Keep the demise of the Tea Party in mind as the Alt-Right grows in popularity. Many, if not most, of these PACs are little more than scams with a political brand.
The Tea Party movement is pretty much dead now, but it didn’t die a natural death. It was murdered—and it was an inside job. In a half decade, the spontaneous uprising that shook official Washington degenerated into a form of pyramid scheme that transferred tens of millions of dollars from rural, poorer Southerners and Midwesterners to bicoastal political operatives.Don't even think about supporting any big-money Alt-Right PACs that come into being in the next 2-5 years. If the real Alt-Right figures want your support, we'll not only request it directly, but we'll do so for specific purposes and projects whose progress you can track for yourself. We don't play the "overhead" game.
What began as an organic, policy-driven grass-roots movement was drained of its vitality and resources by national political action committees that dunned the movement’s true believers endlessly for money to support its candidates and causes. The PACs used that money first to enrich themselves and their vendors and then deployed most of the rest to search for more “prospects.” In Tea Party world, that meant mostly older, technologically unsavvy people willing to divulge personal information through “petitions”—which only made them prey to further attempts to lighten their wallets for what they believed was a good cause. While the solicitations continue, the audience has greatly diminished because of a lack of policy results and changing political winds.
I was an employee at one of the firms that ran these operations. But nothing that follows is proprietary or gleaned directly from my employment. The evidence of the scheming is all there in the public record, available for anyone willing to look.... 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.
POLITICO last year reviewed the activity of 33 conservative PACs for the 2014 cycle. Combined, they raked in $43 million dollars, according to the POLITICO report. Of that, $39.5 million went to overhead including $6 million to entities owned by PAC operators; candidates got $3 million. Another report analyzed 17 conservative PACs from the 2014 midterm. It came up with different numbers than POLITICO, finding that the bottom 10 PACs in terms of the ratio of spending to actual candidate support received $54,318,498 and spent only $3,621,896 supporting candidates.