Forward in West Kentucky is a 527 Organization.

Under federal law and regulations, a 527 organization has become a new and potential powerful voice for change within the American political landscape.

What is a 527 Organization?

According to the IRS, a Section 527 organization is an organization that is created to receive and disburse funds to influence or attempt to influence the nomination, election, appointment or defeat of candidates for public office.

Differences from PACs

On the face of the above definition, a 527 Organization sounds like a PAC (Political Action Committee). In effect that is what a 527 organization is---a PAC by another name. However, there is one key difference, a 527 organization does not fall within the regulator realm of the Federal Election Commission and therefore is not subject to the same limits as FEC regulated PACs.

Often called “soft money” PACs or organizations, a 527 organization is permitted to accept contributions in any amount from any source. However, the organization is required to make regular reports to the Internal Revenue Service ifs funding and expenditures.

Regulatory Structure

Unlike PACs regulated by the Federal Election Commission, a 527 organization is governed by the rule 527 of the Internal Revenue Code (hence the name). This section of the IRS Code has many of the same basic requirements as the FEC regulations, including registration and regular filing schedules.

Prohibitions on Direct Activity

Because contributions to a 527 organization are not regulated by the Federal Election Commission, these organizations may not make any expenditures involving express advocacy for the election or defeat of any candidate for federal elective office.