Malcolm Rivera
The Federal Election Campaign Act of 1971 (FECA) enforces limits on the amount of money individuals and political organizations can donate to a candidate running for federal office. These limits are updated every two years to account for inflation. While candidates can spend their own money on campaigns without limit, they must report the amount spent to the Federal Election Commission (FEC). Independent-expenditure-only political committees, or Super PACs, can accept unlimited contributions, including from corporations and labor organizations.
Characteristics and Values:
| Characteristics | Values |
|---|---|
| Date of contribution | The date of receipt is the date used for reporting purposes and affects the application of the net debts outstanding rule. |
| Electronic contributions | The date of receipt is the date of the committee's obtaining the contributor's transaction authorization. |
| In-kind contributions | The date of receipt is the date the goods or services are provided, even if the contributor pays after they are provided. |
| Limits on contributions by persons to candidates | $3,300 per election, per candidate |
| Limits on contributions by persons to national party committees | $41,300 per calendar year |
| Limits on contributions by political party committees to Senate candidates | $57,800 per campaign |
| Limits on contributions by individuals to federal candidates and political parties | Indexed to inflation every two years |
| Limits on contributions by individuals to all candidates, PACs, and party committees combined | No longer any aggregate limit |
| Independent-expenditure-only political committees (Super PACs) | May accept unlimited contributions, including from corporations and labor organizations |
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What You'll Learn
Federal Election Campaign Act of 1971
In the United States, the Federal Election Campaign Act of 1971 (FECA) is the primary federal law regulating political campaign fundraising and spending. The legislation was adopted to regulate the raising and spending of money in US federal elections. It imposed restrictions on the amounts of monetary or other contributions that could be made to federal candidates and parties.
The Act introduced limits on campaign expenditures for broadcast media, newspaper advertisements, and telephone calls. For instance, spending on broadcast media was limited to 60% of the campaign's total spending limitation. It also mandated the disclosure of contributions and expenditures in campaigns for federal office.
FECA also banned certain corporate and union contributions, speech, and expenditures. It was the first legislation to regulate corporate and union spending in campaigns for federal office. The Act was amended in 1974 following the Watergate scandal, and again in 1976 after the Supreme Court struck down several provisions as unconstitutional in Buckley v. Valeo.
In 1979, the FEC ruled that political parties could spend unregulated or "soft" money on non-federal administrative and party-building activities. This led to a substantial increase in soft money contributions and expenditures in elections. To address this, the Bipartisan Campaign Reform Act of 2002 ("BCRA") banned soft money expenditures by parties. BCRA also changed some of the legal limits on giving "hard money".
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Limits on donations from individuals
The Federal Election Commission (FEC) enforces the Federal Election Campaign Act of 1971 (FECA), which limits the amount of money individuals and political organisations can donate to a candidate running for federal office. These contribution limits are updated every two years and are indexed to inflation.
The FEC strongly recommends that campaigns encourage contributors to designate their contributions for specific elections. Designated contributions ensure that the contributor's intent is conveyed to the candidate's campaign. In the case of contributions from political committees, written designations also promote consistency in reporting and avoid the possible appearance of excessive contributions. If a campaign receives excessive contributions, it must follow special procedures for handling such funds.
The date of receipt is the date the campaign (or a person acting on its behalf) receives the contribution. This date is used for reporting purposes and affects the application of the net debts outstanding rule. All contributions must be deposited within 10 days, although the date of deposit is not used for reporting or contribution limit purposes.
The inflation-adjusted limits for 2023-2024 are as follows: individuals can contribute up to $3,300 per election, per candidate; $41,300 to national party committees per calendar year; and political party committees can contribute up to $57,800 to Senate candidates per campaign.
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Limits on donations to national party committees
In the United States, the Federal Election Campaign Act (FECA) of 1971 places limits on the amount of money individuals and political organisations can donate to candidates running for federal office. The Federal Election Commission (FEC) enforces this act, which applies to all types of contributions except those made from a candidate's personal funds.
FEC rules outline that a national party committee and its Senatorial campaign committee may contribute up to $62,000 combined per campaign to each Senate candidate. A national party committee's accounts are subject to limits for the following:
- The presidential nominating convention
- Election recounts and contests, and other legal proceedings
- National party headquarters buildings
Each of a party's national committee, Senate campaign committee, and House campaign committee is considered a separate national party committee with separate limits.
A party committee may establish a separate recount fund to conduct recount activities in support of the party's federal candidate. While these are not considered contributions under the Act, any funds solicited, received, or spent in connection with a recount are subject to the amount limitations, source prohibitions, and reporting requirements of the Act.
The FEC also outlines that a contribution from a partnership counts against the partnership's limit and also counts proportionally against the limits of each participating partner.
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Independent-expenditure-only political committees
In the United States, there are limits on donations to political campaigns. The Federal Election Campaign Act of 1971 (FECA) limits the amount of money individuals and political organisations can give to a candidate running for federal office. The Federal Election Commission (FEC) enforces FECA, which places certain contribution limits indexed for inflation every two years. The inflation-adjusted limits for 2023-2024 are: $3,300 per election, per candidate for contributions made by persons to candidates; $41,300 per calendar year for contributions made by persons to national party committees; and $57,800 per campaign for contributions made by certain political party committees to Senate candidates.
Super PACs are prohibited from donating directly to a political campaign or party and must operate independently. They can, however, express support or opposition to a candidate through communications such as advertisements on websites, digital devices, applications, advertising platforms, newspapers, TV, or direct mail. These communications must not be made in coordination with any candidate, their campaign, or a political party. The FEC provides a three-pronged test to determine whether a communication is coordinated, which includes examining the content of the communication, the conduct of the person paying for it, and the context of the overall facts and circumstances.
While Super PACs can accept unlimited contributions, there are still rules in place regarding the sources of these contributions. For example, a Super PAC cannot accept contributions from foreign nationals or federal contractors. Additionally, if a Super PAC receives excessive contributions, it must follow special procedures for handling such funds, as outlined by the FEC.
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Reporting and consistency
Reporting Requirements for Campaigns:
Political campaigns are required to report contributions they receive. The date of receipt is crucial, as it determines the applicability of rules and the acceptance of contributions under the relevant regulations. Campaigns must use the date of receipt for reporting purposes, and this date also impacts the net debts outstanding rule. The date of receipt for electronic contributions is the date of the committee's authorisation of the transaction, and the treasurer should maintain records that associate the contribution with its deposit. In-kind contributions are recorded on the date the goods or services are provided, regardless of when the bill is paid.
Consistency in Reporting:
Consistency in reporting is essential to avoid the appearance of excessive contributions. Written designations for contributions from political committees help maintain consistency and ensure compliance with contribution limits. Designating contributions for specific elections is recommended, as it conveys the donor's intent and helps track contributions against the donor's limits for that particular election. Undesignated contributions are counted against the donor's limits for the candidate's next election.
Inflation Adjustments:
The Federal Election Commission (FEC) updates contribution limits periodically to account for inflation. These adjustments are made every two years, based on the change in the cost of living since 2001, with per-election limits effective for the two-year election cycle.
Handling Excessive Contributions:
Campaigns are prohibited from retaining contributions that exceed the limits. If a campaign receives excessive contributions, it must follow specific procedures to handle such funds. These procedures ensure that campaigns do not benefit from contributions beyond the permitted limits.
Disclosure Requirements:
The Federal Election Campaign Act (FECA) mandates that candidates for president, Senate, and the House of Representatives disclose the names of individuals and organisations contributing to their campaigns, along with the amounts donated. This disclosure requirement enhances transparency and allows the public to trace the sources of campaign funding.
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Frequently asked questions
Yes, the Federal Election Campaign Act of 1971 (FECA) limits the amount of money individuals and political organizations can donate to a candidate running for federal office.
The contribution limits for 2023-2024 are: $3,300 per election, per candidate for contributions made by persons to candidates; $41,300 per calendar year for contributions made by persons to national party committees; and $57,800 per campaign for contributions made by certain political party committees to Senate candidates.
Yes, independent-expenditure-only political committees, also known as "Super PACs", may accept unlimited contributions, including from corporations and labor organizations. Additionally, candidates can spend their own personal funds on their campaigns without limit, but they must report the amount they spend to the Federal Election Commission.
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.
