End Citizens United (ECU), alongside eight pro-democracy groups, sent a letter to No Labels calling for them to release a list of their donors or face legal action. The letter accuses the dark money group of exploiting its 501(c)(4) nonprofit status to create a new political party and run a candidate for president as a dark money group. Unlike legitimate political parties, No Labels refuses to disclose its sources of funding, refuses to follow contribution limits, and refuses to register with the Federal Election Commission.
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HuffPost: Campaign Finance Watchdogs Threaten No Labels With Lawsuit
Kevin Robillard
01/12/24
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In the letter, sent Thursday night to No Labels CEO Nancy Jacobson, the groups ― including End Citizens United, Black Voters Matter, the League of Women Voters, and the Campaign Legal Center ― suggest they are giving No Labels a final chance to voluntarily reveal their donors.
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“No Labels’ refusal to disclose its funders is disturbing and unlawful. Secret political spending is one of the most corrupting influences in politics and having a secret money organization impersonating a political party severely undermines the democratic process as a whole,” the groups wrote in the letter, adding: “If you continue to deprive voters of the information to which they are entitled, our organizations will consider legal action to vindicate American voters’ legal right to know who is using No Labels to try to buy the 2024 presidential election.”
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No Labels is registered with the Internal Revenue Service as a 501(c)(4) nonprofit. Such groups do not have to disclose their donors, but are supposed to focus on promoting “social welfare” and not have politics as their primary purpose.
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The watchdog groups and others have suggested No Labels is violating IRS and Federal Election Commission rules by essentially acting as an unregistered political party. Even though it has not yet chosen a candidate to back, it has spent heavily to gather signatures and qualify for the ballot in 13 states, including the swing states of Arizona, Florida and Nevada.
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“At the crux of a healthy democracy is disclosure, accountability and the rule of law,” the groups wrote in the letter. “But No Labels is the embodiment of what’s wrong with Washington: a secretive special interest group using unethical practices in an attempt to install politicians who will help the most powerful and wealthy benefit at the expense of working Americans.”
Washington Examiner: No Labels threatened by Democratic groups for not disclosing finances
Eden Villalovas
1/12/24
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No Labels, the organization that is considering a push to back a third-party presidential candidate in 2024, has been threatened with a lawsuit by several Democratic and nonpartisan groups if its financial backers are not disclosed.
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Since No Labels is a 501(c)(4) nonprofit group, the organization is not bound by law to provide in-depth information about its donors. But the advocacy groups say No Labels is acting unlawfully, as other political parties are required to register with the Federal Election Commission and provide their funding sources and limits.
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“No Labels has misused the 501(c)(4) nonprofit structure to create a new political party and now aims to run a candidate for president as a secret money group rather than a legitimate political party,” a letter sent Thursday to No Labels CEO Nancy Jacobson reads.
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The coalition of organizations, which includes End Citizens United, Public Citizen, Black Voters Matter, Campaign Legal Center, Defend The Vote, Democracy SENTRY, League of Women Voters, People For the American Way, and Stand Up America, accused No Labels of having wealthy financial backers who serve Big Business rather than regular citizens.
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“We believe that the real reason you are keeping your donors a secret is what naming them would reveal: that No Labels is primarily supported by special interests and wealthy donors that care about what’s in the best interest of big business, not regular Americans,” according to the letter.
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