In response to my previous posts here and here, Dan, co-founder of the Super PAC App, provided some context in the comments on the “non-profit” organizations that sponsored political ads:
Definitions are important here. “Non profit organizations” is a catch-call designation for anything that is not a PAC, Super PAC, official campaign, or the national party (RNC or DNC). The disclosure rules for these groups (501c’s) are different and lighter than other organizations (don’t ask me why). The most famous is probably Karl Rove’s Crossroads Grassroots Policy Strategies (often called Crossroads GPS).
So when you think “non profit”, don’t think Make-a-Wish Foundation or Red Cross. Think of people who are choosing to register as non-profits from the menu of organization types–and they’re choosing the one that requires the least disclosure.
-Dan
Thanks Dan. This makes sense, and provides another compelling reason as to why these organizations have the highest ‘Fail’ ratings. With even less rigorous disclosure requirements than PACs and Super PACs, these organizations are probably less accountable to their claims, and thus have less to lose by making questionable claims. At least when compared with the campaigns, parties, and PACs / Super PACs.
I’d be interested to know the the trade-offs between registering as a PAC vs. non-profit for political advocacy. I’d guess that there must be some fund-raising or tax incentives to register as a PAC since that’s the route the vase majority of third-party organizations took. If any readers know the answer (Dan?), please post in the comments and I’ll publish any responses as a follow-up.