Defining Political Interest Groups
An important step to examining the effects of the Internet on political interest groups is defining what exactly a political interest group is. Indeed, there are thousands of organizations within the United States that have a stake in the political process and its outcomes, with very few similarities among them. For the purposes of this blog, the blanket term “political interest group” will cover organizations granted a tax-exempt status and that participate in activities directly related to the advocacy of a particular issue, policy, or candidate. These organizations fall into four categories: those granted 501(c)(3) status, 501(c)(4) status, 527 groups, and PACs.
501(c)(3) organizations:
Organizations are granted 501(c)(3) status by the Internal Revenue Service when they can be classified as a public charity or a private foundation. They are exempt from paying taxes, and all donations to these organizations are tax-deductible. The IRS specifically states that 501(c)(3) organizations may “not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates”. In addition, lobbing actions are restricted. 1
According to the Nonprofit Law Blog, this doesn’t mean that 501(c)(3)s are unable to lobby, or that they do not: “organizations may engage in a fair amount of lobbying without violating the prohibition against substantial lobbying”.2 For example, the American Cancer Society (ACS), one of the largest charities in the US 3 spent $456,000 on lobbying efforts in 2008.4 This total comes from OpenSecrets.org, the Web site of the Center for Responsive Politics.
Aside from direct lobbying, ACS has shown an interest in politics in subtle ways:
501(c)(4) organizations:
Like 501(c)(3)s, 510(c)(4) organizations are tax-exempt and non-profit, but 501(c)(4)s are allowed to participate in an almost unlimited amount of lobbing and according to a non-profit management site, “can engage in political campaign activity, so long as this is consistent with the organization’s purpose and is not the organization’s primary activity”. However, 501(c)(4)s are not eligible for government grants, and donations to these organizations are not tax-deductible.5
501(c)(4)s exist both as organizations related to 501(c)(3)s and other groups, as well as independent of any group. For example, because ACS’s participation in lobbing efforts is limited, the society up a separate, but related 501(c)(4) organization called the American Cancer Society Cancer Action Network (ACSCAN). According to OpenSecrets.org, ACSCAN has spent $3,250,000 on lobbying so far in 2009.6 Their political messages are much more overt than their sister organization’s:
527 organizations:
The Federal Election Commission (FEC) describes 527 organizations as “defined generally as a party, committee or association that is organized and operated primarily for the purpose of influencing the selection, nomination or appointment of any individual to any federal, state or local public office, or office in a political organization”. 527 organizations are not affiliated with any party or candidate, and are therefore not regulated by the FEC and are not subject to strict contribution limitations.7 A list of the 50 largest 527s, and the amounts they’ve contributed to the American political system, can be found here.
Image from emilyslist.org. Emily's List is a 527 organization dedicated to electing Democratic women into office.
PACs:
PACs are a subset of 527 organizations, organized for the purpose of raising and spending money to elect and defeat candidates, but are considered private groups, and may be affiliated with a candidate or party. Politicians, in what are called Leadership PACs, will often set up their own organization to aid themselves and other candidates (called Leadership PACs).8
Image from sarahpac.com. SarahPAC is the official leadership PAC of Sarah Palin.
References:
1. “Exemption Requirements – Section 501(c)(3) Organizations.” IRS.gov. United States Internal Revenue Service, 7 Dec. 2009. Web. 12 Dec. 2009.
2. Chan, Emily. “Affiliated 501(c)(3) and 501(c)(4) Organizations.” Nonprofit Law Blog. 10 Aug. 2010. Web. 12 Dec. 2009.
3. “The 200 Largest U.S. Charities.” Forbes.com. Forbes, 24 Nov. 2009. Web. 12 Dec. 2009.
4. OpenSecrets.org. Center for Responsive Politics. Web. 12 Dec. 2009.
5. Kennen, Estela. “What is a 501c4 Organization?” Suite101.com. 1 Mar. 2007. Web. 12 Dec. 2009.
6. “Lobbying Spending Database- American Cancer Society, 2009.” Lobbying Spending Database. The Center for Responsive Politics, 29 Oct. 2009. Web. 13 Dec. 2009.
7. “Quick Answers to General Questions.” FEC.gov. Federal Election Commission. Web. 13 Dec. 2009.
8. “What is a PAC?” OpenSecrets.org. The Center for Responsive Politics. Web. 13 Dec. 2009.
