Tuesday, November 28, 2017

Dark Money, Oppo-Research and “The common good”

            Opposition Research, or “ Oppo-research” is a seemingly innocuous term that is used to describe the practice of finding and distributing negative information on an opponent usually in the context of a political campaign. While the practice of finding dirt on one’s political opponent is clearly not the most savory of tasks involved in getting a candidate elected – or more specifically, getting another candidate NOT elected – oppo-research is an accepted and pervasive tactic used in political campaigning. But the research and distribution of the embarrassing or scandalous material is an expensive and distasteful process. So the organizations involved in obtaining and disseminating this information have discovered that they must find discrete yet reliably generous contributions to fund their unsavory task. In Jane Mayer’s New Yorker article, she goes into detail on one such organization – the methods they use, their mission and most importantly, how they obtain and maintain a steady flow of funding.
            James O’Keefe III is a conservative political activist and self-described “muckraker” and “practitioner of political warfare.” He has worked as an investigative journalist for the far right-wing news organization, Breitbart, and gained some notoriety for his journalistic practices such as “undercover stings” which often constitute the use of hidden cameras, disguises and lying, in order to get his targets to say and do things he can later share to defame and discredit them. Some of his tactics have gotten him into legal trouble, including being arrested by the FBI in 2010 during an attempt to infiltrate a Democratic Senatorial campaign in Louisiana by pretending to be a telephone repairman.
            In that same year, O’Keefe founded Project Veritas – a 501(c)3 tax-exempt charity organization – and later, in 2014, the Project Veritas Action Fund – a 501(c)4 tax-exempt “social welfare” organization. The mission of these organizations, as stated on their website is to “further the common good and general welfare of the citizens of the United States by conducting investigations into waste, fraud, abuse, corruption, dishonesty, self-dealing and other misconduct for the purpose of educating the public, stakeholders, policymakers and communities in order to create a more ethical and transparent society.”[i]
            While this goal has the appearance of credibility and could be seen as being righteous and honorable, what is most relevant in this message is the phrase “the common good.” What makes this significant relates to the tax statuses theses organizations are filed under by the Internal Revenue Service. The IRS breaks down the types of organizations that qualify for tax-exemption status in the “501(c)” section[ii] of the United States tax code. They distinguish 501(c)3s as charitable organizations, 501(c)4s as “social welfare” organizations, 501(c)5s as unions and labor organizations, and 501(c)6s as Business and Trade associations. While there are a variety of other distinct classes of 501(c)s detailed under this category, these few will prove relevant to the topic of “Dark Money” in campaign financing operations.
            So why did O’Keefe create a charity and then a “social welfare” organization? The answer to this is in the IRS definition of “social welfare.” Under their definition, an organization is operated exclusively for the promotion of social welfare if it is primarily engaged in promoting in some way the common good and general welfare of the people of the community. This vague, rosy-sounding definition is the reason O’Keefe, as well as a vast and ever-increasing number of political oppo-research organizations are filed under this section of the tax code. The appearance of the phrase “the common good” in the official literature of the Project Veritas Action Fund as well as the official definition of a “social welfare” organization is no coincidence. As long as such an organization spends at least 50.1% of their expenditures on anything other than politics, they qualify for this 501(c)4 tax status. This leaves 49.9% of their expenditures open to use for any politically motivated research, advertising or what became known in the Nixon era as “rat-***king” tactics, they see fit to allocate their funds toward. After the 2010 United States Supreme Court decision which has notoriously come to be known as Citizens United, organizations of this classification have no obligation to report the sources of their funding. This makes such organizations very attractive to large donors who may not want their contributions to an organization, which will be responsible for subversive and distasteful oppo-research, available for public scrutiny.
            It may seem to some reading this, that any donor who would want to keep their spending a secret, is immediately suspect. One argument for the need for secrecy in such charitable contributions cited in [iii]Drutman’s The Rise of Dark Money, was the Supreme Court ruling in the NAACP v. Alabama where the concern was that if the donations to the NAACP were publicly available, the organizations donors could be vulnerable to violent action in the racially divided, segregated south of 1958 when that case was being decided. While that is certainly a credible argument in that context, it is a laughable comparison to make concerning the current context of the proliferation of dark money influencing our electoral and campaigning system.
The passage of Citizens United and its subsequent loosening of rules regarding the transparency of charitable donations opened the floodgates for politically motivated 501(c) organizations like Project veritas and the related “Action Fund” – its more blatantly dubious dark money arm. For example, one of the largest contributors to project Veritas is the 501(c)3 Donor’s Trust. Donors Trust prides itself on its promise to “keep your charitable giving private, especially gifts funding sensitive or controvercial issues.” Donor’s Trust along with many others like it are funded by such wealthy conservative donors like the Koch Family and their various organizations and shell and umbrella corporations, as well as none other than – surprise, surprise – Donald Trump. The vast array of examples of these tax-exempt organizations and their habit of secrecy when it comes to the sources of their funding is extensive.
What becomes most troubling is the practice of these organizations trading money between each other to further hide the original sources of funding. This is important because the source of funding for things like political advertisements makes a big difference in a voters choice in who they should vote for. For example, The NRA is a 501(c)4. If you were a voter who cared a lot about gun-violence and reforming the process by which an American citizen is allowed to procure a firearm or the types of firearms that are allowed to be sold to the public, you would want to know if they were backing a certain candidate. By funneling their funding through another 501(c)4 and possibly another, and another, eventually the fact that that funding was coming from the NRA would never be public knowledge and the NRA would have successfully tricked you into voting for someone they can now expect a quid-pro-quo relationship with, seeing as they funded his election. In so doing, the uninformed voter just voted against their own interests because they lacked the sufficient knowledge of the candidates donor base, in order to make an informed decision.
James O’Keefe is just the most blatantly distasteful example of the ways that dark money influences politics. Recently he and Project Veritas have been involved in such “journalistic investigations” including discrediting CNN and The New York Times by getting employees to say things that suggest that these organizations have the explicit aim of lying about Donald Trump. Knowing that Trump himself is likely funding these journalistic practices speaks to a degrading of the fourth estate by its attacks and influence from the executive branch of the United States government. O’Keefe’s position that the influence of liberal billionaires like George Soros and his organization The Open Society Foundation is “ the most important topic undermining democracy” is incredibly hypocritical and hilarious considering his organizations and the multitude of other like it are being funded  by undisclosed dark money contributions from the likes of the Kochs and the Mercers, just to name a few of the most influential and wealthy conservative mega-donors . We are living in the age of dark money and the result seems to be that it is incredibly hard for the typical American citizen to know what they are really voting for. And James O’Keefe and Project Veritas, as just a small example of this legal corruption, aim to keep it that way.



[i] https://www.projectveritasaction.com/about/
[ii] https://www.irs.gov/charities-non-profits/other-non-profits/social-welfare-organizations

[iii]Cigler, Allan J., Burdett A. Loomis, and Anthony J. Nownes. 2016. Interest group politics.

https://www.washingtonpost.com/news/the-fix/wp/2013/05/13/what-is-a-501c4-anyway/?utm_term=.94ccf8919f28
http://www.nonprofitlawblog.com/comparing-501c3-vs-501c4-nonprofit-startups/
- https://www.newyorker.com/magazine/2016/05/30/james-okeefe-accidentally-stings-himself 

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