(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.
