Groups that spent hundreds of thousands of dollars on failed Democratic ballot measures have agreed to pay fines and disclose their donors as a settlement for campaign finance violations.
The nonprofit Baldry Forward Colorado was originally founded in 2018 to help put Gov. Jared Polis in office. The group has since become politically active, spending tens of thousands of dollars on various ballot measures.
In 2023, Baldry Forward spent more than $350,000 supporting Proposition HH, a comprehensive tax proposal backed by Polis and other Democrats. That money went to the committee running the Proposition HH campaign.
Nonprofits are allowed to spend money on ballot measures, but if political spending is a nonprofit’s “principal purpose of existence,” it must file paperwork and disclose its donors to the state.
The nonprofit Public Trust Institute filed a campaign finance complaint alleging that the Democratic group violated those rules, and an investigation by the Secretary of State’s office found that Baldry Forward’s spending on HH proposals made up nearly 30% of the group’s total spending from 2021-2023.
State officials determined that the group spent so much money on a single ballot measure that it should have registered as an issues committee and reported its spending and fundraising activities to the state.
The state could have sought fines of more than $50,000, but instead offered a settlement of about $18,000. The nonprofit cooperated with state investigators, so the fine was waived, according to the settlement agreement.
Baldry Forward plans to file the appropriate paperwork to report its donors and expenses for 2023. The group already lists “our esteemed donors” on its website, which includes about 40 individuals and organizations, but does not disclose how much each has donated.
“We openly and transparently supported Proposition HH and made public contributions to its ballot initiative, and we believed at the time that we met all filing requirements,” spokesperson Amber Miller said in a text. “Following this complaint, we acted swiftly and worked with the Secretary of State to make improvements, and are now engaging with them on next steps.”
But the Public Trust Institute has criticized the settlement as insufficient. Attorney Suzanne Taheri said in a written statement that the agreement appears to be a way to “protect” Baldry Forward and that she predicts it will not lead to full disclosure of the roots of the spending in 2023. She added that the settlement is “completely different” from what the groups she represents typically offer when they face complaints.
“I believe the system has become blatantly partisan, with standards constantly changing depending on which side of the aisle you’re on,” Stayert wrote.
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Baldry Forward was originally formed as a transition committee to help Polis hire staff after he was elected governor in 2018, but has since shifted its focus to ballot issue campaigns and other policy advocacy, including supporting the governor’s 2020 bill to use nicotine taxes to fund preschool education.
Miller said the group is now an independent entity and Polis does not have a direct decision-making role, but the group works in partnership with the governor’s office and state lawmakers.
“‘Baldry Forward’ is consistent with the priorities of the Governor’s Office and Legislative leadership,” Miller said.
Previously, Taheri and the Public Trust Institute successfully sued Sen. John Hickenlooper for accepting gifts during travel while he was governor.
Secretary of State Jenna Griswold’s office said the settlement is proof the system works.
“This matter is just one example of the department’s latest efforts to promote transparency for Coloradans and ensure that issue committees disclose their donors to Coloradans. This settlement is in keeping with previous campaign and political finance settlements and is the largest settlement the department has ever obtained under current law,” spokesman Jack Todd wrote.
The current limits on nonprofit spending on ballot issues are defined in SB22-237, a 2022 bill signed by Governor Polis.
The governor’s office declined to comment and referred reporters to Boldly Forward Colorado.
In some cases, fights over ballot spending can drag on for years. In 2021, the conservative group Unite for Colorado, which Stayart worked for, was fined $40,000 and ordered to disclose its donors. But the group has been fighting the decision in court ever since, and is currently appealing the ruling to the state Supreme Court.