American Crossroads

American Crossroads is a 527 organization that has raised and spent tens of millions of dollars to defend and elect Republican candidates to federal office, and was very active in the 2010 U.S. midterm elections.^[1] Its president is Steven J. Law, a former United States Deputy Secretary of Labor for President George W. Bush and the Chairman of the Board of Directors is former Republican National Committee chairman Mike Duncan. Advisers to the group include Senior Advisor and former White House Deputy Chief of Staff Karl Rove and former Counselor to the President and Republican National Committee chairman Ed Gillespie.

Leadership

American Crossroads lists its formal leadership as follows:^[2]

• Mike Duncan, Chairman of the Board
• Steven J. Law, President and CEO
• Jo Ann Davidson, Director
• Jim Dyke, Secretary
• Carl Forti, Political Director
• Karl Rove, Adviser
• Ed Gillespie, Adviser
• Jonathan Collegio, Communications Director

Funding

According to Federal Election Commission, IRS reports, analysis by the independent Center for Responsive Politics and other sources, American Crossroads' major contributors have included:

• Bob J. Perry, President of Perry Homes, Houston, Texas ($7 million)
• B. Wayne Hughes, founder of Public Storage Inc ($2.3 million)
• Trevor Rees-Jones, President and CEO of Chief Oil and Gas, ($2 million)
• Robert Rowling, CEO of TRT Holdings, ($1 million)
• Dixie Rice Agricultural Corporation ($1 million)
• Southwest Louisiana Land ($1 million)
• Jerry Perenchio Living Trust ($1 million)
• American Financial Group, ($400,000)

^{[3][4][5][6][7]}

American Crossroads raised $28 million in the 2010 election cycle.^[8] 91% of the funds raised were from billionaires.^[9][10][11]

Crossroads GPS

Crossroads Grassroots Policy Strategies (Crossroads GPS)^[12] is a 501(c)(4) nonprofit corporation that works in conjunction with American Crossroads. As a 501(c)(4) nonprofit, Crossroads GPS's primary purpose is the advancement of social welfare including public policy advocacy, although it is permitted to engage in political spending as well. Crossroads GPS is required to report what it spends, but it is not required to publicly disclose any donor information.^[13]

Leadership of Crossroads GPS

Steven J. Law is also the president of Crossroads GPS. The Board of Directors includes Sally Vastola, Bobby Burchfield, and Rob Collins. Its policy director is Steven Duffield.^[14]

Debate over political activity by 501(c)(4) groups such as Crossroads GPS

In October 2010, Senator Richard Durbin wrote the IRS asking for it to investigate whether Crossroads GPS had violated its tax status.^[15] Republican senators had previously written to the IRS stating that an investigation into only conservative groups, as Durbin would later request, would amount to a politically motivated tactic that would “chill the legitimate exercise of First Amendment rights.”^[16]

Crossroads GPS activity post-2010 elections

Crossroads GPS demonstrated its interest in participating in non-electoral policy advocacy soon after the 2010 elections when it began running radio advertisements related to tax policy, urging Members of Congress to prevent tax hikes.^[17]

Other organizations associated with American Crossroads

American Crossroads shares office space with American Action Network, a group that promotes “center-right policies.”^[18] Crossroads Media is a media services company that serves American Crossroads. Crossroads Media is run by Michael Dubke and David Carney, and Dubke also runs the Black Rock Group political consulting firm with Carl Forti, political director of American Crossroads. Dubke and Carney also founded Americans for Job Security, which shares office space with Crossroads Media and at least three other political consulting firms, including the Black Rock Group.^[19]

References

1. ^ See statement of purpose at http://www.americancrossroads.org/about-us
2. ^ American Crossroads website, accessed February 4, 2011, http://americancrossroads.org/about-us
3. ^ American Crossroads, Top 2010 Contributors, Center for Responsive Politics, 24 September 2010
4. ^ ‘Shadow RNC’ American Crossroads Raises Millions, Center for Responsive Politics, 20 September 2010,
5. ^ American Crossroads Now Targets House Races, Politico, 10 September 2010
6. ^ Bob Perry Gives $7 Million to American Crossroads, Wall Street Journal, 20 October 2010
7. ^ Despite tea party energy, outside groups funded by Swift Boaters, other old hands, Dan Eggen and T.W. Farnam, Washington Post, 22 October 2010
8. ^ Pair of conservative groups raised $70 million in midterm campaign, Dan Eggen and T.W. Farnam, Washington Post, 2 December 2010
9. ^ American Crossroads now targets House races, Politico, 10 September 2010
10. ^ Billionaires give 91 percent of funds for Rove-tied group, Salon, 20 September 2010
11. ^ American Crossroads Backed Almost Entirely by Billionaires, Jesse Zwick, Washington Independent, September 28, 2010
12. ^ See www.crossroadsgps.org
13. ^ Is the U.S. Chamber of Commerce Spending Foreign Money, Miami Herald, October 7, 2010^{[dead link]}
14. ^ See website of Crossroads GPS at http://www.crossroadsgps.org/learn-more (checked 8/30/11).
15. ^ Senator Richard Durbin, press release, Durbin Urges IRS to Investigate Spending by Crossroads GPS, Oct 12 2010, http://www.durbin.senate.gov/showRelease.cfm?releaseId=328235 (He wrote, “I write to urge the Internal Revenue Service to examine the purpose and primary activities of several 501 (c)(4) organizations that appear to be in violation of the law,” wrote Durbin. “(Crossroads GPS) has spent nearly $20 million on television advertising specific to Senate campaigns this year. If this political activity is indeed the primary activity of the organization, it raises serious questions about the organization's compliance with the Internal Revenue Code.”)
16. ^ Republicans See a Political Motive in I.R.S. Audits, Eric Lichtblau, The New York Times, October 6, 2010
17. ^ See http://www.politico.com/news/stories/1210/46356.html, which details the $400,000 spent to urge Members of Congress to block tax hikes.
18. ^ Politico, American Crossroads Now Targets House Races, Sept 10 2010, http://www.politico.com/news/stories/0910/42433.html
19. ^ NY Times, Under Tax-Exempt Cloak, Dollars Flow to Political Causes, Sept 23 2010, http://www.nytimes.com/2010/09/24/us/politics/24donate.html?sq=crossroads%20media&st=cse&scp=1&pagewanted=all

External links

• American Crossroads Official website
• Crossroads GPS Official website
• Campaign finance reports and data at the FEC
  • 2009-2010 Cycle Reports and Reports Image Index
• Independent Expenditures, Outside Spending and Ads (videos) at OpenSecrets.org