501(c)(4) money in politics

BREAKING NEWS: FEC to Consider Donor Disclosure at Upcoming Meeting

The next open meeting of the Federal Elections Commission (FEC) will take place on Thursday May 16, at 10:00 am ET.  At this meeting, Commissioner Allen Dickerson is expected to propose the promulgation of regulations surrounding requests by donors to withhold, redact, or modify their information on federal campaign finance reports. It is a delicate balance between the importance of donor disclosure and the ability of an individual to donate to a candidate or political committee without the fear of reprisal or threats. Members of the public can attend this meeting in-person or online via the FEC website. 

A Brief History 

In 1957, the United States Supreme Court ruled in NAACP v. Patterson, that the First Amendment guarantees the right to anonymously support and associate with organizations. Alabama, to prevent the NAACP from conducting business in the state, tried to require the organization to disclose its membership list. The court ruled that such action by the state would interfere with the free association of its members and was therefore unconstitutional.  

In 1976, shortly after the Watergate scandal, the United States Supreme Court decided Buckley v. Valeo. This case involved the constitutionality of the Federal Election Campaign Act of 1971 (FECA). The case held that FECA’s reporting and disclosure requirements were justified by the government’s interest in deterring corruption and providing the public with information about the source of candidates’ funds.  

Then, in 2010, the Supreme Court held in Citizen’s United that corporations have a right to speak and that they can make independent expenditures. From that sprang a plethora of Super PACs and an unprecedented amount of campaign spending. However, Citizens United also made it clear that reporting and disclosure regulations remained constitutional.  

Disclosure Requirements 

The FEC requires that political committees report contributions. Specifically, contributions received in aggregate over $200 must be itemized and reported with the name of the contributor, their address, occupation, and the name of their employer.  

There is a procedure where individuals or organizations may request donor information be redacted to protect them from retaliation. In 1979, a consent decree was granted to the Socialist Worker Party, which provided them with a blanket exception to donor disclosure. According to Commissioner Dickerson, the FEC has also granted individual requests to redact contributors’ mailing addresses.  

Federal campaign finance reports are easily accessible and searchable, and donor disclosure of this type ensures that campaign finance regulations are being followed. But, today’s partisan times have created an atmosphere of online vitriol and harassment. This raises the question… Does the disclosure of donor information create an opportunity for further or continued threats to those contributing to political committees and campaigns?  

FEC Open Meeting 

Commissioner Dickerson is proposing that the FEC begin drafting regulations that would provide “a fair consideration” of contributors’ requests to redact their donor information. Until that happens, he is asking members of the Commission to approve a stop-gap process. If approved, the process aims to clarify the steps a donor or organization would take in requesting a redaction of relevant information, which could include redaction of the contributor’s name, address, employer, and / or occupation.  

Members of the public may attend the FEC meeting in-person or stream the meeting online. AFJ Action will be tracking the discussion surrounding this important topic and will keep you updated on our blog.  

 

Alliance for Justice Action Campaign builds the strength of progressive organizations and movements.  We develop resources on the legal framework for social welfare advocacy organizations and political campaigns. Our materials explain the legal framework that 501(c)(4) organizations must operate within and practical tips for organizational staff. This post is for informational purposes only and does not constitute legal advice. 

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