We all know that in the 2012 election season, outside groups fueled by unlimited checks from wealthy donors have been flooding America’s airwaves with campaign ads. Most of the attention in this sphere has focused on super PACs, the turbocharged offspring of political action committees.
But super PACs have in fact been outspent by another, more secretive type of political organization—nonprofits that declare their primary activity to be advancing “social welfare.” Dozens of so-called social welfare groups—such as the conservative Koch brothers’s Americans for Prosperity, the liberal Priorities USA, and Republican strategist Karl Rove’s Crossroads GPS—have been blanketing swing states with political messages, as the law allows. These organizations do not reveal their donors, and until 60 days before the general election, they were not required even to reveal their expenditures to the Federal Election Commission, as long as their ads do not endorse specific candidates.
None of this is illegal. But some of these social welfare groups do appear to have crossed the legal line. In August, a sweeping investigation by ProPublica found that many of them got formal approval and tax-exempt status from the IRS by misrepresenting their activities. A number of them, in fact, sailed through the IRS approval process by claiming that they would not spend money on influencing elections—only to turn around and purchase political ads as soon as the same day.
Last week, another ProPublica report revealed that a nonprofit was running clearly political ads in the Ohio Senate race—ads that praised the Republican candidate, Josh Mandel, and attacked his Democratic opponent, Sen. Sherrod Brown. That was the Government Integrity Fund, which had pledged to the IRS that it would not spend money on politics.
In the final sprint to the elections, many nonprofits are continuing to pour money into political ads—including some who misrepresented themselves to the IRS. On Tuesday, Politico reported that the nonprofit American Action Network will be launching a multimillion dollar ad campaign in partnership with the super PAC Congressional Leadership Fund on behalf of Republicans in the House of Representatives. This is a group that ProPublica found to have broadly misrepresented its spending in tax returns to minimize its political activity.
Many of these “social welfare” nonprofits properly told the IRS that their activities would be political in nature. But as ProPublica has reported, many social welfare groups got formal recognition by misrepresenting their activities to the IRS. The motive may have been to avoid a slower and more careful IRS approval process.
Who is keeping an eye on this kind of illegality? The media certainly should. And the profusion of nonprofit political ads offers a particularly golden opportunity to do so for reporters in swing states. Testing the accuracy of IRS filings of self-declared social welfare groups that run political ads is a straightforward and easily replicated process. CJR went through it, and also spoke with ProPublica reporters Kim Barker and Justin Elliott, to figure out exactly how its done.
Here’s what we learned. Below are three steps for determining whether a social welfare group is deceiving the public:
1) Identify the sponsor organization
Before anything else, figure out the name of the group that is running the ads. Whether you see a political ad on TV that makes you want to dig into its backers—or you want to search political ads in your local market—you can do so using ProPublica’s Free the Files application. Free the Files scrapes the Federal Communications Commission website each day for the disclosure files that some broadcast stations are required to post when they run political ads. Free the Files can be searched either by television market or by ad buyer.

Interesting expression that always comes up in these silly pieces - 'outside groups'. Gasp! You mean people outside the media/political/entertainment echo chamber are trying to butt into the debate about the election? The nerve of these nobodies.
CJR, as usual, remains on autopilot, refusing to discuss why it should be illegal for non-media corporations to devote 'resources' to political information (knows as 'attack ads' in media duckspeak), but legal for 'media' corporations to do the same exact thing. If you want an illustration of bourgeois liberal hypocrisy and self-interest masquerading as principle, you could hardly do better than the MSM crusade against competition from campaign ads. What's the cash value of CJR's editorial matter, given its own crusade (got some ambitious young staffers who know the rules of the road and which powers must be pandered to, I see) against the Republican Party and its constituencies? Does David Koch really have more voice in political campaigns than the Sulzberger kid who got his job thanks to useful ancestors? Truly, middle-class media liberals live in a bubble of hypocrisy. Free speech for me, but not for Karl Rove.
#1 Posted by Mark Richard, CJR on Fri 12 Oct 2012 at 05:00 PM
Mark Richards: Lying on IRS forms is OK by you? That's what CJR is talking about here.
#2 Posted by Astraea, CJR on Wed 17 Oct 2012 at 08:22 PM