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MEC opinion is blow for ‘dark money’ groups

JEFFERSON CITY, Mo. — Nonprofits raising money to influence elections must register as political committees and report their donors and expenditures, according to a formal opinion from the Missouri Ethics Commission.

The opinion also affirms prohibitions on donating to a committee in an effort to conceal the identity of the source.

The definition of a “person” includes an individual, group of individuals, corporation, partnership, committee, proprietorship, joint venture, and such.

“Because a nonprofit corporation is a ‘person’ under Missouri campaign finance laws, that corporation becomes a committee if it accepts contributions, in excess of $500 in a calendar year or in excess of $250 for a single contributor, for the primary or incidental purpose of influencing or attempting to influence the action of voters for or against the nomination or election to public office of one or more candidates or the qualification, passage or defeat of any ballot,” reads the opinion, which is signed by MEC Executive Director James Klahr.

“Once the nonprofit becomes a committee is required to register the committee with the commission within 20 days by filing a statement of committee of organization pursuant to §130.021.5 RSMo, and file reports as required under Chapter 130.”

Using a committee to conceal the identity of the contributor is not permitted by law, the formal opinion states.

“Both the Missouri Constitution and Missouri campaign finance disclosure law contain prohibitions on making contribution to a committee with intent to conceal the identity of the actual source of the contribution.”

This opinion can be seen as a blow to so-called “dark money” groups that become popular during the last election cycle.

The most well known “dark money” group is probably A New Missouri Inc., which was formed Gov. Eric Greitens’ campaign treasurer. The nonprofit status of A New Missouri has enabled it to receive unlimited contributions and without having to release information about who gave those contributions — until the formal opinion released by the MEC on May 10, 2018.

“It is very clear that A New Missouri gave $500,000, which is more than $500, to Freedom to Work. So, now that makes A New Missouri a committee and that would imply that they have to reveal their donors,” Sen. Rob Schaaf said on the Senate floor.