Marco Rubio donors to remain secret indefinitely
Much was made of Jeb Bush‘s relentless maneuvering when it came to early fundraising, but the actual dark money pioneer of 2016 may well be U.S. Sen. Marco Rubio. As Shane Goldmacher writes in POLITICO, the Florida senator’s top moneymen allies at Conservative Solutions Project managed to stake out a novel arrangement that will allow the sources of more than $10 million in funding for opposition research, mailers, and TV ads will remain forever unknown to the public. “It is now the model for a how a candidate can inject unlimited, secret, corrupting money into their campaigns to benefit their election,” said Fred Wertheimer, president of Democracy 21, a campaign watchdog group. “That is precisely the kind of model that we do not need in America.” The pro-Rubio nonprofit, known as the Conservative Solutions Project, was created in early 2014 and run by some of the same political operatives who would later lead for his super PAC, including South Carolina strategist Warren Tompkins. Both groups can accept unlimited donations from donors, but unlike like the super PAC, the nonprofit can keep its contributors hidden from the public — permanently. The Conservative Solutions Project operates under the “social welfare” 501(c)4 section of the tax code, which requires such groups not be primarily involved in political matters. The pro-Rubio nonprofit has claimed not to be directly involved in electoral politics. Yet the group paid for a raft of polling and research in the early primary states of Iowa, New Hampshire and South Carolina, as well as in Rubio’s home state of Florida. It bought millions in TV ads that aired in those early states, and it filled the mailboxes of Republican voters there with pro-Rubio literature. In fact, the Conservative Solutions Project was the second biggest TV advertiser of the 2016 campaign last year — trailing behind only Jeb Bush’s super PAC, according to a media tracker. Loose nonprofit tax laws, and an unusual filing schedule set up by its creators, ensure the pro-Rubio nonprofit will file little paperwork covering the primary period until April 2017 — months after the next president is sworn in. And even then, no donors will be named. “If you are trying to obscure your activities, they’re perfect,” Robert Maguire, a nonprofit investigator for the Center for Responsive Politics, said of 501(c)4s. Though a spokesman representing both Conservative Solutions Project and Rubio’s super PAC defends the “social welfare” designation saying the former was not involved in explicit electioneering, the two groups shared staffs and buildings. Their ads also aired only in states key to Rubio’s electoral success – Iowa, New Hampshire and South Carolina – where his campaign’s “3,2,1 strategy” sought to launch Rubio to the top of the GOP field. The supposed firewalls between Rubio’s political backers and backers of his social welfare rely on cutting the baloney extremely thin, writes Goldmacher: The nonprofit’s broadcast ads ran through November 22 in Iowa and New Hampshire. About a week later the Rubio super PAC picked up where it left off. The same ad buying firm, Target Enterprises, executed the ad reservations for both the Rubio super PAC and nonprofit. “They could not have been more blatant with the way this took place,” Wertheimer said. At some television stations, such as WMUR in Manchester and KCCI in Des Moines, the forms the television stations filed with the Federal Communications Commission listed the nonprofit as spending on behalf of “Marco Rubio 2016.” When that became public, the nonprofit’s attorney sent letters to some stations asking to correct those records, arguing their ads starring Rubio were not actually about Rubio. “CSP does not make candidate-related, political expenditures,” wrote Cleta Mitchell, the group’s lawyer and a prominent GOP attorney, of the Conservative Solutions Project. “All public communications are centered around important policy debates and concerns.” Some of Rubio’s rivals, particularly from the Jeb Bush camp, tried to make an issue of the questionable fundraising and disclosure tactics employed by the pro-Rubio 501(c)4. But this year’s slash-and-burn primary season was not well-suited for that kind of nuance, writes Goldmacher. Bush’s team, in particular, tried to highlight Rubio’s use of nonprofit as they battled over fundraising totals. “Haven’t seen the Rubio news release on frugality did it include the $6 million in secret money TV ads they saved money on?” as Bush communications director Tim Miller tweeted in October. The issue, however, never really broke through. “You’re talking about two of the most boring and convoluted fields of law: campaign finance and nonprofit tax law,” said Maguire, the nonprofit investigator. “Trying to explain that in an election where you have someone as outrageous as Donald Trump — it’s hard to do.”
Marco Rubio super PAC releases first TV ad
Conservative Solutions PAC, the pro-Marco Rubio Super PAC which has not previously aired any television ads to date, is releasing its first television ad of the campaign in the early voting states beginning today. The ad is called, “Marco.” “He took on the Republican establishment, and won,” a narrator says as images of the Florida Senator dominate. “The insiders were shocked, but not the people, because they heard his clear conservative message: less government, more freedom, a foreign policy based on strength.” Conservative Solutions PAC is linked with a pro-Rubio Super PAC with a similar name, Conservatives Solutions Project, that has aired ads in Iowa and New Hampshire featuring Rubio criticizing the Iran nuclear deal. However, Conservative Solutions Project is officially not a Super PAC, but a tax-exempt social welfare group. However, two organizations, Campaign Legal Center and Democracy 21 have asked the Justice Dept. to launch an investigation, claiming that the group is supporting Rubio. The Wall Street Journal reports that Conservative Solutions PAC aired its last ad on November 22, and has no plans to air more ads this year.
What does Jeb Bush get for $20 million in TV ad buys? Not much.
Jeb Bush and his supporters have spent more than twice that of any other candidate or outside group on TV ads in the 2016 presidential race. And what does the former Florida governor get for nearly $20 million, asks Mark Murray of NBC News. Apparently, not much. Bush’s poll numbers are currently languishing in the single digits both nationally and in the early primary states. Right to Rise, the pro-Bush super PAC, has made $19.5 million in ad spending for Iowa, New Hampshire and South Carolina. Murray notes that the campaign also spent another $438,000. In comparison, the 501c4 organization supporting fellow Floridian Marco Rubio – Conservative Solutions Project – paid half that amount, $8.4 million to date. Hillary Clinton’s presidential campaign, on the other hand, has spent $8.1 million, while her supporting Super PAC spent about $199,000. To put those numbers further in context, campaigns receive substantial discounts on TV ad time, whereas Super PACs and other outside groups may have to pony up to four times as much for similar ad space. Murray, along with NBC News partners SMG Delta, have calculated who spent what in the 2016 presidential ad wars – a not-quite-perfect way to measure winners of the secret advertising primary. Through Nov. 21, the leaders are Bush with $19.9 million ($19.5 million from Right to Rise Super PAC, $438K from campaign), followed by Rubio with $8.4 million (all from outside group Conservative Solutions Project), Clinton with $8.3 million ($8.1 million from campaign, $199K from Priorities USA Super PAC) and Ohio Gov. John Kasich with $7.3 million (all from two outside groups). After Kasich, comes New Jersey Gov. Chris Christie with $5.7 million ($5.3 million from America Leads Super PAC, $407K from campaign), Louisiana Gov. Bobby Jindal – who just dropped out of the race – with $3.3 million (all from outside groups), Vermont Sen. Bernie Sanders with $3 million (all from his campaign), South Carolina Sen. Lindsey Graham at $1.7 million ($1.6 million from Super PAC, $100K from campaign) and retired neurosurgeon Ben Carson with $1.5 million (all from his campaign). For the week of Nov. 15-21, the biggest spenders were Bush with $2 million, all from his Super PAC; Sanders with $940,000, all from his campaign; Clinton with $741,000, all from the campaign; Rubio with $619,000, all from Conservative Solutions; Kasich with $352,000, all from his supporting Super PAC New Day for America, Christie with $313,000, all from America Leads Super PAC; and Carson with $214,000, all of which came from his campaign.
Rising Marco Rubio seeks to separate from GOP’s presidential pack
Marco Rubio‘s “lean” presidential campaign is putting on weight. By every measure, the Florida senator’s bid for the Republican nomination has grown more robust in October, boosted again by a strong showing in Wednesday night’s debate. In preference polls and money flowing in, he’s ticking upward. The campaign’s fundraising, which lagged that of several competitors over the summer and early fall, just finished its best month yet. In the hours around the debate Rubio raised $750,000 online — more than on any previous occasion. The next day, Rubio was cheered at two fundraisers in Chicago, each of which had more attendees than organizers had planned. At a “young professionals” happy hour at a downtown sports bar, the 44-year-old Rubio told a rowdy group that he woke up that morning “still kind of wired” from the debate. “It’s becoming easier to get people to say yes,” said Chris Grozev, who said he sold a couple hundred $100 tickets to the happy hour. Phil Rosen, a New York real estate lawyer who hosted one of the most lucrative fundraisers for the campaign a few weeks ago, said he’s since had “people come out of the woodwork and call me directly, asking for another event so that they can meet him.” And billionaire investor Paul Singer on Friday announced his support for Rubio in a letter to his extensive network of Republican fundraisers, encouraging them to follow his lead. Donor enthusiasm has given campaign leaders who have prided themselves on a slim and sleek operation — partly out of necessity because of low cash flow — the confidence to increase hiring. Rubio’s staff grew by about one-third in October, making for crowded conditions in the Washington row house that serves as headquarters. Rubio is steadily adding resources in each of the first four voting states, and the campaign just signed an office lease in South Carolina, the third state voting in the primaries early next year. Volunteers there had been working out of a garage. “We’re definitely building,” said Terry Sullivan, Rubio’s campaign manager. “But we’re scaling at the right time.” With growth comes the potential for growing pains. Rubio’s competitors are sharpening their criticism of the freshman senator. In Wednesday’s debate, mentor-turned-rival Jeb Bush went after him for missing Senate votes while he campaigned for president. The former Florida governor came to the debate after briefing his top fundraisers on a strategy that hinges on overpowering Rubio, whom his campaign sees as his most dangerous competitor for the voters and donors who want to see a traditional nominee. Bush’s attack backfired during the debate. But other contenders — from Democratic front-runner Hillary Rodham Clinton‘s allies to Florida newspapers — have seized on that line of attack, and it is likely to persist. Donald Trump, the celebrity real estate mogul who continues to lead in national GOP polls, also is increasingly scornful of Rubio. In an interview with Breitbart News published this week, Trump called Rubio “incapable of telling the truth.” However, Rubio-rippers have their work cut out for them: He was one of the best-liked candidates in an Associated Press-Gfk poll conducted this month, with registered Republicans viewing him more favorably than unfavorably by a 31 point margin, second only to retired neurosurgeon Ben Carson. And Rubio has said he’s not going to make his nomination fight personal. He said Thursday on ABC’s “Good Morning America” that he has “admiration” for Bush and wants only to underscore policy differences between the two. Rubio has sketched out the basics of proposals on China, education and taxes, among other issues; Saturday is the last day of his “31 Days of Policy.” But he’ll have to go deeper into detail as the race intensifies. Singer praised Rubio’s grasp of the issues and his status as “one of the best communicators the modern Republican Party has seen,” in a letter distributed Friday to his donor network, first reported by The New York Times. “Marco Rubio can appeal to both the head and the heart. He can lead our nation by inspiring it,” wrote Singer, who is among the most influential donors in Republican politics. Rubio said Friday during a campaign appearance in Iowa he was grateful for the billionaire’s backing. “It’ll help us with resources,” he said. “Resources alone are not enough. You have to have the right ideas and the right principles.” Rubio has been slow to outline a path to his party’s nomination. His campaign argues he could do well in any of the first four states, a quartet that also includes his childhood home of Nevada. Accordingly, he has divided his time roughly equally among them and has six or so employees in each. Bush’s campaign, in its presentation last week to donors at a Houston gathering, noted 12 staffers in New Hampshire and another 25 spread among the other three early states. Rubio’s equal-attention approach to the early states also shows up in the television advertising plan. Campaign ads are to begin the week after Thanksgiving, with plans to spend about $17 million through the early primary contests, according to information provided by Kantar Media’s CMAG advertising tracker. About the same amount of money is scheduled for Iowa, New Hampshire and South Carolina. A super PAC filled with Rubio allies follows a similar advertising strategy, CMAG shows, with about $2 million to $3 million in ad time reserved in each of the first three states. The campaign and super PAC are stepping up after a summer of silence. To date, the only Rubio-boosting commercials on television have come from a nonprofit group that keeps its donors secret. Conservative Solutions Project had spent $7.3 million through the end of this week. No other presidential candidate has benefited from so much advertising by a secret-money nonprofit, a potential liability with voters who have said in polls that they are tired of big donors and secret money flowing into elections. Republished with permission of the Associated Press.
Anonymous donors send millions to pro-Marco Rubio group
Voters are beginning to learn about Republican presidential hopeful Marco Rubio. What they’re not learning, however, is who is paying to promote his candidacy. The Florida senator is benefiting in unprecedented ways from a nonprofit group funded by anonymous donors. While other presidential candidates also have ties to secret-money groups, the Rubio arrangement is the boldest. Every pro-Rubio television commercial so far in the early primary states of Iowa, New Hampshire and South Carolina has been paid for not by his campaign or even by a super PAC that identifies its donors, but instead by a nonprofit called Conservative Solutions Project. It’s also sending Rubio-boosting mail to voters in those same states. Rubio is legally prohibited from directing the group’s spending, and he has said he has nothing to do with it. But there’s little doubt that Conservative Solutions Project is picking up the tab for critical expenses that the campaign itself might struggle to afford. Although Rubio is rising in national polls, his fundraising has so far been dwarfed by that of former Florida Gov. Jeb Bush, Texas Sen. Ted Cruz and retired neurosurgeon Ben Carson. By the end of June, Bush and his super PAC had amassed $114 million – more than quadruple what Rubio and his super PAC collected. Ahead of what is expected to be a new and disappointing fundraising report next week, Rubio’s aides have stressed that their thriftiness gives them a competitive advantage over campaigns with more money. Left unsaid was that a secret-money group is giving him at least an $8 million assist, according to information provided by advertising tracker Kantar Media’s CMAG. The candidate has presented himself as being opposed to such unaccountable money. “I believe that – as long as it’s being disclosed – that people have a right to participate in our political process,” Rubio said in June at a voter forum in New Hampshire when asked about “the corrupting influence” of money in politics. Conservative Solutions Project does not disclose its donors. Its latest commercial shows Rubio, 44, speaking at the Iowa State Fair. “New ideas for a new age,” a narrator says before ticking through a list of Rubio priorities: “throw out the tax code, overhaul higher education, repeal and replace Obamacare.” Conservative Solutions Project has put $2.3 million into the 30-second ad over the past three weeks and is on deck to spend close to another $1 million keeping it on the air next week, according to CMAG information about advertising placements on broadcast, cable and satellite television. That follows a $3 million summertime ad campaign by the same group that promoted Rubio’s strong opposition to a deal the White House and other countries struck with Iran on nuclear weapons. Conservative Solutions Project also has reserved nearly $2 million in additional satellite TV advertising space through Feb. 16, according to the advertising tracker. Although numerous candidates may ultimately benefit from allied nonprofits, so far it appears that only the entities helping Rubio and Louisiana Gov. Bobby Jindal are advertising in the presidential race. America Next has spent about $380,000 boosting Jindal on TV, CMAG said. Bush also has a secret-money group in his corner, but it hasn’t yet directly communicated with voters. Nonprofits are the edgier cousins of super PACs. Both can accept unlimited amounts of money from wealthy donors, corporations and unions, but only nonprofits can keep those names a secret. In exchange for that privilege, nonprofits are barred from making political activity their primary purpose. But gray area abounds. The two regulating agencies, the Federal Election Commission and the Internal Revenue Service, have been less than aggressive in pursuing potential violators. The Campaign Legal Center in Washington is suing the FEC for failing to require a nonprofit that was active during the 2012 presidential election to file finance reports. “Congress, the Supreme Court and the public have all recognized that voters have a right to know who is spending money to try to influence them on Election Day,” said Paul S. Ryan, the center’s senior counsel. “Transparency is how we hold politicians accountable and make sure they’re not in the pocket of their benefactors.” That’s in line with public opinion: Seventy-five percent of voters, an equal share of Democrats and Republicans, said contributors to unaffiliated groups should be disclosed, according to a CBS News/New York Times poll in June. The Conservative Solutions Project declined to say who gave it the $16 million it claims to have. Although it shares a name and key personnel with the Rubio-focused super PAC, Conservative Solutions PAC, its mutual spokesman, Jeff Sadosky, said the two are “very separate and distinct groups.” He said the nonprofit’s work goes well beyond Rubio’s presidential ambitions, pointing to a detailed study it did last year of voter behavior, which was made available on its website. Additionally, Sadosky said, Conservative Solutions Project highlights on its website the work of other conservative leaders, including Illinois Sen. Mark Kirk and Arkansas Sen. Tom Cotton. But its bent toward Rubio is apparent even there: Visitors to the site are immediately routed to a video of the Florida senator speaking, the same footage on television in early primary states. Republished with permission of the Associated Press.
