SpeechNow.org Can Collect Unlimited Contributions, Other Groups Likely Follow
by Amanda Adams*, 6/4/2010
On May 27, the U.S. District Court for the District of Columbia entered a judgment declaring that SpeechNow.org may accept unlimited donations. The judgment also prevents the Federal Election Commission (FEC) from enforcing contribution limits against the group and its prospective donors.
A federal appeals court ruled in March that the $5,000 annual limit on donations from individuals to groups like SpeechNow.org is unconstitutional. SpeechNow.org also challenged the registration and reporting requirements in its lawsuit, but those provisions were upheld. The group is considering appealing the disclosure issue to the Supreme Court, while the government is also considering an appeal. The deadline for filing petitions for review is June 24.
SpeechNow.org founder David Keating is also the Executive Director of the 501(c)(4) group Club for Growth. Club for Growth has recently asked the FEC whether a planned political committee, established and administered by the Club, may solicit unlimited donations from the public. The committee will only make independent expenditures.
Their advisory Opinion request to the FEC states, "the campaign finance regime administered by the FEC has changed. There is a new, constitutionally-mandated entity that, although registering and reporting as a political committee, is protected by the First Amendment from contribution limits and other substantive campaign finance restrictions. This new entity is the independent expenditure-only political committee."
Therefore, in the wake of Citizens United and SpeechNow.org, we seek confirmation the Club may establish and administer an independent expenditure only political committee that will register and report all of its activities while soliciting donations from the general public and soliciting funds earmarked for specific independent expenditures.