Stealth Campaigns – Part Five (cont.)
Meanwhile, Soros, whose charitable interests are legion, contributed more than $23 million to Democratic independent groups in 2004, including $12 million to the Joint Victory Campaign, $7.5 million to America Coming Together, and $2.5 million to MoveOn.org. Michael Vachon, spokesman for Soros, told the Center for Public Integrity that his boss was “a catalyst” for the creation of America Coming Together. “Here is what happened,” Vachon said. “In 2003, when he started to recognize the danger that the Bush administration posed to the world, he asked himself if there was any way for him to play a role in the election. He had never been involved in those kinds of efforts. So we went out and hired two different sets of consultants to analyze the situation for us. And what happened is that they more or less came up with the same answer. . . . What needed to happen was a massive voter-base turnout program. That’s what America Coming Together was.”
Needless to say, after pouring more than $20 million into the 2004 campaign, Soros had every reason to be disappointed when Bush was reelected. The conservative magazine National Review published a cover photo of George Soros holding a T-shirt with a picture of Bush and a line drawn across it. The headline: “I spent $27 million and all I got was this lousy T-shirt.” It was at that point Soros summoned many of his wealthy friends together to form the Democracy Alliance. Despite Soros’ support for so many progressive Democratic groups, Vachon insisted that he is not as driven by ideology as some people have suggested. “He is not the sort of crazed, left-wing millionaire that many in the right wing, particularly press, make him out to be,” he said, adding that Soros would better be described as a Rockefeller Republican. In the past, he has also contributed to groups that advocate public funding of elections.
Ambassador Sam Fox (Department of State)Unlike most things in American politics, the work of Democracy Alliance is done without any publicity. Meetings are closed to the press and the group even refuses to identify all of its members. Each of the more than 100 members, including actor Rob Reiner, reportedly paid as much as $1 million each to sit at the table. Members of this left-leaning alliance do not pool their contributions, but they do decide collectively where to put their money in an election year. The group was believed to have contributed $85 million to non-party, Democratic endeavors during its first two and a half years in operation. According to The Argument, a book by New York Times Magazine writer Matt Bai, the alliance stumbled at the beginning because of internal differences over organization and funding priorities. Meanwhile, in 2008, Soros’ interest in the political realm appeared to be waning. “I think it’s unlikely that George will make a similar commitment in 2008,” Vachon said. “What motivated him in 2004 was the feeling that this was an important moment in history. I think in a lot of ways, depressingly so, he and many people feel like the damage has been done already.”
Not all big contributors to the independent groups seem as disinterested in payback as Soros and Perry, of course. Dawn Arnall’s husband, Roland, chairman of Ameriquest, became the ambassador to the Netherlands after she contributed $5 million to Progress for America Voter Fund. Sam Fox, who provided the Swiftboat Veterans with $50,000, got a recess appointment to be ambassador to Belgium. When Fox appeared before the Senate Foreign Relations Committee, Senator John Kerry, Democrat from Massachusetts, lambasted him for supporting “the politics of personal destruction.”
Nor were wealthy people the only ones trying to enhance their political influence by aggregating their contributions to independent groups. A new entry in the 2008 cycle was the New Progressive Coalition, with a portfolio of so-called “mutual funds” to enable liberals to give to progressive organizations, many of them with political aims. The slick, new organization was the brain child of Andy Rappaport, a Silicon Valley venture capitalist, and his wife, Deborah. The organization, which assists a selective list of political groups, touts itself as the Charles Schwab of politics. Contributors can make an “investment” of as little as $50. As a for-profit corporation, it does not file a federal disclosure report.
“During the current U.S. presidential election cycle alone, billions will be spent by the campaigns and countless independent organizations,” said Rappaport when he announced the venture in November 2007. “By providing a mechanism for every citizen to make informed decisions about where to make donations, to measure and track the effectiveness of these donations, and to be able to join with other contributors to have a real impact no matter what they can afford, NPC is contributing in a very real way to welcoming citizen participation back into the political and policymaking process.”
Some Democrats credited Rob Stein, a former Clinton administration official, with inspiring wealthy liberals to create an infrastructure independent of the party organization. For several years, Stein traveled the country with a PowerPoint presentation designed to show how Republican multi-millionaires with such names as Scaife, Coors, and Mellon had provided huge amounts of cash necessary for the GOP to develop a vast network of think tanks and other independent organizations dedicated to electing Republican candidates. Former Representative Martin Frost, now president of the independent group America Votes, said Stein’s dream was to have “a progressive infrastructure that would be outside the Democratic Party in the same way that the far right had put money into creating the structures outside the formal Republican structure.” In the parlance of the day, therefore, the “vast right-wing conspiracy” that Hillary Clinton alleged was out to get her when she was first lady, was being met head-on by a rapidly-growing “vast left-wing conspiracy.”
Read the Series:
Part One: The Rise of Independent Committees
Part Two: MoveOn.org and Freedom’s Watch: The Iraq Ad-War
Part Three: Is Campaign Finance Reform “Completely Corrupted” ?
Part Four: The “Crack Cocaine” of Negativity: The “Crack Cocaine” of Negativity
Part Five: The $20 Million Men
Listen to the podcast ("Stealth Campaigns") here or download the MP3.
Sara Fritz, a longtime Washington journalist, was an investigative reporter for the Los Angeles Times, White House correspondent for U.S. News & World Report, managing editor of Congressional Quarterly, and Washington bureau chief of The St. Petersburg Times. In the early 1990s, she co-authored two companion books on the subject of campaign finance, Handbook of Campaign Spending: Money in the 1990 Congressional Races and Gold Plated-Politics: Running for Congress in the 1990s. Fritz has won a number of prestigious awards, including the Everett Dirksen Award for Distinguished Reporting on Congress and Harvard University’s Goldsmith Prize for Investigative Reporting. She is a former president of the White House Correspondents Association and a member of the Gridiron Club.
SOURCES: “ ‘Swift Boat’ Backer Is Major Political Financier,” The Associated Press, August 27, 2004; Greg Pierce, “Inside Politics,” The Washington Times, April 21, 2005; S.C. Gwynne, “Bob Perry Needs A Hug,” Texas Monthly, April 2007; Patrick Kiger, “W. Clement Stone (1902-2002),” The Buying of the President 2008, The Center for Public Integrity; “1972 – Nixon vs. McGovern,” The Buying of the President 2008, The Center for Public Integrity; Michael Vachon, interview with Sara Fritz, The Buying of the President 2008, The Center for Public Integrity, September 27, 2007; About Us, Freedom’s Watch; “The 400 Richest Americas - #3 Sheldon Adelson,” Forbes, September 21, 2006; Issues, Freedom’s Watch; J. Patrick Coolican, “Sheldon Anderson: Powerful in Vegas, Hawkish Toward Iran,” Las Vegas Sun, November 7, 2007; Bill Berkowitz, “Newt Gingrich Says If Supporters Pledge $30 Million He’ll Enter Presidential Race,” Media Transparency, September 29, 2007; American Solutions for Winning the Future, IRS Form 8872, December 7, 2006; Jim Kuhnhenn, “Outsiders Aim To Frame Political Debate,” The Associated Press, September 29, 2007; Bill Carrick, interview with Sara Fritz, The Buying of the President 2008, The Center for Public Integrity, February 16, 2007; “Top Individual Contributors to 527 Committees, 2004 Election Cycle,” The Center for Responsive Politics; “Following The Money: Philanthropy and Campaign Finance Reform,” Bradley Center for Philanthropy and Civic Renewal, Hudson Institute, November 23, 2004; Michael Scherer, “Can Democrats Get Smart?” Salon, August 22, 2005; Kathryn Jean Lopez, “Soros Goes Obama,” National Review, January 22, 2007; Dan Morain, “Campaigns Raise Stakes on Nonprofits,” Los Angeles Times, November 13, 2007; Silent Partners, The Center for Public Integrity; Kristin Downey, “Bush Picks Ameriquest Owner as Ambassador,” The Washington Post, July 29, 2005; Silent Partners, The Center for Public Integrity; “Bush Uses Recess Appointment Power To Install GOP Fundraiser Sam Fox as Ambassador,” The Associated Press, April 4, 2007; “Bush Withdraws ‘Swift Boat’ Nominee,” The Associated Press, March 28, 2007; Michael Luo, “Bush Withdraws a Nominee Dogged by a 2004 Donation,” The New York Times, March 29, 2007; What We Do, New Progressive Coalition; Joe Garofoli, “Mutual Funds Tailored to Political Philosophies,” San Francisco Chronicle, November 19, 2007; “New Progressive Coalition (NPC) Launches One-Click Impact,” New Progressive Coalition; Martin Frost, interview with Sara Fritz, The Buying of the President 2008, The Center for Public Integrity, September 12, 2007.



