Powerful Tea Party Group’s Internal Docs Leak—Read Them Here
FreedomWorks bills itself as a grassroots outfit, but it’s bankrolled mostly by big-money donors.
By Andy Kroll | Fri Jan. 4, 2013 3:02 AM PST
FreedomWorks, the national conservative group that helped launch the tea party movement, sells itself as a genuine grassroots operation, and for years it has battled  accusations  of “astroturfing” —posing as a populist organization while doing the bidding of big-money donors. Yet internal documents obtained by Mother Jones show that FreedomWorks has indeed become dependent on wealthy individual donors to finance its growing operation.
Last month, the Washington Post reported  that Richard Stephenson, a reclusive millionaire banker  and FreedomWorks board member, and members of his family funneled $12 million  in October through two newly created Tennessee corporations to FreedomWorks’ super-PAC, which used these funds to support tea party candidates in November’s elections. The revelation that a corporate bigwig like Stephenson, who founded  the Cancer Treatment Centers of America and chairs its board, was responsible for more than half of the FreedomWorks super-PAC’s haul in 2012 undercuts the group’s grassroots image and hands ammunition to critics  who say  FreedomWorks does the bidding of rich conservative donors.
Big donations like Stephenson’s are business as usual for FreedomWorks. According to a 52-page report prepared by FreedomWorks’ top brass for a board of directors meeting held in mid-December at the Virginia office of Sands Capital Management , an investment firm run by FreedomWorks board member Frank Sands , the entire FreedomWorks organization—its 501(c)(3) and (c)(4) nonprofit arms and its super-PAC—raised nearly $41 million through mid-December. Of that total, $33 million—or 81 percent of its 2012 fundraising—came in the form of “major gifts,” the type of big donations coveted by nonprofits and super-PACs. (FreedomWorks’ nonprofit components do not have to disclose their funders.)