527 Advertising Negative Campaigning: Controversy in Theory and Practice Allan Burton

What is a 527 Organization? An organization that has the objective to influence the nomination, election, or appointment of candidates or public officials. Named after the section in the United States Tax Code – section 527 Tax exempt Does not fall within the Federal Election Committee requirements Required to file reports with the IRS of contributions and expenditures Political parties can use 527s to their advantage to bring out the flaws in their opponents (connection between 527s and political parties is illegal under the Reform Act of 2002)

Soft Money Contributions that are not regulated by the FEC laws After the 2002 revision to Campaign Finance, soft money donations were banned to political campaigns 527 groups are allowed to receive unlimited contribution from any source. Loophole to campaign spending Helps campaigns, since it raises millions of dollars when direct contributions are prohibited The money raised is used to influence the outcomes of elections or appointments without having a connection with any political party or organization.

Issue Ads Most common form of advertisement of a 527 group Ad is the topic of the groups main focus they want to bring into the spotlight Criticize a candidate’s record without endorsing another candidate or mentioning another candidate’s name –Very noticeable which candidate they would endorse Usually distorts the truth –Misleading in some way Ads are in the form of television commercials, newspaper ads and mass mailing

Swift Vets Created in 2004 in response to Kerry’s candidacy for president Wanted to shed light on Kerry’s record in Vietnam Used Vietnam remembrance to create a powerful message Ads were successful because they kept Kerry on the defensive and kept him from discussing his own issues and agenda Swift Vets received large donations from Republican supporters who’s continued funding of candidates was prohibited due to campaign finance laws. Total Expenditures in 2004 –$22,565,360 Never mentions Bush’s name in advertisements

Swift Vets Ad

Sierra Club Environmental organization of more than 700,000 members Played role in 2004 by running ads that attacked Bush’s record on environmental issues. Total expenditures for 2004 –$6,261,811

Sierra Club Ad

Media Fund Focused on attacking President Bush on numerous issues from Iraq to the environment Large Democratic donations Ran numerous tv and radio ads leading up to the election Total expenditures for 2004 –$57,694,580

Media Fund Ad Q Q

America Coming Together Mobilized efforts in 16 battleground states in 2004 election against President Bush Financed by wealthy Democratic supporters Total expenditures for 2004 –$78,040,480

Progress for America Republican response to The Media Fund Indirectly shows support for the way things are and criticizes the plans of the democrats Total 2004 expenditures –$35,631,378

Progress for America Ad o o

Total 527 Spending 527 groups first became a large role in elections in 2004 due to changes in Campaign Finance Laws in $612,833,022 – presidential election $428,670,102 – midterm election Biggest donors –George Soros - democrat leaning 527s –Bob Perry – republican leaning 527s Opensecrets.org There is talk within the Senate to limit the influence of 527s –Any reform is very unlikely

More 527 advertising

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