NYT: Facing Obama Fund-Raising Juggernaut, Clinton Seeks New Sources of Cash
By MICHAEL LUO
Published: April 20, 2008
Senator Barack Obama is swamping Senator Hillary Rodham Clinton with television advertising in their prolonged battle for the Democratic nomination, putting fresh pressure on Mrs. Clinton’s fund-raising machine to find new sources of money to help her keep pace. But her big-dollar fund-raising apparatus that was once the envy of the political world is encountering obstacles as many of those in its regular networks of donors have reached the maximum on their personal contributions or grown tired of the relentless press for donations.
The campaign is actively hunting for new wellsprings of cash, while tapped-out donors who want to give more are contemplating financing independent efforts on her behalf that are not bound by contribution limits. So far, however, the independent efforts have been halting at best.
The scramble for fresh resources comes as the money gap between the two candidates is growing. In March, largely because of a continued advantage in small donations given over the Internet, Mr. Obama was able to raise twice what Mrs. Clinton brought in, collecting $40 million compared with her $20 million. He has been spending it freely in Pennsylvania, hoping to stymie Mrs. Clinton in a contest that could determine whether she stays in the race....
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....
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....
http://www.nytimes.com/2008/04/20/us/politics/20donor.html?pagewanted=all