What is the definition of a 527 organization?
What is a 527? A 527 is a non-profit organization formed under Section 527 of the Internal Revenue Code, which grants tax-exempt status to political committees at the national, state and local level. Over the past several years, the term has come to refer to a new form of political organization operating in a gray area of the law.
How are political organizations exempt from Section 527?
In order to be exempt under Section 527, a political organization must be a party, committee, association, or fund organized primarily for the purpose of directly or indirectly accepting contributions for an exempt function.
What are the filing requirements for a 527 group?
Filing requirements for 527 groups are two-fold: statements of organization, called Form 8871, and periodic reports of contributions and expenditures, called Form 8872.
Do you need a statement of purposes under Section 527?
If an organization is formally chartered or created as a corporation, trust, or association, however, its organizing document must include a statement of purposes that limits its purposes to those described in section 527.
Is there such a thing as a 527 Political Committee?
Technically, almost all political committees, including state, local, and federal candidate committees, traditional political action committees, ” Super PACs “, and political parties are “527s.”
What are the most common types of 527s?
The most common types of 527s are those affiliated with interest groups, unions or associations of elected officials, such as the Republican Governors Association. Many of them have associated federal and sate political committees, and some are affiliated with other non-profit organizations.
When did the use of 527s go down?
The Speechnow.org and Citizens United decisions made 527s much less valuable as a medium of political communication, and their use declined substantially in the elections of 2010 and 2012.
