editor
16
edits
Changes
Jump to navigation
Jump to search
According to their websiteThe American Crossroads SuperPAC established another political nonprofit, [[One Nation]], Crossroads GPS is "dedicated to the belief that most Americans don’t support in 2015. One Nation has spent heavily in Senate races for the big-government agenda being forced upon them by Washington2016 election cycle." <ref> Crossroads GPS: Alexandra Jaffe, "[http://www.crossroadsgpscnn.orgcom/2015/05/12/politics/aboutone-nation-gop-group-launch/ aboutFirst on CNN: New Rove-linked group spends $2M to boost GOP incumbents] Accessed February 23rd, 2012 " ''CNN'' May 12, 2015.</ref>
Like all 501(c)(4) organizations, Crossroads GPS is not required to disclose donor information. Virtually all funding for [[American Crossroads]], their sister organization, comes from a small number of billionaires including [[Harold Simmons]], the owner of [[Contran Corporation]], and Texas Homebuilder [[Bob Perry]]. <ref> Opensecrets.org: [http://www.opensecrets.org/pacs/pacgave2.php?cmte=C00487363&cycle=2012 American Crossroads Contributors]], Accessed December 11th, 2012 </ref> In 2011 and 2012, Crossroads GPS's only known donors were the Republican Jewish Coalition, who gave the group $4 million at the end of 2011 <ref> Opensecrets.org: [http://www.opensecrets.org/outsidespending/contrib.php?cmte=C30001655&cycle=2012 Top Organizations Disclosing Donors to Crossroads GPS], 2012, Accessed December 11th, 2012 </ref>. __TOC__
Copying Jessica's work from the test wiki - AA
[[File:KarlRove2.jpg|right|frame|Karl Rove is the principle adviser of Crossroads GPS and American Crossroads]]'''Crossroads Grassroots Policy Strategies,''' also known as '''Crossroads GPS''', is a right-wing political group created in June 2010 , just a few months after the ''[[Citizens_United_v._Federal_Election_Commission|Citizens United]]'' decision, by GOP political operatives and "advised" by [[Karl Rove]] and former [[Republican National Committee]] chairman [[Ed Gillespie]] to support Republican political candidates. It Since then, it has become "a symbol of the current malleability of campaign finance rules," according to the Center for Responsive Politics.<ref name="irs gives nonprofit">Robert Maguire, "[http://www.opensecrets.org/news/2016/02/irs-gives-nonprofit-status-to-roves-controversial-dark-money-group/ IRS gives nonprofit status to Rove’s controversial dark money group]," Center for Responsive Politics, ''Open Secrets'', February 9, 2016.</ref> [[File:Crossroads-spending-growth.png|thumb|right|300px|frame|Growth of spending by Crossroads GPS and other dark money groups. Image: [http://www.opensecrets.org/news/2016/02/how-crossroads-gps-beat-the-irs-and-became-a-social-welfare-group/ Center for Responsive Politics].]]Crossroads GPS is often described as a "dark money" group because it is organized as a 501(c)(4) nonprofit and does not disclose its donors, despite spending millions to influence political campaigns. Their largest expenditures were made during During the 2012 election cycle, when Crossroads GPS and its affiliated SuperPAC [[American Crossroads]] spent at least $175 million on ads influencing the 2012 presidential and senate elections, making them the largest outside spending group active in the 2012 election. <ref> Opensecrets.org, Organization summary:[http://www.opensecrets.org/orgs/summary.php?id=D000065271 Crossroads GPS/American Crossroads], Accessed December 11th, 2012 </ref> Their total was likely much higher, as Crossroads GPS is not required to disclose all of its spending. The Center for Media and Democracy estimates that the groups spent just over $240 million in total in 2011 and 2012.
According to its website, Crossroads GPS is "dedicated to the belief that most Americans don’t support the big-government agenda being forced upon them by Washington."<ref> Crossroads GPS: "[[Filehttp:KarlRove2//www.jpg|right|frame|Karl Rove is the principle adviser of crossroadsgps.org/about/ about]," accessed February 23rd, 2012.</ref> Despite its name, Crossroads GPS and American Crossroads]]== Secret"has almost no grassroots support — financially or in terms of volunteers, Unlimited Fundraising =" according to the Center for Responsive Politics.<ref name="irs gives nonprofit"/>
==Crossroads GPS Gains Tax-Exempt Status as "Social Welfare" Nonprofit== After a more than five-year process, the IRS approved 501(c)(4) tax-exempt status for Crossroads GPS in November 2015.<ref name="irs gives nonprofit"/> Such "social welfare" nonprofits are allowed to raise unlimited funds from corporations and individuals, and are not required to disclose their donors, but should engage primarily in social welfare activities, not politics. According to the IRS, :"a section 501(c)(4) social welfare organization may engage in some political activities, so long as that is not its primary activity."<ref>Internal Revenue Service, "[https://www.irs.gov/Charities-&-Non-Profits/Other-Non-Profits/Social-Welfare-Organizations Social Welfare Organizations]," government website, accessed March 2016.</ref> While Crossroads GPS was ostensibly waiting for the IRS determination, it raised more than $300 million and reported spending at least $112 on political activities.<ref>Matea Gold, "[https://www.washingtonpost.com/news/post-politics/wp/2016/02/09/irs-approves-tax-exempt-status-of-crossroads-gps-after-more-than-five-years/ IRS approves tax-exempt status of Crossroads GPS after more than five years]," ''The Washington Post'', February 9, 2016.</ref> According to a report by the Center for Responsive Politics, which reviewed hundreds of pages of documents and interviewed people involved in Crossroads GPS's case, the process resulting in tax-exempt status was lengthy, but in the end illustrated "that if a group has enough money to raise eyebrows based on its political activities as a 501(c)(4), it has enough to pay the right lawyers to make its case to the IRS."<ref name="how crossroads beat">Robert Maguire, "[http://www.opensecrets.org/news/2016/02/how-crossroads-gps-beat-the-irs-and-became-a-social-welfare-group/ How Crossroads GPS beat the IRS and became a social welfare group]," Center for Responsive Politics, ''Open Secrets'', February 12, 2016.</ref> Crossroads GPS first applied for exempt status in June 2010. The IRS requested additional documentation in February 2012, and in May Crossroads GPS lawyers sent back "two three-inch binders filled with hundreds of pages of explanations and supporting documents," including a "prebuttal" in which the lawyers explained how they would challenge IRS rules if the IRS ruled against them.<ref name="how crossroads beat"/> See below for details of Crossroads GPS' more than $70 million in political spending, and $35 million in grants to other nonprofits that engaged in political spending, during the 2012 election cycle. In September 2013, the IRS sent an "adverse determination" letter to Crossroads GPS, which the Center for Responsive Politics describes as a "scathing assessment" that largely rejected the group's claims that its ads were educational::The IRS deemed that only one ad run by GPS was true “issue advocacy rather than political campaign intervention” and accounted for just 2 percent of GPS’ expenditures in its first year. The agency made a similarly critical assessment of GPS’ mailers and radio ads, concluding that only a small percentage of them actually amounted to issue advocacy.<ref name="how crossroads beat"/> The IRS also noted the "circular flow of funds" between Crossroads GPS and other grantor/grantee organizations, and wrote that "a number of your grantees have reported significant political expenditures."<ref name="how crossroads beat"/> Crossroads GPS protested the determination with hundreds more pages filed in November 2013 and February 2014. While its chairman had previously filed comments in opposition to proposed IRS rules that would have clarified what constitutes political speech, in their arguments to the IRS Crossroads GPS lawyers "lamented, at length and multiple times, that the IRS 'facts and circumstances test' lacked clarity, and therefore the group could not reasonably be punished for interpreting the law as it had."<ref name="how crossroads beat"/> While the IRS initially reported in July 2014 that it was proceeding with denial of Crossroads GPS' tax exemption, it allowed the group to appeal in August. In November 2015, the IRS approved its tax-exempt status.<ref name="how crossroads beat"/> ===Limits of IRS Investigation=== The Center for Responsive Politics also noted that the IRS did not examine Crossroads GPS' "most questionable activities," such as grants made to [[Americans for Tax Reforms]] and [[Carolina Rising]], nonprofits which then engaged in political spending.<ref>Robert Maguire and Viveca Novak, "[http://www.opensecrets.org/news/2013/11/atrs-tax-forms-raise-questions-about-use-of-crossroads-grant-social-welfare-purpose/ ATR’s Tax Forms Raise Questions About Use of Crossroads Grant, “Social Welfare” Purpose]," Center for Responsive Politics, ''Open Secrets'', November 18, 2013.</ref><ref name="how crossroads beat"/> The IRS did not examine whether the organization's activities were primarily benefiting a small, private group, rather than promoting general social welfare. The IRS "might have had a far more compelling case had it argued that Crossroads GPS’ entire operation supported a single political party," as the Center for Responsive Politics wrote.<ref name="how crossroads beat"/> The IRS also did not examine public statements by Crossroads GPS officials about the organization's purpose, such as political director Carl Forti's statement in 2010, "You know, disclosure was very important to us, which is why the [super PAC] was created. But some donors didn’t want to be disclosed, and, therefore, the (c)(4) was created."<ref>Peter Overby, "[http://www.npr.org/2010/12/14/132060878/Conservative-Group-Wades-Into-Tax-Debate Group Behind Election Ads Weighs In On Tax Deal]," ''NPR'', December 14, 2010.</ref><ref name="how crossroads beat"/> ==FEC Sued over Dismissal of Complaints about Crossroads GPS== On February 19, 2016 the nonprofit organization Citizens for Responsibility and Ethics in Washington (CREW) filed a lawsuit against the FEC "alleging that the agency violated election laws when it dismissed a CREW complaint against Crossroads GPS," as described by ''The American Prospect''. CREW had filed a complaint in 2012 over Crossroads GPS's fundraising and spending, but the FEC dismissed the complaint after a 3-3 split over whether to take action.<ref name="watchdog sues fec"/> Similar suits were filed by Public Citizen and the Campaign Legal Center in 2014.<ref name="watchdog sues fec">Justin Miller, "[http://prospect.org/blog/checks/watchdog-group-sues-fec-over-crossroads-gps Watchdog Group Sues FEC Over Crossroads GPS]," ''The American Prospect'', February 19, 2016.</ref> In 2012, legal staff at the FEC had found evidence that Crossroads GPS "probably violated campaign finance rules with its political spending in the 2010 midterm elections" and recommended an investigation, according to ''The Washington Post''. The members of FEC were deadlocked over the issue.<ref>Tom Hamburger and Matea Gold, "[https://www.washingtonpost.com/politics/crossroads-gps-likely-broke-election-law-fec-staff-reports-concluded/2014/01/15/15af18b6-7d73-11e3-93c1-0e888170b723_story.html Crossroads GPS probably broke election law, FEC lawyers concluded]," ''The Washington Post'', January 15, 2014.</ref> ==Secret, Unlimited Fundraising== Like all 501(c)(4) organizations, Crossroads GPS is not required to disclose donor information. Virtually all funding for [[American Crossroads]], its sister organization, comes from a small number of billionaires including [[Harold Simmons]], the owner of [[Contran Corporation]], and Texas Homebuilder [[Bob Perry]], according to data collected by the Center for Responsive Politics.<ref> Opensecrets.org: [http://www.opensecrets.org/pacs/pacgave2.php?cmte=C00487363&cycle=2012 American Crossroads Contributors]], Accessed December 11th, 2012 </ref> In 2011 and 2012, Crossroads GPS's only known donor was the Republican Jewish Coalition, which gave the group $4 million at the end of 2011.<ref> Opensecrets.org: [http://www.opensecrets.org/outsidespending/contrib.php?cmte=C30001655&cycle=2012 Top Organizations Disclosing Donors to Crossroads GPS], 2012, Accessed December 11th, 2012 </ref>. In 2010 Crossroads GPS and American Crossroads raised a combined $71 million, followed by a combined $51 million in 2011. <ref> Peter H. Stone: [http://www.huffingtonpost.com/the-center-for-public-integrity/crossroads-groups-raise-w_b_1245575.html Crossroads groups raise 51 million in 2011] iWatch news, Accessed February 24th, 2012 </ref>
Due to the U.S. Supreme Court's January 2010 ''[[Citizens United]]'' decision, groups like [[American Crossroads]] and Crossroads GPS can legally advocate for or against political candidates without restrictions on the amount of money they can raise from individuals and corporations. Due to the Court's 2007 ''FEC v. Wisconsin Right to Life'' decision, "independent" groups organized under 501(c) of the tax code (like Crossroads GPS) can run "issue-oriented" political ads without disclosing their donors.<ref> Public Citizen report, [http://www.scribd.com/doc/37489464/Fading-Disclosure-Increasing-Number-of-Electioneering-Groups-Keep-Donors-Identities-Secret Fading Disclosure: Increasing Number of Electioneering Groups Keep Donors Identities Secret], September 15, 2010.</ref> Coupling these two decisions together, "shadow Republican groups formed by longtime party officials and party operatives are raising and spending hundreds of millions of dollars in [the 2010 election]]. . . most of which is going to come in the form of secret undisclosed contributions," says Fred Wertheimer of Democracy 21, a nonpartisan campaign-finance-reform group.<ref name= "TIME article">Michael Crowley,[http://www.time.com/time/politics/article/0,8599,2019509,00.html The New GOP Money Stampede], TIME Magazine,Sept. 16, 2010, accessed September 19, 2010.</ref>
As a nonprofit 501(c)(4) organization, Crossroads GPS is not required by the IRS to disclose its donors, as such organizations are intended to "promote social welfare." According to the ''New York Times,'' "[t]he rule of thumb . . . is that more than 50 percent of a 501(c)(4)’s activities cannot be political.";<ref name= "NY Times">Michael Luo and Stephanie Strom, [http://www.nytimes.com/2010/09/21/us/politics/21money.html?_r=2&hp=&pagewanted=all Anonymous Donors Play Big Role in Midterms], ''New York Times'', Sept. 20, 2010.</ref> however, a 501(c)(4) is permitted to "intervene in political campaigns as long as its primary purpose is the promotion of social welfare."
Although Crossroads GPS does not disclose the identity of its donors thanks to its nonprofit status, it must disclose the amounts of its largest donations in its year-end IRS filing. An NPR analysis of those filings showed that in the first year and half of its existence, nearly 90 percent of the $77 million the group collected came from no more than 24 individuals or corporations giving more than $1 million each.<ref name="NPR">S.V. Date, [http://www.npr.org/blogs/itsallpolitics/2012/11/05/164364802/crossroads-gps-redefines-social-welfare-political-action/ "Crossroads GPS Redefines 'Social Welfare' Political Action"], ''NPR'', November 5, 2012.</ref> Two of the donations were $10 million each.<ref name="NPR"></ref>
The idea that Crossroads GPS promotes social welfare "is a complete joke," Democracy 21's Wertheimer told ''TIME'' magazine in September 2010. "Karl Rove and Gillespie did not create this organization to influence issues in America. The organization was created to elect Republicans and defeat Democrats."<ref name= "TIME article"></ref>
==Influencing the 2014 Election Cycle==
[[File:Crossroads_gps_2014_spending.png|thumb|right|400px|frame|Crossroads GPS spending in the 2014 election cycle. Source: [http://www.opensecrets.org/news/2015/11/pro-tillis-dark-money-group-funded-entirely-by-crossroads-gps/ Center for Responsive Politics].]]
Crossroads GPS reported $69.1 million in revenues and $65.9 million in expenditures in 2014, an election year, a dramatic increase from $3.4 million in revenues and $4.1 million in expenditures in 2013.
Of the $65.9 million spending Crossroads GPS reported in 2014, $26,015,713 was reported as political spending and $13,626,463 as grants. However, the Center for Responsive Politics calculated that at least 65 percent of Crossroads GPS' spending in 2014 went to "media firms that specialize in the production of political ads," suggesting that spending to influence elections likely made up more than half of the group's spending that year.<ref name="pro tillis dark money">Robert Maguire, "[http://www.opensecrets.org/news/2015/11/pro-tillis-dark-money-group-funded-entirely-by-crossroads-gps/ Pro-Tillis dark money group funded entirely by Crossroads GPS]," Center for Responsive Politics, ''Open Secrets'', November 17, 2015.</ref>
===Grants Made===
Crossroads GPS reported the following grants in 2014:<ref name="2014 990">Crossroads GPS, [https://www.documentcloud.org/documents/2515044-crossroads-gps-2014.html 2014 IRS Form 990], November 16, 2015.</ref>
* [[American Future Fund]]: $2,000,000
* [[Carolina Rising Inc]]: $4,820,000
* [[Center for Individual Freedom]]: $40,000
* [[Ethics and Public Policy Center]]: $50,000
* [[Kentucky Opportunity Coalition]]: $390,000
* [[National Rifle Association]]: $125,000
* [[National Right to Life]]: $900,000
* [[John Hay Initiative]]: $50,000
* [[U.S. Chamber of Commerce]]: $5,250,000
===North Carolina Dark Money Group Almost Solely Funded by Crossroads GPS===
Crossroads GPS reported spending $3.7 million on political ads in North Carolina for the 2014 midterm election cycle, but its total influence was much larger. As the Wesleyan Media Project found, the group had already run 4,317 ads prior to the FEC reporting window. Crossroads GPS also made a $4.82 million grant to a group called Carolina Rising, or 98.7 percent of that group's budget. Crossroads reported the grant as a "social welfare" expenditure--not a political expenditure, but Carolina Rising spent $4.7 million supporting Republican Thom Tillis' campaign for the U.S. Senate against incumbent Sen. Kay Hagan, a Democrat.<ref name="pro tillis dark money"/>
==Influencing the 2012 Presidential Election ==
In total, Crossroads GPS disclosed approximately $70 million in outside spending during the 2012 election cycle, <ref> Opensecrets.org: Crossroads GPS: [http://www.opensecrets.org/pacs/lookup2.php?strID=C90011719 Summary], Accessed December 11th, 2012 </ref> making them one of 2012's biggest single spenders. <ref name="Propublica"> Kim Barker, [http://www.propublica.org/article/two-dark-money-groups-outspending-all-super-pacs-combined Two Dark Money Groups Outspending All SuperPACs Combined], ProPublica, August 13th, 2012. </ref> However, the Center for Media and Democracy estimates that their total spending exceeded $100 million, more than $50 million of which was spent attacking President Barack Obama, and $7 Million million of which was spent in support of Mitt Romney, the Republican Nomineenominee. <ref>OpenSecrets.org [http://www.opensecrets.org/pacs/indexpend.php?cycle=2012&cmte=C90011719 Crossroads GPS Expenditures] Accessed 11/2/2012.</ref>
In late 2011, Crossroads GPS began a national ad campaign targeting Obama's spending record and involvement with solar company [[Solyndra]]. A national cable ad aired in on December 21th, followed by a second ad in early 2012 which specifically targeted Missouri, Minnesota, Michigan, and Arizona. Crossroads paid $500,000 to air the ad in all four states. <ref> The Sunlight Foundation: http://reporting.sunlightfoundation.com/2012/let-electioneering-begin/ Let Electioneering Begin accessed February 24th, 2012</ref>
Crossroads ran ads throughout 2012 accusing President Obama of not doing enough to cut spending, decrease the deficit, and create jobs. Almost every GPS attack ad invoked this theme. As a 501(c)(4), many of Crossroads' attack ads were ostensibly "issue based" and did not directly advocate for the election or defeat of a candidate. Instead, they instructed the viewer to do something (IE: Tell Obama "____"). Some of GPS's largest ad buys used this format.
{{#ev:youtube|PdIKr_zX7FE|200|left|"Basketball"|frame}}
*'''Basketball:''' A May 22nd, 2012 ad which features a dismayed ex-Obama voter who laments the fact that Health Care Reform health care reform allegedly "made health insurance even more expensive.". The ad instructs viewers to "Tell Obama to cut the job-killing debt" despite that fact that there is no clear reason why a high national debt would lead to fewer jobs. <ref>Bob Cesca: [http://thedailybanter.com/2012/05/the-truth-about-the-president-and-the-deficit-part-three/ the Truth about the President and the Deficit, part 3], The Daily Banter, May 29th, 2012. </ref> This ad aired in almost every major media market in the 2012 election, In a press release, Crossroads GPS stated that they paid $9.7 million to produce and air the ad, making it possibly the largest single ad buy the group made in 2012. <ref> Crossroads GPS press release: [http://www.crossroadsgps.org/2012/05/crossroads-gps-launches-9-7-million-tv-issue-ad-basketball-to-frame-debate-on-economy-taxes-and-debt/ Crossroads GPS launches $9.7 million TV issue ad to Frame Debate on Taxes, Economy, and Debt], May 22nd, 2012.</ref>
{{clear}}
{{#ev:youtube|01K-wUUvy1M|200|left|"Actually Debt"|frame}}
*'''Actually Debt:''' A November 1st, 2012 ad which ran immediately before the general election on November 6th. This ad ran in Minnesota, and was part of a last-minute push to attempt to swing the state away from Obama. Unlike "Basketball" this is not an issue ad, and explicitly tells the viewer not to vote for Obama. The buy cost $1.4 million to run in Minnesota. <ref> Catherine Richert: [http://minnesota.publicradio.org/collections/special/columns/polinaut/archive/2012/11/crossroads_gps.shtml Crossroads GPS makes Last-Minute ad buy in MN], Minnesota Public Radio, November 2nd, 2012 </ref>
{{clear}}
{{#ev:youtube|9aLv72J95JQ|200|left|"Mitt And David"|frame}}
*'''Mitt and David:''' This ad was part of a October campaign to humanize Republican Candidate Mitt Romney, rather than attack Obama. The ad focuses on Romney's charitable works, primarily helping a 14 year old boy with a terminal disease write his will. This was the only ad Crossroads GPS ran which called for the election of Mitt Romney, it . It ran in Ohio and Wisconsin in late October of 2012, and cost Crossroads GPS $4.2 million to produce and air .<ref> S.V. Date: [http://www.npr.org/blogs/itsallpolitics/2012/10/24/163577834/tax-exempt-crossroads-gps-airs-first-direct-vote-mitt-romney-ad?ft=1&f=1014 Tax-exempt Crossroads GPS airs first direct "Vote Mitt Romney" Ad], NPR, October 26th, 2012. </ref>
{{clear}}
{{#ev:youtube|j_GhwBfBNAo|200|left|"Deflect"|frame}}
*'''Deflect:''' Compares the price of gasoline in 2009 to the price of gasoline in 2012, and attacks Obama for failing to address rising gas prices. The ad attacks Obama for restricting "oil production in the gulf" and limiting "the production of American oil shale.". The ads claims are questionable at best: US gas prices are not necessarily linked to domestic oil production, and 2009 gas prices were abnormally low to begin with. The group paid $650,000 to air nationwide.<ref> Josh Israel, [http://thinkprogress.org/climate/2012/03/23/450772/crossroads-gps-launches-false-ad-gas-prices/?mobile=nc Crossroads GPS Launches False ad], ThinkProgress, March 23rd, 2012. </ref>
{{clear}}
==Ties to Other Groups==
American Crossroads and Crossroads GPS share office space with the [[American Action Network]] , a group which promotes "Center Right Policies". <ref> Kennith Kenneth P. Vogel: , "[http://www.politico.com/news/stories/0910/42433.html American Crossroads now Targets House Races] ," ''Politico''. Posted 9/20/10. Accessed July 20th, 2012. </ref>
American Crossroads and Crossroads GPS are the largest customers of Crossroads Media LLC, a consultancy that purchases ad slots for political ads. Crossroads GPS, American Crossroads, and a related 501(c)(6) "trade organization" called [[Americans for Job Security]] moved over $133 million through Crossroads Media LLC in 2012 in order to make ad buys for the 2012 election. Crossroads Media was co-founded by former [[Americans for Job Security]] president [[Michael Dubke]], who is also a partner at [[Black Rock Consulting]], which he co-founded with [[Carl Forti]], the current political director of American Crossroads and Crossroads GPS. Crossroads Media also shares an office with [[Americans for Job Security]].<ref> William Dooling: , "[http://www.prwatch.org/node/11868 Where Did All Those SuperPAC Dollars Go?], PRwatch" Center for Media and Democracy, ''PR Watch'', December 13th, 2012 .</ref>
==Sourcewatch resources==
