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527 Groups Funnel Millions Into Wisconsin’s Gubernatorial Race

Organizations Like EMILY's List, Republican Governors Association Can Spend Unlimited 'Soft Money'

By
Ellen Malcolm, the founder of EMILY's List, a 527 that has contributed money for Democratic campaigns in Wisconsin. Photo: Drew Saunders (CC-BY-NC-SA).

With just over a week left before the Nov. 4 election voters are being flooded with negative mailings and TV ads in the race for governor, many of which are being paid for by national political groups known as 527 organizations.

Such groups are tax exempt, and can raise and spend money on political campaigns as long as they tell the Internal Revenue Service where the money is coming from.

Mike McCabe of the Wisconsin Democracy Campaign said that over the past three months, two wealthy Milwaukee donors gave substantial sums to groups on each side of the gubernatorial race. The money went to three 527s that then sent it back to groups in Wisconsin to be spent on ads mailings and get-out-the-vote efforts.

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Mike and Mary Sue Shannon said they gave a million dollars to the Republican Governors Association. On the Democratic side, Lynde Uihlein and her Brico Fund gave close to $900,000 to a couple of 527s — mostly to EMILY’s List, with a smaller portion going to the League of Conservation Voters. These two groups, together with the Greater Wisconsin Political Fund, have raised $2.1 million for Democrats since January. The Republican Governor’s Association has raised $4 million in the same time period.

McCabe said that it’s important for voters to know who is funneling money to which candidates.

“Knowing who is putting money behind those candidates is going to be a very important signal about who those officials will favor once they’re elected to office,” sand McCabe. “That’s a valid consideration for voters.”

McCabe said that while it’s possible to trace the source of funds from 527 groups, these same groups also spend money on issue ads, and under current law the source of those funds can be kept secret.