Obama's supporters get around money limit
Lance Williams, Chronicle Staff Writer
Wednesday, August 8, 2007
California supporters of Democratic presidential candidate Sen. Barack Obama are using a controversial political committee to rake in donations in excess of what is allowed under tough federal campaign finance laws.
Exploiting a legal loophole, the Obama supporters have set up a so-called 527 group - an unregulated committee of the type deployed by Republican Swift Boat Veterans in the 2004 presidential campaign - as a centerpiece of political fundraising for the California Democratic primary in February.
So far, wealthy donors have written checks in the amounts of $90,000 and $50,000 to "Vote Hope 2008," the Obama supporters' 527 group, federal records show. The group is led by San Francisco lawyer Steve Phillips, son-in-law of wealthy financier and Democratic political donor Herbert Sandler.
Named for the section of the U.S. tax code that regulates these groups - and independent of the input or control of political candidates - 527 groups aren't subject to the Federal Election Commission's legal limit on contributions of $2,300 per donor per election.
The same Obama supporters have also set up a political action committee - the type of fund-raising device used by special-interest groups to funnel donations to multiple candidates - and used it to raise money for Obama's California campaign, records show. The political action committee also is called "Vote Hope 2008."
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2007/08/08/MN9JREV751.DTL&type=printable