Like you didn’t see that one coming: a pair of campaign-finance watchdog groups have asked the Internal Revenue Service to investigate Crossroads GPS, a conservative nonprofit that is spending heavily (and when we say “spending heavily,” we mean it), to influence the midterm elections.
If you watch the news, read Politico, or dig around the FEC site as a pastime (not us… ok maybe a few Friday nights FEC.gov has provided entertainment), you have heard about American Crossroads. Since its creation earlier this year, many in the media have cast shadows of doubt on the activities of the political grassroots organization.
So we decided to whip up a quick, fact-based rundown for those who aren’t clear on what American Crossroads is, think Crossroads GPS might be a global positional system, or are just excited by anything that comes out of the prolific mind of Karl Rove (you know who you are).
FACT 1: American Crossroads is not a cover for an underground mobster. It is actually organized as a 527 committee under the IRS tax code, has a DC office, and even a phone number that you can call on. And, being a 527 group, it’s actually within legal limits to collect unlimited contributions. While it remains to be seen if the FEC or IRS will crack down on it for abusing the law as alleged, on paper at least, it seems to be cautious and regularly filing its required documents within deadlines.
FACT 2: Crossroads GPS is not a space-based global positioning system. It is, however, an offshoot of American Crossroads, formed last June as a 501(c)(4). And because it has a 501 (c)(4) status, it does not have to disclose its donors. However, since a majority of a 501(c)(4) nonprofit’s activities must be apolitical, Crossroads is in the hot seat as yet another nonprofit allegedly operating as a lobbying outfit that doesn’t get to pay taxes.
FACT3: While Karl Rove is one of the founders of American Crossroads, he doesn’t actually run its daily operations. He’s more of an informal advisor, the fundraising brains, guru — you get the drift. A guy named Steven Law is the CEO (for those of you who don’t read your Wash Reps Weekly, Law is a former deputy secretary of labor in the Bush administration and was previously general counsel to the US Chamber of Commerce).
The FEC filings of American Crossroads show that between mid-August and early October, the organization had already filed 21 contribution notices, reporting massive media spending of almost $18 million. Just to give a rough idea of the nature of the contributions, they include media expenses to oppose the campaigns of Democrats Michael Bennett (Colo.) and Jack William Conway (Ky.), and to support Marco Rubio (R-Fla.), among others.
While one can argue against the wisdom of the FEC and IRS laws being too easy to manipulate, it can’t be denied that American Crossroads seems to have done its homework and done it well. If there’s a scandal in here, it’s definitely not flagrant and in-your-face a la Abramoff.