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Politically active 'social welfare' nonprofits get IRS approval with cash, connections
The Sunlight Foundation reports that in the wake of Citizens United, tax-exempt social welfare groups, 501(c)4 organizations, have becoming increasingly popular as conduits for big, anonymous campaign donations. A survey by the Sunlight Foundation found dozens of groups in Washington D.C., Maryland and Virginia that appear to benefit Republican and Democratic politicians, despite being set up as social welfare nonprofits that according to tax code most benefit whole communities. The Sunlight Foundation also reports "plenty of evidence that a group's ability to operate as a tax exempt organization has less to do with its political persuasion than its budget and political connections."