Saturday, April 19, 2008

Hillary Tapping Wealthy Donors For More

hillary tapped elton john, now she's digging up money from her wealthy donors in a "creative" way. why would they bother to give her more money? can you imagine what we could do with all the money that has been raised by both campaigns? wow.
nyt: The Obama fund-raising juggernaut has some of Mrs. Clinton’s most devoted supporters worried and searching for a new way to support her candidacy. Alan Patricof, a national finance chairman for Mrs. Clinton, said four people had called him in the past month to discuss starting a so-called 527 group — named for the section of the tax code the groups are organized under — on her behalf.

“These are people who have maxed out to Hillary and would like to do a lot more but know they cannot do it through the campaign and thus are looking for other legal ways to give and raise more money under a different status,” Mr. Patricof said. “As I have pointed out, once they do that, they can no longer participate in the finance committee calls and they have to do it outside and away from the campaign itself.”

Such groups are potentially attractive for affluent donors because contributions are not capped as they are for candidates. But campaign finance experts say 527s can be legally treacherous; hefty fines were levied against many of the groups after the 2004 election, and the rules that govern them remain hazy.

The groups are barred from coordinating with campaigns and explicitly calling for the election or defeat of a candidate; instead they are limited to advocating on issues. But exactly what they can say about candidates when they solicit contributions or spend them is sometimes unclear.

One such group, American Leadership Project, which on Wednesday began broadcasting commercials in Pennsylvania praising Mrs. Clinton on health care, offers an indication of how challenging it could be to raise money for an independent effort.

The group has raised only about $1.5 million so far. As a result, it spent only about $425,000 in Pennsylvania, after doling out about $750,000 for commercials in Texas and Ohio earlier this year. It intends to play a more substantial role in Indiana, its leaders said.

Some potential donors have been reluctant to support an effort that they feared could get them into legal trouble. Others wanted the group to attack Mr. Obama, a tactic the group’s leaders have resisted.