Malcolm Rivera
Running for office is an expensive affair, with candidates collecting millions of dollars in contributions. But what happens to all that money when the campaign is over? The rules governing campaign finance are designed to ensure transparency and fairness, and there are strict regulations in place regarding the use of leftover funds. While candidates are prohibited from using the money for personal expenses, they can use it for charitable donations, transfer it to another candidate, or save it for a future campaign.
| Characteristics | Values |
|---|---|
| Can political candidates use leftover campaign funds for personal expenses? | No, leftover funds cannot be used for personal expenses such as mortgage payments, groceries, clothing purchases, or vacations. |
| What can the leftover funds be used for? | Charitable donations, donations to other candidates, saving for a future campaign, or creating a "leadership PAC" to back a political agenda. |
| What happens to leftover funds if a candidate withdraws before the party's nominating convention? | The campaign must first settle all outstanding debts with vendors and service providers, and then refund all contributions that were designated for use in the general election. |
| Can candidates continue to request public funds after the election? | Yes, candidates can continue to request public funds to pay off campaign debts until the first Monday of March of the year following an election. |
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What You'll Learn
Candidates cannot use leftover funds for personal expenses
Political candidates cannot use leftover campaign funds for personal expenses. The Federal Election Commission (FEC) has rules in place to control how money raised by candidate campaign committees is spent after a candidate bows out or after an election is over. Personal use is defined as "a commitment, obligation, or expense of any person that would exist irrespective of the candidate's campaign or responsibilities as a federal officeholder." In other words, campaign funds may not be used for an expense that exists independent of the campaign.
Expenses that are automatically considered personal use include salary payments to the candidate's family unless they provide a bona fide service to the campaign and the payment reflects the value of the service in the free market. Candidates are also prohibited from using campaign funds to pay for attire for political functions (e.g., a new tuxedo or dress). Campaign funds may, however, be used to pay for clothing of minimal value that is used in the campaign, such as t-shirts or caps imprinted with a campaign slogan.
Campaign funds cannot be used to cover expenses related to deaths within the candidate's family. They may, however, be used to cover funeral, cremation, and burial expenses for a candidate or campaign worker whose death arises out of or in the course of campaign activity. Candidates are also prohibited from using campaign funds to make tuition payments unless the payments are associated with training campaign staff.
If there is money left over after all the bills are paid, candidates have several options for using the funds. They can save it for a future campaign, donate it to other candidates, or donate it to charities as long as they do not receive any compensation from the organizations before it is spent and the donation is not used by the charity to benefit the candidate. Candidates can also use leftover funds to create a "leadership PAC," which is a political committee that can be controlled by the former candidate but is not used to support that person's campaigns. Instead, it backs a political agenda, including other candidates, that the candidate supports.
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Candidates can donate to charities
Political candidates are not allowed to use any remaining funds for personal use after all campaign-related debts are settled. Personal use is defined as “a commitment, obligation or expense of any person that would exist irrespective of the candidate’s campaign or responsibilities as a federal officeholder”. Expenses that are automatically considered personal use include salary payments to the candidate's family unless they provide a bona fide service to the campaign and the payment reflects the value of the service in the free market.
The Federal Election Commission (FEC) has rules in place to control how money raised by candidate campaign committees is spent after a candidate bows out or after an election is officially over. Candidates can donate to charities as long as they do not receive any compensation from the organizations before the donation is spent and the donation is not used by the charity to benefit the candidate.
A former candidate can also use any excess funds to create a so-called “leadership PAC,” which is a political committee that can be controlled by the former candidate but is not used to support that person’s campaigns. Instead, it backs a political agenda, including other candidates the candidate supports. Leadership PACs have been criticized for functioning as “slush funds” for politicians to spend on travel and entertainment they can’t buy with regular campaign donations.
There are no limits on how much they can give to a national, state, or local party committee. They can also give money to state and local candidates, depending on state campaign finance laws, or up to $2,000 to each of one or more candidates for federal office.
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Candidates can donate to other candidates
Candidates are not allowed to use any remaining campaign funds for personal use after all campaign-related debts are settled. Personal use is defined as “a commitment, obligation, or expense of any person that would exist irrespective of the candidate’s campaign or responsibilities as a federal officeholder”.
There are rules in place that dictate how money can be spent after a campaign concludes. Permitted uses include charitable donations, donations to other candidates, and saving it for a future campaign. Candidates can donate a maximum of $2,000 to another federal candidate, and donations to state or local candidates are subject to state law. They can also make unlimited transfers to a local, state, or national political party committee.
A former candidate can also use any excess funds to create a so-called “leadership PAC,” which is a political committee that can be controlled by the former candidate but is not used to support that person’s campaigns. Instead, it backs a political agenda, including other candidates, that the candidate supports. Leadership PACs have been criticized for functioning as “slush funds” for politicians to spend on travel and entertainment they can’t buy with regular campaign donations.
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Candidates can save funds for future campaigns
If a candidate has lost an election but is still handling outstanding expenses, they need to keep filing campaign finance reports with the FEC. The first use of leftover campaign funds is generally to pay the cost of winding things down, such as rent on office space, fees for services like polling and transportation, and staff salaries. Some candidates may also have maxed out their credit cards or taken out loans to fund their campaign, and this money will need to be repaid.
If a candidate is not planning to run for office again, they can do nothing and simply keep the cash in the bank. There is no legal requirement for them to do anything with the leftover funds, as long as they are not used for personal expenses.
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Candidates can transfer funds to political committees
Political candidates are not allowed to use any remaining funds for personal use after all campaign-related debts are settled. Personal use is defined as “a commitment, obligation, or expense of any person that would exist irrespective of the candidate’s campaign or responsibilities as a federal officeholder”. This includes expenses such as salary payments to the candidate's family (unless they provide a bona fide service to the campaign and the payment reflects the value of the service in the free market), mortgage payments, groceries, clothing purchases, or vacations.
Leadership PACs have been criticized for functioning as “slush funds” for politicians to spend on travel and entertainment they can’t buy with regular campaign donations. However, leftover leadership PAC funds are often spent on contributions to other candidates, political party committees, and PACs, or on administrative costs associated with winding down the PAC.
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Frequently asked questions
Leftover campaign money can be used for any lawful purpose other than personal use. Candidates can donate the money to political committees and charities or keep the funds to dole out after they’ve left office. They may also keep the money for their next campaign.
Leftover campaign money can be used to pay off any outstanding debts, such as rent on office space, fees for services, and staff salaries. It can also be used to create a "leadership PAC", which is a political committee that backs a political agenda and other candidates.
No, candidates are not allowed to use leftover campaign funds for personal expenses such as mortgage payments, groceries, clothing purchases, or vacations. Personal use is defined as "a commitment, obligation, or expense that would exist irrespective of the candidate's campaign or responsibilities as a federal officeholder."
Yes, the Federal Election Commission has rules in place to control how money raised by candidate campaign committees is spent after a candidate bows out or after an election is officially over. Permitted uses include charitable donations, donations to other candidates, and saving it for a future campaign.
Candidates cannot put the leftover campaign money in their pockets unless they personally loaned the campaign money. In that case, they can pay themselves back.
