California politics & National politics & Campaign spending & Campaign finance 31 Oct 2006 09:14 pm
527 committees
An article in yesterday’s Los Angeles Times examines the role of so-called 527 committees (named after the section of the Internal Revenue Code that governs their tax-exempt status) in this year’s election. 527 committees are known as “issue advocacy groups” because their ostensible purpose is to advocate on behalf of or in opposition to political issues rather than to advocate the election or defeat of a specific candidate, a distinction which allows 527s to avoid filing campaign disclosure reports with the Federal Election Commission. Probably the two best-known 527 committees are Swift Boat Veterans and POWs for Truth, which spent $22.5 million in 2004 on TV ads and other material opposing John Kerry’s presidential bid; and MoveOn.org, which spent $21.5 million in 2004 on TV ads and other material opposing George W. Bush’s re-election campaign.
According to the Times‘ analysis of federal campaign finance reports, 527 committees have spent upwards of $300 million to influence the outcomes of various races and measures in this election. The main example closest to home is the significant amount of money that’s being spent by 527 committees on behalf of Proposition 90, although unregulated money is also being spent by 527s on behalf (or, more frequently perhaps, in opposition to) of many other ballot measures and statewide and congressional candidates.