To amend the Internal Revenue Code of 1986 to prohibit 501(c)(4) entities from using more than 10 percent of total expenditures on certain political expenditures, and for other purposes.
About This Bill
Committee
Latest Action · April 30, 2024
Referred to the House Committee on Ways and Means.
The Crack Down on Dark Money Act would limit the political spending of 501(c)(4) social welfare organizations, which currently can engage in unlimited political activity without disclosing their donors. Under this bill, these tax-exempt organizations would lose their tax-exempt status if more than 10 percent of their total spending goes toward political activities like campaign advertising and candidate support. The legislation also requires 501(c)(4) groups that spend money on politics to publicly disclose the names and addresses of donors who contribute $5,000 or more, making their funding sources transparent to the public. The bill provides several exceptions for activities like voter education, official advocacy, and self-defense communications that do not constitute prohibited political intervention. These changes would take effect for contributions made in tax years beginning after December 31, 2023.
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