Dirty Money Organizations:  The Good, The Bad and the Ugly

In Arizona, some political committees that are organized as non-profit organizations are exempt from having to report their contributors.  These include:

501c4 organizations:  Social welfare organizations, such as civic organizations or neighborhood associations, that are operated exclusively for the promotion of social welfare and promoting the common good and general welfare of the people of the community. Net earnings must be exclusively used for charitable, educational, or recreational purposes.

501c5 organizations:  Labor organizations, agricultural organizations, or horticultural organizations. Labor unions, county fairs, and flower societies are examples of these types of groups.

501c6 organizations: Business leagues, chambers of commerce, real estate boards,  boards of trade, professional football leagues or an organizations that are not organized for profit and no part of the net earnings goes to the benefit of any private shareholder or individual.

These groups are supposed to operate independently from the party or candidate, but they may make donations to PACs.  PACs are required to report these donations, but the original source of the money is not revealed.  Some PACs are completely or substantially funded a 501c organization, funneling anonymous money into Arizona elections.

Not all groups exempt from reporting are the same!  Some 501c groups do not oppose reporting their donors.  Some have even supported our effort to require disclosure!  We call these groups  good and we applaud them! (link to a list coming soon!) However, some groups were organized specifically to funnel anonymous contributions to support or oppose candidates or ballot initiatives.  Some even brag on their websites that donor names will not be reported!  These are the bad and ugly!  

 

Political Committees in Arizona
 

The Good

The Bad

The Ugly

 

What are they?

Committees that report all contributors and do not accept contributions from bad or ugly committees

and

Current 501cs that are not required to report but are perfectly willing to do so.

Committees that report all contributors, but accept some contributions from 501c sources. Current 501c sources that are unwilling to report and any other committees/PACs that these sources substantially or entirely support.
Who are they?

Candidate committees

PACs that do not accept contributions from 501c organizations

PACS that accept contributions from a 501c organization that is wiling to support

Current 501c organizations that are willing to report

Some Political Parties

PACS that accept contributions from 501cs that oppose having to report contributors, but are not substantially funded by these 501cs

501cs that oppose having to report their contributors

and

PACs that are substantially funded by corporations, LLCs ,and unions that are not willing to report