2: Funding Restrictions
Restrict contributions and expenditures made to influence federal elections Other Information:
Contribution Limits: The FECA places limits on contributions by individuals and groups to candidates, party committees and
PACs. Prohibited Contributions and Expenditures: The FECA places prohibitions on contributions and expenditures by certain
individuals and organizations. The following are prohibited from making contributions or expenditures to influence federal
elections: Corporations; Labor organizations; Federal government contractors; and Foreign nationals. Furthermore, with respect
to federal elections: No one may make a contribution in another person's name. No one may make a contribution in cash of more
than $100. In addition to the above prohibitions on contributions and expenditures in federal election campaigns, the FECA
also prohibits foreign nationals, national banks and other federally chartered corporations from making contributions or expenditures
in connection with state and local elections. Independent Expenditures: Under federal election law, an individual or group
(such as a PAC) may make unlimited "independent expenditures" in connection with federal elections. An independent expenditure
is an expenditure for a communication which expressly advocates the election or defeat of a clearly identified candidate and
which is made independently from the candidate's campaign. To be considered independent, the communication may not be made
with the cooperation, consultation or concert with, or at the request or suggestion of, any candidate or his/her authorized
committees or a political party, or any of their agents. While there is no limit on how much anyone may spend on an independent
expenditure, the law does require persons making independent expenditures to report them and to disclose the sources of the
funds they used. The public can review these reports at the FEC's Public Records Office. Corporate and Union Activity: Although
corporations and labor organizations may not make contributions or expenditures in connection with federal elections, they
may establish PACs. Corporate and labor PACs raise voluntary contributions from a restricted class of individuals and use
those funds to support federal candidates and political committees. Apart from supporting PACs, corporations and labor organizations
may conduct other activities related to federal elections, within certain guidelines. For more information, call the FEC or
consult 11 CFR Part 114. Political Party Activity: Political parties are active in federal elections at the local, state and
national levels. Most party committees organized at the state and national levels as well as some committees organized at
the local level are required to register with the FEC and file reports disclosing their federal campaign activities. Party
committees may contribute funds directly to federal candidates, subject to the contribution limits. National and state party
committees may make additional "coordinated expenditures," subject to limits, to help their nominees in general elections.
Party committees may also make unlimited "independent expenditures" to support or oppose federal candidates, as described
in the section above. National party committees, however, may not solicit, receive, direct, transfer, or spend nonfederal
funds. Finally, while state and local party committees may spend unlimited amounts on certain grassroots activities specified
in the law without affecting their other contribution and expenditure limits (for example, voter drives by volunteers in support
of the party's Presidential nominees and the production of campaign materials for volunteer distribution), they must use only
federal funds or "Levin funds" when they finance certain "Federal election activity." Party committees must register and file
disclosure reports with the FEC once their federal election activities exceed certain dollar thresholds specified in the law.
Objective(s):
|
