Simone Lawson
Political campaigns in Illinois must adhere to specific finance requirements, which are outlined in Article 9 of the Election Code. These regulations cover various aspects, including disclosure obligations, spending limits, and the formation of political committees. Candidates seeking state office are subject to different reporting processes than those running for federal office, with the latter requiring filing with the Federal Election Commission. One of the critical requirements in Illinois is the formation of a candidate political committee when campaign spending exceeds $5,000, even if personal funds are used. This committee is responsible for financial reporting and must file a Statement of Organization with the Illinois State Board of Elections. The committee must also keep detailed records of contributions, including the names and addresses of contributors, the dates and amounts of contributions, and the purpose of the funds. Additionally, there are specific prohibited expenditures outlined in Illinois statutes, such as purchases that violate the law or are considered excessive. Understanding and complying with these requirements are essential for candidates and their campaigns to ensure transparency and legality in their financial dealings.
| Characteristics | Values |
|---|---|
| Monetary threshold for disclosure obligations | $5,000 in a 12-month period |
| Monetary threshold for forming a candidate political committee | $5,000 |
| Deadline for filing a Statement of Organization after forming a committee | Within 10 business days, or 2 business days if within 30 days of an election |
| Requirements for reporting individual contributions | Name and address of contributor, amount, date, name and address of person collecting contribution |
| Requirements for reporting individual transfers | Name and address of lender or endorser, amount, date |
| Requirements for reporting in-kind contributions | Similar detail as for monetary contributions |
| Requirements for reporting of funds on hand | Amount of funds on hand at the beginning of the reporting period |
| Requirements for reporting of donations | Name and address of each donor, amount, date, occupation and employer if contributions exceed $500 |
| Requirements for reporting of rebates, refunds, or investment income | Aggregated total of $150 or more, with amounts and dates of contributions |
| Requirements for reporting of transfers from other political committees | Name and address of committee, total sum of transfers under $150, total sum of transfers over $150 |
| Requirements for reporting of loans | Name and address of each lender or endorser, amount and date of each loan, occupation and employer if loans exceed $500 |
| Requirements for the use of funds | Cannot be used for illegal purchases, purchases in excess of fair market value, non-campaign-related clothing or laundry, tuition or vehicle purchases (unless more cost-effective than leasing) |
| Recommendations for handling campaign finances | Open a separate bank account for campaign contributions and expenditures |
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What You'll Learn
Forming a candidate political committee
Candidates seeking state office in Illinois must follow specific procedures when handling campaign finances. These procedures include interacting with agencies such as the Illinois State Board of Elections and the Federal Election Commission (FEC).
A candidate planning to spend $5,000 or more on their campaign, even if using personal funds, must form a candidate political committee and file campaign finance reports. Within 10 business days of forming this committee, a Statement of Organization must be filed with the Illinois State Board of Elections. If the committee is formed within 30 days of an election, the timeframe is shortened to two business days. The Statement of Organization must be signed, dated, and verified by the candidate, and it should include the following information:
- The name, address, and type of political committee (candidate political committee, in this case)
- The party affiliation and purpose of the committee
- The name and address of each officer of the committee, such as the chairman and treasurer, who are responsible for financial accounts
Additionally, the candidate political committee must disclose detailed financial information, including:
- The name and address of the committee
- The name of the person filing the report, if different from the chairman or treasurer
- The amount of funds on hand at the beginning of the reporting period
- The name, address, and occupation of each person who contributed funds exceeding $500, along with the total amount and dates of contributions
- The total sum of individual contributions of $150 or less
- The name and address of any political committee transferring funds to or from the reporting committee, with amounts exceeding $150
- The names and addresses of lenders or endorsers of loans over $150, along with the amount and date of each loan, and their occupation if the loans exceeded $500
These requirements ensure transparency and compliance with campaign finance regulations in Illinois.
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Disclosure requirements
Within 10 business days of forming, the committee must file a Statement of Organization with the Board of Elections. This statement must include the name, address, and type of political committee; the party affiliation and purpose of the committee; and the name and address of each officer, such as the chairman and treasurer. If any information on the original statement changes, an amendment must be filed within 10 days of implementing the change.
Political committees must also report their current funds, along with donations and expenditures, every quarter. These reports must include the name and address of each person who contributed funds, including any rebates, refunds, or income from investments, in an aggregate total of $150 or more, along with the amounts and dates of those contributions. If the contributions exceeded $500, the occupation and employers of the contributor must also be included. The committee must also list the financial institutions where its money is maintained.
While not required, it is advisable for a political committee to open a separate bank account solely for campaign contributions and expenditures. This helps avoid the commingling of personal and campaign funds, which is prohibited, and aids in the committee's record-keeping and financial reporting obligations.
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Corporate funding
Despite this, contribution limits on donations made directly to candidates remain constitutional. If you are a candidate seeking state office in Illinois, you must file with the Illinois State Board of Elections. If you are a candidate seeking federal office, you must file with the Federal Election Commission.
If you are a candidate who plans to spend over $5,000 on your campaign, even if using only personal funds, you must form a candidate political committee and file campaign finance reports. Within 10 business days of forming this committee, you must file a Statement of Organization with the Illinois State Board of Elections. If the committee is formed within 30 days of an election, the Statement of Organization must be filed within two business days of its formation. This statement must be signed, dated, and verified by the candidate, and it must include the following:
- The name, address, and type of political committee
- The party affiliation and purpose of the committee
- The name and address of each officer of the committee, such as chairman and treasurer, and any others in charge of keeping financial accounts
- The name and address of any sponsoring entities (a sponsoring entity must contribute 33% of the committee's total funds to be considered a sponsoring entity)
- A statement on how the committee plans to dispose of extra funds upon termination
The Statement of Organization must also include the following financial information:
- The amount of funds on hand at the beginning of the reporting period
- The name and address of each person who contributed funds, including any rebates, refunds, or income from investments, to the committee in an aggregate total of $150 or more, along with the amounts and dates of those contributions; if the contributions exceeded $500, the occupation and employers of the contributor must also be included
- The total sum of individual contributions of $150 or less
- The name and address of any political committee that transferred funds to or from the reporting committee in an aggregate total of over $150
- The total sum of individual transfers made under $150
- The names and addresses of each lender or endorser of loans over $150, along with the amount and date of each loan; if the loans exceeded $500, the occupation and employer of the lenders must also be included
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Handling campaign contributions
Understanding Disclosure Requirements:
In Illinois, the source of campaign finance disclosure requirements is Article 9 of the Election Code. Any candidate, individual, or group that has accepted contributions or made expenditures exceeding $5,000 in a 12-month period is deemed a "political committee" and must comply with disclosure rules. These committees must file a Statement of Organization with the Illinois State Board of Elections and regularly report their current funds, donations, and expenditures.
Forming a Candidate Political Committee:
If a candidate plans to spend more than $5,000 on their campaign, they must form a candidate political committee. This committee will be responsible for handling campaign contributions and expenditures separately from personal funds. The committee must include a treasurer, who plays a crucial role in managing and reporting financial activities.
Maintaining Separate Bank Accounts:
While not mandatory, it is highly advisable for political committees to open separate bank accounts dedicated solely to campaign contributions and expenditures. This practice helps avoid commingling personal and campaign funds, which is prohibited by law. It also facilitates better record-keeping and financial reporting. The committee must list the financial institutions where its funds are maintained.
Reporting and Record-Keeping:
Political campaigns must educate their workers and volunteers about the proper way to collect and accept contributions. Anyone collecting money on behalf of the campaign must report the details to the treasurer within a specified timeframe. This includes the amount, the name and address of the contributor, the date of the contribution, and the name of the person collecting the funds. The treasurer is then responsible for reporting this information to the State Board of Elections. Committees must also disclose the name and address of each person who contributed funds, with specific thresholds triggering additional reporting requirements, such as occupation and employer details.
Prohibited Expenditures:
Campaign funds must be used in accordance with the law. Prohibited expenditures include purchases that violate any law, those that exceed fair market value, and payments for anything other than compensation for services rendered. Additionally, funds cannot be used for personal expenses like clothing, laundry, or tuition, unless directly related to a candidate's governmental duties. The list of prohibited expenditures includes various exceptions, so it is essential to seek legal advice for clarification.
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Reporting obligations
Political campaigns in Illinois have a number of reporting obligations that they must adhere to. Firstly, it is important to understand the concept of a "political committee". Any candidate, individual, or group that has accepted contributions or spent more than $5,000 in a 12-month period in support of or against a candidate or issue is considered a political committee. Once this threshold is reached, the group must organise and start filing reports with the Illinois State Board of Elections.
Within 10 business days of forming, a political committee must file a Statement of Organization with the Illinois State Board of Elections. This deadline is shortened to two business days if the committee is formed within 30 days of an election. The Statement of Organization must include the name, address, and type of committee, as well as the party affiliation and purpose. It must also list the names and addresses of each officer, such as the chairman and treasurer, and any others in charge of financial accounts. The statement must be signed, dated, and verified by the candidate.
Political committees must also report their current funds, along with donations and expenditures every quarter. When reporting donations, the committee must include the name and address of each donor who contributed an aggregate total of $150 or more, along with the amounts and dates of those contributions. If donations exceeded $500, the occupation and employer of the donor must also be disclosed. For donations of less than $150, only the total sum of individual contributions needs to be reported.
It is worth noting that while not a legal requirement, it is strongly recommended that political committees open a separate bank account solely for campaign contributions and expenditures. This helps to avoid the commingling of personal and campaign funds, which is prohibited, and also aids in record-keeping and financial reporting.
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Frequently asked questions
Candidates seeking state office in Illinois must file with the Illinois State Board of Elections. Candidates seeking federal office must file with the Federal Election Commission. A candidate who plans to spend over $5,000 on their campaign must form a candidate political committee and file campaign finance reports.
A political committee is formed when a candidate, individual, or group of persons has accepted contributions or made expenditures exceeding $5,000 in a 12-month period in support of or in opposition to a candidate or referendum question.
A political committee must file a Statement of Organization with the Illinois State Board of Elections within 10 business days of its formation, unless it is formed within 30 days of an election, in which case the deadline is two business days. The committee must list the financial institutions where its money is maintained and must report current funds, donations, and expenditures every quarter.
Funds may not be used for purchases that violate any law, are clearly in excess of fair market value, or are not for compensation for services rendered. Funds also may not be used for clothing, personal laundry, tuition, or vehicle purchases, except in specific circumstances.
Yes, it is advisable for a political committee to open a separate bank account dedicated solely to campaign-related financial activities. This helps to avoid commingling personal and campaign funds, improves record-keeping, and facilitates financial reporting obligations.
