COLUMBIA - A new breed of political animal is staking out territory in the state's 2006 elections, but its tracks are hard to follow.

Its existence is evident only in the half-dozen campaign mailings distributed in recent weeks to influence voters in the GOP primary for education superintendent and a number of state House seats.

That's because South Carolinians for Responsible Government is a creature of a nebulous, unregulated political world that allows anonymous contributors to donate unlimited amounts to promote the group's school choice and limited growth agenda.

The emergence of this group represents a new trend in South Carolina politics and mirrors a national movement toward using nonprofit 501c4s - named for the section in the tax code that governs them - to influence elections.

Denver Merrill, a spokesman for SCRG, said the group's main focus is lobbying the Legislature, specifically in favor of the controversial "Put Parents in Charge" legislation that would have given tax breaks to parents who send their children to private schools.

It dabbled in the 2004 elections, but mostly on the local level. This election, however, the group is stepping up their efforts to educate voters, and more groups like them could follow suit.

At the same time, a number of lawmakers, candidates and political pundits are countering with assertions that the group is misleading the public with its propaganda and bundling contributions to like-minded candidates.

"They are the scourge of American politics," said Warren Tompkins, a leading GOP political consultant whose clients are being targeted. "They are unaccountable and play by a different set of rules."

Unlike other political entities, such as political action committees, federal and state laws don't require these nonprofits to adhere to contribution limits or disclosure requirements. Even 527s, another type of group known by their tax code designation and which played a major role in the 2004 presidential campaign, must file detailed financial statements.

Disclosure loophole

Federal law says 501c4s aren't subject to that rule if they don't spend more than half their resources on political activities.

"Because we can't see a lot of their activities, people wonder how big they are and how active," said Kent Cooper, a Washington-based campaign finance expert. "There is a hazy line between indirect and direct involvement in elections."

South Carolina ethics laws state that the group can't ask people to vote for or against a certain candidate and don't allow them to give directly to candidates. But disclosure rules apply only if they spend more than $500 within 45 days of the primary.

So until Tuesday, the group can spend whatever amount they want, said Cathy Hazelwood, assistant director at the State Ethics Commission.

"They will probably be the first test case" of the current law, Hazelwood said. "And this will likely have to be decided in the courts."

The only disclosure the group has to make is an annual financial statement to the IRS. The group's 2004 tax forms - the latest available - show it raised $581,318 and spent $576,473 on mailings, media advertisements and fundraising.

The group denied requests by The Post and Courier for more specific information about donors and expenses.

"Supporters of groups like ours need to be protected because they are taking on the government," Merrill said. "For people to question how we are spending private contributions is un-American."

Motivated by choice

The group is targeting their attacks on eight GOP House members who voted against their school choice legislation last year as well as Republican superintendent candidate Bob Staton, who also opposes the measure.

A recent mailing said Staton "boosts liberal policies and politicians" and called him "a wolf in sheep's clothing," which is a strike at his conservative credentials.

Staton's main competitor in the race, Spartanburg public relations executive Karen Floyd, has tried to distance herself from the group.

On Wednesday, Floyd's campaign said she encourages "any South Carolinian to become involved in the political process."

But for the first time, the Republican was publicly critical of the clandestine finances. "Every political entity that backs candidates ought to disclose who their donors are," she said.

The targeted House members - including Goose Creek Republican Tom Dantzler - are being criticized for spending "our tax money like it's going out of style" and "monkeying around with your tax dollars."

The latter claim was aimed at discrediting Rep. Billy Cotty, a Columbia Republican who is being challenged in the GOP primary by Sheri Few, a leading proponent of the school choice legislation.

Cotty said SCRG's "whole campaign is centered on half-truths and misrepresentations."

He also questioned whether they could legally bundle contributions from out-of-state supporters and deliver the checks to GOP challengers they favor.

A review of campaign finance records shows that Few and Floyd received a combined $31,500 from seven of the same out-of-state donors.

Republican Mark Willis, who is challenging Rep. Adam Taylor for a House seat in Laurens, also received $1,000 checks from three of those contributors.

Merrill said the group doesn't support or endorse one candidate but acknowledged, "peripherally, you can deduce we prefer one candidate over another."

Tompkins, whose political consulting firm represents Staton, Cotty and Taylor, said the intent is clear. "This is a loophole that needs to be closed," he said. "Their ought to be full sunshine and limits on these activities."

Reach John Frank at jbfrank@postandcourier.com or (803) 799-9051.

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