Dark Money in American Politics
"Dark money" refers to political spending by organizations that are not required to disclose their donors. The term usually applies to 501(c)(4) "social welfare" organizations and 501(c)(6) trade associations that engage in political activity.
How Dark Money Works
1. Donors give to a 501(c)(4) organization — These nonprofits are not required to publicly disclose their donors 2. The organization spends on political ads — As long as political activity isn't its "primary purpose" (generally interpreted as less than 50% of spending) 3. Voters see the ads but don't know who funded them — The organization's name appears, but not its underlying donors
Why It's Controversial
Critics argue that dark money undermines democratic accountability. Voters cannot evaluate political messages if they don't know who is paying for them. It can also allow foreign entities to potentially influence elections through intermediaries.
Supporters argue that donor privacy is a First Amendment right. They point to historical examples where disclosure of political donors led to harassment and intimidation, particularly for unpopular causes.
How Much Dark Money Is There?
Dark money spending has grown significantly since Citizens United. Estimates suggest hundreds of millions of dollars in dark money flows through federal elections each cycle, though by definition the exact amounts are difficult to track.
What's Being Done About It?
Several legislative proposals have sought to increase transparency:
- The DISCLOSE Act would require all organizations spending on elections to reveal donors over $10,000
- The For the People Act included campaign finance transparency provisions
- Some states have enacted their own disclosure requirements
Currently, no comprehensive federal dark money disclosure law has passed.