Club for Growth

Club for Growth is a right-wing political group established in 1999 by Stephen Moore that endorses and raises money for candidates. According to a February 22, 2011 article by John Nichols in The Nation, the Washington D.C. based Club for Growth is "an organization funded by extremely wealthy conservatives to carry out their budget-stripping goals," and that "has been a key player in Republican Governor Scott Walker's move to take out the state's organized workers." Nichols writes that the Club for Growth is part of a "national strategy" to get "newly elected Republican governors" to destroy labor and unions. R.J. Johnson, who served as a political strategist for Walker's campaign, is a key adviser to the Club for Growth. Johnson has refused to disclose where the Club for Growth gets its funding. The Minneapolis-St. Paul Star Tribune in a February 26, 2011 editorial described the Club for Growth as an "ultra-rich special interest itself." As of September 13th, 2012, OpenSecrets estimates that Club for Growth has spent $13 million influencing federal elections.

Organization and Strategy
Club for Growth conducts its activities through its 527 Political Action Committee (deemed a "super PAC" by the Washington Post), and its 501(c)(4) Club for Growth Action committee, focusing on issues including reducing the income tax, budget reform, a flat tax, tort reform, school choice and deregulation. At the outset of the 2010 midterm election, Club for Growth indicated that it intended to take advantage of the U.S. Supreme Court's Citizens United decision and raise unlimited funds from corporations and other deep-pocket donors. The Club accomplishes its mission by raising money through its political action committee and donating it to candidates that adhere to this vision. It also solidifies its clout through independent expenditures through a separate 527 committee. The Club’s PAC also acts as a conduit for federal candidates by accepting and transmitting earmarked contributions from the club’s many members to federal candidates.

Despite being allowed to raise unlimited funds, Club for Growth's 501(c)(4) wing is not required to disclose its donors. Club for Growth's PAC, Club for Growth Action, is supported by ultra-rich right-wing donors like Peter Thiel (their largest donor), leverage-buyout specialist John Childs and New Jersey investor Virginia James, who have both given the Club $1 million donations.

The group supports far-right Republican candidates, spending money to not only oppose Democrats, but also moderate Republicans they term "RINOs" (an acronym for Republican In Name Only). Some within the Republican party dislike the Club; Mike Huckabee, former Arkansas Governor and Republican Presidential Candidate (and current FOX News host), says the group should be called the "Club for Greed."

2011-2012 Spending to Defend Walker and in Recall Races
With in days of Scott Walker introducing the budget repair bill to end collective bargaining in Wisconsin on February 11, 2011 Wisconsin Club for Growth was up on TV with ads defending the measure like this one posted on You Tube February 14, 2011. Or this one posted on You Tube February 22, 2011. RJ Reynolds was named Scott Walker's "top political adviser" in his 2013 book "Undaunted," at the same time that he was a long time political adviser to Club for Growth.

On February 18, 2011, Wisconsin State Representative Gordon Hintz (D-54th) stated in floor debate that he heard a radio ad paid for by the Club for Growth prior to the budget repair bill even being distributed to members for vote. This marked the beginning of the Club for Growth's involvement into state level anti-union activities.

Club for Growth ran ads throughout the 15 Wisconsin recalls that took place between 2011-2012s, arguing in favor of Walker's anti-union agenda and against the recall process itself. In total, the Club spent at least $10 million influencing the recalls, though the exact number is not known. This money was mostly spent in the summer and fall of 2011, in order to influence the Senate recalls.

2011-2012 Arizona Senate Races
Club for Growth endorsed Jeff Flake for the Arizona Senate Primary over his self-financed opponent Will Cardon. Club for Growth spent at least $1 million influencing the GOP Senate primary, $600,000 through their PAC and another $400,000 through their nonprofit arm. Club for Growth's ads began in June, and attacked Cardon for being "an impostor" and not a true conservative. Other ads attacked him for being a member of the (purportedly liberal) Urban Land Institute. With the Club for Growth's help, Jeff Flake was able to defeat his challenger.

2011-2012 Wisconsin Senate Races
In addition to opposing the Walker Recall, the Club for Growth also ran ads against contenders for Wisconsin's open Senate seat, slated to be filled in the 2012 election cycle. The club's action committee ran ads opposing former Governor Tommy Thompson, and billionaire hedge fund manager Eric Hovde, both Republicans. The Club announced their official endorsement for Mark Neumann in July of 2012. Their ad buy against both Thompson and Hovde cost about $700,000. Neumann eventually lost to Thompson, who entered the Senate race against Madison Representative Tammy Baldwin.

2011-2012 Texas Senate Races
The 2012 Senate Republican Primary in Texas was one of the Club's largest investments, the Club spent over $5 million in support of Ted Cruz, in order to unseat moderate Republican David Dewhurst. Club for Growth's ads attacked Dewhurst for being recognized as a moderate by every major newspaper in Texas, and praised Cruz for being a true conservative.

2012 Attacks on Dick Lugar and Other Moderate Republicans
The Club for Growth has made a national strategy of attacking moderate state-level republicans from the Right. Their two biggest success stories in 2012 were Former Indiana Senator Dick Lugar and Nebraska Attorney General Jim Bruning. The Club spent about $2.2 million to unseat Lugar in favor of Indiana Treasurer Richard Mourdock. Club for Growth spent about $700,000 to unseat Bruning, and succeeded, though their preferred candidate finished in 3rd place.

2010 Midterm Elections
Club for Growth invested in a variety of campaigns in the 2010 midterm election season. The group has also established local spinoff political groups so their anonymous donors can direct their funds towards specific races. For example, Club for Growth has established a Wisconsin chapter to support Republican Congressional and Gubernatorial candidates.

"Privatize Social Security? Hell Yeah!"
One of the Club's campaigns focuses on privatizing Social Security, an issue that alienates many Republicans. Democrats have tried to capitalize on the issue. Club For Growth spent $6 million in the 2010 midterm elections, calling for Social Security privatization. Their pitch for privatizing Social Security was entitled "Social Security Privatization? Hell Yeah!"

2006 Republican primaries
On September 14, Toomey sent out a club bulletin summing up its activities in the Republican primaries:

"...the Club's PAC racked up 9 wins against just 4 losses. It's a record we're proud of, especially given that our endorsed candidates competed in races with nearly 50 major opponents. In most cases our candidate was the underdog, as in yesterday's Rhode Island race. The Washington Post reported yesterday that the Club's PAC "had an extremely successful run so far this cycle."

"And the Club's PAC scored its first-ever knockout of an incumbent when Tim Walberg defeated Rep. Joe Schwarz in the Michigan Republican primary. We accomplished something vitally important in Rhode Island despite the vote tally.

"Politicians are risk-adverse [sic]. Every Republican in Congress knows what we did in Rhode Island. They realize that Club members donated an incredible $725,000 to Chafee's challenger. They know that the Club for Growth PAC spent an additional $515,000, mostly on TV ads, and took a challenger from being down 2 to 1 in the polls to the edge of an upset. As senators cast their votes on key bills, wavering Republicans will have to wonder if they could withstand the same punishment.

"National Review wrote that Laffey's "loss was by no means an exercise in futility: Sometimes it's better to fight and lose than not to fight at all. Two years ago, Pat Toomey nearly defeated Sen. Arlen Specter in Pennsylvania's GOP primary. Yesterday, Laffey gave Chafee a genuine scare. Both Toomey and Laffey received crucial support from the Club for Growth [PAC]. Senators are a notoriously risk-averse crowd. And now, for the second election cycle in a row, Republican senators have received a sharp reminder that if they behave too much like liberals, they may not be senators for long."

The breakdown of club member support for the nine candidates according to the group's website was as follows:


 * Steve Laffey (RI)--no financial information listed.
 * Sharron Angle (NV)--"Club members contributed over $605,000..."
 * Tim Walberg (MICH)--won over the incumbent with over $600,000 in donations from club members
 * Doug Lamborn (CO)--won with over $200,000.
 * Phil Krinkie (MN)-- withdrew, as pledged, when he didn't receive the party's endorsement. Received over $154,000.
 * Jim Jordon (OH)--won and received over $92,000.
 * Henry Cueller (TX)--won and received over $170,000
 * John Campbell (CA)--won in 2005 and received over $118,000.

2005 FEC Lawsuit
In September 2005, the Federal Election Commission filed a lawsuit "against the Club for Growth, the first case of its kind to arise from high-dollar fundraising during the 2004 elections. The pro-Republican group spent at least $21 million in the 2003-2004 election cycle. ... The FEC contends the club spent enough in federal races to require it to file with the commission as a political committee and to follow contribution and spending limits. It wants the court to fine the group and order it to comply with campaign finance rules."

In September, 2007 the Club for Growth agreed to pay $350,000 in civil penalties and criticized the FEC for the lawsuit.

History and Background
Club for Growth was "founded in 1999 by Steve Moore (now a member of the Wall Street Journal editorial board); National Review president Dusty Rhodes; Cato Institute president Ed Crane; stockbroker Richard Gilder; and Larry Kudlow, a former Reagan adviser and co-host of CNBC's Kudlow & Cramer," and other like-minded pro-growth conservatives. (Former President Pat Toomey is now the junior Senator representing Pennsylvania).

$2.4 million in campaign contributions from the Club for Growth helped elect 10 new Republicans to Congress in 2000. "The Club for Growth has grown six-fold since the 2000 election cycle and the Club and its members raised or donated over $10 million to help elect seventeen new Members of Congress in the 2002 election cycle."

In the run up to the 2004 Democratic caucuses in Iowa, the PAC arm of Club for Growth ran advertisments attacking Presidential candidate Howard Dean. The advertisements characterized Howard Dean and his supporters as a "tax-hiking, government-expanding, latte-drinking, sushi-eating, Volvo-driving, New York Times-reading, body-piercing, Hollywood-loving, left-wing freak show."

Not even George Walker Bush as President was immune from Club for Growth criticism. After Bush unveiled new programs costing billions of dollars in the 2004 State of the Union Address, then-Club president Stephen Moore criticized George Walker Bush as a "big government Republican."

"The group, which in the past has challenged moderate Republicans it considers big spenders, is running television spots targeting three GOP lawmakers who are undecided about private accounts: Sen. Lincoln Chafee of Rhode Island, Rep. Joe Schwarz of Michigan and Rep. Sherwood Boehlert of New York," the Houston Chronicle reports. "The Club also plans to hire a full-time lobbyist to promote the private account plan on Capitol Hill."

Club for Growth PAC Endorsed Candidates

 * David Harmer (CA-11)
 * Keith Rothfus (PA-04)
 * Andy Harris (MD-01)
 * Nan Hayworth (NY-19)
 * Jesse Kelly (AZ-08)
 * David Schweikert (AZ-05)
 * Joe Miller (AK-Sen)
 * Tim Griffin (AR-02)
 * Todd Young (IN-09)
 * Stephen Fincher (TN-08)
 * Ken Buck (CO-Sen)
 * Mick Mulvaney (SC-05)
 * Rand Paul (KY-Sen)
 * Ron Johnson (WI-Sen)
 * Sharron Angle (NV-Sen)
 * Justin Amash (MI-03)
 * Mike Pompeo (KS-04)
 * Tim Huelskamp (KS-01)
 * Tim Scott (SC-01)
 * Jeff Duncan (SC-03)
 * Tom Graves (GA-09)
 * Pat Toomey (PA-Sen)
 * Marco Rubio (FL-Sen)
 * Mike Lee (UT-Sen)
 * Jim DeMint (SC-Sen)
 * Tom Coburn (OK-Sen)

2010 Expenditures
==== Independent Expenditures (as of September 30, 2010) ====

Race      Candidate         Party     Support/Oppose  Expenditures

GA-9 	    Tom Graves  	R  	Support  	$9,621.00 GA-9 	   Lee Hawkins 	R 	Oppose  	$114,131.00 KS-1 	   James A. Barnett 	R 	Oppose  	$110,662.00 KY-Senate  Rand Paul 	        R 	Support 	$11,115.00 MI-3 	   Justin Amash 	R 	Support 	$7,908.00 MI-3 	   Bill Hardiman 	R 	Oppose  	$125,727.00 NV-Senate  Sharron E. Angle 	R 	Support 	$247,218.00 NV-Senate  Sue Lowden 	        R 	Oppose  	$238,458.00 NY-23 	   Doug Hoffman 	3 	Support 	$340,450.00 NY-23 	   Bill Owens 	        D 	Oppose   	$137,818.00 NY-23 	   Dierdre Scozzafava 	R 	Oppose 	        $167,016.00 OK-5 	   Kevin Calvey 	R 	Support 	$160,163.00 PA-Senate  Pat Toomey 	        R 	Support 	$12,639.00 PA-Senate  Arlen Specter 	D 	Oppose 	        $159.00 SC-1 	   Tim Scott 	        R 	Support 	$54,233.00 SC-1 	   Paul Thurmond 	R 	Oppose 	        $52,327.00 SC-3 	   Jeff Duncan 	R 	Support 	$220,234.00 TN-3 	   Robin Smith 	R 	Support 	$51,865.00 TN-3 	   Charles Fleischmann R 	Oppose 	        $58,541.00 UT-Senate  Robert F. Bennett 	R 	Oppose 	        $186,309.00 WI-Senate  Ron Johnson 	R 	Support 	$12,162.00

====Club for Growth Action expenditures ====

Race          Candidate         Party Support/Oppose  Expenditures

CO-Senate 	Ken Buck          (R)  	Support  	$12,500.00 CO-Senate 	Michael F. Bennet (D) 	Oppose 	       $299,739.00 FL-Senate 	Marco Rubio      (R) 	Support 	$35,366.00 FL-Senate 	Kendrick B. Meek (D) 	Oppose  	$1,572.00 FL-Senate 	Charlie Crist    (I) 	Oppose  	$280,151.00 KY-Senate 	Rand Paul        (R) 	Support 	$12,500.00 NV-Senate 	Sharron E. Angle (R) 	Support 	$35,366.00 NV-Senate 	Harry Reid       (D) 	Oppose   	$211,894.00 PA-Senate 	Pat Toomey       (R) 	Support 	$15,626.00 PA-Senate 	Joe Sestak, Jr   (D)   Oppose 	        $770,317.00 WI-Senate 	Russ Feingold    (D) 	Oppose 	        $183,205.00 WI-Senate 	Ron Johnson      (R) 	Support 	$14,866.00

Board of Directors

 * Thomas L. Rhodes - Chair
 * Richard Gilder - Chairman emeritus
 * Ken Blackwell
 * Frayda Levin
 * Howard Rich
 * Jackson T. Stephens, Jr.
 * Chris Chocola

The group was formerly led by Pat Toomey.

Staff

 * Chris Chocola, President and CEO
 * Chuck Pike, Vice President
 * David Keating, Executive Director
 * Adam Rozansky, Chief Financial Officer (former Director of Operations)
 * Andrew Roth, Vice President, Director of Government Affairs
 * Erika Sather, Vice President, Development
 * Mike Connolly, Communications Director
 * Stacy French, Office Administrator
 * Maria Gullo, Senior Development Associate
 * Alyssa Bonk, Development Assistant

Former Staff
 * Patrick Toomey, President
 * Nachama Soloveichik, Communications Director
 * Stacie Smith, Development Assistant
 * Oliver Schwab, Membership Assistant

Leadership Council

 * Jean Belanger
 * Bruce Bent
 * Brent Bozell
 * Martin Boles
 * John Childs
 * Chris Chocola
 * Terry Considine
 * Dan Cook
 * Oliver R. Grace
 * Lawrence Kudlow
 * Virginia James
 * George Mitchell
 * Rex Sinquefield
 * Lee Tenzer
 * Louis Woodhill

Contact Information
Club for Growth 2001 L Street, NW, Suite 600 Washington, DC 20036 Telephone: 202-955-5500 Fax: 202-955-9466 Website: http://www.clubforgrowth.org

Related SourceWatch Articles

 * Political Action Committee
 * Stephen Moore
 * R.J. Johnson
 * John Childs
 * Thomas L. Rhodes
 * Ed Crane
 * Richard Gilder
 * Pat Toomey
 * Chris Chocola
 * Brent Bozell
 * Rex Sinquefield