Simone Lawson
Political campaigns are often funded by donations from individuals, corporations, and unions, with limits on the amount that can be contributed. These limits vary depending on the type of organization receiving the donation and the election or purpose for which the funds are designated. For example, in the US, the Federal Election Campaign Act (FECA) sets limits on contributions by individuals to candidates and political parties, which are indexed to inflation every two years. These limits apply to all campaigns, whether or not they join a matching funds program, and include both monetary and in-kind contributions. Additionally, there are separate rules for non-party, outside groups called political action committees (PACs), which can accept unlimited contributions if they operate independently from a candidate's campaign. Understanding the regulations surrounding campaign donations is crucial for ensuring compliance with legal requirements and maintaining transparency in the political process.
How much can a couple donate to a political campaign in the US?
| Characteristics | Values |
|---|---|
| Limits on contributions made by persons to candidates | $3,300 per election, per candidate |
| Limits on contributions made by persons to national party committees | $41,300 per calendar year |
| Limits on contributions made by certain political party committees to Senate candidates | $57,800 per campaign |
| Limits on contributions by individuals to PACs | $5,000 per person per year |
| Limits on contributions by national party committees and their Senatorial campaign committees to Senate candidates | $62,000 combined per campaign |
| Limits on contributions by candidates from their personal funds | None |
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What You'll Learn
Federal Election Campaign Act (FECA)
The Federal Election Campaign Act (FECA) is the primary federal law in the United States that regulates political campaign fundraising and spending. It was enacted in 1971 and signed into law by President Richard Nixon in 1972. The legislation imposes restrictions and limits on the amounts of monetary or other contributions that can be made to federal candidates and parties. FECA also introduced bans on certain corporate and union contributions, expenditures, and speech.
FECA has been amended several times since its enactment. The first amendment came in 1974 following the Watergate scandal, which established the Federal Election Commission (FEC) to enforce the law, facilitate disclosure, and administer the public funding program. The FEC is also responsible for handling funds that exceed contribution limits, which campaigns are prohibited from retaining. In 1976, FECA was amended again after the Supreme Court struck down several provisions as unconstitutional in Buckley v. Valeo, including the structure of the FEC and the limits on campaign expenditures.
Further amendments were made in 1979, allowing parties to spend unlimited amounts of hard money on activities like increasing voter turnout and registration. In 2002, the Bipartisan Campaign Reform Act, commonly known as McCain-Feingold, made major revisions to FECA. However, significant portions of these amendments were later struck down by the Supreme Court on constitutional grounds in cases such as Federal Election Commission v. Wisconsin Right to Life, Inc. (2007), and Citizens United v. Federal Election Commission (2010), which invalidated restrictions on corporate and union spending on independent political advertising.
FECA continues to be a significant piece of legislation in US politics, shaping the way campaigns are funded and conducted, and ensuring transparency and accountability in the electoral process.
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Political Action Committees (PACs)
There are several types of PACs, including connected PACs, non-connected PACs, and Super PACs. Connected PACs, also known as corporate PACs, are established by businesses, non-profits, labor unions, trade groups, or health organizations. They receive money from a restricted class, such as managers and shareholders in a corporation or members of a non-profit organization. Non-connected PACs are formed by groups with ideological missions, single-issue groups, and members of Congress or other political leaders.
Super PACs, officially known as independent expenditure-only political action committees, can raise unlimited amounts of money from individuals, corporations, unions, and other groups. However, they are not allowed to coordinate with or contribute directly to candidate campaigns or political parties. Hybrid PACs are similar to Super PACs but can give limited amounts of money directly to campaigns while still making independent expenditures in unlimited amounts.
PACs play a significant role in US politics, with campaign donations from PACs growing over the years. They provide a way for organizations and individuals to influence elections and shape policy. The rules and regulations surrounding PACs are essential to ensure transparency and fairness in the political process.
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Super PACs
In the context of political campaigns, a PAC (Political Action Committee) is a committee that makes contributions to other federal political committees. Independent-expenditure-only political committees, often referred to as "Super PACs", are not subject to the same restrictions as traditional PACs.
The Supreme Court's ruling in Citizens United made it easier for corporations and unions to use their treasuries to directly influence elections. While some restrictions remain, such as the requirement to establish political action committees and raise funds for them if they wish to donate directly to candidates, the ruling removed the limits on the size of donations that individuals or corporate entities could make to Super PACs.
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Campaign Finance Act
In the United States, the Federal Election Campaign Act of 1971, the Bipartisan Campaign Reform Act of 2002, and a series of federal court cases form the foundation of federal campaign finance law. Federal campaign finance laws apply only to candidates and groups participating in federal elections, such as congressional and presidential elections.
Under the Federal Election Campaign Act, contributions are subject to limits, which differ depending on the type of donor and recipient. For instance, the Bipartisan Campaign Reform Act increased the contribution limits for individuals giving to federal candidates and political parties. The Federal Election Commission updates certain contribution limits every two years, such as the amount individuals may give to candidates and party committees, which are indexed to inflation.
The Campaign Finance Act, as implemented by the New York City Campaign Finance Board, requires that contribution and expenditure limits be adjusted every four years based on changes in the Consumer Price Index (CPI). Both monetary and in-kind contributions of goods and services are subject to these limits. Candidates are prohibited from accepting contributions from corporations, LLCs, and partnerships, as well as political committees not registered with the CFB for the current election cycle.
Campaigns are prohibited from retaining contributions that exceed the limits. In the event that a campaign receives excessive contributions, it must follow special procedures for handling such funds. Independent-expenditure-only political committees, or "Super PACs", may accept unlimited contributions, including from corporations and labor organizations. These committees can spend unlimited sums of money on political activities, sometimes without disclosing their donors.
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Contribution limits
For the 2023-2024 election cycle, the Federal Election Campaign Act (FECA) sets the following contribution limits:
- Individuals can contribute up to $3,300 per election to a candidate.
- Individuals can contribute up to $41,300 per calendar year to a national party committee.
- Political party committees can contribute up to $57,800 per campaign to a Senate candidate.
- These limits are indexed for inflation every two years, based on the change in the cost of living since 2001.
It is important to note that contributions to political campaigns are not limited to monetary donations. In-kind contributions of goods and services are also subject to contribution limits. Additionally, the date a contribution is received is crucial, as it determines whether a contribution is acceptable under the applicable rules.
At the state level, contribution limits may vary. For example, in New York City, the Campaign Finance Act requires that contribution and expenditure limits be adjusted every four years based on changes in the Consumer Price Index (CPI). As of February 2022, the contribution limits for New York City residents were between $175 and $250 per individual, depending on the office sought.
Furthermore, different rules apply to non-party, outside groups called political action committees (PACs). If a PAC contributes directly to a candidate, the maximum donation is limited to $5,000. However, if a PAC declares that it will spend its money independently of the candidate's campaign, there are no limits on donations to the PAC, and such groups are known as "Super PACs." Super PACs can accept unlimited contributions from individuals, corporations, and unions.
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Frequently asked questions
The limit on contributions made by persons to candidates is $3,300 per election, per candidate. This means that a couple could donate up to $6,600 per election, per candidate.
Yes, there are separate limits for national party committees and Senate campaign committees. A national party committee and its Senate campaign committee may contribute up to $62,000 combined per campaign to each Senate candidate.
Yes, if a PAC contributes directly to candidates, the maximum a person can donate to the PAC is $5,000. However, if a PAC declares that it will spend its money independently of a candidate's campaign, there are no limits on donations to the PAC, and these are known as Super PACs.
Super PACs have become a major source of funding, with 47 donors contributing $1 million or more, accounting for 57% of individual donations to these groups as of June 30, 2012. Super PACs are also able to receive unlimited contributions from corporations and unions.
