527 Groups
Aug. 20th, 2004 11:24 amIt appears that the President wants the 527 groups to go away.
Among the top 50 527 groups since 2000 (the Republican groups tend to appear lower in the list. They're having trouble raising money) the ones supporting Republicans include the Club for Growth, the College Republican National Committee, the Bush-Cheney Recount Fund, GOPAC, the Republican Leadership Council, the Republican Leadership Coalition, the National Federation of Republican Women, Americans for a Republican Majority (Tom Delay), the Republican State Leadership Committee, Keep Our Majority (Hastert) and less obviously, from the current top 50,Floridians United for a Stronger Tomorrow (that'll be an easy one for Our Fearless Leader to take care of - it's associated with his brother), the Citizens for Better Medicare Action Fund, and (by 2 to 1) the National Association of Realtors.
Arkansans for the 21st Century was founded to kill a gambling bill in Arkansas.
A number of the top 50 for the last four years are not currently in the top 50, and most of them are Republican groups. And why is that?
If you look at all advocacy groups not directly affiliated with a campaign, including 501(c)3 (charitable) and (c)4 (political) groups,(a handy definition of the different types of soft money setups is here) you'll find some of the missing 527 groups, and the numbers look a lot nicer for the Republicans.
501(c)3 and (c)4groups cost more, but they have certain other advantages
which is not to say that they plan to give up on 527 groups altogether
The Republicans want unaffilitated groups out of fundraising?
You first.
Among the top 50 527 groups since 2000 (the Republican groups tend to appear lower in the list. They're having trouble raising money) the ones supporting Republicans include the Club for Growth, the College Republican National Committee, the Bush-Cheney Recount Fund, GOPAC, the Republican Leadership Council, the Republican Leadership Coalition, the National Federation of Republican Women, Americans for a Republican Majority (Tom Delay), the Republican State Leadership Committee, Keep Our Majority (Hastert) and less obviously, from the current top 50,Floridians United for a Stronger Tomorrow (that'll be an easy one for Our Fearless Leader to take care of - it's associated with his brother), the Citizens for Better Medicare Action Fund, and (by 2 to 1) the National Association of Realtors.
Arkansans for the 21st Century was founded to kill a gambling bill in Arkansas.
A number of the top 50 for the last four years are not currently in the top 50, and most of them are Republican groups. And why is that?
But even as first-time large donors are entering the fray, others who gave to 527s in previous election cycles appear to be biding their time.
Roughly one out of four of the 115 largest donors to 527s since 2000 have yet to make a single contribution during the current election cycle, according to the Center's research. These 28 donors gave a total of almost $10.3 million to 527 committees between 2000 and 2002.
That may be due in part to the Bipartisan Campaign Reform ActÑotherwise known as McCain-FeingoldÑwhich forbids federal candidates and national parties from raising unlimited contributions from individuals, corporations and labor unions. Since lawmakers and parties used 527 committees to raise the kinds of funds now banned by BCRA, the law effectively put many 527 committees run by federal lawmakers out of business. In fact, only 13 of the 69 IRS-regulated committees to which these 28 donors gave are still raising money.
Most of these 28 donors, however, have found other ways to contribute to the political system: 23 of them have donated a total of more than $1 million to FEC-regulated committees during the last two years.
If you look at all advocacy groups not directly affiliated with a campaign, including 501(c)3 (charitable) and (c)4 (political) groups,(a handy definition of the different types of soft money setups is here) you'll find some of the missing 527 groups, and the numbers look a lot nicer for the Republicans.
501(c)3 and (c)4groups cost more, but they have certain other advantages
Most 527 groups are not required to file regular disclosure forms with the FEC, but they are required to file with the states in which they are located or the Internal Revenue Service, and they must identify their donors. That is not true for other sorts of non-profit groups, including the kind so far favored by Republicans. Those groups, referred to as 501(c)3s and 501(c)4s, face stiffer taxes than 527s but are not required to disclose their funding sources.
The groups being formed by Republicans have anodyne names like Progress for America, which was founded by Bush strategist Tony Feather, the National Committee for a Responsible Senate, founded by the law firm representing the Bush-Cheney campaign, and the American Taxpayer Alliance, which Perrin helps to run with Scott Reed, a Republican lobbyist and campaign strategist. Ed Gillespie, the head of the Republican National Committee, founded one such group, 21st Century Energy, to run advertisements supporting the President's energy policy in key Congressional districts two years ago. According to press reports, that group was funded by several of Gillespie's lobbying clients, including Daimler Chrysler and Enron.
Finally, corporations and their national trade groups are poised to push millions in soft money through the non-profit loopholes via so-called voter education campaigns. In January, Tom Donahue, the chair of the U.S. Chamber of Commerce, announced his group will direct "unprecedented resources to 33 of the most competitive congressional races" in an effort to "determine whether the next Congress is pro- or anti-growth." Groups like the National Association of Manufacturers, long a source of large soft money contributions to Republican campaigns, have announced similar efforts.
which is not to say that they plan to give up on 527 groups altogether
Before the FEC action made it clear rules would not change in this election cycle, Republicans in Congress and the Bush administration strongly criticized 527s focused on defeating President Bush this November, saying they were violating campaign finance laws by accepting substantial donations of unregulated [soft] money. After the FEC decision, BCRA sponsor Rep. Chris Shays (R-CT) joined House Speaker Dennis Hastert (R-IL) and Republican Congressional Committee Chair Rep. Tom Reynolds (R-NY) in a statement accusing groups sympathetic to the Democrats of operating "with no regard for the law" and predicting that groups sympathetic to Republicans would emerge. This was seen as a signal to Republican donors, including corporations, who had been waiting to see what action the FEC would take, to give to groups like the Club for Growth and Progress for America.
Bush-Cheney campaign chair Marc Racicot and Republican National Committee (RNC) Chair Ed Gillespie issued a statement predicting "The 2004 elections will not be a free for all." The Hill newspaper reported that the Republican switch began before the FEC decision, when Ken Mehlman, manager of the Bush-Cheney campaign, met privately with lobbyists on May 11 and predicted an immediate fundraising push by 527 groups sympathetic to Republicans. One attendee joked, "On Friday, don't pick up your phone because they're going to be asking for money."
Two major Republican leaning groups, the Leadership Forum and Progress for America, are stretching the limits of what is allowed under BCRA since the FEC decision. According to The Hill the Leadership Forum, run by the former chief of staff to House Majority Leader Tom Delay (R-TX), will feature House Speaker Hastert and Senator Rick Santorum (R-PA) at events this summer. BCRA prohibits federal officeholders from raising soft money, but FEC rules allow them to appear and speak generally without making a fundraising pitch.
Progress for America, a 501(c)(4) organization, announced plans to become a 527 group so that it can engage in more election-related activity. They plan on purchasing advertising praising Bush in 18 battleground states, and have hired a direct-mail specialist, Tom Synhorst, who is a partner in a firm that has done $1.8 million in business with the Bush-Cheney campaign. The firm, Feather, Larson & Synhorst, said Synhorst will work in "silo", and not participate in the firm's work for Bush or the RNC.
The Club for Growth was operating prior to the FEC decision, sponsoring ads praising President Bush in five battleground states. They have raised $9 million so far, and plan to spend $10 million on issue ads in the presidential race. Americans for Tax Reform President Grover Norquist announced plans to create a separate segregated fund with a goal of raising $6 million by election day. Americans for a Better Country also announced ambitious fundraising plans, but reportedly has not raised any money yet.
The Republicans want unaffilitated groups out of fundraising?
You first.