Omar Bennett
Political campaigns are largely funded by individual contributions from citizens. In the US, the Federal Election Campaign Act of 1971 contains the regulations that govern these contributions. The Federal Election Commission (FEC) maintains a database of individuals who have made contributions to federally registered political committees. The FEC also provides guidelines on contribution limits, the dates by which contributions are acceptable, and the procedures for handling excessive contributions.
How to Donate to Political Campaigns in the US
| Characteristics | Values |
|---|---|
| Who keeps records of contributions? | The Federal Election Commission (FEC) maintains a database of individuals who have made contributions to federally registered political committees. |
| What information is kept on record? | Individual contributor's first and last name, employer or occupation, city, state and/or zip code, contribution amount, and committee receiving the contribution. |
| What are the contribution limits? | Campaigns are prohibited from retaining contributions that exceed the limits. Independent-expenditure-only political committees (or "Super PACs") may accept unlimited contributions, including from corporations and labor organizations. |
| How are contributions designated? | The FEC recommends that campaigns encourage contributors to designate their contributions for specific elections. Written designations are required for contributions from political committees. Undesignated contributions are counted against the donor's contribution limits for the candidate's next election. |
| What are the rules regarding the timing of contributions? | The date the contribution is made determines whether the rule will apply, and the date of receipt governs whether the contribution is acceptable. All contributions must be deposited within 10 days, although the date of deposit is not used for reporting or contribution limit purposes. |
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What You'll Learn
Contribution limits
When donating to political campaigns, it is essential to be aware of the contribution limits to ensure compliance with regulations. These limits are established to curtail the influence of money on elections and the election process. Here is a detailed overview of the key considerations regarding contribution limits:
The contribution limits vary depending on the type of entity making the donation. In New York, for instance, a corporation can contribute up to a total of $5,000 in a calendar year to a campaign or political committee. Each affiliated or subsidiary corporation, if considered a separate legal entity, has its own $5,000 limit. On the other hand, an LLC or PLLC can also contribute up to a total of $5,000 in a calendar year, and these contributions are attributed to each member of the LLC/PLLC proportionally to their ownership interest.
Individual Contribution Limits:
For individuals, the Federal Election Commission (FEC) maintains a database of contributions made to federally registered political committees. The FEC recommends that campaigns encourage contributors to designate their donations for specific elections. This ensures that the donor's intent is clear, and it helps avoid the appearance of excessive contributions. Each election has its own limit, and contributors can give up to that limit for each election the candidate participates in.
Limits for Public Campaign Finance Program Participants:
In New York, for candidates participating in the Public Campaign Finance Program, there are specific limits. The funds of the candidate, including those jointly held with their spouse and/or unemancipated children, are limited to three times the individual contribution limit for the applicable office. This includes both contributions and loans.
Limits for Independent Expenditure Committees:
Independent-expenditure-only political committees, often referred to as "Super PACs," can accept unlimited contributions. These committees can receive funds from various sources, including corporations and labor organizations, without the same restrictions that apply to candidate campaigns.
Timing Considerations:
The date of contribution and receipt are crucial in determining the applicability of rules and limits. For example, a contribution designated for a primary election and made before that election is not subject to certain rules, even if the campaign receives it afterward. In contrast, a contribution designated for and made after the primary is only acceptable if the campaign has outstanding net debts for that primary on the date of receipt.
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Designating contributions
Designated contributions count against the donor's contribution limits for the specified election. On the other hand, undesignated contributions are counted against the donor's limits for the candidate's next election. For example, if a candidate loses the primary election, an undesignated contribution made after that primary will count towards the limit for the following election.
It is crucial to understand the timing of contributions. A designated contribution made before a primary election will not be subject to the net debts outstanding rule, even if the campaign receives it after the primary. However, a contribution designated for a particular election but made after that election is only acceptable if the campaign has net debts outstanding for that election on the date of receipt.
Additionally, earmarked contributions are considered made during the election cycle in which they are received, regardless of the year the election is held. The conduit, or intermediary, must forward this information to the campaign. The date of receipt, which is when the campaign or its representative receives the contribution, is essential for reporting and adhering to rules regarding net debts.
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Earmarked contributions
When a PAC or political committee receives an earmarked contribution, they act as a conduit by forwarding the donation to the intended candidate or committee. The PAC must disclose the receipt and forwarding of earmarked contributions on their regularly scheduled reports, specifically on Schedules A and B for itemized receipts and disbursements, respectively. Additionally, the PAC must provide a transmittal report to the authorized committee receiving the contribution. This report typically includes the name and mailing address of the original contributor, the date the contribution was received, and the amount and designation of the contribution.
In some cases, the earmarked contribution may be deposited into the PAC's bank account before being forwarded to the recipient. In such cases, the PAC must report the contribution on Form 3X, Line 11 if they are reporting as the original contributor, or Line 23 if they are reporting as the conduit. The specific line number depends on the type of entity making the original contribution. It is important to note that the PAC must forward the earmarked contribution within 10 days of receiving it.
If an earmarked contribution is refused by the intended beneficiary, the intermediary or conduit must return the contribution to the original contributor within five business days of being notified. Intermediaries or conduits are also responsible for reporting earmarked contributions to the relevant authorities, such as the Federal Election Commission (FEC) or state agencies like the Washington State Public Disclosure Commission (PDC). They may be required to complete special reports, provide notifications to the beneficiary, and file corrections if the actual amount spent differs from the reported amount.
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Public records of individual contributors
Public records are kept of individual contributors to political campaigns. These records are maintained by the Federal Election Commission (FEC) and are available for search on the FEC website. The FEC website allows users to search for individual contributor information using various filters, such as the name of the committee, the date of the contribution, or the employer of the contributors.
However, it is important to note that federal law prohibits the use of contributor information for soliciting contributions or for commercial purposes. Additionally, the FEC website may not include records of smaller contributions. According to the website OpenSecrets, which also provides a donor lookup tool, contributions under $200 are not part of the public record.
OpenSecrets is a research group that tracks money in US politics and its influence on elections and public policy. Their donor lookup tool allows users to search for state or federal candidates and see the donors and industries that support them. OpenSecrets also provides information on outside spending by party committees, super PACs, and "dark money" groups, which spend money on elections without disclosing their sources.
It is worth noting that there are restrictions on who can contribute to political campaigns. For example, federal law prohibits contributions from foreign nationals or federal government contractors. Additionally, campaigns may not accept contributions from certain organizations or individuals, such as charities, which face additional restrictions on political activity.
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Handling excessive contributions
One approach to handling excessive contributions is to encourage donors to designate their contributions for specific elections. Designated contributions ensure that the donor's intent is clear and help to avoid the appearance of excessive contributions. These designated contributions count against the donor's contribution limit for the specified election. Undesignated contributions, on the other hand, are counted towards the donor's limit for the candidate's subsequent election.
In the context of Political Action Committees (PACs), excessive contributions can be handled through redesignation or refunds. A non-multicandidate PAC may comply with a request from the candidate committee to redesignate the contribution for another election, provided it is received within 60 days of the original contribution. This can be done by returning a signed statement. If the redesignation is not received within the timeframe, the candidate must refund the excessive portion to the PAC.
Additionally, when a contribution check to a candidate committee is not deposited, it must be reported. If the check is returned uncashed or lost, it should be itemized as a negative entry on a Schedule B for Line 23, "Contributions to Federal Candidates and Other Political Committees." The amount is then subtracted from the total. If the recipient committee initially deposits the contribution and then issues a refund, this refund amount must be itemized on a Schedule A for Line 16, "Contribution Refunds."
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