MoveOn.org, the multi-faceted liberal group, announced Friday that it will shut down its 527 organization and fund all its political activities this election cycle solely through its political action committee.

MoveOn leaders said the move is in keeping with Sen. Barack Obama’s (D-Ill.) recently stated desire to remove the influence of well-funded outside groups on the presidential election.

“The small-donor driven politics that built MoveOn and the progressive movement has helped to drive Barack Obama’s candidacy,” said Eli Pariser, executive director of MoveOn.org. “We’ve always believed this new kind of politics can change our country and end the gridlock in D.C. And now is the time to let the voices of ordinary Americans be heard in this election.”

MoveOn had a 527 group active during the 2004 White House campaign, and solicited big donations from labor unions and wealthy donors to fund its activities. But the group said it has already been relying on its PAC exclusively to run its political programs this year. According to the group, MoveOn.org Political Action has 3.2 million members who on average contribute less than $50. MoveOn Political Action plans to spend about $35 million this election cycle.

To highlight its commitment to low-dollar donations, MoveOn announced that 700 of its members will hold bake sales around the country, with the proceeds going to the group’s efforts to help elect Obama.