National: As Dark Money Floods U.S. Elections, Regulators Turn a Blind Eye | Newsweek
With apologies to the cast of Cabaret, dark money makes the political world go round. Confusing rules and a regulatory void in campaign finance have unleashed a tsunami of cash from anonymous donors that is expected to have unprecedented influence over the midterm elections in November. As a result of the U.S. Supreme Court’s Citizens United v. Federal Election Commission judgment in 2010, individuals—and big corporations—received a carte blanche to make unlimited anonymous financial donations to “nondisclosing” organizations, increasingly nonprofit groups whose primary mission is defined as “social welfare.” There are some guidelines: Such groups, categorized as 501(c)(4), can devote no more than half of their funds to political spending if they want to retain their nondisclosing tax-exempt status. The trouble is, who is holding them to account? Since the Internal Revenue Service got hammered for oversight activities that were at best overzealous, at worst partisan, many of these groups can essentially do whatever they want, unchallenged.