It's like a dirty money merry-go-round.
Let's say you're Big Sugar, and you want to lavish money on the compliant legislators who carry water for your cause. You COULD give directly to the candidate, but your donation is capped at $1,000 per election. That's not much.
But what if you funneled the money through PACs, political action committees? Then you could give tens or even hundreds of thousands — there's no limit — to a dozen different PACs. Each one of those PACs could then give to other PACs. And then ALL of these PACs could give $1,000 to your favorite candidate.
Or, you could donate to a PAC run by your favorite candidate, money that can be spent on campaign-related expenses, or donations to yet OTHER PACs.
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