“Fighting corruption is not just good governance.  It’s self-defense.  It’s patriotism.” –  Joe Biden

By Glen Reaux

In light of the 2016 national elections and the resultant consequences of a Trump presidency, the term dark money is being looked at as a significant factor in today’s political arena.  According to Investopedia, dark money refers to the funds donated to nonprofit organizations that in turn spend it to influence elections.  These nonprofit organizations can receive an unlimited amount of donations, and they’re not required to disclose their donors.  This class of nonprofit has the IRS designation of 501-(c)-4 aka c4.  The original vision and purposes of the c4s are dramatically different from the way it is being used today.  Considering that many of these nonprofits are merely conduits for illegal campaign financing which is actually dark money, one must ask the question: Is Dark Money the death of America?

The legislation that created the tax exempt status for certain classes of organizations is the Revenue Act of 1913¹.  This law created the 501 tax exempt status and designated the 501-(c)-4 nonprofit as a social welfare organization, such as a civic organization or a neighborhood association.   An organization is considered by the IRS to be operated exclusively for the promotion of social welfare if it is primarily engaged in promoting the common good and general welfare of the people of the community.  Unfortunately, the noble act of creating nonprofit status for the purpose of promoting human interests has given birth to a corrupt machine used to oppress the very people that, the act was created to assist.  Today, 501-(c)-4 nonprofits that we will refer to as c4s are now being created with the sole purpose of corrupting our political system.  Such corruption has infested all branches of our national government.  And, over the past decade begun to permeate state, local, county governments and even independent school districts.

The corruption of dark money began to grow significantly shortly after the 2008 FEC v. Wisconsin Right to Life, Inc.² Supreme Court ruling which struck down portions of the McCain Feingold Act³ that prohibited a 501-(c )-4 from broadcasting electioneering communications which are defined as a communication that mentions a candidate’s name 60 days before a primary or 30 days before a general election.  In 2010, the Supreme Court’s Citizens United v Federal Election Commission⁴ ruling stated that, corporations which include c4s, could spend limitless amounts of money to support or oppose a political candidate.  This decision was based upon a corporation having first amendment, free speech rights.  The Supreme Court in a 5-4 ruling, strictly down party lines, Republican Justices, equated the spending of money to be free speech.

The corrupting of our system of government by corporations is not a new phenomenon in American politics.  Due to their state legislature being corrupted by the Anaconda Copper Company, the State of Montana passed the Corrupt Practices Act of 1912.  The Act prohibited independent expenditures to influence political campaigns by corporations.  In 2011, Montana was sued by American Tradition Partnership (ATP), a 501-(c)-4.  During the course of the case, a Montana State Supreme Court Justice asked the counsel for American Tradition Partnership if the client had the right to vote.  Since the client was a corporation and not a human being, the lawyer naturally replied no.  Since ATP which was well known for its efforts to influence elections in Montana did not have the right to vote, that became a factor in the decision handed down by the court which ruled against the 501-(c)-4.  ATP fought this decision and on June 25, 2012, in a one-page ruling, American Tradition Partnership v. Steve Bullock Attorney General State of Montana⁵, the United States Supreme Court struck down Montana’s law which had stood since 1912.  The ruling stated that, the Montana Corrupt Practices Act of 1912 restricted ATP’s First Amendment right to free speech, according to the Court’s 2010 “Citizen’s United” ruling.  All 5 Republican Justices favored ATP while the 4 Democrat Justices dissented.  In their dissenting opinion, Justice Breyer stated that, the Court’s position that independent expenditures such as those made by corporations did not give rise to corruption, was wrong as evidenced by the proof provided by a significant body of evidence that was presented by Montana Justice Stevens.

The influence of dark money was further impacted on July 16, 2018, when in a “press release, Treasury Department and IRS Announce Significant Reform to Protect Personal Donor Information to Certain Tax-Exempt Organizations _ U.S⁶”, the Trump administration announced that, the IRS would no longer require c4s to report personal information on their donors.  This makes it possible for foreign states that influenced our elections like Russia, to make significant contributions to politicians that would represent their interest over that of their American constituents, without detection or consequence.  Realistically, our government is now for sale to the highest bidder.  This obviously, even includes America’s greatest enemies.  These circumstances introduced a new paradigm into the global geopolitical arena.  Why go to war or fight with America, lose millions of lives and trillions of dollars in the process when, without losing any lives or suffering any consequences, you can just buy her for a fraction of the cost.

It is well known that during the course of the 2015-2016 election cycle, the Russian government interfered with our election.  The Russian government, through its social media war, hacking of the Democratic Party’s emails, their subsequent conspiracy with WikiLeaks to release the emails, their infiltration into the election systems of at least 12 states and possible collusion with the Trump campaign, may have installed Trump as a Manchurian President.  What is not as well known is their use of c4s to funnel money to The Trump campaign and several Republican Senators including Senate Majority Leader, Mitch McConnell.  The Mueller investigation has uncovered evidence proving that the Russians via Maria Butina, a Russian spy tasked with infiltrating and recruiting the National Rifle Association, funneled $30 million to the Trump campaign using the National Rifle Association (NRA).  The NRA is a c4.  The NRA also funneled $41.3 million of Russian money to the Republican Party in support of other Republican candidates running for national office.  These actions on the part of the Russian government and the NRA are a covert, dark money campaign.

Another significant player in this new dark money industry is an American Billionaire by the name of David Koch.  According to a November 29, 2018 article 2017 Financials of the Koch’s DarkMoney Network⁷, published by OpenSecrets.org.  The article details Koch contributions of more than $40 million to fund political causes, think tanks and c4s.  The December 2018, Dark-Money-Illuminated-Report⁸ published by Issue One, a nonpartisan organization provides data from the Federal Election Committee.  This data list the top nonprofits and their contributions totaling more than $600 million in campaign contribution between January 2010 and December 2016.  Organizations in this report include the U.S. Chamber of Commerce, Americans for Prosperity and the National Rifle Association.  Americans for Prosperity is a David Koch funded c4.  Through a David Koch funded group of c4s, the extremely radical, right-wing, Tea Party revolution of 2009 came to power.  Their members, once elected to Congress changed the organization’s name to the Freedom Caucus which does not have the negative baggage of the name Tea Party.

The full impact of the dark money c4s and what they hold for the future has not yet been realized. However, as overt as the dark money impact of the c4s is currently having on our political system, its workings are very complicated and covert.  This covert nature of their operations is necessary for the c4s to impact local, state and national governments and laws.  Just how complicated their operations are and the apparent dangers presented by their influence on our elections is illustrated in the diagram Dark Money Diagram⁹ below.

Click to download pdf –>Dark Money Diagram

A 2018 Kimberly Reed, 5 star rated, documentary film titled Dark Money¹⁰, brilliantly lays out the struggle that the State of Montana has had with dark money.  The national network of c4s is using what is being done to Montana as a business model for accomplishing their goals around the country.  In the context of the movie, how dark money has impacted the State of Wisconsin and other areas of the country are also revealed.  The former Republican Governor of Wisconsin, Scott Walker conspired with dark money c4s to corrupt the legislature and the Wisconsin Supreme Court.  Proof of actual court documents supporting this conspiracy is provided in the film.  The film also explores conspiratorial acts committed by Montana lawmakers and the trial and 2016 conviction of Bozeman Montana, State Representative, Art Wittich.  In Dark Money, the depth of the inner workings of c4s exposes that, these organizations will go so far as to actually buy the newspapers that have been in opposition to them and then shut them down.

The inner workings of dark money c4s are by their covert nature, are at the very least suspicious of being conspiratorial.  Any prosecutor will tell you that a conspiracy is merely a plan by two or more parties to commit an act of deceit (or a crime).  Crimes can be moral or illegal in nature.  There are thousands of conspiracies committed by criminals and corporations that have been tried in courts, proven and documented in the news media.  In fact, it is ludicrous to believe that conspiracies do not exist and that the prosecutors that have won these trials are crazy people.  But, if you listen to the media and right-wing talk show hosts, they will have you believe that, if you think that a conspiracy is possible, you are crazy.  But, if you take the time to investigate the public actions of elected officials and find out about the money supporting them, by following that money you will realize that, the evidence which is revealed to you has conspiracy written all over it.

You should examine the Supreme Court rulings that have made c4s powerful.  Look into the legislation introduced by elected officials.  Place under a microscope, their support for a President that is at war with the rule-of-law.  These c4s that were founded under the auspices of social welfare are corrupting our government.  They are funding Political Action Committees, Super PACS, Senate, Presidential and Judicial campaigns at all levels of government.  Your observations and investigations into the Republican controlled Senate, Judicial and Executive Branches will lead you to a vast network of dark money c4s whose actions validate that, a conspiracy to overthrow the people, take control of our government and place it in the hands of special interests and an elite class has existed for decades.  The stranglehold that the c4s have on our nation if not broken, their dark money will be the death of America.

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Linked sources and Documentation

1. Revenue Act of 1913^1” – https://ipfs.io/ipfs/QmXoypizjW3WknFiJnKLwHCnL72vedxjQkDDP1mXWo6uco/wiki/Revenue_Act_of_1913.html
2. “FEC v. Wisconsin Right to Life, Inc.²” – https://supreme.justia.com/cases/federal/us/551/449/
3. McCain-Feingold Act³” – pdf
4. Citizens United
5. “American Tradition Partnership v. Steve Bullock Attorney General State of Montana⁵” – pdf
6. Trump Treasury Department “press release⁶” – pdf
7. Koch – https://www.opensecrets.org/news/2018/11/2017-financials-of-the-kochs-dark-money-network/
8. “Dark Money Illuminated Report^{8 – pdf}
9. Dark Money Diagram – pdf
10. 2018 Kimberly Reed documentary film titled Dark Money¹⁰