After languishing in limbo for nearly five-and-a-half years, one of the most controversial, politically active 501(c)(4) social welfare organizations in the country has been granted nonprofit status by the IRS. The ruling was made official last Nov. 4, according to documents viewed by OpenSecrets Blog, giving an air of legitimacy to the more than $330 million that Crossroads GPS has raised and spent over the years, most of it on election-related ads and candidate support.

More than any other group claiming to be a social welfare nonprofit, Crossroads has become a symbol of the current malleability of campaign finance rules. Run by some of the most seasoned political operatives in the country, it has almost no grassroots support — financially or in terms of volunteers — and is represented by some of the finest campaign finance lawyers in the country.

The brainchild of Republican strategist Karl Rove, Crossroads was established in June 2010, only months after the Supreme Court’s Citizens United decision, which freed 501(c)(4) organizations like GPS to engage in more direct politicking than before.

It was founded specifically to serve as an alternative to its sister organization, a super PAC called American Crossroads, for donors who didn’t want their identities disclosed to the public. As one of its cofounders, Carl Forti, said at the time, “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.”

Help us keep government accountable by making a donation today.

501(c)(4) organizations aren’t required to apply for IRS recognition, but having the agency’s imprimatur gives comfort to donors who want to remain anonymous. A letter of determination from the IRS confirms that its recognition of Crossroads GPS goes back to June 1, 2010, reversing a previous proposed adverse letter issued September 6, 2013. The group’s application materials, which include correspondence with the IRS, are extensive, filling about two boxes.

While there are groups on both the left and the right that have pushed the bounds of nonprofit political activity, GPS sits in a place of its own. Its officials often cast GPS as a foil to the union and environmental money on the left. But, factoring in the FEC-reported spending that it has facilitated by making grants to groups like Americans for Tax Reform since its founding, political spending by Crossroads GPS tops that of all liberal dark money groups and unions combined, $142 million to $136 million, and that doesn’t include the thousands of untraceable ads run outside the FEC’s reporting windows.

Anna Massoglia contributed research to this report



For permission to reprint for commercial uses, such as textbooks, contact the Center: Feel free to distribute or cite this material, but please credit the Center for Responsive Politics.For permission to reprint for commercial uses, such as textbooks, contact the Center: [email protected]





Support Accountability Journalism At OpenSecrets.org we offer in-depth, money-in-politics stories in the public interest. Whether you’re reading about 2020 presidential fundraising, conflicts of interest or “dark money” influence, we produce this content with a small, but dedicated team. Every donation we receive from users like you goes directly into promoting high-quality data analysis and investigative journalism that you can trust.Please support our work and keep this resource free. Thank you. Support OpenSecrets ➜