Nonprofits likely under fire as Senate explores ‘dark money’

A Senate hearing on Wednesday is likely to produce fireworks as Republicans and Democrats square off over the role that foundations and nonprofits are playing in elections. It appears likely that subcommittee chairman Sen. Sheldon Whitehouse wants to raise concerns about “dark money” flowing through 501 nonprofits, but Republicans plan to widen the scope of the hearing to highlight what they see as illegal political activities by 501 charities and foundations. Walter said he intends to make the case that abuses by 501 charities crossing the line into partisan activities are a much bigger problem than the 501 “dark money” that Whitehouse intends to focus on. Walter said the vast majority of those funds were spent in heavily Democratic districts, which violates the federal prohibition against spending tax-deductible charitable contributions in ways that have “the intention or effect of benefiting one candidate or party.” Groups like the New Venture Fund have drawn similar scrutiny from conservatives; it pursues a wide array of progressive policies in areas like climate change and gender equity, and it regularly receives large gifts from people like Jeff Bezos, MacKenzie Scott, Melinda French Gates, and Mark Zuckerberg and Priscilla Chan and from foundations like Ford and MacArthur. Brad Smith, founder of the Institute for Free Speech, who will testify at the hearing at the invitation of Republicans, said he felt that Democrats were exaggerating the problems posed by dark money flowing to political-action committees while ignoring the fact that many 501 charities engage in a wide variety of activities that can influence elections or policy.