The new hotness in political advertising

First there were the PACs. Then we got the McCain-Feingold bill which put more limits on the PACs. Opponents of the bill said that money would still find a way into politics. And lo, it happened. We got 527s advertising up a storm in the two elections since McCain-Feingold went into effect. Then the FEC started fining some of the big 527s. So the new hotness now is using non-profits or, as they're called, 501(c)(4)s. And they're making an impact already in this election cycle.

The nonprofit groups, known by the designation 501(c)(4) because of the tax code section that applies to them, have been around for decades. They have long been a force influencing Congress and state legislatures. Conservatives have extensively used them over the past decade to help gain support during debates over legislation.

This year, these nonprofits have already started to encroach on turf that has been dominated by political parties, political action committees and, in the past few elections, by independent political groups created under section 527 of the IRS code. The latter groups spent $685 million in 2004 trying to influence voters with everything from antiwar messages against President Bush to ads sponsored by a group of Swift Boat veterans that questioned the heroism of Democratic presidential nominee John F. Kerry.

The 501(c)(4) groups pay no taxes on the donations they collect, but -- unlike charities -- their donors do not get a tax deduction. They are allowed to make political endorsements and engage in other political activities as long as political action is not their primary purpose.

"You can do many of the same things you can with a 527 while also shielding your donors, and that is very attractive to the organizers and their backers," explained Michael E. Toner, a Federal Election Commission chairman who retired earlier this year and now serves as Thompson's presidential campaign counsel.

....Federal election regulators are closely watching the activities of independent groups because of their ability to raise unlimited amounts of money, including from corporations and labor unions. If the FEC determines that the groups should be designated as political committees, they can accept no more than $2,300 from any individual.

If nonprofits put up an advertisement that expressly urges viewers to vote for or against a candidate -- or solicits donations for that purpose -- the FEC will intervene, said Robert D. Lenhard, the commission's chairman.

"We will look at what they say in their ads, and what they say in their solicitations," Lenhard said. "To the degree that influencing elections is their major purpose, they will need to register as a political committee."

What do you want to bet that groups will find a way to get around any limitations that the FEC puts on them? We're not going to keep these independent groups away from politics. Let's stop pretending that we can.