Donor Disclosure: 501(c) Groups and Campaign Spending

has, in the courts concerning this specific case—which is beyond the scope of this CRS product—the policy

entities regulated under campaign finance law and tax law, which is essential to understanding donor disclosure.

Independent Spending in 2012 Race The disclosure and spending in question originated in the

super political action committee (super PAC) American Crossroads, Crossroads Grassroots Policy Strategies (Crossroads GPS) is a tax-exempt group regulated under §501(c)(4) of the Internal Revenue Code (IRC). Crossroads GPS reported making more than $6 million in independent expenditures (IEs) calling for election or defeat of candidates in the Ohio contest. It reported no donors for those IEs in its FEC reports.

purposes of this discussion, CREW v. FEC addresses whether tax-exempt organizations that are only partially

committees are regulated under IRC §527 for tax purposes. IRC §527 is unessential for this discussion.)

Crossroads GPS is organized under §501(c)(4) of the IRC as a social welfare group . Similar provisions apply to

that they could expressly advocate election or defeat of federal candidates through independent expenditures like

District Court ruling chills their political speech and that they will curtail or refrain from making their planned IEs.

candidates through at least $250 per calendar year in IEs, however, FECA requires identifying donors who gave at

IEs. Third, rather than explicitly calling for election or defeat of federal candidates, groups could shift their

return (form 990). Donor information is redacted from public versions of these reports. The IRS announced in July

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