A Media Matters analysis of newspaper coverage of anonymously donated “dark money” in three battleground states shows that secret money's growing influence on elections has not necessarily translated to more awareness in the media. While some news outlets are reporting on the influence this new influx of money is having on politics, others are merely providing a platform for dark-money groups to further their causes.
The term "dark money" is used to describe organizations that do not disclose the identity of at least some of their donors and that use money from these anonymous donors to fund political ads, mailers, and staff to try to influence voters and policymakers. Even spending by these groups may be shielded from disclosure, depending on the type of ad they run. Dark-money groups focus heavily on specific policy outcomes and try to connect candidates to their desired outcome through advertising. These groups protect their donors by never officially endorsing a candidate and by limiting their political activity. This allows them to be classified as “social welfare” organizations under the tax code, which means they do not have to disclose their funding.
Spending by dark-money groups in this election cycle is nearing the $200 million mark and is expected to spiral even higher before Election Day. Much of the spending by these groups is focused on influencing Senate races in key states. Media Matters reviewed newspaper coverage in three states with competitive Senate races (North Carolina, New Hampshire, and Colorado) to see how they are covering this influx of anonymous outside funding. The results show large discrepancies in the quality of the coverage of dark-money groups, with some papers doing a significantly better job than others.
Of the three states analyzed, North Carolina's newspapers provided the best overall coverage of dark money influence. North Carolina's Senate race is expected to set a new record for outside spending, with $55.7 million spent so far, even without counting the non-disclosed money. The Raleigh News & Observer and The Charlotte Observer, the two largest papers by circulation in the state, went beyond reporting the existence of the groups and attempted to report which outside groups were spending money on which ads -- something these groups often fail to do themselves. The North Carolina papers also reported on how dark-money groups such as the Koch brothers-funded Americans for Prosperity (AFP) are using their influence to lobby for specific policies, such as the group's successful campaign to block a special legislative session on economic development.
The Colorado newspapers' coverage of dark-money activity proved to be far less extensive than that of the North Carolina newspapers, producing just 13 stories since July 15. Colorado's Senate race is also poised to break records in outside spending. The Denver Post's coverage did not go into depth the same way North Carolina's newspaper coverage did, but it did highlight efforts by groups like Americans for Prosperity to influence voters with their door-to-door outreach.
Colorado's second biggest paper, The Gazette of Colorado Springs, produced few reports on dark money during the period analyzed. However, a partnership with Rocky Mountain PBS I-News produced a report that covered many of the complexities of dark money. The article discussed outside spending by both conservative and liberal groups and explained the difficulty of tracking dark-money donors and the impact of their donations:
“Nonprofit political groups do not have to disclose donors,” Viveka Novak, editorial and communications director for the Center for Responsive Politics said. “So we could only identify organizations that filed 990s (nonprofit tax forms) and that wouldn't include individuals or corporations, so there are still a lot of donors or donations no one would know about.”
[Sheldon] Adelson, the Koch Brothers and many other politically active billionaires and multimillionaires across the political spectrum are able to maintain privacy and give endless funds after the U.S. Supreme Court's 2010 Citizens United decision, which held that political spending is a form of protected speech under the First Amendment.
“TV ads are number one, the overwhelming most important tool in winning one of these campaigns,” Ciruli said.
In New Hampshire, dark-money groups have spent at least $4.3 million in the Senate race -- overwhelmingly in support of the Republican candidate, as of September 8. This subject has seen poor coverage from the state's largest newspaper, The Union Leader. While the paper mentioned dark-money groups in 11 articles, and another five articles mentioned the groups and specific policies, the paper's coverage mostly provided a platform for groups like AFP to spread their message and did not explain the groups' attempt to influence policy decisions or the Senate race. For example, in a September 30 article, the paper gave AFP state director Greg Moore a platform to attack the state's budget situation and blast the Affordable Care Act, something the group has also done in its advertising against Sen. Jeanne Shaheen (D-NH):
Greg Moore, state director for Americans for Prosperity, blamed Medicaid expansion under the Affordable Care Act for much of the shortfall in the two-year budget plan.
“The legislature gave the administration $57 million from the last, fiscally-responsible budget to spend, and expected that surplus to last for the entire, two-year budget, but Governor Hassan took her eyes off the ball and spent even more,” Moore said. “Keeping within the budget takes strong executive action and discipline, but we aren't seeing that right now in Concord.”
While the use of dark-money groups is not one sided, conservative groups are far more likely to use this route to shield wealthy donors and ensuing spending. As the Brennan Center for Justice noted, in this election cycle, “Overall, 80 percent of pro-Republican nonparty expenditures came from dark money groups, compared to 32 percent of outside spending favoring Democrats.” This is not a new trend for conservative supporters, as spending by nondisclosing groups has clearly favored Republican candidates over the past four election cycles:
The problem with dark-money groups, as the Brennan Center's analysis noted, is that “the lack of transparency in the majority of outside spending in competitive races leaves voters unable to evaluate the political messages they see” and that these groups “threaten to make a mockery of contribution limits and their prophylactic effect on corruption and influence buying.” This sentiment was echoed by University of Louisville political science professor Laurie A. Rhodebeck in the Los Angeles Times, saying that the flood of dark-money spending is “detrimental to voters because if they don't know who is behind the money, they can't judge whether to trust the ad or not.”
The scale of the problem is considerable. The Boston Globe reported on October 22 (emphasis added):
The impact is visible online and on television. One of every 16 television ads in US Senate races from January 2013 through August were paid for by a single group, Americans for Prosperity, according to the nonpartisan investigative Center for Public Integrity and advertising tracking service Kantar Media. AFP serves as a nonprofit advocacy arm of the political network backed by conservative billionaire brothers Charles and David Koch.
The Brennan Center found that during the 2012 election, “three-quarters of outside expenditures were made after September 30, and one-half were made in just the last three weeks of the campaign.” This suggests that newspapers in these key battleground states still have the opportunity to report on how dark money is influencing their elections.
Methodology
Media Matters searched Nexis transcripts of the top newspapers (by circulation) in three highly contested states. The papers analyzed were North Carolina's News and Observer in Raleigh and The Charlotte Observer, New Hampshire's Union Leader, and Colorado's Denver Post and the Colorado Springs Gazette. The Concord Monitor, New Hampshire's second largest newspaper, was excluded because it is not in the Nexis database. The search term "((outside or independent or nondisclos! or non-disclos! or undisclosed or dark or secretive) w/5 (money or expenditure or spending)) or (Americans for Prosperity) or (Crossroads GPS) or (U.S. Chamber of Commerce) or (Patriot Majority USA) or (Concerned Veterans for America) or (Freedom Partners)" was used to search for reports on dark-money spending from July 15, 2014, when the Federal Election Commission's quarterly report was released, through October 24. While dark-money groups do not have to disclose all spending to FEC, as other groups do, this date aligns closely with the increase in outside spending.