Dark Money 501c Groups

As we have repeatedly documented, corporations are using tax-exempt “social welfare” groups – known under the tax code as 501(c)(4) and 501(c)(6) organizations – as conduits to secretly influence our political system without any accountability.

Under current law, engaging in political activity cannot be the primary purpose of these groups, which is generally assumed to involve spending less than 50 percent of their budgets.

These organizations should still be permitted to engage in lobbying, education, and grassroots activity, but it’s high time to draw a clear line between political and policy-related activities. If organizations or their funders want to participate in political activity, they should do so out in the open through bona fide political entities that are required to disclose their donors and expenditures.