Dark Money's Grip: 501(c)(4) Organizations Spent $1 Billion on Elections Without Disclosing Donors
Social welfare organizations organized under Section 501(c)(4) of the tax code can spend unlimited amounts on political activities without disclosing their donors, as long as politics is not their "primary purpose." This loophole has enabled the creation of a parallel political finance system where billionaires and corporations can influence elections anonymously. The Crossroads GPS network, associated with Karl Rove, spent $325 million in the 2012 election cycle. The Sixteen Thirty Fund, a liberal dark money hub, spent over $400 million in the 2020 cycle. The FEC has been deadlocked on disclosure rules for years.