By Erica C. Barnett

The Progressive People Power (P3) PAC, a group that supports lefty candidates and causes, has filed dual complaints with the state Public Disclosure Commission and the Seattle Ethics and Elections Commission against Seafor, a new organization set up by former city councilmember Sara Nelson to support centrist candidates.

The crux of both complaints is an allegation that Seafor is a political action committee disguised as a C(4) (yes, pronounced “Seafor”) nonprofit advocacy group, and that the purpose of the organization is to serve as a pass-through for anonymous political donations to campaigns. This would be illegal, because state law requires PACs—unlike nonprofit political groups—to disclose their donors, so that the public can see which people and organizations are bankrolling outside campaigns for candidates.

“If you are an organization in Washington state raising money for politics and then spending money on politics, then you are a political committee. You have to report where your money came from,” Dmitri Iglitzin, the attorney who filed both complaints on behalf of P3, said Wednesday. “The source of political expenditures can’t be cloaked through an intermediary entity.”

Iglitzin filed the complaints before Seafor funded a last-minute $30,000 independent expenditure, by a new group calling itself North Seattle Neighbors, on behalf of District 5 City Council candidate Julie Kang, who came in second in the August primary, trailing frontrunner Nilu Jenks, a progressive, by 21 points. North Seattle Neighbors registered as a PAC just days before a state deadline for independent expenditure campaigns to file, meaning that it’s no longer possible for anyone to register a similar campaign on Jenks’ behalf. It has since reported one additional $5,000 donation, from the founder of a private equity firm.

The complaint notes that Seafor’s website explicitly says one purpose of the group is to elect a “pragmatic majority” of “moderate candidates” to the city council, starting with the District 5 race. The site describes Seafor as a “permanent civic organization” that “recruits candidates, funds their campaigns, defends them between elections, and stays in the field after November.”

What’s more, Seafor’s site touts the fact that “Donor identities are not publicly disclosed,” allowing people who spend on local campaigns to keep their donations “private.”

“Washington’s 501(c)(4) structure protects the privacy of businesses and individuals historically punished for backing fiscally responsible causes,” the website guarantees. “Many of our supporters operate businesses, sit on boards, or hold positions where political activity isn’t tenable.”

Nelson, the founder of Seafor, initially responded to a phone call but did not respond to followups. The other governors of the group are former councilmember Tanya Woo, lobbyist Dan McGrady, and former Nelson policy director Erik Nielsen. Jordan Royer, the VP of external affairs for the Pacific Merchant Shipping Association (and a longtime background player in conservative Seattle politics), registered the North Seattle Neighbors PAC.

“Seafor just donated $30,000 to a political campaign. So where did that $30,000 come from? We have no idea,” Iglitzin said. “But we know from Seafor’s website that they’re raising money to make political expenditures in the fifth [council] district, which makes Seafor a political committee. The fact that Seafor then goes and says, by the way, give your money to us and no one will know that you gave it to us, just shows that they know exactly what they’re doing.”

The city’s rules for registering as a political committee go further than the state’s; Seattle requires any PAC that raises or spends more than $5,000 to register as a PAC and disclose its donors. Seafor has spent $30,000 so far—five times the legal limit—and, according to reporting in Geekwire, had a budget of $163,000 through September.

PubliCola is supported entirely by readers like you.
CLICK BELOW to become a one-time or monthly contributor.

Support PubliCola

Both complaints also allege that Seafor’s affiliated website advertising “news about city hall,” CivicTide, is also subject to city and state public disclosure rules, because it’s part of the larger Seafor political action group. Unlike actual journalism and commentary, the complaint says, CivicTide’s opinion pieces and AI-powered meeting summaries are part of a political campaign to support candidates, so their funding, too, is subject to public disclosure.

The SEEC complaint also alleges that Seafor is operating illegally as an unregistered grassroots lobbying group. Under the city’s grassroots lobbying rules, groups that raise and spend money to lobby the city on issues, including advocacy for legislation, have to register as lobbyists, which Seafor hasn’t done.

The Ethics and Elections Commission seems most likely to take up the complaint, since it deals with a local campaign; also, the PDC is facing a significant complaint backlog due to hundreds of complaints filed by a single person. On Thursday, SEEC director Wayne Barnett would only confirm that he had received the complaint.

The strongest case that Seafor violated election laws is almost certainly the fact that it advertises itself as a “private” way to fund “serious candidate support” without disclosing who is behind that funding. It’s “really blatant,” Iglitzin said.

The most recent comparable case he could think of, he told me, was a case involving the Grocery Manufacturers Association, a group of corporations including PepsiCo and Kellogg’s that poured millions into a 2013 campaign against a genetically manufactured organism (GMO) labeling initiative without disclosing the source of the money. A protracted lawsuit eventually resulted in the group (now known as the Consumer Brands Association, paying a $9 million fine, including a $3 million donation to food-security nonprofits, in 2022.