“In the United States, a political action committee (PAC) is a tax-exempt 527 organization that pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation.”
What causes gray money? Disclosure rules that overlook the true sources of funding. Super PACs — PACs that are supposed to advertise independent of candidates and, after Citizens Unitedand related cases, can raise and spend unlimited sums — typically must disclose their donors.
But increasingly they have disclosed not individuals or businesses, whose interests are relatively apparent, but rather other PACs. That money might be traceable, through multiple layers of PAC disclosures, to an original source. But most people lack the time to dig this deeply, and, increasingly, understaffed newsrooms do, too. (Super PACs sometimes disclose nonprofits as donors. Because nonprofits generally do not have to disclose their donors, we consider PAC spending derived from such sources to be dark money, not gray.)