But any insurgent movement needs oxygen in the form of victories or other measured progress in order to sustain itself and grow. By sapping the Tea Party’s resources and energy, the PACs thwarted any hope of building the movement. Every dollar swallowed up in PAC overhead or vendor fees was a dollar that did not go to federal Tea Party candidates in crucial primaries or general elections. This allowed the GOP to easily defeat or ignore them (with some rare exceptions). Second, the PACs drained money especially from local Tea Party groups, some of which were actively trying to grow the movement electorally from the ground up, at the school board and city council level. Lacking results five years on, interest in the movement waned—all that was left were the PACs and their lists.
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Any postmortem should start with the fact that there were always two Tea Parties. First were people who believe in constitutional conservatism. These folks sense the country they will leave their children and grandchildren is a shell of what they inherited. And they have little confidence the Republican Party can muster the courage or will to fix it.
Second were lawyers and consultants who read 2009’s political winds and saw a chance to get rich.
For 18 months ending in 2013, I worked for one of these consultants, Dan Backer, who has served as treasurer for dozens of PACs, many now defunct, through his law and consulting firm. I thus benefited from the Tea Party’s fleecing.
The PACs seem to operate through a familiar model. It works something like this: Prospects whose name appear on a vendor’s list get a phone call, email or glossy mailer from a group they’ve likely never heard of asking them for money. Conservative pundit and Redstate.com Editor-in-Chief Erick Erickson described one such encounter. A woman called and asked if she could play a taped message touting efforts to help Senators Rand Paul and Ted Cruz fight for conservative governance. When the recording stopped an older man (the woman was gone) offered Erickson the chance to join “the Tea Party.” He wouldn’t say who paid him, just “the Tea Party.” Membership was even half price. For just $100 he was in! Erickson declined.
Erickson’s call came from InfoCision or a similar vendor hired by PACs to “prospect” for new donors. Often PAC creators have financial interests in the vendors—in fact, sometimes they are the vendors, too—which makes keeping money in house easier, and harder to track. PAC names include “Tea Party,” “Patriots,” “Freedom,” or some other emotive term to assure benevolence. And names and images of political figures the prospects admire (or detest), usually accompany the solicitation, giving the illusion of imprimatur. Those people are almost never actually involved and little money ends up supporting candidates.
According to Federal Election Commission reports between 80 to 90 percent, and sometimes all the money these PACs get is swallowed in fees and poured into more prospecting. For example, conservative activist Larry Ward created Constitutional Rights PAC. He also runs Political Media, a communications firm. The New York Times reviewed Constitutional Rights’ filings and found: “Mr. Ward’s PAC spends every dollar it gets on consultants, mailings and fund-raising—making no donations to candidates.” Ward justified the arrangement by saying Political Media discounts solicitations on behalf of Constitutional Rights.
Let that sink in. Ward takes his PAC’s money and redistributes it to his company and other vendors for more messaging and solicitations, but suggests critics should rest easy since the PAC gets a discount on Political Media’s normal rate. Constitutional Rights PAC may be extreme but it’s hardly an outlier.