OpenSecrets Blog:How Crossroads GPS beat the IRS to become a “social welfare” group 

Crossroads cofounders Karl Rove and Ed Gillespie in 2007 when they worked for President George W. Bush. (AP Photo/Lawrence Jackson)

How Crossroads GPS beat the IRS and became a social welfare group

When a group called Crossroads GPS sent the IRS an application for tax-exempt status in September 2010, Nancy Pelosi was speaker of the House, Snapchat hadn’t started doing whatever it does, and Miley Cyrus was still Hannah Montana.

A lot has changed since then, including the political influence of 501(c)(4) social welfare organizations like GPS, a brainchild of Karl Rove, Ed Gillespie and other GOP political operatives that was an early player in the post-Citizens United landscape.

For example, in the 10 years leading up to that date, the combined political spending by organizations, like GPS, that aren’t required to disclose their donors stood at about $100 million.

That was about $30 million less than was ultimately spent by such groups in the last few months of the 2010 midterms alone, and less than one-third of what they spent in the 2012 presidential election cycle. In that cycle, GPS’ political outlays alone made up nearly one-fourth of all spending by nondisclosing groups, as reported to the Federal Election Commission.

None of those totals include the many ads GPS has run outside of the FEC’s reporting windows.

Click here to read the full article


Source: How Crossroads GPS beat the IRS and became a social welfare group | OpenSecrets Blog

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