Koch-Linked ‘Charity’ Aiding WI Gov. Scott Walker In Recall

The Americans for Prosperity Foundation, a 501(c)(3) tax-exempt “charitable organization” is in the midst of a $700,000 campaign aimed at supporting embattled Gov. Scott Walker (R-WI) in his upcoming recall election, according to the Center for Media and Democracy. By not explicitly naming Walker in the ads touting his reforms, they may be narrowly avoiding a federal law that says (c)(3) organizations may “not participate in any campaign activity for or against political candidates.”

In 2010, Americans for Prosperity, the group’s affiliated 501(c)(4) tax-exempt “social welfare” organization spent more than $1.3 million on electioneering. When the group told the IRS in its annual disclosure that it does not engage in political activity, tax experts questioned whether the group was complying with the laws governing nonprofits.

Charles and David Koch are major funders of Americans for Prosperity. Last year, Walker famously had a lengthy phone conversation with a prankster posing as David Koch in which the governor bragged about his union busting campaign, joked about using a baseball bat against his opponents, and confessed that he had considered planting trouble makers in the protest crowd.

The Koch brother’s corporate PAC and organizations they bankroll spent hundreds of thousands on donations to and expenditures in support of Walker’s campaign, but David Koch claims he doesn’t “directly” support the governor.