Huffington Post: ‘Dark Money’ Hits $172 Million In 2012 Election, Half Of Independent Group Spending
-By Paul Blumenthal
July 29, 2012- WASHINGTON — In May, the conservative nonprofit group Crossroads GPS, founded by famed political strategist Karl Rove and other leading Republican operatives, ran a television ad showcasing a fictional mother who had supported Barack Obama in 2008. The mom was disappointed in Obama's performance, saddled as she was with two adult children who had moved back in with her due to the stalled economy. The ad was the centerpiece of a $25 million campaign — one of the biggest ad buys so far in the 2012 election cycle.
Despite the fact that the ad's central message was the failure of the president, it wasn't considered a campaign ad under election laws. Although the group spends tens of millions of dollars on ads targeting Democratic candidates, Crossroads GPS is organized as a "social welfare nonprofit" under section 501(c)(4) of the tax code and therefore not subject to the rules governing political organizations.