527 groups

Yesterday, Talking Points Memo posted this exclusive regarding MoveOn.org:

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.

Late Update: It should be noted that the group has not traditionally been driven by large donations during non-presidential race times. It has raised $122 million since it opened in 1998 -- and only 10% came in donations of over $5000. But during the 2004 race, of course, it was another story.

In a post published on Real Clear Politics today titled How to Hit Obama, Robert Novak wrote

Leaders of Sen. John McCain's campaign are looking toward "527s" as their principal means of attacking Sen. Barack Obama because they have been given a green light by McCain.

Are things about to get interesting?  Now if only we could add that voters for John McCain could look forward to drilling for oil in ANWR because they have been given a green light by McCain...