Supreme Court move could spur more dark-money disclosure

The Supreme Court’s decision means groups making independent expenditures to support or oppose candidates running for Congress this fall may have a legal obligation to disclose their donors./Zach Gibson/Getty Images.

 

By Josh Gerstein and Maggie Severns | POLITICO

A Supreme Court action Tuesday struck a blow to a conservative group’s effort to shield its donors and could lead to more disclosure of who funds so-called dark money groups.

The court’s unexpected action quickly set off a scramble among Washington operatives to change the way political nonprofits raise and disclose millions of dollars being spent on the midterm elections. The ruling invalidates, at least temporarily, a decades-old regulation that allows dark money groups to shield their donors.

“People are scrambling this afternoon. They’re saying, ‘We thought this was a problem for the next election,'” said Brett Kappel, partner at Akerman LLP. And for political nonprofits, “you’ll have to change the way you solicit funds.”

The decision Tuesday relates to a Federal Election Commission regulation that said independent political groups only had to name donors when their gifts were linked to specific sets of TV ads or mailers. A federal judge last month struck down that rule.

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