Question

A _____ is a nonprofit pac that raises an unlimited amount of money but is not permitted to contribute to or coordinate with parties or candidates.

1) 501(c)(3) committee
2) 501(c)(4) committee
3) 527 committees
4) 538 committees

Answer 1

A 527 committee is a type of nonprofit Political Action Committee that can raise unlimited funds but cannot contribute to or coordinate with political parties or candidates. It operates independently and came into prominence after the Citizens United Supreme Court decision.

Step-by-step explanation:

A 527 committee is a nonprofit Political Action Committee (PAC) that can raise an unlimited amount of money but is not permitted to contribute to or coordinate with parties or candidates. Unlike traditional PACs, which are bound by strict regulations on contribution limits, 527 committees, named after a section of the U.S. tax code, are able to raise funds without any caps on the amount they receive. However, they must operate independently of political parties and individual campaigns. The rise of super PACs, which are also known as independent-expenditure-only committees, was enabled by the Citizens United v. FEC Supreme Court decision which paved the way for these entities to collect unlimited contributions from various sources, including corporations and labor organizations, for the purpose of independent political advocacy.