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How Dark Is It? An Investigation of Dark Money Operations in U.S. Nonprofit Political Advocacy Organizations

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  • Irvin Renée A.

    (School of Planning, Public Policy & Management, University of Oregon, 1408 University Street, Eugene, OR, 97403-1299, USA)

Abstract

Claims of dark money influence on U.S. political activity are heard from both left- and right-leaning media, both accusing the other side of undue influence from high net worth political donors on American politics. This article explores the issues of donor control, transparency, and publicness of economic policy advocacy organizations. The study focuses on social welfare nonprofit organizations active in economic policy advocacy, utilizing tax filings to compose an index of transparency based on observed characteristics such as; website verbiage, board size, staffing, fundraising spending, relations to other organizations, and other indicators. All of these variables measure legal behavior, yet as L.H. Mayer describes, some organizations appear to be stretching the boundaries of the rules so egregiously as to be in violation of legal rules, with “little fear of negative consequences” (2018, 194). Organizational tactics can reflect a disinterest in public engagement, or worse, a deliberate attempt to keep the organization’s operations opaque. It is impossible to observe, with current policy, the identity of the donors. Given an index as proposed in this article, however, observers can rank organizations on a scale indicating transparent or opaque characteristics.

Suggested Citation

  • Irvin Renée A., 2023. "How Dark Is It? An Investigation of Dark Money Operations in U.S. Nonprofit Political Advocacy Organizations," Nonprofit Policy Forum, De Gruyter, vol. 14(2), pages 101-129, April.
    • Handle: RePEc:bpj:nonpfo:v:14:y:2023:i:2:p:101-129:n:1
    DOI: 10.1515/npf-2022-0032
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    References listed on IDEAS

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    1. Brian Galle, 2020. "The Dark Money Subsidy? Tax Policy and Donations to Section 501(c)(4) Organizations," American Law and Economics Review, American Law and Economics Association, vol. 22(2), pages 339-376.
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