Obama to Move On: Shut down your 527.

[baldheadeddork]

Move On: Okay. We're done.

Exclusive: MoveOn To Close Its 527 In Response To Obama's Candidacy

By Greg Sargent - June 20, 2008, 12:05PM

MoveOn, the advocacy group supporting Barack Obama, has decided to permanently shutter its 527 operation, partly in response to the Illinois Senator's insistence that such groups should not spend on his behalf during the general election, I've learned from the group's spokesperson.

MoveOn's decision, which will dramatically impact the way it raises money on Obama's behalf, is yet another sign of how rapidly Obama is taking control of the apparatus that's gearing up on his behalf.

By shuttering its 527, MoveOn is effectively killing its ability to raise money in huge chunks from labor unions, foundations, and big donors who would give over $5,000. The decision doesn't mean MoveOn will stop spending on Obama's behalf. Instead it will raise money exclusively with its political action committee, whose average donation is below $50 and will even be raising money with things like bake sales starting this weekend.

To put this in perspective, MoveOn's 527 raised $20 million for the general election in 2004 -- and at least half of that came from donations over $5,000.

"This is an affirmation that we, like Senator Obama, believe that this election can be won by ordinary Americans giving small donations," MoveOn spokesperson Ilyse Hogue told me.

MoveOn's 527 has been dormant since 2005, but the group had held open the option of starting it up it for the 2008 election -- until Obama's success with small donors showed that huge sums could be raised without it.

The move could also make it tougher politically for John McCain and the GOP to benefit from 527s, which can raise money in unlimited sums, on his side. While he has generally disapproved of such activity, he recently said that he couldn't control negative ads by such groups.

"The hope is that Republicans will match this, so that the voices of ordinary Americans can drive this election," Hogue said.

[SloppyJoseph]

Bs.

[Gaolee]

Interesting. The change is starting even before he is elected. So much for empty suits.

[SXSMITH]

Yeah, I only heard the "You can't have my baby for a 100 year war" attack ad against McCain over the radio. Sounded really bad. How was the video?

SO this is a good thing. If he keeps it up, I might vote for him.

[Dakota Kid]

This is a total freebie for Obama and he is smart enough to take full advantage. He will likely raise half a billion dollars from well to do elitists, and simply does not NEED the baggage that a morally bankrupt organization like moveon.org represents.

No big new. But NBC will be all over it, making the messiah look even better.

[prodigal27]

Interesting.

[Gaolee]

Originally Posted by Dakota Kid

He will likely raise half a billion dollars from well to do elitists...

OoooooWeeeee! I gave $50 to Obama so I am a well to do elitist! I am going to celebrate with a three martini lunch and some expensive caviar when I get home this evening!

[keystonejenks]

Originally Posted by Dakota Kid

This is a total freebie for Obama and he is smart enough to take full advantage. He will likely raise half a billion dollars from well to do elitists, and simply does not NEED the baggage that a morally bankrupt organization like moveon.org represents.

No big new. But NBC will be all over it, making the messiah look even better.

Shows how much you know. The average per person donation for Obama is $50.

[jim schmidt]

Originally Posted by SXSMITH

Yeah, I only heard the "You can't have my baby for a 100 year war" attack ad against McCain over the radio. Sounded really bad. How was the video?

SO this is a good thing. If he keeps it up, I might vote for him.

Completely powerful, I think. A brilliant way to involve people who might not have thought they were affected in thinking about the Iraq debacle and McCain's intentions.

[baldheadeddork]

Originally Posted by SXSMITH

Yeah, I only heard the "You can't have my baby for a 100 year war" attack ad against McCain over the radio. Sounded really bad. How was the video?

SO this is a good thing. If he keeps it up, I might vote for him.

Video is better.


A quick explanation: This does not mean Move On is going away. Their PAC is staying, but the ability of PAC's to raise and spend money was sharply restricted by...the McCain-Feingold campaign finance reform law. For example, you can give no more than $5,000 to a PAC in a calendar year, and the PAC's are restricted in what ads they can run in the last 60 days before voting.

Because of this, political organizations found a loophole in section 527 of the tax code that allows the creation of new committees that have no donor limits, do not have to report contributions, and have no restrictions on how they spend their money. They are in every way exempt from all of the McCain-Feingold restrictions, and they became the top method of outside advocacy work in the 2004 election.

Shutting down the 527's is a big deal. Move On's PAC might still run this ad if they can raise enough money through small donations, but they'll have to check the FEC to see what spots (if any) they can run after the first week of September.

Its a to McCain because until this year he was the most vocal opponent of 527's in Washington. All that changed when he needed their money.

527's were also the centerpiece of what Obama said about taking public funding and following spending caps. When he said this last year he said if he and his Republican opponent could work out an agreement about curbing the involvement of big dollar 527's and the national committees, then he would love to take public funding. (That's too complicated for our only media to report so you only get the last part.) If it was just him and McCain with the same bankroll, he was all for it. But he wasn't going to agree to public funding and allow the Republicans to throw tens of millions in large donations at the RNC and 527's like they did in 2004. He's not an idiot.

[Trash]

Originally Posted by keystonejenks

Shows how much you know. The average per person donation for Obama is $50.

Plus what is the cap on individual donations? $2,500 is it? Someone still needs to do some research. Also he didn't say he was done with MoveOn.org just asked them to shut down their 527.

And when McCain says: "he couldn't control negative ads by such groups" we know what the fuck that means. Hello Swiftboat.

[Dakota Kid]

Originally Posted by keystonejenks

Shows how much you know. The average per person donation for Obama is $50.

Shows how much you know. His projections far exceed McCain's in terms of donations and this can hardly come as a surprise.

Except to you maybe.

[Trash]

Originally Posted by Dakota Kid

Shows how much you know. His projections far exceed McCain's in terms of donations and this can hardly come as a surprise.

Except to you maybe.

Someone didn't read beyond the "Shows how much you know" in Jenks post apparently.

[jerome_oneil]

Originally Posted by Dakota Kid

This is a total freebie for Obama and he is smart enough to take full advantage. He will likely raise half a billion dollars from well to do elitists, and simply does not NEED the baggage that a morally bankrupt organization like moveon.org represents.

No big new. But NBC will be all over it, making the messiah look even better.

"Well to do elitists" are under the exact same donation caps that you are.

The big money always comes through 527s. Shutting them down eliminates the ability to take huge donations, and pretty much ensures that the only way money can be raised is through small donations from the people.

Think McCain will return in kind?

[BusaDave]

Originally Posted by jerome_oneil

Think McCain will return in kind?

Maybe. But only after he's done trying to turn this into a negative character trait.