Campaign Finance

“501(c)(4s) are social welfare organizations that increasingly have been misused to spend money for political purposes,” Aaron Scherb, director of legislative affairs at Common Cause, told The Daily Beast. “Under the IRS tax code, they don't have to disclose their donors. And so that's why they've become a popular vehicle for people who are trying to use dark money to influence political outcomes.” Watchdog groups have argued for years that the decision of three Republican commissioners to deadlock votes on enforcement have prevented increased transparency. Scherb suggested that the deadlocks “seem to give a green light to straw donor schemes.” “If they know that there's no action,” he said, “Or if they know that there's, at most, going to be a slap on the wrist, it sends a signal that there can kind of be the Wild West again of campaign finance laws.”

From: 0114 Michael Cohen (owner) To: 4978 Maggie Haberman To: 4978 Maggie Haberman “In late January 2018, I received a copy of a complaint filed at the Federal Election Commission (FEC) by Common Cause. The complaint alleges that I somehow violated campaign finance laws by facilitating an excess, in-kind contribution. The allegations in the complaint are factually unsupported and without legal merit, and my counsel has submitted a response to the FEC. I am Mr. Trump’s longtime special counsel and I have proudly served in that role for more than a decade. In a private transaction in 2016, I used my own personal funds to facilitate a payment of $130,000 to Ms. Stephanie Clifford. Neither the Trump Organization nor the Trump campaign was a party to the transaction with Ms. Clifford, and neither reimbursed me for the payment, either directly or indirectly. The payment to Ms. Clifford was lawful, and was not a campaign contribution or a campaign expenditure by anyone. I do not plan to provide any further comment on the FEC matter or regarding Ms. Clifford.”

"Strong majorities of Republican, Democratic and independent voters believe that there's too much 'big' and secret money in politics," says Aaron Scherb, spokesperson for Common Cause, a nonpartisan "citizens' lobby" working to ensure fair elections. The DISCLOSE (Democracy Is Strengthened by Casting Light On Spending in Elections) Act would rectify the glaring omission of dark money groups from FEC disclosure requirements. Some version of the DISCLOSE Act has been introduced every Congressional session since 2010—when it came within one vote of passing. "Republicans," says Scherb, "have repeatedly filibustered it in recent years." "With congressional Republicans continuing to block progress at the federal level, more and more states and municipalities have taken matters into their own hands and passed a variety of reforms," says Scherb. One effort is publicly funded campaigns with "small-donor matching systems" or block grants. More than three dozen states and municipalities have adopted some type of publicly financed elections. "These bills empower average Americans by matching their donations and make it possible for people of average means to run for office," says Scherb. "Passing reforms at the state and local level will create bottom up pressure on Congress to eventually do so at the federal level," he adds. Luckily, there are a number of nonpartisan groups working to reform our out-of-control campaign finance system. They act as FEC watchdogs, pushing for the commission to enforce violations (the six-member FEC — composed of three members of each party — often deadlocks), and advocate for legislative changes at all levels. Groups like Common Cause, Campaign Legal Center, End Citizens United and the League of Women Voters are all committed to campaign finance reform. The battle to rein in the influence of "big money" in campaigns won't happen overnight. With a reluctant Supreme Court and concerted partisan efforts to stymie legislation at the federal level, there is hard work ahead. "This is a marathon, not a sprint," warns Scherb. But he and others firmly believe it's a race that must be won. "Big money shouldn't dictate policy outcomes," Scherb says.

In 2018, watchdog group Common Cause filed a complaint claiming the payment was an “in-kind contribution” to Trump’s campaign. But the FEC failed to support their general counsel’s recommendation to investigate amid partisan deadlock in 2021. Cohen in 2018 pleaded guilty in Manhattan federal court to eight counts that included one count of causing an unlawful campaign contribution, and another count of an excessive campaign contribution, in connection with the payment to Daniels.

Dede Feldman, a former state lawmaker and spokesperson for Common Cause New Mexico, said voters deserve to know who signs candidates’ paychecks and where potential conflicts of interest lie. That’s also true for district attorney candidates, she said. “It's not a good look when candidates do not disclose their finances,” she said. Feldman said more candidates need to file disclosures, but that won’t go nearly far enough. They also need to take them more seriously. “The chief duty of elected officials is to act in the public interest, and not their private interests. But when no one knows what their private interests are, there's no way to really enforce conflict of interest,” she said.

Watchdog group Common Cause filed a complaint claiming the payment was an “in-kind contribution” to Trump’s campaign, but the FEC failed to support their general counsel’s recommendation to investigate amid partisan deadlock. Cohen ultimately pleaded guilty to election finance violations, and said the Trump Organization reimbursed him.