Will Secret Anti-Cianci Fund Prove Successful?
Saturday, September 20, 2014
A secret memo from former Mayoral candidate Lorne Adrain to a select group of individuals about the formation of 501(c)(4) to defeat former Mayor Buddy Cianci has raised the question -- will it work?
"Since 2010 and when the Supreme Court handed down the decision in Citizens United there's been a proliferation of super PACs and [501] c4 activity -- and that hasn't been a welcome development," said John Marion, Executive Director of Common Cause RI.
"For starters, c4s can be used to shield information about donors," Marion continued. "That's really not really they're about. We're a c4. They weren't intended to be vessels for election work primarily, but the IRS hasn't been regulating this kind of c4 political activity. We've seen groups on the left and right using them for political activity for lack of disclosure. They're not tax-deductible, but there are no limits on c4 contributions."
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTAdrain said Thursday that he expected the group to file the necessary paperwork this week, but group spokesperson Jake Bissaillon confirmed on Friday that it had not yet been filed.
Political Experts Weigh In
Darrell West, Vice President and Director of Governance Studies at the Brookings Institution in Washington, D.C., recently published Billionaires: Reflections of the Upper Crust about the role of money -- and influence -- by the country's wealthiest donors.
"People form these organizations for a variety of different reasons. Some do it to push (or attack) candidates, while others are more issue-based. The key issue is these groups allow people with lots of financial resources to run ads and influence the public discussion," said West.
"EngageRI was a successful effort to push pension reform. It demonstrates that groups armed with serious money can be quite influential," said West of the 501 (c)(4) whose goal had been to achieve pension reform in Rhode Island. "We are seeing lots of 501(c)(4) activity all around the country. It is one of the things I discuss in my Billionaires book. These groups represent a way to participate in the public dialogue and push particular points of view."
In the confidential memo obtained by GoLocal this week, it showed that the group hoped to raise $1 million between now and election day to defeat Cianci.
Jennifer Duffy with the Cook Political Report noted that as at 501(c)(4), the group couldn't exist simply to defeat Cianci -- but that it had to find a way to prove it was issue-oriented.
"501(c)(4) organizations are expressly prohibited from advocating for the election or defeat of a candidate. These groups, which under the IRS regulations are supposed to 'promote social welfare,' need to focus on issues," said Duffy. "They can inject candidates names into the efforts by talking about an issue and then telling voters to "call Buddy Cianci and tell him to support blah, blah, blah."
Duffy continued, "This is a way for donors to maximize their financial resources, and it gives them an organization to hide behind. There could be a backlash if this group becomes the issue in the race. I trust that Cianci will attempt to make them the issue, and knowing Cianci, he has a good shot at being successful."
Chances for Success?
So will getting the funds help defeat Buddy Cianci?
"Success is far from assured. Any political organization has to successfully raise funding and that’s not guaranteed. Even having done so, Crossroads GPS spent millions in the last election, but could claim few victories," said Rhode Island College Professor Kay Israel, noting the case of the national right-wing advocacy group founded by Republican operative Karl Rove.
"While the 501(c)(4) groups have the advantage relating to funding and significant leeway in their actions, it’s still up to the candidates to control the agenda and gain the voters’ support," said Israel. "Although Gina Raimondo was the victor in the Democratic primary, political junkies are still questioning whether it was due to the larger expenditures supporting her or the presence of Clay Pell that cost Taveras the nomination."
Veteran political pollster Vic Profughi spoke to role of the electorate ultimately in determining the outcome.
"I think there has been in the past a fairly substantial number of voters across the city who have resented the power of the East Side -- rightly or wrongly -- and have had the residual effect of not liking being dictated,' said Profughi. "The real question I think is how the Hispanic community reacts to all of this, and frankly, I don't know.
New Email Surfaces
On Friday, several of the names listed on the email Adrain sent on Tuesday denied having any association with the group.
"Didn't attend any meetings and don't belong to any group," said Teny Gross with the Institute for Nonviolence.
"I was not at the meeting, will not be supporting this effort," said Cynthia Stewart Reed.
"I have no idea why I was on the [email] chain, I never gave money to Lorne and wasn't at the meeting," said Sally Lapides.
Former Providence Journal editorial writer Robert Whitcomb said he was "in favor of defeating Cianci," but could not give money or take a formal role in campaigns being an independent journalist. "Buddy's election would mean circuses if not bread," said Whitcomb.
Now, a new email has surfaced showing that Adrain had included Jorge Elorza's email on message sent on Monday about organizing efforts.
Elorza's campaign said that he did not reply; Bissaillon said when asked if the group was coordinating with Elorza said, "No."
"It's the responsibility of the Board of Elections to police this, but they only do so on complaint from the public," said Marion. "I don't think I'm qualified to say whether this was an instance of coordination because you need to see more than just an email." Marion said the definition of the state law could be seen here.
"There are rules on coordinating with a candidates. Groups have to be careful not to discuss strategy or coordinate outreach efforts. From the email, I am not sure whether this group crossed that line. Merely talking with a candidate would not constitute evidence of unlawful coordination," said West. "But if they had formal plans to dovetail their activities, that would be problematic."
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