Dark Money
How undisclosed donors shape elections through nonprofit organizations that do not have to reveal their funding sources.
Hidden Influence
'Dark money' refers to political spending by organizations that are not required to disclose their donors. The primary vehicles are 501(c)(4) 'social welfare' organizations and 501(c)(6) trade associations. These groups can spend on political activities as long as politics is not their 'primary purpose' — a vague standard that is rarely enforced.
Here is how dark money works in practice: A donor gives to a 501(c)(4), which is not required to disclose the donation. The 501(c)(4) then donates to a Super PAC or spends directly on political ads. The public sees the ad and knows the 501(c)(4) paid for it, but has no idea who actually provided the money. Both liberal and conservative groups use this structure extensively.
