As Democratic lawmakers and allies continue to blast No Labels for its third-party ballot initiative, groups are now turning to campaign finance complaints to uncover the organization’s donors.
No Labels has been stockpiling cash from donors, which the group does not disclose, for months, working tirelessly to gain access to ballots in all 50 states for the 2024 election. Democratic groups have accused the group of working to prevent President Joe Biden‘s reelection and aiding a GOP victory, an accusation No Labels has adamantly denied.
With a likely rematch between Biden and former President Donald Trump on the horizon, groups End Citizens United and Accountable.US filed complaints this week, hoping to throw a wrench in No Labels’s campaign fund pipeline and force the group to follow the same rules as other political parties, according to the Associated Press.
“We are continuing to work every single avenue with our partners to hold [No Labels] accountable legally, to expose them publicly and to make sure they are playing by the same rules as everyone else,” Tiffany Muller, the president of End Citizens United, said via the outlet. “I don’t think it’s any secret that No Labels is a threat to our democracy if they run a third-party [candidate]. That’s going to siphon off votes from President Biden and reelect Donald Trump.”
Under the IRS, No Labels is listed as a nonprofit group, not a political party, despite the organization promoting itself as a “common sense” centrist party. Due to its nonprofit status, No Labels can operate with little to no transparency when it comes to donors, which also allows the group to accept unlimited amounts from anonymous benefactors.
If the campaign finance complaints are successful, No Labels would be compelled to register as a formal political party with the Federal Election Commission. It also would have its tax-exempt status revoked, so it would have to abide by the same donation limits that Democrats, Republicans, and other political parties have to follow. No Labels’s big-money megadonors would be revealed as well.
No Labels disputed any suggestions that they had done anything improper, dismissing the complaints in a statement to the news outlet as part of a “coordinated conspiracy to subvert No Labels’ ballot access and limit Americans’ choices.”
The identities of No Labels’s donors may never be revealed, as the FEC board often deadlocks with power split evenly between those aligned with Democrats and those supporting Republicans. However, some of the legal arguments made by the Democratic groups may hold enough merit to push through the board.
End Citizen United claims in its complaint that No Labels appears to be primarily engaged in political activity “to oppose the candidacies of Joe Biden and Donald Trump.” IRS rules are interpreted as limiting political nonprofit groups to making political work 50% of their activity. End Citizens United’s complaint filed with the FEC argues No Labels’s level of spending and advocacy is against the election of Biden and Trump, so federal campaign finance laws should require that the group register as a political party.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
The group also plans to send its complaint to authorities in states where No Labels is mobilizing. Accountable.US filed its complaint in Colorado, one of 14 states where No Labels has qualified for political party status. The Democratic group is arguing No Labels failed to file quarterly campaign reports, which are required under state law. The goal is to get the third-party organization to reveal its donors.
This is the latest legal battle for No Labels, which was sued by Durst Organization Chairman Douglas Durst and President Jonathan Durst on Tuesday. The breach-of-contract and “unjust enrichment” suit alleged No Labels sought donations from the powerful real estate leaders as a bipartisan group, only to look at financing a third-party candidate.
