Contribution limits and the people they are attributed to, committees and when a group becomes one, independent expenditures and the line against coordination, disclaimers on political advertising, foreign national prohibitions, corporate and union treasury money, reporting schedules, and the enforcement that follows a complaint.
A group becomes a federal political committee when it receives contributions or makes expenditures above a statutory threshold in a calendar year. Courts have narrowed that trigger for groups engaged in other activity by requiring that federal campaign activity be the organization's major purpose. Crossing the line compels registration, a treasurer, segregated funds, contributor records and periodic reporting, and the duties run from the crossing rather than from registration.
A federal contribution is any gift, subscription, loan, advance or deposit of money or anything of value made to influence an election for federal office. The definition captures goods and services supplied at no charge or below the usual charge, loans and loan guarantees, and payments made to third parties on a committee's behalf. Narrow statutory exemptions remove volunteer time, certain uses of personal property and some vendor practices from the definition.
A federal campaign finance enforcement matter opens on a sworn complaint, an internally generated referral or a referral from another agency. The respondent is notified and may respond in writing before any finding. The Commission then votes on whether there is reason to believe a violation occurred, may investigate, votes again on probable cause after a brief from the General Counsel and a reply, and must attempt conciliation before authorizing suit.
Federal committees file on a schedule determined by their type and by the election cycle. Authorized committees elect between quarterly and monthly filing in an election year; other committees follow their own sequence. Reports covering a period before an election are due on a compressed deadline, and post-election reports close the cycle. Each report states cash on hand at both ends of a defined period, itemizes receipts and disbursements above the threshold, and lists outstanding debts.
A committee that receives a contribution exceeding an applicable limit must resolve it within a defined period. It may refund the excess, redesignate it to another election in which the candidate participates, or reattribute it to a contributor with authority over the funds. Redesignation and reattribution each require a written instruction signed by the contributor. The committee must keep funds sufficient to cover the excess while the question is open, and each disposition is disclosed.
Federal law bars several categories of money from campaigns regardless of amount. Foreign nationals may not contribute or donate, directly or indirectly, in connection with any federal, state or local election. Federal contractors may not contribute from their own funds during the contract period. National banks, corporations and labor organizations may not make contributions from treasury funds, though separate segregated funds and certain independent spending stand outside that bar.
Federal contribution limits apply per election and per contributor, with the primary and the general treated as separate elections. Certain limits are adjusted for inflation by reference to a price index; others are fixed by statute and do not move. Attribution rules assign a payment to the individuals behind an entity account, to the signer of a joint account absent written instruction, and to a single limit shared across affiliated committees.
A communication is coordinated where three conditions hold together: it is paid for by someone other than the candidate or party, it satisfies one of the defined content standards, and it satisfies one of the defined conduct standards. Failing any prong takes the communication outside the rule. A coordinated communication is an in-kind contribution to the candidate or party with which it was coordinated, and is subject to the limits and source prohibitions.
Federal law bars making a contribution in the name of another person, knowingly permitting one's name to be used to effect such a contribution, and knowingly accepting one. The provision reaches any arrangement in which the true source of the money is concealed from the disclosure record, including reimbursement of an employee or associate after the fact. Liability attaches to all three roles, and knowing and willful conduct above a threshold carries criminal exposure.
Public communications by political committees, and communications by anyone that expressly advocate or solicit contributions, must identify who paid for them. The prescribed wording differs according to whether the communication was authorized by a candidate, authorized but paid for by another, or unauthorized. Print notices must sit in a bordered box in legible type; broadcast notices must be clearly spoken and, on television, displayed. Small items and impracticable placements are exempt.
An independent expenditure is a payment for a communication expressly advocating the election or defeat of a clearly identified candidate that is not made in cooperation, consultation or concert with, or at the request or suggestion of, a candidate or a candidate's agents or party committee. Spenders report on the periodic schedule once an aggregate threshold is reached and on short notice as an election approaches. Loss of independence converts the payment into an in-kind contribution.
A federal political committee registers by filing a statement of organization within a fixed period after status attaches. The statement names the committee, its treasurer, its depository and any connected or affiliated organizations. The treasurer holds a defined office: no disbursement may be made while it is vacant, and the treasurer signs and is answerable for each report. The first periodic report covers activity from the committee's inception, not from the registration date.
