Kwame Holman reports. As the two major presidential candidates were locking up their parties' nominations this spring, tens of millions of dollars were being raised secretly to wage a political air war against them. No wonder care for seniors is in jeopardy. They're also known as 527 groups, after the section of the internal revenue code that gives political organizations tax- exempt status. But during this election year, a new brand of 527 groups has been producing ads paid for with millions of dollars in contributions from undisclosed sources.
Critics argue they're political ads and therefore subject to disclosure requirements.
Karl Sandstrom of the Federal Election Commission says the new 527 groups' interpretation of existing law has left them free to keep their donors secret. They're telling the Internal Revenue Service that they are organized and operated exclusively for the exempt purpose of influencing the election of candidates to office. They are then turning around and telling the Federal Election Commission that that is not their major purpose. The problem with secret organizations, you're not sure what activity they're engaging in. The Club for Growth is a conservative 527 group that recently ran ads critical of Marge Roukema, a moderate Republican house member from new jersey.