Dark Money
Political spending by nonprofit organizations that are not required to disclose their donors, making the original source of funding untraceable.
Understanding Dark Money
Dark money refers to political spending where the source of funds is not publicly disclosed. The term most commonly applies to spending by 501(c)(4) social welfare organizations, 501(c)(6) trade associations, and certain LLCs that can accept unlimited contributions without disclosing their donors to the public. After the Supreme Court's Citizens United v. FEC decision in 2010, these organizations gained the ability to spend unlimited amounts on independent expenditures -- ads and communications that support or oppose candidates -- as long as political activity is not their primary purpose.
The result is that billions of dollars in political spending has flowed through organizations where the public cannot identify the original donors. Dark money spending in federal elections has grown from approximately $5 million in 2006 to hundreds of millions per election cycle. While dark money is primarily associated with electoral spending, it also intersects with lobbying. Organizations that engage in dark money electoral spending often also fund lobbying operations and issue advocacy campaigns, creating a multi-layered influence strategy where the same undisclosed donors may be funding candidates, lobbying Congress, and running public advocacy campaigns simultaneously.
Efforts to require disclosure of dark money donors have repeatedly been introduced in Congress, but have not passed.
Related Glossary Terms
501(c)(4) Organization
A tax-exempt "social welfare" organization that may engage in unlimited lobbying and limited political activity without disclosing its donors.
Citizens United v. FEC
The landmark 2010 Supreme Court decision that ruled corporations and unions have First Amendment rights to spend unlimited amounts on independent political expenditures.
Political Action Committee (PAC)
A registered political committee that raises and spends money to elect or defeat candidates, subject to contribution limits and disclosure requirements under the Federal Election Campaign Act.
Issue Advocacy
Public communications campaigns that promote a position on a policy issue without explicitly endorsing or opposing a specific candidate for office.
Frequently Asked Questions
What does dark money mean?
Political spending by nonprofit organizations that are not required to disclose their donors, making the original source of funding untraceable.
Why is dark money important in lobbying?
Dark money refers to political spending where the source of funds is not publicly disclosed. The term most commonly applies to spending by 501(c)(4) social welfare organizations, 501(c)(6) trade associations, and certain LLCs that can accept unlimited contributions without disclosing their donors to...