Everyone please take the time to understand this
There is a legal loophole that allows political donors to make campaign donations through shell companies and NGOs to avoid disclosing their identities with Super PACs
They can make UNLIMITED DONATIONS anonymously
This loophole stems from a U.S. Supreme Court rulings
Here’s how they legalized fraud with political donations in 4 steps:
1) Citizens United v. Federal Election Commission (2010): This landmark Supreme Court decision removed restrictions on independent expenditures by corporations, unions, and associations, allowing them to spend unlimited amounts on political campaigns as long as the spending is not coordinated with candidates. This ruling paved the way for the creation of super PACs, which can raise and spend unlimited funds for independent political activities.
2) Speechnow. org v. FEC (2010): Following Citizens United, this federal appeals court decision clarified that super PACs, as independent expenditure-only committees, can accept unlimited contributions from individuals, corporations, and unions, provided they do not coordinate with candidates or parties. This established the legal framework for super PACs to operate with fewer restrictions than traditional PACs.
3) Dark Money and Nonprofits: Organizations classified under sections 501(c)(4) (social welfare groups) and 501(c)(6) (trade associations) of the Internal Revenue Code are not required to disclose their donors to the public, even when they engage in political spending. These groups can make contributions to super PACs, which are then required to report the nonprofit as the donor. Since the original donors to these nonprofits remain undisclosed, THIS CREATES A LAYER OF ANONYMITY. This practice has been criticized as a loophole because it allows wealthy individuals or entities to funnel money through these “dark money” groups to influence elections without public scrutiny.
4) Shell Companies and LLCs: Another method involves the use of limited liability companies (LLCs) or shell companies, which can be set up quickly and with minimal transparency requirements. Donors can channel funds through these entities to super PACs, listing the LLC as the contributor. If the LLC is structured to conceal the true donor (e.g., using a P.O. Box or having no public business activity), the original source of the funds CAN REMAIN HIDDEN
