns. On Wednesday we wrote about new reports on two of the Right’s shadowy front groups which have been able to disguise the transfer of large sums of money to organizations supporting Republican causes and candidates.
Then Politico brought us a look inside what they call “the Koch brothers’ secret bank,” a previously unknown group called Freedom Partners which gave a quarter billion dollars in 2012 to sway public debate further to the right. Mike Allen and Jim VandeHei report:
The group, Freedom Partners, and its president, Marc Short, serve as an outlet for the ideas and funds of the mysterious Koch brothers, cutting checks as large as $63 million to groups promoting conservative causes, according to an IRS document to be filed shortly…
The group has about 200 donors, each paying at least $100,000 in annual dues. It raised $256 million in the year after its creation in November 2011, the document shows. And it made grants of $236 million — meaning a totally unknown group was the largest sugar daddy for conservative groups in the last election, second in total spending only to Karl Rove’s American Crossroads and Crossroads GPS, which together spent about $300 million. [emphasis added]
Though you likely have not heard of Freedom Partners before, you’ve heard of the groups it funds – including the NRA, Americans for Prosperity, Heritage Action for America, and Tea Party Patriots. According to their newly-launched website, Freedom Partners is “promoting the principles of a free market and free society” by advocating against scourges like “cronyism in America.”
This, from one of the biggest spenders in the last election.
Other than the Koch brothers, who are the donors behind this massively influential group? At this point, it’s hard to know. Despite the group’s president’s insistence that “our members are proud to be part of [the organization],” Freedom Partner’s membership page does not list a single one. It’s yet another example of the need for legislation like the DISCLOSE Act, which would shed light on the major donors behind the secretive outside groups attempting to shape our elections – and our country.
In today’s legal landscape, “following the money” is tricky – but a new report released yesterday shows why this work is critical to anyone who cares about progressive change. The latest digging from the Center for Responsive Politics’ Open Secrets blog has uncovered new information about a multi-tiered money laundering operation through which tax-exempt groups funnel millions to groups supporting right-wing causes and candidates.
Operating behind a thick veil of secrecy, groups like TC4 Trust and the Center to Protect Patient Rights – which Open Secrets describes as “‘shadow money mailboxes’ – groups that do virtually nothing but pass grants through to other politically active 501(c)(4) organizations” – are able to hide both their donors and their recipients. By funneling grants through “sub-units,” which are owned by the larger groups but have different names, groups like TC4 Trust put millions into the pockets of 501(c)4 organizations supporting Republican causes in the 2012 elections, such as the advocacy arm of Focus on the Family.
As Open Secrets reports,
[T]heir financial ties run far deeper than previously known. The groups, TC4 Trust and the Center to Protect Patient Rights – both of which have connections to the billionaire industrialist Koch brothers – have been playing a high-stakes game of hide-the-ball, disguising transfers of millions of dollars from one to the other behind a veil of Delaware limited liability corporations.
The source of political advocacy matters. This latest example of dark money donor groups obscuring the links of their money trail underscores the urgent need for legislation like the DISCLOSE Act. This act would bring some basic transparency to the electoral system and require outside groups spending money in elections to disclose their donors – including the original source of donations. The measure, which was blocked by Senate Republicans in both 2010 and 2012, is a common-sense solution that would help the American people understand who is trying to influence their political opinions and their votes.