In American Politics, What is a 527 Group?
Since many nonprofit organizations labeled 501c3s by the US Tax Code have severe restrictions on engaging in any political activities, the Internal Revenue Service (IRS) offered a different designation for not for profit groups that wanted to specifically involve themselves in political actions. A 527 group is the IRS designation for a nonprofit group that mostly helps elucidate the issues surrounding an individual’s candidacy, or that may lobby for specific laws or reforms. 527s can also be political action committees (PACs), though these are subject to more stringent rules in terms of donations. These organizations are often a way around some of the campaign financial reform that now limits the donations a politician can take to run for office. The 527 group that is not a PAC is independent of the candidate running for office. In recent history, some of these organizations have included Swift Boat Veterans for Truth and MoveOn.
