Advocacy Groups Take Growing Political Campaign Role

Advocacy groups are emerging as a major force in this fall’s midterm election, primarily backing Republicans, The New York Times and Bloomberg report.

Organizations classified under Section 501(c)(4) of the Internal Revenue Code are allowed to do more advocacy work than those considered charities under Section 501(c)(3). Donors to the advocacy groups can’t take a tax break, as they can when they give to a charity, but just like with a charitable gift, their names won’t be disclosed to the public.

Advocacy groups have gained in popularity as conduits for large, unrestricted donations since the 2006 election. Campaign-finance experts say most of the corporations that have jumped into the campaign fray since the Supreme Court’s Citizens United decision, which lifted restrictions on corporate political spending, have done so through advocacy groups rather than giving directly.

Advocacy groups cannot spend more than half their funds on political ends, but lawyers and watchdog groups say it is unlikely either the Internal Revenue Service or the Federal Election Commission will closely scrutinize the organizations’ activities.

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