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This article originally provided by Campaign Finance Institue May 19, 2006 527 Group Fundraising Grew More Slowly in First Quarter of 2006 than 2004 Pro-Democratic Federal 527s Outraised Pro-Republican Ones 3-1 Consistent with the current debate, CFI analyzed the most recent disclosure reports filed with the Internal Revenue Service for federal 527s, i.e. those that are primarily or substantially active in federal elections. This definition excludes 527 groups that are occupied almost exclusively with state and local elections such as the Republican and Democratic Governors' Associations and similar organizations. During the full 2003-2004 election cycle, federal 527s raised $426 million. By this point in the cycle they had amassed $109 million. So far in the 2005-06 cycle, federal 527s have raised $57 million and spent $72 million (after deducting inter-group transfers). These figures are based on reports to the Internal Revenue Service through March 31, 2006. Democratic-oriented groups, led more strongly than ever by labor unions, are again predominant in the 2006 cycle, raising 3 times as much as Republican ones, the same ratio as in the full 2004 cycle (See accompanying Table for a list of identified federal 527s in 2005-06 by party-orientation, as well as their contributions and expenditures). But the funds raised by the federal 527s as a group have gone down compared to two years ago. This is particularly true for the most recent quarter. Federal 527s historically raise the overwhelming majority of their money in the election year itself. Two years ago, federal 527s raised almost as much money ($47.3 million) in the first quarter of 2004 as they had during all of 2003 ($61.7 million). This year, the federal 527s raised only $8.6 million during the first quarter of 2006. The amount represents only 15 percent of the $57 million total they have raised so far in 2005-2006. And as the accompanying table makes clear, these proportions were approximately the same for pro-Democratic and pro-Republican groups. Some of the major Democratic and Republican-oriented groups of the last cycle -- including America Coming Together (which has announced its demise) and Progress for America -- raised essentially no new money during the last quarter. Some of the difference between 2004 and 2006 undoubtedly stems from the timing of presidential election campaign advertising in 2004. On the other hand, major pro-Democratic groups like AFSCME, Emily's List and Progressive Majority made significant progress in 2006, as did the pro-Republican Club for Growth. The next set of 527 organization reports (for the second quarter of 2006) will be available from the IRS after July 15th. For further background information and data tables on the rise of 527s, see chapter 5, "BCRA and the 527 Groups," by Stephen R. Weissman and Ruth Hassan from CFI's new book, The Election After Reform, just published this month by Rowman and Littlefield. For CFI's report on 527 activities in 2005 click here. The Campaign Finance Institute is a non-partisan, non-profit institute affiliated with the George Washington University that conducts objective research and education, empanels task forces and makes recommendations for policy change in the field of campaign finance. Statements of the Campaign Finance Institute and its Task Forces do not necessarily reflect the views of CFI's Trustees or its financial supporters.
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