Malcolm Rivera
Campaign financing is a critical aspect of any political campaign, and setting up a robust financial structure is essential for compliance with legal requirements. In Illinois, campaign finance requirements are outlined in Article 9 of the Election Code, and understanding these regulations is crucial for candidates and their committees. From disclosure obligations to monetary thresholds, the rules governing campaign finances are stringent. This introduction will explore the key considerations for establishing campaign financing in Illinois, including reporting, permissible expenses, and potential penalties for non-compliance.
| Characteristics | Values |
|---|---|
| Monetary threshold for disclosure obligations | $5,000 in a 12-month period |
| Threshold for electronic reporting to the Illinois State Board of Elections | $1,000 |
| Time limit for reporting contributions over $1,000 | 2 days |
| Time limit for reporting expenditures over $1,000 | 5 days |
| Time limit for notifying the Illinois State Board of Elections of changes to the Statement of Organization | 10 days |
| Maximum monetary penalty per violation | $5,000 |
| Requirements for raffles | A raffle license must be obtained from the State Board of Elections, and a "Raffle Report" must be filed after |
| Requirements for Statement of Organization | Must be signed, dated, and verified by the candidate, including name, address, and type of political committee, party affiliation, purpose, name and address of officers, sponsoring entities, and statement on how committee plans to dispose of extra funds |
| Requirements for funding sources | Corporate funding of independent political broadcasts in candidate elections is not limited, but contributions directly to candidates are subject to limits |
| Prohibited expenditures | Clothing or personal laundry, tuition or educational expenses (unless related to governmental duties), purchase of a motor vehicle (unless more cost-effective than leasing) |
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What You'll Learn
Monetary thresholds for disclosure obligations
Political campaigns in Illinois are subject to various finance requirements and disclosure obligations. The source of these campaign finance disclosure requirements is Article 9 of the Election Code.
Monetary thresholds are a key factor in determining whether a campaign has financial disclosure filing obligations. Any candidate, individual, or group of persons who 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 is subject to disclosure obligations.
The Illinois State Board of Elections must be notified of any changes to the original Statement of Organization within 10 days of implementing them. The Statement of Organization must be signed, dated, and verified by the candidate. It must include the name, address, and type of political committee, with the candidate designating it as a candidate political committee. Additionally, the statement must include the party affiliation and purpose of the committee, as well as the name and address of each officer, such as the chairman and treasurer, responsible for financial accounts.
Furthermore, if contributions exceeding $1,000 are received, an electronic report must be filed with the Illinois State Board of Elections within two days. Similarly, if expenditures of $1,000 or more are made, an electronic report must be filed within five days. Copies of all reports must be maintained by the filing parties for a minimum of two years.
It is important to note that the Election Code imposes various monetary penalties of up to $5,000 for each violation. Candidates must be aware that they risk ballot forfeiture if their political committee fails to pay a civil penalty.
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Reporting large contributions and expenditures
Political campaigns in Illinois are subject to various finance disclosure requirements, which are detailed in Article 9 of the Election Code. One of the primary obligations is the disclosure of large contributions and expenditures.
Any candidate, individual, or group of persons who 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 is required to disclose this information. This is done by filing an electronic report with the Illinois State Board of Elections. If contributions of over $1,000 are received, this report must be filed within two days of receipt. The report must be filed within five days for expenditures of $1,000 or more. These reports must be maintained by those responsible for filing them for a period of two years.
It is important to note that the commingling of personal and campaign monies is prohibited. To avoid this, separate accounts should be maintained, which also aids in the committee's record-keeping and financial reporting obligations. A political committee must list the financial institutions where its funds are held, and this information is included in the D-1 form.
The D-1 form also requires the committee to indicate how residual funds will be disbursed in the event of the committee's dissolution or termination. Committees often choose to transfer these funds to a charitable organization. Additionally, committees should be mindful of the various prohibited expenditures outlined in the Election Code. These include purchases in violation of any law, purchases clearly above fair market value, and payments for anything other than compensation for services rendered.
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Statement of Organization
When setting up a political campaign in Illinois, one of the first steps is to file a Statement of Organization. This is a crucial document that outlines the structure and purpose of your campaign committee, and any changes to the information must be reported to the Illinois State Board of Elections within 10 days of the change being made.
The Statement of Organization must include the following information:
- Name, address, and type of political committee: In this case, the candidate would designate it as a "candidate political committee."
- Party affiliation and purpose of the committee: This includes information on whether the committee is supporting a specific candidate or a particular issue/referendum.
- Name and address of each committee officer: This includes positions such as chairman and treasurer, as well as any other members responsible for financial accounts.
- Sponsoring entities: Any entity that contributes more than 33% of the committee's total funds is considered a sponsoring entity and must be named, along with their address.
- Financial institutions: A list of the financial institutions where the committee's money is held must be provided.
- Fund disbursement: The committee must state how any extra funds will be disposed of upon the committee's termination.
It is important to note that the Statement of Organization must be signed, dated, and verified by the candidate. Additionally, any monetary contributions or expenditures over $1,000 must be reported to the Illinois State Board of Elections within two to five days, respectively. These reports must be maintained by the filing parties for a period of two years.
To ensure compliance with Illinois law, it is recommended to consult "A Guide to Campaign Disclosure," published by the Illinois State Board of Elections, which provides in-depth information on campaign disclosure requirements.
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Permitted and prohibited uses of funds
Political campaigns in Illinois are subject to various finance requirements, and there are strict rules on permitted and prohibited uses of funds.
Firstly, it is important to note that there must be no commingling of personal and campaign funds—these must be kept separate. A political committee must list the financial institutions where its money is held, and this is included in the D-1 form. The D-1 form also requires the committee to outline how any residual funds will be disbursed in the event of the committee's dissolution or termination. Committees often decide to transfer these funds to a charitable organisation.
There are several prohibited uses of funds. Campaign funds cannot be used for any purchases that are in violation of the law, or for purchases that are clearly in excess of fair market value. Funds cannot be used to pay anyone unless it is for compensation for services rendered. Campaign funds also cannot be used for clothing or personal laundry expenses. An exception to this is that clothing can be rented for the candidate's use for a specific campaign-related event. Funds cannot be used for tuition or educational expenses unless they are directly related to a candidate or public official's governmental duties. Campaign funds cannot be used to purchase a motor vehicle unless the committee can demonstrate that it is more cost-effective than leasing.
There are some nuanced exceptions to these rules, and it is recommended that committees study the list of prohibited expenditures and seek legal advice for any uncertain situations.
In terms of reporting, any contributions of over $1,000 must be reported to the Illinois State Board of Elections within two days of receipt. Expenditures of $1,000 or more must be reported within five days. These reports must be maintained by the filing party for a period of two years.
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Raffles as a fundraising method
Raffles are a popular fundraising method, second only to fundraising events. They are a great way to raise money for your nonprofit organisation. They are chance-based contests in which participants compete to win exciting prizes. All that is required to participate is a ticket with a number on it.
When setting up a raffle, it is important to plan and set clear goals for what you want to achieve. You should also consider how many tickets you hope to sell and the minimum donation for each ticket. Raffles can be run for at least a month before winners are announced to build momentum. You can also hold a live drawing and livestream the event.
To make your raffle exciting, you must offer enticing prizes. You can approach local businesses, vendors, major donors, or foundations for donations. You can also use modern-day fundraising technology to expand your raffle options and reach more potential donors. For example, you can sell tickets online and pick raffle winners electronically. Using event ticketing software can also create a one-stop shop for attendees to register, purchase tickets, donate, and bid on items.
It is also important to promote your raffle to get your constituency excited to buy as many tickets as possible. Printed tickets can be a visually appealing way to advertise your raffle and can also serve as a memento for special events. Word of mouth, email, online advertising, and traditional advertising are all popular methods of promotion.
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Frequently asked questions
The first step is to consult "A Guide to Campaign Disclosure", published by the Illinois State Board of Elections. This resource will outline the requirements and restrictions on campaign financing in the state.
Funds cannot be used for any illegal purchases, or for anything clearly above fair market value. They also cannot be used for personal expenses like clothing, laundry, or tuition fees. There are some nuanced exceptions to these rules, so it is important to seek legal advice.
If contributions of over $1,000 are received, an electronic report must be filed with the Illinois State Board of Elections within two days. For expenditures of $1,000 or more, a report must be filed within five days. These reports must be maintained for a period of two years.
Monetary penalties of up to $5,000 can be imposed for each violation. Candidates may also face ballot forfeiture if their committee has not paid a civil penalty.
