LWVUS urges No Labels to disclose its donors

The League joined a coalition of nonpartisan campaign finance groups on a letter urging No Labels to reveal its donors as it prepares to back a third-party bid for the presidency.

January 11, 2024
Dear No Labels Party leadership:

As leaders of organizations committed to strengthening and protecting our nation’s democracy, we write with serious concerns about the functioning of the No Labels’ presidential third-party ticket. No Labels has misused the 501(c)(4) nonprofit structure to create a new political party and now aims to run a candidate for president as a secret money group rather than a legitimate political party. That means, unlike the other parties on the ballot, you are not disclosing your funding sources, following contribution limits, or registering with the Federal Election Commission.

No Labels’ refusal to disclose its funders is disturbing and unlawful. Secret political spending is one of the most corrupting influences in politics and having a secret money organization impersonating a political party severely undermines the democratic process as a whole.

You have made clear that keeping your backers hidden is a priority, with your President Nancy Jacobson trying to justify this stance with the claim that “what’s best for democracy is confidentiality.”

However, polling has long shown that the American people believe the very opposite, and strongly desire the most robust disclosure regime possible. A national poll conducted in 2021 by Global Strategy Group and ALG Research showed that nearly all voters – 94% – support making almost all political contributions fully transparent. 

The decade plus since the Citizens United Supreme Court decision has made clear that political spending secrecy is antithetical to a functioning democracy. In the 13 years since that overreaching decision, spending by corporations, ultra-rich ideologues, and secretive front groups has exploded with secret-money groups pouring over $2.6 billion into our federal elections. At least $3 out of every $10 in outside spending reported to the Federal Election Commission since Citizens United can be traced to secret money groups.

We believe that the real reason you are keeping your donors a secret is what naming them would reveal: that No Labels is primarily supported by special interests and wealthy donors that care about what’s in the best interest of big business, not regular Americans. 

Since we do not have complete disclosure, we have gleaned this from what we have been able to learn about your donors from press reporting and watchdogging.

We know you have been funded by private equity executives and billionaire donors like Peter Thiel and the late David Koch. And we know that Harlan Crow – who recently rose to infamy for his connection to Justice Thomas – has given No Labels at least $130,000 and has steered at least two dozen of his other megadonor friends to the group. With ultrarich donors fueling the group, No Labels of course pushes ideas that favor those donors and preserve the status quo. 

As a 501(c)(4), No Labels is supposed to be organized primarily to promote social welfare, not engage in politics. And the problem is compounded by claiming to be a political party without abiding by the election rules.

At the crux of a healthy democracy is disclosure, accountability and the rule of law. But No Labels is the embodiment of what’s wrong with Washington: a secretive special interest group using unethical practices in an attempt to install politicians who will help the most powerful and wealthy benefit at the expense of working Americans.

It’s not too late to change course, and we urge you to join us as a responsible partner to stand up for our democracy. There is plenty of work to be done to ensure transparency of campaign funding, as well as to fight voter suppression, protect the right to vote, and ensure that our election workers are supported and given the tools they need to administer the 2024 Election fairly and securely. We hope you join us in these efforts. But if you continue to deprive voters of the information to which they are entitled, our organizations will consider legal action to vindicate American voters’ legal right to know who is using No Labels to try to buy the 2024 presidential election.

Sincerely,
End Citizens United
Public Citizen
Black Voters Matter
Campaign Legal Center
Defend The Vote
Democracy SENTRY
League of Women Voters
People For the American Way
Stand Up America