MoveOn.org standing down its 527

In keeping with Barack Obama's emphasis on small donations, the antiwar group MoveOn.org is permanently shutting its 527 operation that could accept unlimited big-money contributions.

The group will continue raising money for its political action committee, which is aggressively supporting Obama with a series of hard-hitting ads against Republican John McCain. But it won't reactivate its 527 -- known for the provision in the federal tax code governing such advocacy groups -- which spent $20 million in the 2004 election.

"This is an affirmation that we, like Senator Obama, believe that this election can be won by ordinary Americans giving small donations," MoveOn spokesperson Ilyse Hogue told the Talking Points Memo website .

In an announcement and email to supporters obtained by NBC, the group says it plans to spend $35 million from small donors.

"In light of the new politics offered by Barack Obama, I've come to believe it's time to close the 527 forever -- and to challenge organizations on the right to do the same thing," MoveOn's chief, Eli Pariser, writes. "That means that we won't raise any money for our election work from foundations, unions, or even individuals who want to give over $5,000. It's an all-in commitment to the small-donor way of doing things. But the time is right to take the leap. Not relying on big donors means that all of us, together, have to take responsibility."

The announcement comes a day after Obama told supporters he is not taking public funding -- and the spending limits that come with it -- so that he can continue his record-breaking private fund-raising. In defense of reversing his stand, Obama said he needed to raise more money to combat efforts from 527s, advocacy groups that can accept unlimited contributions.