They are a giant loophole created to get around rules involving money in political campaigns. Basically, you are limited in what you can contribute to a political campaign and a political party, but 527 organizations are not limited. In return, they can't support candidates but particular causes, I believe. For example, a 527 can be opposed to gun control and run ads that highlight the policies of the various candidates.
I think that Obama did the right thing by shutting down the 527s earlier on. He was better able to control the party message without any distractions created by various splinter groups. Even though 527s are supposed to be about the issues and not the candidates, it can be hard to see where one ends and another begins sometimes.
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timeasmymeasure
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Date: 2008-10-15 09:18 am (UTC)I think that Obama did the right thing by shutting down the 527s earlier on. He was better able to control the party message without any distractions created by various splinter groups. Even though 527s are supposed to be about the issues and not the candidates, it can be hard to see where one ends and another begins sometimes.