Where Does Campaign Money Go?

Running for office is an expensive affair, with presidential candidates in the 2020 cycle drawing $4.1 billion in donations. There are rules in place that dictate how this money can be spent, and while candidates can keep leftover funds from the primary campaign, they cannot keep them for personal use. In the US, the Federal Election Commission (FEC) enforces the Federal Election Campaign Act (FECA) of 1971, which limits the amount of money individuals and political organizations can give to a candidate running for federal office. The FEC also sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections.

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Candidates can't keep funds for personal use

Presidential candidates cannot keep campaign contributions for personal use. While candidates can spend their own personal funds on their campaign without limits, they must report the amount they spend to the Federal Election Commission (FEC). The FEC enforces the Federal Election Campaign Act of 1971 (FECA), which limits the amount of money individuals and political organisations can give to a candidate running for federal office.

The FEC also sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections. The FEC requires candidates to report the names of individuals and organisations contributing to their campaigns, as well as how they spend the money they receive.

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; personal use is prohibited. Any money that is left over after a candidate drops out or once the election is over must be used to pay off debts.

If a candidate receives contributions for a general election but drops out of the race or loses the primary beforehand, contributions must be refunded to individual donors within 60 days. Alternatively, the candidate can redesignate or redistribute their general election funds with the contributor's permission.

Candidates must report how they spend contributions

Candidates for president, Senate, and the House of Representatives must report how they spend their campaign contributions. This is enforced by the Federal Election Commission (FEC) under the Federal Election Campaign Act of 1971 (FECA). The FECA also sets contribution limits for individuals and groups.

The FEC requires campaigns to adopt an accounting system that separates contributions made for the primaries and those made for the general election. This is because the FEC only allows candidates to raise funds for elections they are actually running in. If a candidate accepts donations for their expected general election campaign but fails to win their party's nomination, the FEC requires the candidate to "refund, redesignate or reattribute" those donations within 60 days of dropping out.

The FEC also enforces rules on how money can be spent after a campaign concludes. Permitted uses of leftover funds include charitable donations, donations to other candidates, and saving it for a future campaign. Personal use of leftover funds is prohibited.

In specific situations, the FEC has concluded that campaign funds may be used to pay for up to 50% of legal expenses that do not relate directly to allegations arising from campaign or officeholder activity. For example, this could include activity prior to becoming a candidate or the activity of a business owned by the candidate. However, the FEC did not allow campaign funds to be used to pay the legal expenses of voters who brought a lawsuit concerning special election scheduling.

The FEC also provides guidelines for the use of campaign funds for travel expenses. If travel expenses commingle personal and campaign or officeholder activity, the beneficiary of the personal use expenses must reimburse the committee within 30 days for the entire amount associated with the personal activities.

Limits on individual and group contributions

In the United States, federal law places limits on campaign contributions to candidates for president and Congress. The Federal Election Commission (FEC) enforces the Federal Election Campaign Act of 1971 (FECA), which includes limits on individual and group contributions to candidates.

The FECA requires candidates for president, the Senate, and the House of Representatives to disclose the names of individuals and organisations contributing to their campaigns, as well as the amounts. It also requires them to report how they spend the money they receive. The FEC sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections.

The FEC's regulations include limits on individual contributions to candidates, contributions to candidates by "political committees" (Political Action Committees, or PACs), total campaign expenditures, and independent expenditures by individuals and groups relative to a specific candidate. These limits apply to all types of contributions, except those made from a candidate's personal funds. Campaigns are prohibited from retaining contributions that exceed the limits, and must follow special procedures if they receive excessive contributions.

For the 2023-2024 federal election cycle, the Federal Election Campaign Act caps individual contributions at $3,300 per election. A primary election and a general election are considered separate elections, so an individual can contribute up to $6,600 to a federal candidate. If a candidate drops out of the race or loses the primary, contributions for the general election must be refunded to individual donors within 60 days.

There are also limits on cash and anonymous contributions. A campaign may not accept more than $100 in cash from a particular source for a campaign for nomination or election to federal office. Anonymous cash contributions are limited to $50, and any amount over this must be disposed of and used for a purpose unrelated to the election or any candidate.

Additionally, national party committees and their Senatorial campaign committees may contribute up to $62,000 combined per campaign to each Senate candidate.

It is important to note that candidates cannot keep any campaign funds for themselves. Contributions must be used for campaign-related expenses, and any leftover money must be used to pay off debts. Personal use of campaign funds is prohibited.

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Candidates can spend unlimited personal funds

While there are limits on the amount of money individuals and political organisations can give to a candidate running for federal office, candidates can spend unlimited personal funds on their campaign. However, they must report the amount they spend to the Federal Election Commission (FEC).

The FEC enforces the Federal Election Campaign Act of 1971 (FECA), which limits the amount of money individuals and political organisations can give to a candidate running for federal office. The FECA requires candidates for president, Senate, and the House of Representatives to report the names of individuals and organisations contributing to their campaigns, as well as the amounts.

The FEC also sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections. For the 2023-2024 federal election cycle, the Federal Election Campaign Act caps contributions at $3,300 per election. A primary election and general election count as two separate elections, so it is possible for someone to contribute $6,600 to a federal candidate—once during the primary and once during the presidential campaign.

If a candidate receives contributions for a general election but drops out of the race or loses the primary beforehand, contributions must be refunded to individual donors within 60 days. Alternatively, the candidate can redesignate or redistribute their general election funds with the contributor's permission.

While candidates can spend unlimited personal funds on their campaign, there are rules in place for how money can be used after a campaign ends. Permitted uses include charitable donations, donations to other candidates, and saving it for a future campaign; personal use is prohibited.

Leftover funds can be used for future campaigns

While presidential candidates cannot do whatever they want with leftover campaign funds, there are a few options for using these funds for future campaigns. Firstly, candidates can let their leftover funds remain in their campaign accounts in case they decide to run for federal office again in the future. This is a strategy that several former members of Congress have employed, according to a 2014 report by the Center for Public Integrity.

Another option is to use leftover funds from the primary campaign, as the Federal Election Commission (FEC) considers the primary and general elections to be separate. This allows candidates to save these funds for future campaigns, including both primary and general elections.

Additionally, candidates can continue to request public funds to pay off campaign debts until the first Monday of March of the year following an election, even if they are no longer actively campaigning in primary elections. To be eligible for matching funds, contributions must be deposited into the campaign account by December 31 of the election year.

It is important to note that there are rules in place that dictate how money can be spent after a campaign concludes, and personal use of campaign funds is prohibited. Permitted uses of leftover funds include charitable donations, donations to other candidates, and saving for future campaigns.

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