Malcolm Rivera
Political campaigns are financed by a variety of sources, including individual donors, corporations, trade associations, labour unions, nonprofits, and advocacy groups. In the US, the Federal Election Commission (FEC) maintains a database of individuals who have contributed to federally registered political committees, with donations of $200 or more being a matter of public record. Other organizations such as OpenSecrets provide additional insights into the flow of money in American politics, tracking donations from industries, special interest groups, and dark money organizations. With the rise of conscious consumers, particularly among millennials, there is an increasing demand for transparency in political donations, as individuals seek to align their spending with their social and political values.
| Characteristics | Values |
|---|---|
| Donor information | Federal law prohibits the use of donor information for soliciting contributions or for any commercial purpose. |
| Minimum donation amount | $200 |
| Donor details | Name, address, and employer |
| Donor search | Search by donor's name, candidate or organization, amount, and date of donation |
| Donor type | Individuals, partnerships, Political Action Committees (PACs), corporations, labor organizations, federal government contractors, foreign nationals, minors |
| Donor affiliations | State or federal candidates, political parties |
| Donor restrictions | Incorporated charitable organizations, federal government contractors, foreign nationals |
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What You'll Learn
Federal Election Commission (FEC)
The Federal Election Commission (FEC) enforces federal campaign finance laws, including monitoring donation prohibitions, limits, and overseeing public funding for presidential campaigns. The FEC maintains a database of individuals who have made contributions to federally-registered political committees.
The FEC website allows users to search for individual contributors by their first and/or last name, employer or occupation, city, state, and/or zip code, the date of the contribution, and the amount of the contribution. The FEC also provides information on contribution limits, which vary depending on the type of election (primary, general, runoff, or special) and the source of the contribution (individual, corporation, labor organization, etc.). For example, an individual may contribute up to a certain limit to a publicly funded presidential primary candidate, but only a maximum of $250 of each individual's contribution is counted towards federal matching funds.
In addition to limits, the FEC also outlines prohibitions on contributions. For example, incorporated charitable organizations are prohibited from making contributions in connection with federal elections, and campaigns may not accept or solicit contributions from federal government contractors or foreign nationals.
The FEC also provides guidance on the designation of contributions, recommending that campaigns encourage contributors to designate their contributions for specific elections. This helps to ensure that the contributor's intent is clear and promotes consistency in reporting to avoid the appearance of excessive contributions.
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Political Action Committees (PACs)
The first PAC, the CIO-PAC, was formed in 1943 by the Congress of Industrial Organizations (CIO) under CIO president Philip Murray and headed by Sidney Hillman. It was established after the U.S. Congress prohibited unions from making direct contributions to political candidates. The formation of the CIO-PAC marked a shift in campaign financing, as it allowed labor unions to directly influence political campaigns.
There are several types of PACs, including connected PACs, non-connected PACs, Super PACs, and hybrid PACs. Connected PACs, also known as corporate PACs, are established by businesses, non-profits, labor unions, trade groups, or health organizations. They receive and raise money from a "restricted class," generally consisting of managers and shareholders in the case of corporations or members in the case of non-profit organizations, labor unions, or other interest groups. Non-connected PACs, on the other hand, are not sponsored by or connected to any specific entity and can solicit contributions from the general public.
Super PACs, officially known as independent expenditure-only political committees, can receive unlimited contributions from individuals, corporations, unions, and other groups. However, they are prohibited from contributing directly to candidates or political parties. Instead, they can spend their funds on independent expenditures, such as ads advocating for or against political candidates. Hybrid PACs, also known as Carey Committees, are similar to Super PACs but can give limited amounts of money directly to campaigns while still making unlimited independent expenditures.
PACs play a significant role in American politics, with their influence and spending increasing over the years. In the 2020 election cycle, PACs spent more than $4.2 billion, with Super PACs accounting for over $2.2 billion of that total. The rise of Super PACs has driven a large part of the increase in PAC spending.
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Corporations and charities
Incorporated charitable organizations are prohibited from making contributions in connection with federal elections, just like other corporations. Charities, however, face additional restrictions on political activity under the provisions of the Internal Revenue Code. For instance, campaigns may not accept or solicit contributions from federal government contractors.
There are also some exceptions to the rule. For example, funds from a corporate separate segregated fund are permissible. Similarly, funds from a separate segregated fund of labor organizations are also allowed.
There are several organizations that track the flow of money in American politics and provide data and analysis on the same. One such organization is OpenSecrets, which has been operating since 1983 with the help of grants from private foundations, contributions from individuals, and revenue from research fees and data contracts. OpenSecrets offers access to state and federal datasets on political contributions, expenditures, personal financial disclosures, candidate lists, and lobbying activities.
Another such organization is FEC or the Federal Election Commission, which maintains a database of individuals who have made contributions to federally registered political committees. FEC also provides information on the various contribution prohibitions and limitations. For example, in past advisory opinions and enforcement cases, the FEC has determined that an unincorporated tribal entity can be considered a "person" under the Federal Election Campaign Act and is thus subject to the various contribution prohibitions and limitations.
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Foreign and federal donations
Federal law prohibits contributions, donations, expenditures, and disbursements made directly or indirectly by foreign nationals in connection with any federal, state, or local election. This includes advances of personal funds, contributions or donations made to political party committees and organizations, and contributions or disbursements to make electioneering communications. Foreign nationals are also prohibited from participating in decisions involving election-related activities.
The Federal Election Commission (FEC) maintains a database of individuals who have made contributions to federally registered political committees. The database can be searched by the individual contributor's first and/or last name, employer, occupation, city, state, zip code, date of contribution, and amount contributed. The FEC also sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections.
While contributions from foreign nationals are prohibited, domestic subsidiaries of foreign corporations may donate to state and local elections. Additionally, state PACs, unregistered local party organizations, and non-federal campaign committees may, under certain circumstances, contribute to federal candidates, provided that the funds come from permissible sources under the Act.
Candidates for federal office, such as the president, Senate, and House of Representatives, are required to report the names of individuals and organizations contributing to their campaigns, the amounts contributed, and how the funds are spent. They can spend their own personal funds on their campaigns without limits, but they must disclose the amounts spent to the FEC.
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State and federal elections
Political campaigns are largely funded by contributions, which are defined as anything of value given, loaned, or advanced to influence a federal election. These contributions are subject to rules and regulations, such as contribution limits, and prohibitions on certain entities from making contributions.
The Federal Election Commission (FEC) maintains a database of individuals who have made contributions to federally registered political committees. The public can search this database by an individual contributor's name, employer, occupation, location, contribution date, or amount.
There are different types of contributions, such as in-kind contributions, which are non-monetary contributions like goods or services, and earmarked contributions, where the contributor specifies a particular candidate or committee. Contributions can also come from political committees, which may be authorized or unauthorized by a candidate, and can include campaign-to-campaign contributions.
For state and federal elections, there are specific regulations in place regarding who can contribute and how much they can give. State PACs (Political Action Committees), unregistered local party organizations, and non-federal campaign committees may contribute to federal candidates, but the funds must come from permissible sources as outlined in the Federal Election Campaign Act. Additionally, independent-expenditure-only political committees, or "Super PACs," can accept unlimited contributions from various entities, including corporations and labor organizations.
It is important to note that contributions from certain sources are prohibited for state and federal elections. For example, federal law prohibits contributions from foreign nationals in connection with any federal, state, or local election. Similarly, charitable organizations and federal government contractors are prohibited from making contributions in connection with federal elections, with charities facing additional restrictions on political activity.
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Frequently asked questions
There are several resources available that offer insight into which political causes the executives of your favourite companies have donated to. For example, Goods Unite Us is a free mobile app that allows users to search for a company and learn about which political parties and candidates senior employees have donated to. Additionally, OpenSecrets is a website that displays state campaign finance data.
By law, campaigns and political action committees must disclose the personal details of individuals who donate $200 or more, including their names, addresses, and employers. The Federal Election Commission website has a tool to search these individual contributions by the donor's name to find information about what candidate or organization they gave to, along with the amount and date of the donation.
Yes, there are several restrictions on who can donate to political campaigns. For example, federal law prohibits contributions, donations, expenditures, and disbursements from foreign nationals in connection with any federal, state, or local election. Additionally, incorporated charitable organizations are prohibited from making contributions in connection with federal elections, and campaigns may not accept or solicit contributions from federal government contractors.
