Controversial online fundraising tool processes almost $80K into Evansville mayor's race

Editor's note: This story has been updated.

EVANSVILLE — It's a behemoth in the world of political fundraising, with "billions raised online since 2004," according to online platform ActBlue's website. And donations processed by ActBlue are the largest source of campaign cash to Democrat Stephanie Terry's campaign for mayor of Evansville.

But critics say ActBlue's methods make it too easy for anyone who wants to contribute to an ActBlue-aligned candidate to hide his identity. And Somerville, Massachusetts-based ActBlue would not agree to answer questions about that in an interview with follow-up questions, instead sending written responses.

Take Back Our Republic Action, a self-described "center-right group focused on the rules of elections," openly questions ActBlue's methods. Because ActBlue functions online, the platform makes it easy for individuals to donate to races outside of their city or state.

"The big problem with ActBlue is they do not let their bank vendors verify credit card information to make sure it (the money) really is coming from the person who they claim it’s coming from," said John Pudner, president of Milwaukee-based Take Back Our Republic Action.

Anyone can buy gift cards, Pudner noted.

"This is child’s play for a programmer, the way ActBlue has set it up," he said. "Anyone in the world, you could be Bank of China, and put money in and just phonebook, list a bunch of American names and run them through because there’s no (verification) with gift card numbers you just purchased.

"I’m not saying they’re doing that in a mayor’s race in Indiana. But could a developer who wants something — someone who knew they’d be unpopular, someone out-of-state who’s got some local controversy over something they’re trying to build or do? It just gives a way to hide contributions for anyone who’d want to do it and not have anyone know, ‘Hey, this person’s backing this candidate.’”

Megan Hughes, ActBlue's communications director, would not agree to be interviewed by the Courier & Press, but she sent this statement in response to Pudner's assertion that ActBlue does not let its bank vendors verify credit card information.

"100% of ActBlue's credit and debit card transactions are bank-verified, we have a sophisticated security program, and we use an industry-standard predictive analytics tool to monitor donations for fraud," the statement said. "Republicans spread this lie to undermine the power of Democratic and progressive small-dollar donors."

Pudner pushed back in an email of his own.

"ActBlue continues to use vague references to a bank verification method they supposedly use but they won't explain, as an excuse to not use system we all use when we buy things — providing our zip code for the 'AVS' verification and the 3-or 4-digit CVV number in their card," he wrote.

ActBlue and Stephanie Terry

They're listed in Terry's pre-election campaign finance report, 108 contributions to Democratic mayoral candidate Terry totaling $78,550 through "ActBlue Indiana." It's a registered political action committee (PAC) in the state.

The money came in amounts as small as $9.40 and as large as $5,086.90.

But you can't tell who gave the ActBlue money that passed through to Terry by looking at the candidate's report. You can go to the report filed with the Indiana Secretary of State's Office by ActBlue Indiana for the period April 8-October 13 and see who contributed to it. The ActBlue contributors to Terry's campaign are not named as her contributors in the voluminous 1,973-page report — but they are contributors to the PAC that made contributions to Terry, and they're in there somewhere.

Cheryl Schultz, the local party chair, made 10 small donations to ActBlue Indiana adding up to $305. Sheriff Noah Robinson, a Democrat, made six contributions amounting to $120. In all, the PAC received 160 contributions from individuals with Evansville addresses, many of them the same individuals contributing more than once.

ActBlue Indiana reported making 25 contributions of its own to the Vanderburgh County Democratic Party, adding up to more than $8,050.

ActBlue's website makes it clear that candidates or their campaigns solicit the online fundraising platform's help, creating contribution forms and asking supporters to use the forms.

"We process the contribution and send it straight to that candidate or organization," ActBlue's site states. "We report the contribution to the relevant reporting body (like the FEC, IRS, or your secretary of state).

"It’s helpful to remember that when you’re donating to a candidate or organization, you give through ActBlue, not to ActBlue!"

There is no state law that would prohibit a candidate’s committee from voluntarily disclosing the names of those who make contributions to PACs that support their campaigns, said Abbey Taylor, one of the Indiana Election Division's campaign finance coordinators.

Terry said she doesn't plan to do that in ActBlue's case, but she said she will confer with those who are running her campaign.

"I will talk to the team about if we plan to do something different, based on your inquiries," Terry said. "I've not received any other inquiries regarding this."

This article originally appeared on Evansville Courier & Press: Evansville mayoral race full of anonymous donations from ActBlue