527 group
A 527 group is an IRS section 527 designated nonprofit organization such as a political party, committee, association, or fund operating primarily for the purpose of influencing the election or selection of candidates to political office. Many political action committees and Super PAC groups are designated 527 groups.[1]
Purpose
Unlike 501(c)(4) nonprofit organizations, which can engage (though not primarily) in campaign politics, but have partial privacy protection for donors, 527 groups can engage in campaign politics with no campaign limits, specifically supporting or attacking candidates, and must disclose donors. A 527 group may not, however, coordinate its activities with any campaign. Examples include the Republican Governors Association, Democratic Governors Association, Citizens United, and EMILY's List.[2][3][4][5][6][7]
History
In 1976, 527 groups were established in the wake of the Buckley v. Valeo U.S. Supreme Court decision, in which it was ruled that the First Amendment protected individuals' right to spend unlimited amounts on political speech. The court upheld caps on contributions to campaigns, but stated that restrictions on spending "relative to a clearly identified candidate" were unconstitutional.[8]
In 2010, the Supreme Court ruled that the government cannot ban political spending by corporations or unions. Because these entities are "associations of citizens," the First Amendment right to free speech also applies to groups.[9]
In Citizens United v. Federal Election Commission, the Supreme Court considered federal laws that prohibited "corporations and unions from using their general treasury funds to make independent expenditures for speech defined as an “electioneering communication” or for speech expressly advocating the election or defeat of a candidate."[10]
In the majority opinion, Justice Anthony Kennedy wrote:
| “ | [W]ealthy individuals and unincorporated associations can spend unlimited amounts on independent expenditures. ... Yet certain disfavored associations of citizens—those that have taken on the corporate form—are penalized for engaging in the same political speech.
When Government seeks to use its full power, including the criminal law, to command where a person may get his or her information or what distrusted source he or she may not hear, it uses censorship to control thought. This is unlawful. The First Amendment confirms the freedom to think for ourselves.[10][11] |
” |
See also
External links
Footnotes
- ↑ Internal Revenue Service, "Exemption Requirements - Political Organizations," accessed January 12, 2015
- ↑ Center for Public Integrity, "527s - Frequently Asked Questions," May 19, 2014
- ↑ National Public Radio, "What's A 527, Anyway? A Primer," August 7, 2008
- ↑ Roll Call, "Republican Governors Association Raises $24 Million," July 15, 2014
- ↑ Roll Call, "$36 Million in Contributions to Governors Expected to Be Hidden by IRS," July 29, 2013
- ↑ New York Times, "Big Donors Make End Run in New Jersey Campaign," August 3, 2009
- ↑ Roll Call, "Emily’s List Uses Section 527 Account for Big Donations," January 27, 2014
- ↑ Cornell University Law School, "Buckley v. Valeo," January 30, 1976
- ↑ New York Times, "Justices, 5-4, Reject Corporate Spending Limit," January 21, 2010
- ↑ 10.0 10.1 Supreme Court, "Opinion 08-205," accessed May 11, 2012
- ↑ Note: This text is quoted verbatim from the original source. Any inconsistencies are attributable to the original source.
