Understanding Independent Spending: What, Why, And How?

what is independent spending

Independent spending refers to a political campaign communication that advocates for the election or defeat of a clearly identified political candidate without being made in cooperation with the candidate, their committee, or a political party. It is a type of expenditure that is not subject to amount limitations but may be subject to reporting requirements. Independent expenditures are typically funded by individuals, political committees, Super PACs, and corporations, among others. They are required to include a disclaimer identifying the person or organization paying for the communication and stating that it is not authorized by a candidate or their committee. The intent of the author is irrelevant, and the test is how a reasonable receiver interprets the message.

Characteristics Values
Definition An independent expenditure is an expenditure for a communication that expressly advocates for the election or defeat of a clearly identified political candidate and is not made in cooperation, consultation, or concert with a candidate, a candidate's authorized committee, or a political party.
Disclaimer Requirements All independent expenditures must include a federally mandated disclaimer identifying the person or organization paying for the communication and stating that the communication was not authorized by a candidate or candidate's committee. Printed communications must contain a printed box that is set apart from the contents of the communication, with sufficient type size and color contrast to be clearly readable.
Coordination Independent expenditures are not subject to amount limitations but may be subject to reporting requirements. However, there have been concerns and allegations of coordination between candidates and super PACs, with some arguing that FEC regulations are regularly flouted through the use of loopholes.
Examples Individuals, political committees, Super PACs, qualified nonprofit corporations (such as 501(c)(4)s), corporations, and labor unions are permitted to make independent expenditures. However, corporations, labor organizations, and individuals or businesses with federal government contracts are prohibited from doing so.
Enforcement There have been calls for a rethink of campaign finance laws due to the perception that candidates are disregarding campaign finance rules. However, the enforcement of these laws has been acknowledged as challenging, with limited likelihood of meaningful change in the near future.

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Independent expenditures are not subject to amount limitations

However, it is important to note that independent expenditures are still subject to certain regulations and requirements. For example, independent expenditures must include a disclaimer that identifies the person or organization paying for the communication and states that it was not authorized by a candidate or the candidate's committee. This disclaimer must be clearly readable and have a reasonable degree of color contrast between the background and the printed statement.

In addition, independent expenditures that are coordinated with a candidate or campaign may be considered in-kind contributions, which are subject to contribution limits. Campaign staff should be aware of the rules regarding "coordinated communications" to ensure that independent expenditures do not become in-kind contributions.

While there are no amount limitations on independent expenditures, there may be reporting requirements associated with them. For example, in the City of San Diego, any person or entity making $1,000 or more in independent expenditures is required to file documents disclosing their expenditures.

Despite the regulations surrounding independent expenditures, some have argued that loopholes exist and that coordination between candidates and independent expenditure groups occurs regularly. This has led to calls for a re-evaluation of campaign finance laws to address these concerns.

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Independent expenditures require a disclaimer

An independent expenditure is a political campaign communication that advocates for the election or defeat of a clearly identified political candidate without being made in cooperation with the candidate, their committee, or a political party. These expenditures are not subject to any amount limitations but are subject to reporting requirements.

All independent expenditures require a disclaimer. This disclaimer must identify who paid for the communication, whether it be an individual, group, committee, corporation, or labor organization. It must also state whether the communication was authorized by a candidate or candidate's committee. For example, a disclaimer could say: "Paid for by the Court Jesters Union PAC (www.jesterpac.net) and not authorized by any candidate or candidate's committee."

The disclaimer must be clearly readable by the recipient of the communication and have a reasonable degree of color contrast between the background and the printed statement. Printed communications must contain a printed box that is set apart from the contents of the communication, with a minimum font size of 12-point for newspapers, magazines, flyers, and signs. For larger communications, disclaimers will be judged on a case-by-case basis.

Additionally, each communication that would require a disclaimer if distributed separately must still display the disclaimer when included in a package of materials. For instance, if a campaign poster is mailed with a solicitation for contributions, a separate disclaimer must appear on both the poster and the solicitation.

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Corporations, labour organisations and individuals with federal government contracts may not make independent expenditures

An independent expenditure is a political campaign communication that advocates for the election or defeat of a clearly identified political candidate without being made in cooperation with or at the request of a candidate, a candidate's committee, or a political party. In other words, it is a type of campaign spending that is not directly coordinated with a specific candidate or political party. This type of spending has come under scrutiny in recent years, with some arguing that FEC regulations are regularly flouted and that a significant amount of independent expenditure is, in reality, coordinated.

The Federal Election Campaign Act prohibits corporations and labour organizations from making contributions in connection with federal elections. This includes independent expenditures. However, there are exceptions, as corporations and labour organizations may contribute to independent expenditure-only committees (Super PACs) and to non-contribution accounts maintained by Hybrid PACs. Additionally, a corporation or labour organization may pay the expenses of setting up and administering its own political committee, called a separate segregated fund (SSF or PAC).

Despite these regulations, there have been instances where the coordination between candidates and their allied super PACs has been questioned. For example, in 2014, Thom Tillis, a Republican US Senator, published a memo on his website outlining his campaign's advertising strategy, which was easily accessible to donors and "allied outsiders". In another instance, Jeb Bush faced scrutiny over his dealings with his Right to Rise super PAC, which paid for a television advert featuring his brother, former President George W. Bush, endorsing him.

In the context of the above discussion, it is clear that corporations, labour organizations, and individuals with federal government contracts are prohibited from making independent expenditures in connection with federal elections. This is to prevent undue influence and maintain the integrity of the electoral process. The regulations ensure that those with significant financial resources or government contracts cannot exert disproportionate influence over election outcomes.

It is important to note that while these entities may be restricted from making independent expenditures, they may still engage in other political activities, such as issue advocacy or lobbying, as long as they comply with relevant regulations.

The Role of a Political Campaign Manager

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Independent expenditures are made without any involvement from the candidate

An independent expenditure is a payment for a communication that expressly advocates for the election or defeat of a clearly identified political candidate. It is not made in cooperation, consultation or agreement with a candidate, their authorized committee, or a political party. In other words, independent expenditures are made without any involvement from the candidate or their agents.

For example, if a person gives a certain amount of money to a candidate, this is considered a contribution, and the candidate may use this money for advertising, flyers, billboards, or anything else they choose. If a person spends money on advertising to support a candidate but does so independently of the candidate, it is considered an independent expenditure.

Independent expenditures are not subject to any amount limitations, and individuals, political committees, Super PACs, and qualified nonprofit corporations are permitted to make them. However, corporations, labor organizations, and individuals or businesses with federal government contracts are prohibited from making independent expenditures.

It is important to note that all independent expenditures require a disclaimer. This disclaimer must identify the person or organization paying for the communication and state that it was not authorized by a candidate or their committee. This ensures transparency and allows the public to understand the source of the expenditure.

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Independent expenditures can be used to support or oppose a ballot measure

An independent expenditure is a payment for a communication that expressly advocates for the election or defeat of a clearly identified political candidate. This is done without cooperation, consultation, or collaboration with the candidate, their committee, or a political party. In other words, it is a way for individuals or groups to spend money on political advertising without being directly tied to a specific candidate or party. This can include advertisements through websites, digital devices, applications, advertising platforms, newspapers, TV, or direct mail.

Independent expenditures are not subject to the same limitations as regular campaign expenditures. There are generally no limits on the amount an individual or group may spend on independent expenditures. However, they are subject to specific reporting and disclaimer requirements. For example, printed communications must contain a printed box with a disclaimer that is clearly readable and has sufficient colour contrast.

While independent expenditures are typically associated with supporting or opposing a candidate, they can also be used to support or oppose a ballot measure. In this context, an independent expenditure is a payment for a communication that expressly supports or opposes a ballot measure without being made at the behest of a committee primarily formed to support or oppose that measure. Any person or entity can make an independent expenditure to support or oppose a ballot measure.

For example, in the City of San Diego, committees may collect contributions from individuals and non-individual entities (such as business entities and non-profit organizations) to use for independent expenditures that support or oppose a City ballot measure. These committees can then make independent expenditures to support or oppose the ballot measure directly. This allows individuals and organizations to have a direct financial impact on the political process, regardless of the candidate or measure involved.

Frequently asked questions

An independent expenditure is a payment for a communication that expressly advocates for the election or defeat of a clearly identified political candidate and is not made in cooperation or consultation with a candidate, their committee, or a political party.

A candidate is "clearly identified" if their name, nickname, photograph, or drawing appears, or if the identity of the candidate is otherwise apparent through an unambiguous reference, such as "the President" or "your Congressman."

While individuals, political committees, Super PACs, and qualified nonprofit corporations are permitted to make independent expenditures, federal government contractors and foreign nationals are prohibited from doing so.

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