Eleanor Finch
Political campaigns rely on contributions from various sources, including individuals, to fund their operations and promote their candidates. To ensure fair practices and limit the influence of money in politics, contribution limits are imposed on campaigns at different levels of government. These limits vary depending on factors such as the office being sought, the committee receiving the contributions, and the contributor's identity. The rules surrounding contribution limits can be complex, with specific regulations for different entities, such as corporations, political action committees (PACs), and individuals. Understanding these limits is crucial for maintaining transparency and preventing undue influence in the political process.
| 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 on which the committee obtains the contributor's authorization of the transaction. |
| In-kind contributions | The date of receipt is the date the goods or services are provided to the committee. |
| Federal candidates and political parties | The contribution limits for individuals giving to federal candidates and political parties have been increased. |
| State campaign contribution limit | As of January 1, 2021, a state campaign contribution limit applies by default to city and county candidates when the city or county has not enacted laws addressing contribution limits. |
| State committees | May receive contributions in excess of the limits as long as they are not used for state candidate contributions. |
| State candidate or state officeholder contribution limit | A state candidate or state officeholder may not contribute more than $5,900 to another state candidate or state officeholder's committee. |
| New York State Election Law | Places aggregate calendar year limits on the amount of political contributions that can be made by corporations, LLCs, and PLLCs to New York State candidates and committees. |
| Individual contributions | Individuals may give up to the limit for each election in which the candidate participates. |
| Independent-expenditure-only political committees | May accept unlimited contributions, including from corporations and labor organizations. |
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What You'll Learn
Federal Election Commission (FEC) rules
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 give to candidates running for federal office. The FEC also sets campaign contribution limits for individuals and groups.
FECA applies to all types of contributions, except those made from a candidate's personal funds. Campaigns are prohibited from retaining contributions that exceed the limits. If a campaign receives excessive contributions, it must follow special procedures for handling the funds. The date a contribution is made determines whether the rule will apply, while the date of receipt governs whether the contribution is acceptable under the rule. All contributions must be deposited within 10 days.
The FEC rules state that the limits on contributions to candidates apply separately to each federal election in which the candidate participates. A primary, general, runoff, and special election are each considered separate elections with separate limits. Presidential campaigns should note that all presidential primary elections held during a calendar year are considered one election for contribution limit purposes.
The FEC also provides rules for contributions to publicly funded presidential nominees' "General Election Legal and Compliance Fund (GELAC Fund)". Gifts to GELAC funds are considered contributions and are subject to per-candidate, per-election limits. Contributions to an individual to further their selection as a delegate to a national nominating convention or any state or local convention are not subject to any amount limitation.
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State-level contribution limits
As of January 1, 2021, in states like California, a state campaign contribution limit applies by default to city and county candidates when the city or county has not enacted its laws regarding contribution limits. The contribution limits for state-level offices differ from those for federal offices and are often more complex due to the varying rules and regulations in different states.
State committees, including political parties and Political Action Committees (PACs), may receive contributions exceeding the specified limits, provided they are not used for state candidate contributions. For example, a state candidate or state officeholder in California cannot contribute more than $5,900 to another state candidate's committee or officeholder account. This limit includes contributions from personal funds and campaign funds and applies per election.
It is important to note that contribution limits for officeholders and other committees are imposed annually, while limits for candidates apply to each election, including primary, general, special, and special runoff elections. Additionally, the date a contribution is made and received is crucial, as it determines whether certain rules apply and whether the contribution complies with the regulations.
While the Federal Election Commission (FEC) sets limits for federal elections, state-level contribution limits are determined by each state's laws and regulations. These limits aim to ensure fair and transparent political campaigns, preventing undue influence from large donors and promoting equal opportunities for candidates.
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Local-level contribution limits
In the context of local elections, individuals are typically the primary source of campaign contributions. These donors can include residents of the local community, business owners, and other interested parties who want to support a particular candidate or cause. By contributing financially, individuals can show their support and help the campaign cover various expenses, such as advertising, staff salaries, and event organizing.
The specific local-level contribution limits can vary widely depending on the jurisdiction. For example, in some small towns or municipalities, contribution limits may be relatively low, ranging from a few hundred to a few thousand dollars per individual donor. In contrast, larger cities or counties may have higher contribution limits to account for the increased cost of campaigning in a more extensive geographic area.
It's worth noting that local-level contribution limits may also differ based on the specific office being sought. For instance, a city council race may have a lower contribution limit compared to a mayoral election, reflecting the differing scales and costs associated with each campaign. Additionally, some jurisdictions may impose aggregate limits on contributions, capping the total amount an individual can donate to all candidates or committees within a specific time frame.
To ensure compliance with local-level contribution limits, campaigns must carefully track and report all incoming donations. This includes recording the date of receipt, which is the date the campaign actually receives the contribution, and maintaining proper documentation for electronic contributions, such as credit card transactions. In-kind contributions, which are non-monetary donations of goods or services, are also subject to contribution limits and must be properly valued and reported. By adhering to these regulations, campaigns can maintain transparency and avoid penalties for exceeding contribution limits.
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Political Action Committees (PACs)
There are two main types of PACs: connected PACs and non-connected PACs. Connected PACs, also known as corporate PACs, are established by businesses, non-profits, labour unions, trade groups, or health organizations. They receive and raise money from a restricted class, typically consisting of managers and shareholders in corporations or members in non-profits, labour unions, or other interest groups. Non-connected PACs, on the other hand, are formed by groups with ideological missions, single-issue groups, and members of Congress or other political leaders.
In addition to these two types, judicial decisions have led to the emergence of a third classification: independent expenditure-only committees, commonly known as "super PACs". Super PACs can raise and spend unlimited amounts of money from individuals, corporations, unions, and other groups. However, they are not allowed to coordinate with or contribute directly to candidate campaigns or political parties. Instead, they focus on independent expenditures, such as ads overtly advocating for or against political candidates.
The amount of money that PACs can donate and receive is regulated by the Federal Election Commission (FEC). As of 2022, PACs could give up to $5,000 to a candidate committee per election and up to $15,000 annually to a national party committee. They could also receive up to $5,000 from any one individual, PAC, or party committee per calendar year. These limits are adjusted periodically to keep pace with inflation.
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Designated and undesignated contributions
In the United States, the Federal Election Commission (FEC) regulates the contribution limits for individuals giving to federal candidates, political parties, and committees. These limits are updated every two years to account for inflation.
Undesignated contributions, on the other hand, are not specified for a particular election. They are automatically counted against the donor's contribution limit for the candidate's next election. For example, an undesignated contribution made after a candidate has won the primary but before the general election would count towards the contribution limit for the general election.
The date a contribution is made and the date it is received are significant for determining which election the contribution applies to and whether it complies with the contribution rules. For instance, a contribution designated for the primary but received after the primary is only acceptable if there are outstanding net debts for that primary election.
It is important to note that campaigns are prohibited from retaining contributions that exceed the specified limits and must follow special procedures in handling such funds.
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Frequently asked questions
The contribution limit for individuals donating to political campaigns varies depending on the location and the office being sought. For example, in New York, there is a limit on the amount that can be given by individuals, whereas at a federal level, there is no longer an aggregate limit on how much an individual can give.
In New York, corporations are limited to contributing a total of $5,000 in a calendar year to a political campaign. This limit does not apply to funds given to housekeeping, independent expenditure, or ballot proposition committees.
Campaigns are prohibited from retaining contributions that exceed the limit. If a campaign does receive excessive contributions, it must follow special procedures for handling the funds.
