What is a 527 group? How much money have they raised so far? Will they still be allowed to function as they do now in 2008?
Definition of 527's, according to Joseph E. Sandler and Neil P. Reiff, who are partners in Sandler, Reiff & Young, a Washington, D.C., firm that specializes in election law. Authors of the book "Bipartisan Campaign Reform Act of 2002: Law and Explanation," they counsel Democratic candidates, more than 35 state party committees, PACs, nonprofit groups, donors, political consultants and other entities:
"Section 527 is actually the section of the Internal Revenue code that allows all partisan political organizations to take contributions without paying taxes on them, to the extent the money is used on political purposes. Technically, every political committee at any level -- from the Republican National Committee (RNC) or Kerry for President or Jones for dogcatcher -- is a section 527 organization.
In the current vernacular, it is used to refer to groups that are political organizations for federal tax purposes but not under campaign finance laws, particularly federal campaign finance laws. And if such an organization is not a political committee for purposes of federal campaign finance laws, there is basically no legal limitation on the source or amount of contributions to the organization."
Source: Sandler, Joseph E., and Neil P. Reiff. "Consultants' Corner." Campaigns & Elections, August 2004.
"Total amount raised since August 2000 by 471 committees registered as 527 groups: $654,691,322"
Source: Center for Public Integrity
As far as what will happen with 527 groups in the future, your guess is as good as ours.
(from Carol G)
Thank you for your question to Radical Reference.
1. Q. What is a 527 group?
A. Named for its IRS designation, a 527 group is "an organization exempt from tax under section 527 of the Internal Revenue Code as a 'political organization.' 527 organizations that choose not to engage in 'express advocacy' may avoid most disclosure requirements under federal election rules. If they also lack taxable income (by spending it as soon as it is received or by placing money in non-interest-bearing checking accounts), they may avoid some return requirements mandated by the Internal Revenue Code.' (Minch, Holly, ed. Loud and Clear in an Election Year, p. 24 (SPIN Project: SF, 2004)) Two examples of 527 groups are MoveOn.org www.moveon.org and American Coming Together www.actforvictory.org The 'Swift Boat Veterans for Truth' group which has aired ads which smear John Kerry's war record, is also a 527.
There is an informative article at the MSNBC website on 527 groups. ("527 Groups Rewrite Campaign Finance Rules") http://www.msnbc.msn.com/id/5747838/ " The following is a quote from the article: "This year, the 527 groups have taken on a more prominent role, and perhaps a decisive one. So far, the groups have spent a total of more than $200 million, according to the Center for Responsive Politics."
2) Q. How much have the groups raised so far?
A. The Center for Responsive Politics, a non-partisan group supported by the Pew Charitable Trusts, has a chart showing both money raised ("Total Receipts") and Total Expenditures at the following link: http://www.opensecrets.org/527s/527cmtes.asp?level=C&cycle=2004
3) Q. Will they still be allowed to function as they do now in 2008?
A. It is unlikely, though the Federal Election Commission (FEC) in May deferred a ruling on 527's until after the 2004 National election. An article in the New York Times (August 20, 2004) http://www.nytimes.com/cq/2004/08/20/news-1300508.html reports tht the FEC has already issued rules governing the 2006 election cycle, but many consider the rules not far-reaching enough in regulating non-party groups' campaign spending.