Dark Money Groups Gone Wild
You couldn’t devise a better political hit-and-run.
In the summer of 2010, an unknown group called the Commission on Hope, Growth, and Opportunity (CHGO) asked (PDF) the Internal Revenue Service to grant it 501(c)(4) tax-exempt status. The organization told the IRS it didn’t plan to spend a penny on politics. Once the IRS gave CHGO the green light, however, the group plunged into the 2010 political season. It would ultimately raise $4.8 million—$4 million of that from a single anonymous donor—and spend $2.3 million on TV ads attacking 11 House Democrats running for re-election. (Ten of them lost.)
Later, on its 2010 and 2011 tax returns, CHGO claimed it hadn’t spent money on politics. Watchdogs filed complaints against CHGO alleging it had flouted tax and election laws. But sometime in 2011, after the Republicans’ 2010 “shellacking,” CHGO quietly disappeared. The group, and the anonymous individuals behind it, has yet to face any punishment.
The tale is a familiar one in the campaign finance world, illustrating the slow-moving, scattershot nature of justice when it comes to political money.