The role of 501(c)(4)s and 527s in progressive electoral victories

A key part of the progressive plan to have a decisive impact on policy and legislative decisions is to fund aggressive state-based organizations committed to direct political fights.

Progressive ideological donors do not believe that the Democratic Party or elected officials will do the heavy lifting on policy debates, legislative reform or fighting against the policy ideas of groups that support conservative or libertarian policy goals.

The New York Times reports on November 12, 2007 that after the early November meeting of the Democracy Alliance in Washington, DC, a new non-profit was formed by Soros lieutenant John Podesta and a leading activist with Service International Employees Union.

Tax laws and FEC regulations

Under today’s tax laws, the organizations free to conduct such activities are dealt with under section 501(c)(4) of the IRS Code; donations to them are not tax-deductible, although they are nonprofit organizations. C-4s can accept unlimited contributions from individuals or for-profit corporations. C-4s can also protect donor names from public disclosure, no matter how much money they spend on issue ads, ballot measures, and the like.

Key activities C-4s can fund:

• Lobby directly for or against legislation.
• Conduct issue ad campaigns, offering the public information about the positions of incumbents or candidate for office on important policy issues.
• Contribute money to campaigns for or against constitutional amendments, ballot initiatives, bond referenda or other measures placed before voters by elected officials.

Driving a state's policy debates

C-4s can help drive the policy debate in a state. C-4s are often team players with other organizations in the progressive network. Progressive think tanks view friendly C-4s as customers when looking for opportunities to supply their brain power to the field of overt political battle.

Issue ads and campaign finance regulations

The importance of c-4 organizations is amplified by the campaign finance regulations which most progressives support--in theory. A c-4 offers left-leaning investors a way to pay for the build-up of grassroots organizations. The c-4 organization is free to communicate about the positions of federal or state candidates on issues of interest, and to target those communications in efficient ways.

A c-4 can offer support for progressive policy ideas. It is free to mobilize grassroots supporters, and to criticize those who vote against favored progressive reforms.

Progressive use of a new 527 in November 2007

A Drive-By Swift-Boating from the Washington Post.

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