Forming A Political Campaign Committee: A Step-By-Step Guide

Forming a political campaign committee is an essential step in running for political office. It involves registering a committee with the Federal Election Commission (FEC) using a Statement of Organization, Form 1. This form requires general information about the committee, including its name, address, email, web address, and the date it became a political committee. The committee must also appoint a treasurer and select a committee type, such as a principal campaign committee or other authorized committee. It is important to comply with local rules and regulations, such as contribution limits and reporting requirements, as well as national legislation like the Federal Election Campaign Act of 1971. Fund management is crucial, with rules stipulating that funds must be used for political, legislative, or governmental purposes, and large contributors must be notified if they may need to file campaign reports.

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Registering a committee

When registering a political committee, it is necessary to complete and submit specific forms to the relevant authorities. In the US, for instance, House and Senate committees are required to register using the Statement of Organization, Form 1. This form must be filed within 10 days of the candidate designating a new committee as the principal campaign committee on the Statement of Candidacy (Form 2). Form 1 requires detailed information about the committee, including its official name, address, email address, web address, and the date it officially became a political committee. It is important to note that the name of an authorized committee, such as a principal campaign committee, must include the name of the candidate. Conversely, an unauthorized committee, such as a PAC or party committee, cannot use the candidate's name.

The treasurer of the committee is responsible for signing and dating Form 1, and they must also select either "principal campaign committee" or "other authorized committee," choosing only one committee type. Additionally, the committee must disclose specific information about the candidate who authorized it, including their name, office sought, election date, and whether they have authorized any other committees. On Line 8 of Form 1, committee officials are designated, and the Commission encourages political committees to name an assistant treasurer or "designated agent." This assistant treasurer is the only individual authorized to sign reports and statements in the treasurer's absence.

It is also important to note that committees are required to maintain at least one checking or transaction account at a campaign depository and to disclose this information on Line 9 of Form 1. The depository can be a bank or other insured financial institution. Additionally, committees must provide their email addresses, and they may list up to two email addresses to receive correspondence and reporting reminders from the Commission. While it is not mandatory, committees with websites should also include their web addresses on the form.

Naming the committee

Naming a political campaign committee is an important step in the process of forming one. Here are some key instructions and considerations to keep in mind when naming your committee:

Choose a Name that Reflects the Candidate's Name or Purpose:

The name of the committee should typically include the name of the candidate it represents. This is a standard practice, especially for principal campaign committees, as mentioned in FEC guidelines. Including the candidate's name in the committee name helps with recognition and association.

Consider the Committee's Type:

The type of committee you are forming may influence its name. For instance, unauthorized committees, such as PACs (Political Action Committees) or party committees, are not allowed to use the name of a candidate. In such cases, you may want to focus on the committee's purpose or goals in its name. Leadership PACs, for example, often support candidates for federal or nonfederal offices, so a name reflecting that could be appropriate.

Include Relevant Information:

When registering a committee, you will be required to provide additional information, such as the committee's address, email address, and website address. Ensure that the name you choose is distinct and reflects the values, goals, or characteristics of the candidate or the committee's mission.

Follow Local Rules and Regulations:

It is crucial to be aware of any local rules and regulations that may impact your committee's name. For example, in California, candidates running for local and state offices must disclose campaign funds, and there are specific forms and seminars to guide you through the process. Check with your local city clerk or relevant authorities to ensure you are complying with any naming conventions or requirements.

Avoid Using Your Name Alone:

If you are the candidate, avoid using just your name for the committee unless it is well-known or easily recognizable. Combining your name with the committee's purpose or a relevant keyword can provide more context and clarity to voters.

Remember, the name you choose should be memorable, reflect the committee's purpose, and comply with any relevant regulations. Take the time to brainstorm and select a name that effectively represents your political campaign committee.

Campaign fund usage

Campaign funds can be used for several purposes, but there are strict rules in place to ensure they are not used for personal expenses. The Federal Election Commission (FEC) has outlined that campaign funds are not intended for personal use. Instead, they must be used for campaign-related expenses, such as the reasonable cost of security measures for the candidate, their family, and employees, as defined by relevant legislation. Campaign funds can also be used to cover funeral, cremation, and burial expenses for a candidate or campaign worker whose death is a direct result of campaign activity.

Campaign funds can be used to purchase clothing for the campaign, such as t-shirts or caps with a campaign slogan, but they cannot be used to buy attire for political functions, like a tuxedo or a dress. Funds can be used for training campaign staff, including language classes to better communicate with constituents, but they cannot be used for tuition payments for the candidate's family unless they are providing a bona fide service to the campaign, and the payment is in line with the market rate for that service.

It is important to note that campaign funds cannot be used for daily food or household supplies for the candidate's home. Funds also cannot be used for mortgage, rent, or utility payments for the candidate's personal residence, even if a portion of the residence is used for campaign purposes. Any expense that would exist even without the candidacy falls under the personal use ban.

In terms of donations, candidates can donate an unlimited amount to a federal, state, or local political committee. They can also make charitable donations, as long as neither the candidate nor their family members receive any compensation from the charity, and the donation is not used to benefit the candidate. Candidates must refund general election contributions to donors if they do not make it past the primary election, and they can only apply these funds to other acceptable uses with the donor's permission.

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Notify large contributors

When forming a political campaign committee, it is essential to understand the regulations surrounding campaign contributions and to ensure compliance with relevant laws, such as the Federal Election Campaign Act. One crucial aspect is properly notifying large contributors. Here are some detailed instructions on how to do this:

Understanding Large Contributions

• A large contribution typically refers to a monetary donation of a significant amount. The threshold for what constitutes a large contribution may vary depending on the jurisdiction. For example, in some places, a contribution of \$5,000 or more from a single contributor within a calendar year is considered large.
• It is important to note that contributions can come in various forms, including cash donations, goods, services, or facilities. When determining the value of non-monetary contributions, such as goods or services, they are typically valued at the prevailing market or commercial rate at the time of the contribution.
• Joint contributions, where multiple individuals contribute together, are also possible. In such cases, if the contributors do not specify individual amounts, the committee must attribute equal portions to each donor.

Notification Requirements

• If your campaign committee receives a large contribution, you are typically required to notify the contributor of their potential obligations as a major donor.
• Specifically, you must inform the contributor that they may be required to file campaign reports disclosing their donations. This notification requirement usually applies when a single contributor donates a substantial amount, such as \$5,000 or more, within a specified time frame, often a calendar year.
• However, it is important to note that this notification may not be necessary if the large contribution comes from another campaign committee, as they are likely already aware of the reporting requirements.

Record-Keeping and Compliance

• Proper record-keeping is essential. The committee's treasurer should maintain detailed records of all contributions, including the date of receipt, the amount, and the contributor's information.
• In the case of electronic contributions, the date of receipt is the date of the contributor's authorization, while for in-kind contributions, it is the date the goods or services are provided.
• Additionally, campaigns should encourage contributors to designate their contributions for specific elections. This ensures that the donor's intent is clear and helps avoid any appearance of excessive contributions.
• It is also important to be aware of local rules and regulations, as some cities have adopted their own campaign finance guidelines, which you must comply with in addition to any state or federal laws.

Avoiding Common Pitfalls

• Be cautious of "laundered" campaign funds, which is when an individual contributes in another person's name. It is illegal for an employer to ask an employee to contribute in their name and then reimburse them without disclosing the true source of funds.
• Ensure that contributions are not used for personal purposes. Campaign funds must be used for political, legislative, or governmental purposes. Any expenditure that confers a personal benefit must be directly related to one of these purposes.

By following these guidelines, your political campaign committee can effectively notify large contributors, maintain transparency, and comply with relevant regulations.

Local rules

In New York, the requirements are different. Beginning with the 2020 Presidential Election, in order to qualify to be an official party in New York State, a political organization must have had a candidate on the ballot in the last presidential election who garnered a certain number of votes. There are currently four parties in New York State as so defined: outside the City of New York, a city, town, or village committee; and within the City of New York, an assembly district committee. Any committee provided for (defined) in the rules of a city, town, or village shall consist of all county committee members from that city, town, or village, and only such members. State committees must register and file campaign financial disclosure reports electronically with the NYSBOE using the EFS Web Application. Local committees must also register and file campaign financial disclosure reports electronically with the NYSBOE using the EFS Web Application. Please note that candidates for village office, and committees solely supporting or opposing candidates for village office or village ballot propositions, must register and file with the village clerk when the village clerk runs the election.

In addition, local committees support or oppose all other offices and local ballot propositions. An authorized single-candidate committee is the most commonly registered committee with the New York State Board of Elections. This committee is used when a candidate decides to form a committee to report its campaign financial activity. A Political Action Committee (PAC) is defined as a "committee that is not authorized by a candidate or candidates but which has a primary or incidental purpose of influencing the nomination or election of one or more candidates."

It is important to note that local candidates and committees should check with their local elections office or ethics agency to determine if there are additional local requirements and restrictions, such as contribution limits. For example, local candidates file their Form 501 with their local jurisdiction, while state candidates will file with the Secretary of State's office. All candidates and treasurers that anticipate reaching a certain threshold must file a Form 410 with the Secretary of State's office. Local candidates that must file a Candidate Form 700 will file with their local jurisdiction, while those running for state offices will file their Form 700 with the FPPC.

Frequently asked questions