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OFFICE or 

CCUf^SLl 

November 5,2014 

Baker&HostetierLLP 

Washington Square, Suite 1100 

1050 Connecticut Avenue. N.W. 

Washington, DC 20036-5304 

T 202.861.1500 

F 202.861.1783 

www.bakerlaw.com 

E. Mark Braden 

direct dial: 202.861.1504 

MBraden@bakerlaw.com 

VIA E-MAIL AND FIRST CLASS MAIL 

Jeff Jordan 

Assistant General Counsel 

Federal Election Commission 

999 E Street, N.W. 

Washington, DC 20463 

Attn: Frankie Hampton 

Re: MUR 6872 

Dear Mr. Jordan: 

BakerHostetler has been retained to represent New Models regarding the complaint 

submitted to the Federal Election Commission ("Commission") by Citizens for Responsibility 

and Ethics in Washington (CREW) and Melanie Sloan, alleging that New Models, a Virginia 

non-profit corporation, violated the Federal Election Campaign Act ("Act") by failing to register 

and report as a "political committee" with the Commission. 

The Commission should promptly dismiss this matter. The Act and Commission 

regulations require that a complaint clearly recite facts setting forth specific violations of statutes 

and regulations under the Commission's jurisdiction. If a complaint fails to allege facts showing 

specific violations of the Act, the matter should be dismissed without further action. 

The MUR 6872 complaint fails this threshold requirement. The issue presented by the 

complaint is whether New Models is a political committee as defined by federal law. New 

Models is not a federal political committee, and the complaint fails to provide the Commission 

with factual allegations on which the Commission could determine that New Models is such. 

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Jeff Jordan 

Federal Election Commission 

November 5,2014 

Page 2 

I. ALLEGED VIOLATIONS OF THE ACT 

The CREW complaint contains two alleged violations styled as two counts: 

Coimt 1 - "New Models was a political committee between in 2012 (sic), but failed to 

register as one with the EEC."' 

Count II - "As a political committee, New Models was required to file periodic reports 

with the EEC ... , and "New Models failed to file any of these reports with the EEC."' 

II. A POLITICAL COMMITTEE MUST TRIGGER BOTH A REGISTRATION MONETARY 

THRESHOLD AND HAVE A "MAJOR PURPOSE" OF INFLUENCING FEDERAL ELECTIONS. 

Under the Act, a "political committee" is any "committee, club, association, or other 

group of persons" that receives more than $1,000 in "contributions" or makes more than $1,000 

in "expenditures" in a calendar year. 52 U.S.C. § 30101(4)(A); 11 C.E.R. § 100.5(a). The Act 

defines "contribution" and expenditure" to include any payment of money to or by any person 

"for the purpose of influencing any election for Federal office." 52 U.S.C. § 30101(8)(A)(i), 

(9)(A)(i). 

An entity, such as New Models, that is not controlled by a candidate must register as a 

political committee only if the entity: (1) crosses the $1,000 threshold of contributions or 

expenditures; and (2) has as its "major purpose" the nomination or election of federal candidates. 

Buckley v. Valeo, 424 U.S: 1, 79 (1976) (per curiam); see also FEC v. Mass. Cit. for Life, Inc., 

479 U.S. 238,262 (1986). New Models does not dispute that it made contributions, as defined by 

the Act, of more than $1,000 in 2012. However, it did not then, and never has had, the "major 

purpose" of nominating or electing federal candidates, and the complaint does not allege 

sufficient facts to show that it does. 

CREW fails to allege any other indicia from which the Commission could conclude that 

federal campaign activity is New Models major purpose other than the three donations listed in 

the complaint. This New financial activity in only one year is far too modest in amount 

and duration to represent the organization's major purpose under any reasonable standard. 

III. METHODS TO DETERMINE MAJOR PURPOSE 

The Commission has no regulation or policy containing a particular method for 

determining an organization's major purpose. In 2004, the Commission considered a regulatory 

definition of "political committee" that would have encompassed all political organizations 

holding tax-exempt status as political committees under Section 527 of the Intemal Revenue 

' ComplaintCountI,#15,pages. 

^ Complaint Count II #23, page 7 

' Complaint Count II, #24 page 7 

605376896.1 
Jeff Jordan 

Federal Election Commission 

November 5,2014 

Page 3 

Code. Proposed Rules: Political Committee Status, 69 Fed. Reg. 11,736,11,748-11; 749 (Mar. 

11,2004); see 26 U.S.C. §'§ 527(a), (e)(1). However, no rules were adopted. In February 2007, 

the Commission published a Supplemental Explanation and Justification further explaining its 

decision not to promulgate such a regulation. Rules and Regulations Political Committee Status, 

72 Fed.Reg. 5595 (Feb. 7,2007) ("Supplemental E&J"). 

Although New Models is a 501(c)(4) social welfare organization, and not a 527 political 

committee, the proposed hiles and Supplemental E&J nevertheless are useful in explaining the 

Commission's practice of determining an organization's major purpose through case-by-case 

adjudication and the factors used. See Supplemental E&J at 5596-97. These include an analysis 

of an organization's public and private statements and its spending activity to evaluate whether 

the organization's major purpose is the nomination or election of federal candidates. Id. at 5601. 

Under these factors. New Models clearly does not have the "major purpose" of nominating or 

electing federal candidates. 

A. PUBLIC STATEMENTS 

The Commission and courts have used an analysis of public statements in determining an 

organization purpose. See, e.g., EEC v. Malenick, 310 F. Supp. 2d 230, 234-36 (D.D.C. 2004) 

(finding that an organization evidenced its major purpose through its own materials which stated 

that the organization's main goal was supporting Republican candidates for federal office and 

through its efforts to get prospective donors to consider supporting federal candidates); EEC v. 

GOP AC, Inc., 917 F. Supp. 851, 859 (D.D.C. 1996) ("organization's [major] purpose may be 

evidenced by its public statements of its purpose or by other means"). 

The Complaint does not allege that New Models has ever made or sponsored a statement, either 

publically or in its own materials, to evidence a major purpose of nominating or electing federal 

candidates. New Models has never made or sponsored such a statement.'' 

B. WEBSITE 

In Advisory Opinion 2006-20, the Commission explained that an organization ("Unity 

08") evidenced its major purpose through organizational statements of purpose on its Website. 

Again, the Complaint does not allege this, and New Models has never stated that its purpose was 

the election or defeat of any federal candidate or otherwise advocated for the election or defeat of 

a federal candidate on its website. ^ 

* Crawford Affidavit Item #4. 

^ Crawford Affidavit Items #7-and #8. 

605376B96.1 
Jeff Jordan 

Federal Election Commission 

November 5,2014 

Page 4 

C. SOLICITATIONS 

No New Models' materials state that the organization's goal is supporting the election of 

any party's candidates for federal office. Its materials contain no efforts to get prospective 

donors to consider supporting federal candidates. New Models has not created materials for 

distribution to prospective donors, showing that the organization's intent is to elect federal 

candidates. ^ 

The Complainants provide no allegations to the contrary or examples of such materials. 

D. INDEPENDENT SPENDING 

The Commission has also said that an organization may satisfy the major purpose test by 

independent spending that is "so extensive that the group's major purpose may be regarded as 

campaign activity." MCFL, 479 U.S. 238 at 262. While neither the Court nor the Commission 

has defined "so extensive," the Commission should look at the organization's spending on 

federal campaign activity in proportion to its spending on overall activity. Fed. Reg. 5595 at 

5601. See Koerber, 583 F.Supp.2d at 748; AO 1996-03 (comparing an organization spending on 

campaign activity to their overall spending). See MUR 5365 (Club for Growth), Factual and 

Leg^ Analysis at 21; GOPAC, 917 F.Supp. at 854.55 (confirming the "major purpose" test to 

federal campaign activity). 

New Models has never made an independent expenditure or electioneering 

commimication, supporting or opposing a federal candidate.^ 

The Complainants provide no allegations to the contrary or examples of such activities. 

E. CONTRIBUTIONS/FINANCIAL ACTIVITY 

With the exception of 2012 checks. New Models has never made a disbursement, 

contribution or donation to or for any federal political committee. New Models has made no 

federal political contributions in any year other than in 2012. 

The CREW Complaint has provided the Commission with no allegation of contributions 

by New Models to federal political committees other than in 2012. The Commission records 

show no political committee filing listing contributions from New Models, except in 2012. 

By focusing on only one year of a two-year election cycle, CREW comes up with a 

highly distorted figure in claiming that New Models' contributions constitute 68.5% of its total 

spending activity. When including all New Models' activities, the total sum of all the 

® Crawford Affidavit Items #9 and #10. 

^ Crawford Affidavit Items #4, #5, and #6. 

605376896.1 
4 

Jeff Jordan 

Federal Election Commiss 

November 5,2014 

Page 5 

on 

contributions which CREW identifies amount to less than 20% of New Models' total 

expenditures. It defies reason to argue that New Models has the "major purpose" of federal 

election-related activity when this is the sum of its federal election-related activity in oyer a 

decade of existence. 

IX. CONCLUSION 

New Models catmo )t possibly constitute a "political committee" under Federal law, when 

its political contributions represent only a modest percentage of its total expenditures and 

occurred in only a single year. The CREW Complaint is transparently a "cherry picking" data 

analysis, using only a sing e year of New Models' activity when the organization has existed for 

more than a decade. One year ivith a handful of political contributions that constitute only a 

fraction of the organization's total expenditures does not make New Models a "political 

committee" under Federal aw. 

lurge the Commis: ion to dismiss this matter without further action. If you should have 

any questions in regard to this matter, please do not hesitate to contact me. 

Sincerely, 

Attachments 

605376898.1 

E. Mark Braden 

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Federal Election Commission 

999EStreet,N.W. ZOhNOVI7 Pril2:38 

Washington, DC 20463 

MUR 6872. (^oUi !SL-J. 

AFFIDAVIT OF TIM CRAWFORD 

1. I am the President and Chief Operating Officer of New Models. 

2. New Models is a not-for-profit Virginia Corporation. Incorporated and operating 

continuously since 2001, New Models is presently based in McLean, Virginia. Its tax 

status is a social welfare organization, filing returns pursuant to IRC § SO 1(c)(4). 

3. If CREW is correct in paragraph 18 of its complaint, that "only organizations whose 

'major purpose' is the nomination or election of federal candidates can be "political 

committees,"" then New Models is not a political cpnunittee. The major purpose of New 

Models is not now nor has it ever been federal campaign activity. 

4. New Models has never made a public statement, advertisement or other communication 

advocating the election or defeat of a candidate for federal office. 

5. New Models has never made an independent expenditure supporting or opposing any -

federal candidate. 

6. New Models has made no electioneering communications. It has made no 

communications to the public referring to a clearly identified federal candidate by 

broadcast, cable or satellite communication means. 

7. No New Models website has ever contained statements advocating the election or defeat 

of any federal candidate. 

8. No New Models website has ever stated that New Models' purpose was the election or 

defeat of any federal candidate. 

9. No New Models' materials state that the organization's goal is supporting the election of 

any party's candidates for federal office. New Models materials contain no efforts to get 

prospective donors to consider supporting or opposing federal candidates. 

10. New Models has not created materials for distribution to prospective donors, evidencing 

a New Models' intent to elect federal candidates. 

11. With the exception of 2012, New Models has not made any contributions to or for any 

federal political committee. Super PAC or candidate. The Commission's records show 

no federal political committees receiving contributions from New Models, other than in 

2012 because New Models has made no federal political contributions in any year other 

than in 2012. 

605331783.1 
12. New Models did 

or to any federal 

13. New Models has 

not and does not intend to make any contributions nor expenditures for 

sandidate or political conunittee in the 2013/2014 election cycle. 

no plans and does not intend to make any contributions or expenditures 

for or to any federal candidate or political committee in the 201S/2016 election cycle. 

14. Since its inception. New Models has raised approximately $15,787,616. (Attachment 1 

listing annualized New Models fund infonnation). This information is from New Models 

federal tax return's with the exception of years 2003 and 2014. The 2014 number is based 

on year-to-date bank records. 

15. In 2012, New Models donated $2,171,000 to the Now Or Never PAC, $627,000 to the 

Government Integrity Fund Action Network and $292,000 to Citizens For A Working 

America. 

Tim Crawford, Preside^ 

SUBSCRIBED AND SWORN TO BEFORE ME 

This day of November , 2014 

Notary Public 

My Commission Expires; 

609331783.1 
Attachment! 

NEW MODELS FUNDRAISING ACTIVITY 

Year Amount Raised: 

2002 $89,700.00 

2003 $332,500.00 (expenditures from bank records) 

5 2004 $768,886.91 

4 • . 

4 2005 $58.1,136.39 

4 

3 2006 $830,000.00 

2007 $656,516.54 

2008 $647,045.73 

2009 $2,049,110.10 

2010 $2,511,000.00 

2011 $1,348,415.00 

2012 $4,407,305.80 

2013 $922,500.00 

2014 $643,500.00 (YTD bank records) 

TOTAL $15,787,616.47 

605337361.1