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Philip W. Buchen Files
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The original documents are located in Box 15, folder "Federal Election Commission -
Campaign Guide" of the Philip Buchen Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Digitized from Box 15 of the Philip Buchen Files at the Gerald R. Ford Presidential Library
ELECTION
TROFF
COMMISSION
FEDERAL ELECTION COMMISSION
UNITED STATES OF AMERICA
CAMPAIGN GUIDE
1325 K STREET, N.W., WASHINGTON, D.C.
20463
NUMBER ONE
JUNE 1976
CAMPAIGN GUIDE FOR COMMITTEES
INTRODUCTION
The Federal Election Campaign Act of 1971, as amended in 1974
and again in 1976 (hereinafter referred to as the Act),
requires Federal candidates and committees supporting them to
fully disclose their campaign receipts and expenditures and to
abide by certain contribution limits and prohibitions.
To help the public comply with the Act, the Federal Election
Commission (hereinafter referred to as the FEC) has prepared
this guide as a basic reference tool. It summarizes parts of
the law¹ and proposed regulations² which are pertinent to
political committees, as follows:
Page
I. General Guidelines
1.2
II. What is a Political Committee?
1.2
III. Registration Requirements
1.4
IV. Recordkeeping Requirements
1.6
V. Reporting Requirements
1.8
VI. Contents of Reports
1.13
1.
FORD
VII. Prohibitions and Limits on
1.18
Contributions and Expenditures
STATE
LIBRARY
VIII. Aid from the Federal Election Commission
1.20
IX. Appendix: Chart on Contribution Limits
1.21
1. A double asterisk (**) in the margin denotes the 1976 amendments.
2. An asterisk (*) in the margin denotes any item which reflects a proposed regula-
tion, as distinct from the Statute on which regulations are based. Once the regu-
lations are promulgated, they will have the effect of law. At that time this guide
will be revised accordingly and circulated among all those on the Commission's
mailing list and to anyone else who requests a copy.
6/76
1.1
6/76
1.2
6/76
1.3
I. GENERAL GUIDELINES
contributions and make expenditures in connec-
- Review the law and disclosure regulations, available
with the candidate's campaign.
from the FEC. Note especially the definitions which
(1) A candidate is required by law to designate
give special meaning to key words such as "candidate,"
a principal campaign committee.
"person," "contribution," "expenditure," and "identi-
fication."
(2) A principal campaign committee may support
only the candidate it has been designated
- Be guided by the purpose of the law to open campaign
to support.
financing to full public view through disclosure and
to reduce improper influence on the political process
** (3) It may, however, make occasional contribu-
by limiting campaign contributions.
tions to other Federal candidates.
- Keep adequate records of receipts and expenditures.
b. Single Candidate Committee is a political
committee, other than the candidate's principal
- If a mistake is discovered, correct it promptly and
campaign committee, which receives or makes con-
straightforwardly by letter or an amended report.
tributions or makes expenditures on behalf of
- If in doubt as to what the law means or how it applies,
only one candidate. It may or may not be author-
seek help from the Federal Election Commission by call-
ized by the candidate.
ing 382-4733 in the Washington, D.C., area or toll free
C. Multicandidate Committee is a political com-
800-424-9530 from any place in the United States. The
mittee which has been:
FEC information, legal and auditing staffs want to
assist all committees, candidates and the public at
(1) Registered under the Act for at least six
large in any way possible.
months; and
(2) Has received contributions from more than
II. WHAT IS A POLITICAL COMMITTEE?
50 persons'; and
A. Definition
(3) Except in the case of State party commit-
A political committee is any committee, club, asso-
tees, has made contributions to five or more
ciation, or other group of persons which, during the
Federal candidates.
calendar year, receives contributions or makes expend-
itures totalling more than $1,000 to influence
d. Party Committee -- is a political committee
Federal elections.
which is a part of the official party structure
at the local, State, or national level.
B. Types of Committees
(1) It may or may not qualify as a multicandi-
While reporting requirements and contribution limits
date committee.
apply to all political committees supporting Federal
candidates, the application of legal provisions varies
(2) It may raise and spend a limited amount of
according to the particular type of committee. Polit-
funds on behalf of a Federal candidate with-
ical committees may be distinguished by:
out his or her authorization. (See Section
VII, E, p.1.19.)
- their function, and
** 2. Committees Distinguished as Authorized or Unauthor-
- whether or not they have been authorized by a
ized
candidate.
The distinction between an authorized and an
1. Committees Distinguished by Function
unauthorized committee is whether or not the
a. Principal Campaign Committee is a political
1. Under the Act, "Person" is defined to include: an individual, partnership, com-
committee designated by a candidate as his or
mittee, corporation, labor organization, association, and any other organization or
group of persons. Under the Act, however, corporations and unions may not make
her principal campaign committee to receive
contributions from treasury funds.
6/76
1.4
6/76
1.5
candidate has authorized the committee in writ-
or the House, as appropriate. The Statement:
ing to receive or make contributions or make
(1) Authorizes the committee to accept contribu-
expenditures on his or her behalf.
tions or make expenditures on his or her
III. REGISTRATION REQUIREMENTS
behalf;
A. Which Committees Must Register?
(2) Designates its bank depository(ies); and
All political committees (except those which have
(3) Identifies the principal campaign committee
previously registered under the Act) which anticipate
where the committee will file its reports.
receiving contributions or making expenditures exceed-
b. The committee files a Statement of Organization
ing $1,000 in a calendar year to influence Federal
(FEC Form 1) with the principal campaign commit-
elections.
tee of the candidate it supports.
B. When Must A Committee Register?
C. The principal campaign committee, in turn, files
Whichever is the later date:
a copy of the Statement of Organization with the
FEC, the Senate, or the House, as appropriate.
1. Within 10 days after the date of its organization;
*
or
3. Special Procedure for any Political Committee Sup-
porting Both Federal and Non-Federal Candidates
2. Within 10 days after it anticipates receiving con-
tributions or making expenditures exceeding $1,000
a. Committee files a Statement of Organization with
in a calendar year for Federal candidates.
the FEC and indicates that the committee either:
C. How Does A Committee Register?
(1) Registers as a political committee reporting
all transactions, divided into two accounts,
** 1. General Procedure¹
Federal and non-Federal; or
a. Committee obtains registration forms from the
(2) Establishes a separate Federal campaign
FEC, 1325 K Street, N.W., Washington, D.C.
account or committee which, alone, reports
20463.
under the Act.
b. Committee files a Statement of Organization (FEC
b. In either case, the committee
Form 1) with the FEC, the Secretary of the
Senate, or the Clerk of the House, as appropri-
(1) May receive only those contributions
ate, identifying its officers, its bank deposi-
intended for Federal campaigns; and
tories, and the candidate (s) it expects to
(2) May receive transfers from another Federal
support.
account, but not from other State or local
2. Special Procedure for an Authorized Single Candi-
committees or accounts.
date Committee (other than a Principal Campaign
D. Modifying the Registration
Committee)
Committees must report any change or correction in
If a candidate authorizes a committee, other than
their registration (such as a change in address, names
the principal campaign committee, to raise or spend
of candidates supported, bank depositories or affili-
on his/her behalf:
ated committees) by writing a letter or filing an
a. The candidate files a Statement of Authorization
amended Statement of Organization. Any such change
(by letter or Form 2a) with the FEC, the Senate,
must be reported within 10 days after it is made.
E. Terminating the Registration
1. This procedure is applicable to principal campaign committees and all other poli-
tical committees except for authorized single candidate committees.
1. When?
2. Section V, D below, pl.10, indicates where political committees must file their
statements and reports.
a. Once a committee has retired all outstanding
6/76
1.6
6/76
1.7
debts and obligations for Federal elections and
contributions from one source which total more
does not expect to raise or spend more than
than $100.
$1,000 during the calendar year; and
3. All transfers (i.e., contributions from one commit-
*
b. Additionally, in the case of a principal cam-
tee to another committee or candidate) regardless
paign committee
of amount.
(1) Only when all debts of its affiliated¹
4. All expenditures, by date and amount of transaction
committees have been extinguished; and
and the name and address of recipient.
(2) The candidate has ceased to be a candidate
5. Additionally, expenditures over $100 (made in one
under the Act.
transaction or in aggregate during a calendar year)
* 2. How?
must be identified as to purpose.
File a final report (by letter or FEC Form 3)
C. A committee must keep a receipted bill or comparable
designated as a Termination Report, disclosing:
record for expenditures to one person which, in the
a. All receipts and expenditures not previously
aggregate, exceed $100.
reported;
** D. Committee fundraisers and other individuals receiving
b. Retirement of all debts and obligations; and
contributions of $50 or more must report them to the
C. Disposition of residual funds, if the committee
treasurer within five days after receiving them.
is also disbanding.
E. All receipts, including contributions of less than
3. Until all debts are retired and a termination
$50, must be deposited in the bank within 10 days
report is filed, a committee must continue to file
after they have been received.
reports.
F. Campaign funds must be separated from personal funds.
IV. RECORDKEEPING REQUIREMENTS
G. No single cash disbursement may exceed $100.
*
A. A committee must have a Chairman and a Treasurer (held
H. A written record of petty cash disbursements must be
by two different individuals) at any time it accepts
kept if a petty cash fund is maintained.
contributions or makes expenditures. A vice chairman
*
I. If, prior to the primary election, a candidate's com-
and/or assistant treasurer may be designated to serve
mittee receives contributions designated for the gen-
in the absence of a chairman or treasurer.
eral election, the committee must keep the primary and
B. A committee must keep records of all contributions. In
general election contributions distinct by using
addition, a committee must identify:
acceptable accounting methods (such as maintaining
separate bank accounts, separate books or separate
** 1. Contributions to the committee of more than $50, by
records for each election).
date, amount, and name and address of donor.
*
J. A contribution which appears to be illegal must
2. Contributions to the committee of more than $100
either be:
(given in one transaction or in aggregate during
a calendar year), by the donor's name, address,
1. Returned to the contributor, or
occupation, and principal place of employment. How-
2. Deposited within 10 days after it is received. If
ever, the Commission recommends that committees
it is deposited, the committee must retain a writ-
record this information for all contributions in
ten record, noting the basis for concern, and
order to meet the requirement that they report all
determine the legality of the contribution. If the
contribution proves illegal, the treasurer must
1. In the case of single candidate committees, affiliated committees are those author-
return it and report the refund no later than in
ized by the same candidate.
its next report.
6/76
1.8
6/76
1.9
K. Reporting committees must keep copies of all state-
*
C. When a multicandidate committee which does not
ments, reports and pertinent records for at least
report on a monthly basis (see below) makes a
three years after the end of the year in which a
contribution to the national primary campaign of
report or statement was filed.
a Presidential candidate (rather than to a State
V. REPORTING REQUIREMENTS
primary campaign), the committee need only file
a pre- and post-election report for the first
A. Who Reports?
primary occurring more than 15 days after the
1. Every committee which has registered (by filing a
contribution is made.
Statement of Organization) and has not yet filed a
4. Monthly Reports
Termination Report.
a. Monthly reports are required in an election year
2. Any committee, regardless of whether it has regis-
from any committee authorized by a Presidential
tered, making "independent expenditures"¹ exceeding
candidate and operating in more than one State.
$100.
*
B. When Reports Are Filed
b. Monthly reports may be filed by any other polit-
ical committee supporting candidates in two or
1. Quarterly Reports -- Filed by April 10, July 10,
more States if it has requested (and received)
October 10 and January 31, disclosing transactions
approval from the FEC.
of the preceding calendar quarter if, during that
quarter, the committee raised or spent more than
C. Reports must be filed by the 10th day of each
$1,000.
month (except January, November and December),
covering transactions of the preceding month.
2. Annual Reports Filed by January 31, covering the
These reports replace the pre- and post-primary
transactions of the preceding year, in any non-
reports and the first three quarterly reports.
election year in which an individual is a candidate.
However, the 4th quarter report and the pre- and
3. Pre- and Post-Election Reports
post-general election reports are still
required.
a. Pre-election - Filed by the 10th day before an
election, disclosing transactions as of the 15th
5. Due Dates
day before an election.
a. If hand delivered or mailed first class, reports
(1) If filed by registered or certified mail,
must be received by the filing date.
report must be postmarked by the 12th day
b. If sent by registered or certified mail:
before the election.
(1) Pre-election reports must be postmarked
(2) A contribution of $1,000 or more received
by the 12th day before the election.
between 2 and 15 days before an election
must be reported within 48 hours after it is
(2) All other reports must be postmarked no
received by telegram or hand-delivered
later than the filing date.
letter.
C. However, the Commission recommends that all
(3) An independent expenditure of $1,000 or more
reports be sent by registered or certified mail
made between one and 15 days before an elec-
so that committees have proof of having mailed
tion must be reported within 24 hours after
their reports.
it is made.
C. Waiver of Reports
b. Post-election Filed by the 30th day after an
election, disclosing transactions as of the 20th
1. Quarterly Reports
day after an election.
*
a. Provided that a committee notifies the FEC (by
1. For a discussion of "independent expeditures," see section VI, D, p.l.17.
letter or FEC Form 3a) at the end of the first
6/76
1.10
6/76
1.11
quarter it qualifies for this waiver and that it
Committee
Where To File
continues to file the pre-election, post-elec-
Reports
tion and annual reports, the quarterly report
a. Principal campaign
may be waived:
committees
- supporting a Presi-
FEC
(1) In an election year, if a committee has not
dential candidate
raised or spent more than $1,000 during the
- supporting a Senate
Secy. of Senate
quarter; or
candidate
(2) In a non-election year, if an authorized
- supporting a House
Clerk of House
single candidate committee has not raised
candidate
and spent a total of more than $5,000 during
b. Single Candidate Com-
Principal Campaign
the quarter.
mittees authorized by
Ctee. of Candidate¹
Federal candidates
*
b. The quarterly report is automatically waived if
it is due within 10 days before or after an
C. All other committees
election.
supporting
*
C. The first three quarterly and pre- and post-
- Presidential candidates
FEC
primary reports are waived if the committee sup-
only
ports candidates in more than one State and has
- Senate candidates only
Secy. of Senate
- House candidates only
Clerk of House
requested (and received) the Commission's
- Candidates for two or
FEC
approval to report on a monthly schedule. How-
more different Federal
ever, the 4th quarter and the pre- and post-
offices
general election reports are still required.
d. Delegate-candidates to
National Convention
2. All Reports
- Financially authorized by
Principal Campaign
A political committee may request and receive
Presidential candidate
Ctee. of Candidate
approval from the FEC to waive all reports if the
- Financially unauthorized
FEC
treasurer certifies that the committee:
by Presidential
a. Primarily supports candidates seeking State or
candidate¹
local office; and
* 2. With State Officers
b. Does not operate in more than one State or does
In addition, a copy of each report or statement
not operate on a statewide basis.
must be filed simultaneously with the Secretary of
State of the appropriate State as indicated below.
D. Where Reports Are Filed
All reports and statements are filed simultaneously
with the Federal Government and the States.
1. In case of pre-election report, the authorized committee files its report with the
principal campaign committee and the FEC, the Secretary of the Senate or the Clerk
of the House, as appropriate, unless the principal campaign committee has received
1. With the Federal Government
the committee's report early enough to file its consolidated report by the 10th
day before an election.
Committees must file all reports and statements
with either the Federal Election Commission, the
2. Unauthorized delegate-candidates report only if they make expenditures in excess
Secretary of the Senate or the Clerk of the House,
of $100 that expressly advocate the election or defeat of a clearly identified
as indicated below:
candidate, excluding subsistence and travel expenses.
6/76
1.12
6/76
1.13
Where To File State
(2) The name of the person (and affiliated orga-
Committee
Copy of Report
nization, if any) who financed the expend-
iture.
a. Committees authorized by
State(s) in which
Presidential candidates
*
committee makes
2. The statement must appear on the face or front page
expenditures during
of printed matter, or at the beginning or end of a
a reporting period
radio or television broadcast.
G. Liability
b. Committees, other than
State in which
those authorized by a
donor & recipient
1. Each treasurer of a political committee, each can-
Presidential candidate,
committees have
didate and any other person required to file
which make contributions
their headquarters
reports or statements is personally responsible
to or independent expend-
for the timely, complete and accurate filing of
itures which relate to
reports and statements.
Presidential candidates
** 2. They will be considered in compliance with the law
C. All committees, authorized
State in which
when they have used their best efforts to obtain
and unauthorized, sup-
candidate seeks
required information.
porting House or
election
Senate candidate
VI. CONTENTS OF REPORTS
*
E. Notice of Reporting
A. Reports of Receipts and Expenditures (FEC Form 3)
1. Definitions
Any literature, printed or broadcast advertisement,
letter or pledge card issued by a political committee
a. Contributions' include deposits of money,
to solicit contributions must include on its front
in-kind contributions (such as phone facilities,
page or at the beginning or end of a broadcast the
use of cars, compensated services), loans, ear-
following statement:
marked funds, proceeds from mass collections or
"A copy of our report is filed with the Federal
the sale of items, or anything of value given
Election Commission and is available for purchase
to candidates or committees for the purpose of
from the Federal Election Commission, Washington,
influencing Federal elections.
D.C."
b. Expenditures¹ include payments of money, trans-
F. Notices of Authorization
fers of funds to other political committees or
candidates, loan repayments, or anything of
1. Any communication advocating the election or defeat
value given by candidates or committees for the
of a "clearly identified candidate"¹ through any
purpose of influencing Federal elections.
type of public advertising must:
2. General Procedure
a. If authorized by the candidate, state that the
communication is authorized;
a. All receipts and disbursements, even those which
need not be itemized, must be reported.
b. If not authorized by the candidate, state:
b. A contribution of more than $100 (given in one
(1) That the communication is not authorized;
transaction or in aggregate during a calendar
and
year) must be identified by date and amount, as
well as by name, address, occupation and prin-
1. Under the Act, a communication refers to a "clearly identified candidate" when the
name of the candidate appears, a photograph or drawing appears, or the identity
1. For a full discussion of contributions and expenditures, see the FEC Guide on
is apparent by unambiguous reference.
Contributions and Expenditures.
6/76
1.14
6/76
1.15
cipal place of work of the donor. (All contribu-
if the purchaser is known, as a contribution
tions over $50 must be identified in committee
by the purchaser. This transaction does not
records, but only those over $100 must be
affect the value of the original donation.
reported.)
5. Earmarked Funds
*
C. If contributions of $100 or less are itemized
Funds that are earmarked for a specific candidate
(not required), they must be listed separately
or his or her principal campaign committee, regard-
from other itemized contributions.
less of amount, must be fully reported as such by:
d. An expenditure of more than $100 (made in one
a. The contributing and intermediary committees, to
transaction or in aggregate during a calendar
the principal campaign committee as well as to
year) must be identified by name and address
the FEC, the Secretary of the Senate or the
of the individual or organization to whom the
Clerk of the House,as appropriate.
expenditure is made, together with date, amount
and purpose of expenditure.
b. The recipient candidate or committee, to the
FEC, Secretary of the Senate or Clerk of the
e. All contributions from the same person during
House, as appropriate.
a calendar year must be listed under the same
name.
6. Mass Collections and Sales of Items
a. Total proceeds from mass collections or sales of
3. Cash on Hand
tickets or other items are reported as contri-
a. Cash on hand at the beginning of the reporting
butions.
period must be disclosed on each report.
b. Committees must record (but not report) the
*
b. Cash on hand at the time of the committee's
name and address of any person whose purchase or
registration is subject to all the limits, pro-
donation to a mass collection exceeds $50.
hibitions and disclosure requirements of the
C. Any such contribution exceeding $100 must be
Act. If such funds exceed $100 and their source
fully itemized on the committee's report.
has not been previously disclosed in any Federal
*
campaign report, they must be identified on the
d. Contributions in the form of purchases are
first report.
valued at the full purchase price, without
regard to fundraising costs. However, contribu-
*
4. In-Kind Contributions
butions in the form of the purchase price of
a. An in-kind contribution is reported by the
items of intrinsic and enduring value are not
recipient as both a contribution and an expendi-
matchable with Federal funds.
ture.
7. Transfers
b. Contributions of goods are valued at their
a. All transfers (contributions from committees to
retail price; services are valued at the piece-
other committees and candidates), regardless of
work or hourly rate.
amount, must be fully identified by both the
C. Stocks, bonds, art objects and other items to be
donor and recipient committees.
liquidated are disclosed as follows:
b. All transfers (except those between committees
(1) When the item is received, it is reported
authorized by the same candidate) are subject to
in a memo entry (not a cash entry) as a con-
the contribution limits.
tribution by the donor, valued at the fair
8. Loans
market price.
** a. Loans made by banks in the regular course of
(2) When the item is sold by the committee, the
business do not count as contributions, but they
proceeds are reported as a cash entry and,
must be fully reported.
6/76
1.16
6/76
1.17
b. Loans made by other persons count as contribu-
b. The principal campaign committee subsequently
tions until they are retired.
files a complete consolidated report (including
*
all individual reports of authorized committees)
9. Outstanding Debts and Obligations (FEC Schedule
no later than 5 days before the election.
3c or 6c)
a. Loans, guarantees and endorsements of loans,
D. Independent Expenditures (FEC Form 3)
written contracts to make expenditures and any
** 1. Definition
other outstanding debts are reported regularly
a. An independent expenditure is one which is:
on FEC Schedules 3c or 6c until they are
extinguished.
(1) Made to advocate the election or defeat of a
clearly identified candidate; and
b. Unpaid bills in amounts of $500 or less need not
be reported until outstanding for more than 60
(2) Not made in cooperation, consultation or
days.
concert with, nor at the request or sugges-
tion of, nor with the consent of any candi-
*
B. Short Form (FEC Form 6)
date or his/her authorized committee or
agent.
Any principal campaign committee which has not
received contributions or made expenditures in excess
b. When an individual requests and receives from a
of $50,000 per election may file reports on the Short
candidate FEC guidelines on independent expendi-
Form (6) provided that the candidate has not author-
tures, he/she is not considered to have con-
ized any other campaign committee.
ferred, cooperated or consulted with the can-
didate.
C. Consolidated Report of Receipts and Expenditures
C. Expenditures which do not qualify as "inde-
(FEC Form 3b)
pendent expenditures":
1. General Procedure
(1) Any expenditure made in cooperation, consul-
a. For each reporting period, only a principal cam-
tation or concert with the candidate or as a
paign committee must consolidate (on FEC Form
result of his/her request or suggestion
3b) its report, the candidate's report (unless
counts as a contribution in-kind to the can-
waived) and that of any other authorized
didate by the person making the expenditure.
committee.
(2) Any expenditure to finance a broadcast or
b. The consolidated report is usually filed to-
publication of materials prepared by a can-
gether with all the individual reports.
didate (or his/her authorized committee or
agent) is considered a contribution in-kind
*
C. If there are no authorized committees, other
to the candidate.
than the principal campaign committee, the con-
solidated report is not required.
2. Reporting Requirements
*
2. Special Procedure for Pre-Election Report
a. What
A principal campaign committee may file the pre-
Any independent expenditures exceeding $100 made
election consolidated report without the individual
by a committee on behalf of a single candidate
reports if:
must be fully identified. In addition, reports
a. The authorized committee, in addition to submit-
must include:
ting its report to the principal campaign com-
(1) Whether the expenditure is made in support
mittee, files a copy of its report with the FEC,
of or in opposition to a candidate;
the Clerk of the House or the Secretary of the
Senate, by the 10th day before an election; and
1. See footnote at bottom of page 1.12.
6/76
1.18
6/76
1.19
(2) Certification, under penalty of perjury,
2. No committee may accept contributions from organi-
that the expenditure was not made "in coop-
zations or individuals who have been awarded Fed-
eration, etc." and that the communication
eral contracts. However, this limit does not apply
was not prepared by the candidate or his/her
to employees, shareholders, or officers of corpora-
committee or agent.
tions or unions with Government contracts.
b. When
3. No committee may accept contributions from foreign
(1) Reports are filed in any reporting period
nationals who do not have permanent residence in
the United States.
(pre- or post-election, quarterly, year-end)
during which a political committee makes an
4. No committee may accept or make cash contributions
independent expenditure exceeding $100.
for the benefit of a campaign of any Federal candi-
(2) In addition, any independent expenditure of
date which, in the aggregate, exceed $100.
$1,000 or more made between one and 15 days
*
B. Limits on Matchable Contributions to Presidential
before an election must be reported to the
Candidates
FEC within 24 hours after it is made.
The only contributions which can be matched with
*
C. Where
public funds by the U.S. Treasury are those made by
individuals.
(1) All reporting committees file reports of
independent expenditures (on FEC Form 3) in
C. Limits on Contributions Made by Affiliated Committees
the same place they file all other reports.
1. For purposes of determining appropriate contribu-
(2) Groups which otherwise do not report under
tion limits:
the Act file reports of independent expendi-
tures (on FEC Form 5) with the FEC.
** a. All committees which are established, financed,
maintained or controlled by any corporation,
E. Report of Contributions to Unauthorized Delegate-
labor union or any other person (e.g., parent
Candidates' (FEC Form 3)
company, subsidiary, branch or division) are
Any committee which contributes more than $100 in
considered one committee.
aggregate to one or more unauthorized delegate-candi-
b. All committees established, financed, maintained
dates in a calendar year must itemize the contribution
or controlled by a national party committee are
in a report (FEC Form 3a) to the FEC. Reports must be
considered one committee.
filed in any quarter during which such a contribution
is made.
C. All committees established, financed, maintained
or controlled by a State party committee are
considered one committee.
VII. PROHIBITIONS AND LIMITS ON CONTRIBUTIONS AND EXPENDITURES
2. However, for reporting purposes, each affiliated
A. Prohibitions on Certain Kinds of Contributions
committee is considered a single committee which
1. No committee may accept contributions from corpora-
reports independently to the FEC, the Secretary of
tion, union or bank treasuries. However, committees
the Senate or the Clerk of the House, as
may accept contributions from political action com-
appropriate.
mittees or separate segregated funds established by
** D. Contribution Limits (See Chart in Appendix, p.1.21)
any corporation, trade association or union,
consisting of voluntary contributions.
E. Limits on Expenditures Made by Party Committees in
1. This provision is based, not on proposed regulations, but on an FEC policy state-
ment on Delegate Selection, issued February 1976. Unauthorized delegate-candi-
dates are those who maintain no financial relationship of any kind with a
Presidential candidate.
1. Limits reflect the 9.1 percent cost-of-living adjustment.
6/76
1.20
6/76
1.21
General Elections'
1. On behalf of House candidates, $10,900.
2. On behalf of Senate candidates, 2.18c X VAP²
TOTAL CONTRIBUTIONS
Per Calendar Year⁷
or $21,820, whichever is greater.
$25,000
No Limit
No Limit
Not Applicable
No Limit
3. On behalf of Presidential candidates, 2.18 X VAP
($3,203,768.90).
VIII. AID FROM THE FEDERAL ELECTION COMMISSION
A. Additional Materials Available
1. The Federal Election Campaign Act of 1971, as
amended in 1974 and 1976.
2. Summary of major provisions of the Campaign Finance
Law.
** TO ANY OTHER
COMMITTEE
Per Calendar Year⁶
$5000
$5000
Not Applicable
5. Campaign Guide: Candidates.
IX. APPENDIX: LIMITS ON CAMPAIGN CONTRIBUTIONS
$5000
$5000
3. Registration forms.
4. Reporting forms.
6. Campaign Guide: Contributions and Expenditures.
B. Clarification of Law
1. Routine Assistance
The information, legal and auditing staffs at the
Federal Election Commission wish to help the public
** TO NATIONAL
PARTY COMMITTEES5
Per Calendar Year
$20,000
$15,000
No Limit
Not Applicable
$20,000
in any way possible. Contact the Commission in
Washington, D.C. at 382-4733 or toll free
800-424-9530.
2. Advisory Opinions
For more complicated questions, Federal office-
holders, candidates and political committees may
request an advisory opinion in writing. Advisory
opinions are made public. A requesting person who
TO CANDIDATE
OR HIS/HER
AUTHORIZED
COMMITTEE
$1000
Per Election3
$5000
Per Election
$1000 or
$50004
Per Election
$17,500 to Senate
candidate per
calendar year⁶ in
which candidate
seeks election.
$1000
Per Election
in good faith acts in accordance with the advisory
1. A multicandidate committee is any committee with more than 50 contributors which has been registered for at least six months and,
with the exception of State party committees, has made contributions to five or more Federal candidates.
2. Republican and Democratic Senatorial Campaign committees are subject to all other limits applicable to a multicandidate committee.
3. Each of the following elections is considered a separate election: primary election, general election, run-off election,
special election, and party caucus or convention which, instead of a primary, has authority to select the nominee.
4. Limit depends on whether or not party committee is a multicandidate committee.
5. For purposes of this limit, National Party Committees include a party's national committee, the Republican and Democratic Senate and
House Campaign committees and any other committee established by the party's national committee, provided they are not authorized by
6. In 1976 only, and solely in the case of contribution limits established in the 1976 amendments (indicated by double asterisk in
margin), the calendar year extends from May 11 (date of enactment of the Act) through December 31, 1976.
7. Calendar year extends from January 1 through December 31, 1976. Individual contributions made or earmarked before or after 1976 to
opinion is presumed to be in compliance with the
Act.
influence the 1976 election of a specific candidate are counted as if made during 1976.
1. The expenditure limits apply separately to the national and State committees
(including local committees). However, within a given State, only one limit
applies to the State and local committees. They may determine how to allocate
the limit among the several committees.
2. VAP Voting Age Population
CONTRIBUTION FROM:
INDIVIDUAL
MULTICANDIDATE
COMMITTEE1
PARTY COMMITTEE
REPUBLICAN OR DEMO-
CRATIC SENATORIAL
CAMPAIGN COMMITTEE,2
OR THE NATIONAL PARTY
COMMITTEE, OR A COMBINA-
ANY OTHER COMMITTEE
any candidate.
TION OF BOTH
906-000
CAMPAIGN GUIDE SERIES
This pamphlet is the first in a new series--
the FEC Campaign Guide. Designed as a basic
reference tool, each guide will have a specific
focus. The first three guides are:
Number One - Committees
Number Two - Contributions/Expenditures
Number Three - Candidates
The Campaign Guide on Committees replaces an
earlier version printed in May 1976. It is based
on the 1976 amendments and proposed regulations.
From time to time, it will be necessary to revise
one or more pages. In that event, the FEC will
mail the revised pages to all those who have been
sent this guide. The new pages will be coded by
number, date and color so they can easily be sub-
stituted for the obsolete pages.
ELECTION
FEDERAL
COMMISSION
FEDERAL ELECTION COMMISSION
UNITED STATES OF AMERICA
CAMPAIGN GUIDE
1325 K STREET, N.W., WASHINGTON, D.C.
20463
NUMBER TWO
AUGUST 1976
CAMPAIGN GUIDE ON CONTRIBUTIONS AND EXPENDITURES
FORD LIBRARY
INTRODUCTION
The Federal Election Campaign Act (the Act) requires disclosure of Federal
campaign receipts and expenditures; it imposes limits on contributions to
Federal candidates and political committees; and it limits expenditures made
by Presidential candidates who accept public financing of their elections.
(The Act does not apply to campaigns for State or local office.)
Under the Act, certain common words--such as contributions and expenditures--
take on very precise meanings. A candidate or a committee must be familiar
with these special definitions in order to comply with the reporting require-
ments and the restrictions on campaign contributions and expenditures.
The Federal Election Commission (FEC) has therefore prepared this guide to
focus on the special definitions and requirements relating to contributions
and expenditures. It should be read in conjunction with either of the more
comprehensive FEC guides on campaign activity: the Campaign Guide for Com-
mittees or the Campaign Guide for Candidates.
This guide is based on the Federal Election Campaign Act of 1971, as amended
in 1974 and 1976, and regulations proposed by the FEC.
--
A double asterisk (**) in the margin denotes a provision
contained in the 1976 amendments.
A single asterisk (*) in the margin denotes any item based
on a regulation proposed by the FEC, as distinct from the
statute on which regulations are based.
8/76
2.2
8/76
2.3
I.
BASIC DISTINCTION BETWEEN CONTRIBUTIONS AND EXPENDITURES
Once the regulations have been reviewed by Congress, they
will have the effect of law. At that time, this guide will
A contribution is one way to provide support for a Federal candidate.
be revised accordingly and distributed to all those on the
Commission's mailing list and anyone else who requests a
Individuals and groups may support candidates directly by contributing
to their campaigns, or indirectly by contributing to political committees
copy.
which, in turn, support the candidates of their choice. In addition to
Material is presented as follows:
contributions, support can be provided in two other ways. Individuals
may volunteer their services or limited use of property for the benefit
of a Federal candidate. Finally, individuals and groups may make inde-
Page
pendent expenditures (not to be confused with regular expenditures)
I. BASIC DISTINCTION BETWEEN CONTRIBUTIONS
which favor or oppose a specific candidate.
AND EXPENDITURES
2.3
An expenditure, on the other hand, usually represents the utilization of
II. SUPPORT ACTIVITY BY INDIVIDUALS AND GROUPS
contributions received by a candidate or a political committee. Thus,
2.3
A.
CONTRIBUTIONS
candidates, their authorized committees and political party committees
2.3
1.
What is a Contribution?
seek votes by expending the financial resources which have been contri-
2.3
buted to them.
2.
What is Not a Contribution?
2.5
3.
Prohibited Contributions
2.7
4.
Contribution Limits
2.8
5.
Limits on Matchable Contributions
II. SUPPORT ACTIVITY BY INDIVIDUALS AND GROUPS
to Presidential Candidates
2.8
6.
Application of Limits to Affiliated Committees
2.9
B.
A.
CONTRIBUTIONS
VOLUNTEER ACTIVITY
2.10
)
C.
INDEPENDENT EXPENDITURES
2.10
1.
What is an Independent Expenditure?
Individuals and groups may support Federal candidates directly by
2.11
2.
Reporting Requirements
2.12
contributing to their campaigns or indirectly by contributing to
3.
Limits on Contributions to Persons
political committees which, in turn, support the candidates of
Making Independent Expenditures
2.13
their choice. The Act regulates campaign contributions in two
4.
Advertising Notice
2.13
ways:
III. EXPENDITURE ACTIVITY BY CANDIDATES
--
It requires full disclosure of contributions received
AND POLITICAL COMMITTEES
2.14
by all Federal candidates; and by all political commit-
A.
WHAT IS A CAMPAIGN EXPENDITURE?
2.14
tees (supporting Federal candidates) which accept
B.
WHAT IS NOT A CAMPAIGN EXPENDITURE?
2.15
contributions or make expenditures exceeding $1,000
C.
EXPENDITURE LIMITS
2.16
during a calendar year; and
IV. THE ACT IN OPERATION: SOME EXAMPLES
--
It limits the size of contributions to Federal candi-
2.18
dates and committees supporting Federal candidates.
V. SUMMARY OF ACTIVITY PERMITTED EACH ELECTION PARTICIPANT
2.19
(See Chart, p. 2.22.)
A.
CANDIDATES
2.19
1.
B.
COMMITTEES AUTHORIZED BY CANDIDATES
What is a Campaign Contribution?
2.19
C.
INDIVIDUALS
2.19
D.
NATIONAL, STATE AND LOCAL PARTY COMMITTEES
2.20
A campaign contribution is anything of value given to a
E.
ALL OTHER POLITICAL COMMITTEES
2.20
candidate, political committee, political party or any
other person to influence the outcome of a nomination or
VI. APPENDIX
2.20
election of any individual to Federal office. A con-
A.
AID FROM THE FEDERAL ELECTION COMMISSION
2.20
tribution can take many forms, including:
B.
CHART: LIMITS ON CAMPAIGN CONTRIBUTIONS
2.22
8/76
2.5
8/76
2.4
b)
Services performed by individuals are
a.
A gift of money.
valued at the hourly or piecework rate
when compensated by a person other than
b.
A loan.
the candidate or his authorized committees.
(When not compensated, such services are
*
However, once repaid, a loan no longer counts
considered "voluntary activity. " See
against a person's contribution limit. Further-
below, Section II, B, p. 2.10.)
more, bank loans made according to applicable
banking laws do not count as contributions by
f.
Mass collections.
**
the bank, but still must be reported by the
recipient.
Proceeds from mass collections or from the sale
of tickets or items are contributions.
C.
Endorsements and guarantees of loans.
is
Transfer of funds.
2/
Once a loan is repaid, the endorsement or guar-
antee no longer counts against the guarantor's
The transfer of funds from one committee
or endorser's contribution limit.
to another committee or candidate is
reported as a contribution by the recipient
* d.
Extension of credit.
committee (and as an expenditure by the trans-
ferring committee).
Unless a creditor has made a commercially reasonable
attempt to collect a campaign debt, the extension
** h.
Written contracts.
of credit beyond normal business practice counts as
a contribution.
A written contract, pledge or promise to make
a contribution is counted as a debt owed when
e.
In-kind contributions.
*
the written instrument is made, and as a contri-
bution when something of value is actually
1)
Examples
received.
a)
Securities, facilities, equipment,
2.
What is NOT a Campaign Contribution?
personnel, membership lists, etc.
Some kinds of activity might be confused with campaign
b)
Payment of a candidate's campaign bill
contributions. The Act makes clear, therefore, that the
by an individual or organization other
following transactions are not contributions and need not
than the candidate and his authorized
be reported (unless otherwise noted below).
committees.
** c)
Any other expenditure a person makes in
cooperation, consultation or concert
with, or at the request or suggestion
of the candidate, his authorized com-
mittees or authorized agents.
However under certain circumstances, legal and accounting services can
be rendered a candidate or committee without counting as a contribution.
2) Value
See Section II, A, 2, C and d, p. 2.6.
See also Section II, A, 2, e, p. 2.6.
a)
Goods are valued at the usual retail
price.
8/76
2.6
8/76
2.7
** a.
An honorarium paid to an incumbent candidate for
4)
Transfer between political committees
a speech, appearance or article, as well as reim-
bursed travel and subsistence costs and any agent's
of funds raised through their joint
/
efforts.
fees related to the speech, appearance or article
5)
Transfers between a candidate's previous
b.
Certain types of volunteer activity described below,
campaign committee and his/her currently
Section I, B, p. 2.10.
registered committee, as long as none of
the transferred funds contain contributions
** C.
Legal or accounting services rendered to a national
which would be illegal under the Act.
party committee, provided the services are not attri-
butable to any activity directly influencing the
3.
Prohibited Contributions
election of a candidate and the person paying for the
services is the regular employer of the individual
rendering the services 2
The Act prohibits certain types of contributions made in connec-
tion with any Federal election. The following prohibitions
apply equally to contributions made to Federal candidates, to
** d.
Legal or accounting services rendered to a candidate
political committees supporting Federal candidates, or to any
or a political committee, provided the services are
other person who makes either a contribution to or an "indepen-
performed to ensure compliance with the Act and the
dent expenditure on behalf of a Federal candidate.
person paying for the services is the regular employer
of the individual rendering the services.
a.
Contributions from treasuries of national banks,
(Note: However, the value of such services must be
corporations and unions.
reported as receipts and disbursements by candidates and
(However, contributions can be made from separate
committees.)
segregated funds or political action committees,
e.
Certain types of transfers, as listed below. 3/
established by corporations or unions, consisting
of voluntary contributions.)
(Note: However, these transfers must be reported
by both the transferring and recipient committees.)
b.
Contributions from Government contractors.
* (This limit does not apply to personal contribu-
1)
Transfers between authorized committees
tions of employees, shareholders or officers of
of the same candidate.
corporations with Government contracts, nor to
2)
Transfer of unused primary election funds
** segregated funds established by corporations or
unions with Government contracts. )
from the primary campaign to the general
election campaign of one candidate.
C.
Contributions of currency to benefit any Federal
3)
Transfer of funds intended for Federal
candidate which, in the aggregate, exceed $100
elections between committees within the
during the entire campaign period.
same political party.
For a definition of "independent expenditure, " see, below, Section II,
However, House and Senate rules require members to report honorariums to
C, p. 2.11.
those bodies. In addition, the Act sets limits on honorariums paid to
For specific rules affecting such activity, see FEC proposed Regulations
any Federal official: $2,000 for each speech, appearance or article and
on Corporate and Labor Organization Activity, Part 114.
$25,000 for all such activities during a calendar year. See FEC proposed
For specific rules affecting such activity, see FEC proposed Regulations
Regulations on Honorariums, Section 110.12.
on Government Contractors, Part 115.
2/
A partnership is considered the regular employer of a partner rendering
4/
If a candidate (or his/her authorized committee) receives an anonymous
such services.
contribution of currency, he or she may not use the amount exceeding $50
For specific rules, see FEC proposed Regulations on Contributions and
for campaign-related activities. That amount, however, may be used for
Expenditures, Section 110.3.
any other legal purpose not related to the campaign.
8/76
2.9
8/76
2.8
d.
Contributions from foreign nationals who do not
6.
Application of Contribution Limits to Affiliated Committees
have permanent residence in the United States.
*
a.
Party Committees
4.
Contribution Limits
1)
The national party committee and each House
a.
Under the Act, individuals and groups are limited
and Senate Campaign committee has a separate
in the amounts they may contribute to Federal can-
contribution limit.
didates, to political committees which support
Federal candidates, or to any person making an
*
2)
The State party committee and each "independent 112/
"independent expenditure" on behalf of a Federal
subordinate party committee (e.g., county,
candidate.
district or local) has a separate contribution
limit.
b.
For specific limits, see CHART ON CONTRIBUTION
LIMITS (Appendix, P. 2.22).
3)
For reporting purposes, each registered party
committee is considered a single committee
5.
Limits on Matchable Contributions to Presidential Candidates
which reports independently to the FEC, the
Secretary of the Senate or the Clerk of the
a.
The FEC will match with public funds the first
House, as appropriate.
$250 of every contribution made by any individual
to a Presidential primary candidate (or his/her
b.
Political committees affiliated with unions, corpo-
authorized committees) once the candidate has
rations, trade associations and other organizations.
received contributions in amounts of $250 or less,
totalling more than $5,000 from individuals who
** 1)
For purposes of determining limits on con-
are residents in each of at least 20 States.
tributions made by a committee, committees
which are established, financed, maintained
* b.
Contributions from committees, organizations or
or controlled by any corporation (e.g., , parent
other groups cannot be matched with public funds.
company, subsidiary, branch or division),
labor union or any other person are all consi-
C.
Each matchable contribution must be identified by
dered one committee.
date and amount as well as by the name and address
of the donor.
2)
For reporting purposes, however, each regis-
tered affiliated committee is considered a
d.
Matchable contributions must be made by a written
single committee which reports independently
instrument such as a check, money order or a
to the FEC, the Secretary of the Senate or
written record of a cash gift (not exceeding $100).
the Clerk of the House, as appropriate.
*
e.
The amount of a contribution which is matchable
is determined without regard to fundraising costs.
However, a contribution in the form of the pur-
chase price paid for an item with intrinsic and
enduring value is not a matchable contribution.
However, during an election year the Democratic or Republican Senate
Campaign committee or the national party committee or a combination of
both may contribute up to $17,500 to each Senate candidate.
*2/
A subordinate committee is considered "independent" if it has not received
funds from any other party unit and if its contributions are not made in
For more detail on Matching Funds, see 26 U.S.C. 9031-9042 and FEC
cooperation or at the suggestion of any other party unit. If it is not
proposed Regulations on Presidential Primary Matching Fund, Parts 130-134.
independent, the committee must share the limit with the State party.
(See FEC proposed Regulations on Contributions and Expenditures, Section 110.3.)
8/76
2.10
8/76
2.11
B.
VOLUNTEER ACTIVITY
candidates. However, the Court also recognized the need to
avoid circumvention of the Act's contribution and expenditure
Subject to the following provisions, individuals may also volunteer
limitations. It laid out, therefore, certain criteria to dis-
their services and property, without counting such activity against
tinguish between "independent expenditures" and "contributions."
the contribution ceilings.
Following the Court's guidance, Congress redefined (in the 1976
1.
An individual may volunteer any personal service pro-
amendments) "independent expenditures" in very precise terms. Any
vided he or she is not compensated by any other com-
expenditure that meets the specific qualifications (outlined below)
mittee, individual or organization.
is independent. However, when an individual or group makes an ex-
2.
An individual may spend up to $500 per candidate, per
penditure on behalf of a candidate which is not truly independent--
as defined by the Act--that expenditure is regarded as a contribu-
election, for food, beverage and invitations in connec-
tion with campaign-related activity conducted in his/
tion-in-kind and is subject to the contribution limits.
her home.
1.
What is an Independent Expenditure?
3.
An individual may spend up to $500 per candidate, per elec-
*
a.
tion, for his/her own travel expenses related to the campaign.
An independent expenditure is a disbursement for
communications made expressly to advocate the
* 4.
election or defeat of a clearly identified candi-
An individual may spend any amount for his/her personal
datel/ and is NOT made with the cooperation or
living expenses related to the campaign.
prior consent of, or in consultation with or at
* 5.
An individual may provide the use of his/her home for
the request or suggestion of, any candidate or
his/her authorized committees or agents.
campaign-related activities.
* b.
* 6.
When an individual requests and receives from a
A vendor, whether or not incorporated, may sell to a
candidate FEC guidelines on independent expendi-
candidate, at cost, food and beverage to be used in
tures (such as this guide), he/she is not con-
connection with the campaign, as long as the cumula-
tive value of the discounts does not exceed $500 per
sidered to have conferred, cooperated or con-
sulted with the candidate.
election.
** C.
7.
Expenditures which do not qualify as independent
Volunteers may spend beyond the limits listed above.
expenditures:
However, any expenses exceeding the limits must be
reported as a contribution-in-kind or, if they qualify,
1) Any expenditure made in cooperation, con-
as an independent expenditure.
sultation or concert with the candidate
INDEPENDENT EXPENDITURES
or as a result of his/her request or sug-
C.
gestion counts as a contribution-in-kind
In addition to making contributions and volunteering, an individual
by the person making the expenditure and
as an expenditure by the candidate 2/
or group may support candidates by making independent expenditures
on their behalf.
The Supreme Court struck down the limits on "independent expendi-
tures"2/ to preserve the First Amendment right of citizens to
A "clearly identified candidate" is one whose name, photograph or drawing
appears or whose identity is apparent by unambiguous reference.
freely express, on their own, their preferences for or against
Current and former officers or employees of a candidate's committee must
be especially careful to establish that their expenditures are truly
independent. (See FEC proposed Regulations on Independent Expenditures,
For specific rules on "independent expenditures," see FEC proposed Regulations
Subsection 109.1(b) (4).)
on Independent Expenditures, Part 109.
2/
Buckley V. Valeo, 424 U.S. 1, 96 S.Ct. 612, 46 L.Ed.2d 36 (1976).
8/76
2.12
8/76
2.13
2)
Any expenditure to finance a broadcast
3)
Indication of whether the expenditure is
or publication of materials prepared
in support of, or in opposition to, a
by a candidate (or his/her authorized
candidate;
*
committee or agent) is considered a
contribution-in-kind and as an expendi-
4)
Identity of the candidate and the office
ture by the candidate if he/she approves
he/she seeks; and
the expenditure.
5)
Name, address, occupation and principal
2.
Reporting Requirements
place of work of the person making the
expenditure.
** a.
A reporting political committee must itemize each
independent expenditure exceeding $100 (on FEC
*3.
Limits on Contributions to Persons
Form 3) at the end of any reporting period in which
Making Independent Expenditures
the expenditure was made.
a.
An individual, committee or group may
* b.
A political committee otherwise not reporting must
not give more that $5,000 per calendar
itemize each independent expenditure exceeding $100
year to another person making indepen-
(on FEC Schedule E)1/ at the end of any reporting
dent expenditures on behalf of a Federal
period in which the expenditure was made.
candidate.
** C.
Any other person must report independent expenditures
b.
In the case of individuals, such contri-
(on FEC Form 5) at the end of the first reporting
butions count against the annual $25,000
period in which these expenditures exceed $100 and
limit on all contributions.
in any succeeding period in which additional indepen-
dent expenditures are made.
C.
The prohibitions on contributions (see
Section II, A, 3, p. 2.7) also apply to
** d.
Any expenditure of $1,000 or more made between one
contributions made by an individual,
and fifteen days before an election must be reported,
committee or group to another person
within 24 hours after they are made, to the FEC, the
making independent expenditures on behalf
Secretary of the Senate or the Clerk of the House, as
of a Federal candidate.
appropriate.
4.
Advertising Notice
** e.
Contents of Report on Independent Expenditures
a.
Any communication advocating the election or defeat
Reports on independent expenditures must include:
of a clearly identified candidate through any type
of public advertising must:
1)
Under penalty of perjury, certification
that the expenditure meets the above
1)
State that the communication is not autho-
standard of independence (see above,
rized by the candidate; and
p. 2.11);
*
2)
Identify the name of the person who
2)
The amount, date and purpose of the expen-
financed the expenditure and, in the
diture, as well as the name and address
case of a political committee making
of the person to whom it was made;
the expenditure, list the names of
any affiliated organizations.
Until Schedule E is issued by the FEC, committees may file reports on
* b.
The notice must appear on the face or front page of
Schedule B.
printed matter, or at the beginning or end of a
radio or television broadcast.
8/76
2.14
8/76
2.15
B.
WHAT IS NOT A CAMPAIGN EXPENDITURE?
III. EXPENDITURE ACTIVITY BY CANDIDATES AND POLITICAL COMMITTEES
Some kinds of activity might be confused with campaign expenditures.
Although the Supreme Court ruled that there are no limits on expenditures
The Act and regulations make clear, therefore, that the following
made by candidates (except Presidential candidates who accept public
transactions are not campaign expenditures and need not be reported
financing), the Act requires full disclosure of expenditures by all
(unless otherwise noted below):
candidates; and by all political committees which accept contributions
or make expenditures exceeding $1000 during a calendar year.
1.
Money spent by volunteers in support of their
activities described in Section II, B, p. 2.10.
In addition, the Act, as recently amended, places a ceiling on expendi-
tures made:
2.
Routine living and noncampaign-related travel
expenses of the candidate paid from noncampaign
**
by Presidential candidates (and their authorized com-
funds.
ittees and agents) who accept public financing of elec-
tions (either primary matching or general election funds);
*3.
Payments made to determine whether an individual
should become a candidate, provided the indivi-
**
from personal funds of a Presidential candidate who
dual does not become a candidate. (If he does,
accepts public financing;
the payments will count as expenditures.)
by political party committees spending on behalf of
4.
Nonpartisan activity designed to encourage
(and perhaps in cooperation with) a Federal candidate
citizens to register to vote, or to vote.
in the general election; and
(In the case of a political committee
already reporting, however, such activity
**
by national party committees which accept public financing
must be reported as a disbursement.)
for the Presidential nominating conventions.
5.
Preparation and distribution of a sample
A.
WHAT IS A CAMPAIGN EXPENDITURE?
ballot or printed list of three or more
candidates by a political party, provided
A campaign expenditure is a disbursement made by a candidate, a
no public media (e.g., billboards, T.V.,
political committee or a political party to influence the nomina-
newspapers) is used. (In the case of a
tion or election of any individual to Federal office. Expendi-
party committee already reporting, however,
tures take many forms, including:
such activity must be reported as a dis-
bursement.)
1.
Purchases.
** 6.
Legal or accounting services rendered to a
2.
Payments.
national party committee provided the
services are not attributable to any acti-
3.
Loans or direct contributions to other candidates or
vity directly influencing Federal elections1
committees.
and the person paying for the services is the
4.
A written contract or agreement to make an expenditure.
the services.
regular employer 2/ of the individual rendering
*
(However, only written agreements for making expendi-
tures over $500 are reported when the agreement is
made; all others are reported when payment is made or
However, in the case of a national Presidential convention, such legal and
no later than 60 days after the agreement is made.)
accounting services may be rendered for any purpose to a national party
committee, without counting the services against the limits on convention
expenditures.
A partnership is considered the regular employer of a partner who renders
such services.
8/76
2.16
8/76
2.17
** 7.
Legal or accounting services rendered to a
1.
Expenditures by national party committees on behalf of
candidate or political committee provided
clearly identified candidates in the general election.
they are rendered to ensure compliance with
the Act and the person paying for the services
a. Presidential candidates -- $3,203,786.96
is the regular employer of the individual
b.
House candidates
--
$
10,910.00
rendering the services. (Note: However, the
C.
Senate candidates
--
$
21,820.00 or 2.182c X State
value of such services must be reported as
VAP whichever is greater.
,
receipts and disbursements by candidates
and committees.)
2.
Expenditures by State party committees, including subor-
dinate party committees (e.g., county, district or local),
** 8.
In the case of Presidential primary candidates
on behalf of clearly identified candidates in the general
who accept public matching funds, and are
election.
2/
therefore subject to expenditure ceilings,
fundraising expenses which do not exceed 20
a.
House candidates
-- $10,910.00
percent of the expenditure limit. (Note:
b.
Senate candidates
-- $21,820.00 or 2.182c X State VAP,
However, such disbursements must be reported
whichever is greater.
by candidates and their committees.)
* 3.
Expenditures by State party committees and subordinate
9.
Any communication, expressly advocating the
party committees which benefit Presidential candidates
election or defeat of a candidate, made by a
in the general election.
membership organization or corporation to its
members or stockholders, as long as the organi-
State, county, city and congressional district committees
zation is not organized primarily to influence
may each make expenditures up to $1,000 which further
Federal elections. (Note: However, dis-
the campaign of a Presidential candidate as long as they
**
closure is required only when costs exceed
are made primarily to influence the general election of
$2,000 per election and when they relate to
the party's other nominees. 3/
a communication expressly advocating the elec-
tion or defeat of a clearly identified candi-
4.
Expenditures by Presidential primary candidates (and their
date.)
authorized committees and agents) who accept public
financing of elections.
* 10.
Limited expenditures by State and subordinate
party committees, which influence Presidential
a.
Per State limit
-- $218,200.00 or 17.456c X State VAP,
elections. (See Section C, 3, below.) (However,
whichever is greater.
registered party committees must report such
b.
National limit
-- $10,910,000.00
activity.)
C.
Additional spending -- $ 2,182,000.00 (20% of national
for fundraising
limit).
C.
EXPENDITURE LIMITS
** 5.
Expenditures made from personal funds by Presidential can-
Expenditure limits are prescribed as a flat amount or determined
didates who accept public financing of elections:
by a specific formula. Each calendar year, the limits are adjusted
by the average annual increase in the cost of living. The expendi-
ture limits listed below reflect the 1975 increase of 9.1 percent.
Voting Age Population.
/
All expenditures made on behalf of a clearly identified candidate by local
However, if a communication is primarily devoted to subjects other than the
and State committees are subject to one ceiling. State and local party
express advocacy of election or defeat of a candidate (such as a regularly
committees within a State may determine how to apportion the limit among
published newsletter) the expenditure need not be reported.
the several committees.
Until the FEC issues Form 7, reports may be made by letter.
See FEC proposed Regulations on Contributions and Expenditures, Subsection
3/
In this provision "election" has a special meaning. It refers to each of
110.7(b)(5).
two processes: The first process includes all Federal primaries, wherever
"Personal funds" include any funds which the candidate controlled or had
held; the second process includes all Federal general elections, wherever held.
access to prior to becoming a candidate.
I
8/76
2.18
8/76
2.19
a.
For each campaign (primary and general), $50,000.
However, if Citizen Smith purchased and distributed the
b.
Spending by the Vice-Presidential candidate from
bumper stickers entirely on his own, he (not Jones) would
his personal funds counts against the personal
have to report his independent expenditure to the Federal
expenditure limit of the Presidential candidate,
Election Commission.
in the general election.
C.
Expenditures made between January 29 and May 11,
1976, do not count against this limit.
V.
SUMMARY OF ACTIVITY PERMITTED EACH ELECTION PARTICIPANT
IV. THE ACT IN OPERATION: SOME EXAMPLES
A.
CANDIDATES
The following examples illustrate the differences between contributions,
1.
Make expenditures from contributions received.
contributions-in-kind, independent expenditures and expenditures by
candidates:
2.
Make expenditures from candidate's personal funds.
A.
DEFINITIONS
3.
Make limited contributions to other candidates or
committees to benefit the campaigns of other
Citizen Smith wants to support Candidate Jones. He may do so
candidates.
in a variety of ways. He could make a contribution of $200 to
Jones' campaign by writing a check payable to the "Committee
B.
COMMITTEES AUTHORIZED BY CANDIDATES
for Jones" and mailing it to the campaign headquarters. After
receiving that contribution, Candidate Jones could pay a printer
1.
Make expenditures from contributions received.
$200 to purchase bumper stickers. Such a payment would consti-
tute an expenditure by Candidate Jones. Or, Smith himself could
2.
Make limited contributions to other candidates or
buy $200 worth of bumper stickers and deliver them to Jones.
committees to benefit the campaigns of other
This would be a contribution-in-kind (the bumper stickers)
candidates.
valued at $200. A third alternative would be for Citizen Smith
to decide on his own, without the cooperation, consent or even
C.
INDIVIDUALS
the suggestion of Candidate Jones, to purchase and distribute
$200 worth of bumper stickers. If he does this, he has made
1.
Make limited contributions to candidates and
an independent expenditure.
committees.
B.
LIMITS
2.
Volunteer services and property to candidates and
committees.
Citizen Smith may make any number of independent expenditures
as long as they are in no way directed, controlled or suggested
3.
Make unlimited independent expenditures to advocate
by Candidate Jones. However, he may contribute no more than
the election or defeat of a clearly identified
$1,000 to Jones' campaign, in the form of either money or a
candidate.
contribution-in-kind. Candidate Jones may make any number of
expenditures, in any amount (as long as he is NOT a Presiden-
tial candidate accepting public funds for his campaign).
C.
REPORTING REQUIREMENTS
For a full explanation of the types of activities listed in this section,
see Sections II and III, above, pp. 2.3-2.18. See also Contribution
All expenditures, contributions and independent expenditures
Chart, p. 2.22.
over $100 must be reported. Citizen Smith's contribution of
money or of bumper stickers would have to be reported by
Candidate Jones and his campaign committee. Jones would also
have to report his expenditure to purchase bumper stickers.
8/76
2.20
8/76
2.21
D.
NATIONAL, STATE AND LOCAL PARTY COMMITTEES
2.
Advisory Opinions
1.
Make limited contributions to any Federal candidate.
For more complicated questions relating to a
specific, factual situation, candidates, Federal
2.
Make limited expenditures on behalf of specific
officeholders and political committees may request
Federal candidates for the general election.
an advisory opinion in writing. Requests for
opinions and the opinions themselves are made public.
E.
ALL OTHER POLITICAL COMMITTEES
A requesting person who in good faith acts in accord-
ance with the advisory opinion will not be subject
1.
Make limited contributions to candidates and
to any penalties with regard to the activity in
their authorized committees.
question.
2.
Make limited contributions to other committees
which are not authorized by any candidates.
3.
Make unlimited independent expenditures to advocate
the election or defeat of a clearly identified
candidate.
VI. APPENDIX
A.
AID FROM THE FEDERAL ELECTION COMMISSION
1.
Additional Materials Available
a.
Registration forms.
b.
Reporting forms.
C.
The Federal Election Campaign Act of 1971,
as amended in 1974 and 1976.
d.
Summary of the 1976 amendments.
e.
Campaign Guide for Political Committees.
f.
Campaign Guide for Federal Candidates.
2.
Clarification of the Law
1.
Routine Assistance
The information staff at the Federal Election
Commission wishes to help the public in any
way possible. Contact the Commission in
Washington, D.C. at 382-4733 or call toll free
800-424-9530.
B. LIMITS ON CAMPAIGN CONTRIBUTIONS
TO CANDIDATE OR
**TO NATIONAL PARTY
**TO ANY OTHER
HIS/HER AUTHORIZED
COMMITTEES
COMMITTEE
TOTAL CONTRIBUTIONS
CONTRIBUTION FROM:
COMMITTEE
Per Calendar Year2
Per Calendar Year2
Per Calendar Year3
INDIVIDUAL
$1,000
$20,000
$5,000
$25,000
Per Election⁴
8/76
MULTICANDIDATE
$5,000
$15,000
$5,000
No Limit
COMMITTEE5
Per Election
PARTY COMMITTEE
$1,000 or $5,000⁶
No Limit
$5,000
No Limit
Per Election
**REPUBLICAN OR DEMO-
$17,500 to Senate
Not Applicable
Not Applicable
Not Applicable
CRATIC SENATORIAL
candidate per calendar
CAMPAIGN COMMIT-
year2 in which candi-
TEE,7 OR THE NATION-
date seeks election.
AL PARTY COMMITTEE,
OR A COMBINATION OF
BOTH
ANY OTHER COMMIT-
$1,000
$20,000
$5,000
No Limit
TEE OR GROUP⁸
Per Election
1
For purposes of this limit, National Party Committees include a party's national committee, the Republican and Democratic Senate and House Campaign committees
and any other committee established by the party's national committee, provided they are not authorized by any candidate.
2
In 1976 only, and solely in the case of contribution limits established in the 1976 amendments (indicated by double asterisk in margin), the calendar year extends from
May 11 (date of enactment of the Act) through December 31, 1976.
3 Calendar year extends from January 1 through December 31, 1976. Individual contributions made or earmarked before or after 1976 to influence the 1976 election
of a specific candidate are counted as if made during 1976.
4 Each of the following elections is considered a separate election: primary election, general election, run-off election, special election, and party caucus or convention
which, instead of a primary, has authority to select the nominee.
5
A multicandidate committee is any committee with more than 50 contributors which has been registered for at least six months and, with the exception of state
party committees, has made contributions to five or more Federal candidates.
6 Limit depends on whether or not party committee is a multicandidate committee.
7 Republican and Democratic Senatorial Campaign committees are subject to all other limits applicable to a multicandidate committee.
2.22
8 Group includes an organization, partnership or group of persons.
CAMPAIGN GUIDE SERIES
This pamphlet is the second in a new series -- the FEC Campaign
Guide. Designed as a basic reference tool, each guide will have a
specific focus. The first three guides are:
Number One -- Committees
Number Two -- Contributions/Expenditures
Number Three -- Candidates
The Campaign Guide on Contributions and Expenditures
replaces an earlier version which appeared in February 1976. It
is based on the 1976 amendments and proposed regulations.
From time to time, one or more pages may be revised. In that
event, the FEC will mail the revised pages to all those who have
been sent this guide. The new pages will be coded by number,
date and color so they can easily be substituted for the obsolete
pages.
ELECTION
FEDERAL
COMMISSION
FEDERAL ELECTION COMMISSION
UNITED STATES OF AMERICA
CAMPAIGN GUIDE
1325 K STREET, N.W., WASHINGTON, D.C.
20463
NUMBER THREE
AUGUST 1976
CAMPAIGN GUIDE FOR FEDERAL CANDIDATES
STATE FORD TIBRARY
INTRODUCTION
Under the Federal Election Campaign Act of 1971, as amended in 1974 and 1976
(hereinafter referred to as the Act), candidates for the Presidency, the U.S.
Senate and House of Representatives and their authorized committees1/ are re-
quired to disclose all receipts and expenditures made with regard to Federal
elections. They are also subject to certain contribution limits and prohibitions.
To help candidates and campaign personnel comply with the Act, the Federal
Election Commission (hereinafter referred to as the FEC) has prepared this
guide as a basic reference tool. It summarizes parts of the law and proposed
regulations which are pertinent to candidates and their authorized committees.2
-- A double asterisk (**) in the margin denotes the 1976
amendments.
-- A single asterisk (*) in the margin denotes items based on
regulations proposed by the FEC, as distinct from the statute
on which regulations are based. Once the regulations have
been reviewed by Congress, they will have the effect of
law. At that time, this guide will be revised accordingly
and distributed to all registered candidates and any other
person who requests a copy.
1/ An authorized committee is one which a candidate has empowered in writing
to raise contributions or make expenditures on his/her behalf.
2/
See also FEC Campaign Guide on Contributions and Expenditures.
8/76
3.2
8/76
3.3
-- Be guided by the purpose of the law: to open campaign
Material is presented as follows:
financing to full public view through disclosure and to
reduce improper influence on the political process by
Page
limiting campaign contributions.
I. GENERAL GUIDELINES
3.2
-- Keep adequate records of all receipts and expenditures.
II. WHO IS A CANDIDATE?
3.3
-- If a mistake is discovered, correct it promptly and
straightforwardly.
III. WHAT A CANDIDATE MUST DO TO COMPLY WITH THE ACT
A.
ESTABLISH CANDIDACY
3.4
-- If in doubt as to what the law means or how it applies,
B.
KEEP RECORDS
3.5
seek help from the FEC. (See Appendix, p. 3.19.)
C. COMPLY WITH REPORTING REQUIREMENTS
3.7
1.
Who Reports?
3.7
2.
Reporting Forms
3.8
3. Contents of Reports Filed By All
II. WHO IS A CANDIDATE?
Federal Candidates
3.8
4.
Contents of Additional Reports
A candidate is an individual who seeks nomination or election to
Filed by Incumbent Candidates
3.8
Federal office by:
a. Recording Services
3.8
b. Office Accounts
3.9
A. Taking action under State law to qualify for running for
5. Where Reports and Statements Are Filed
3.9
office;
6. When Reports Are Filed
3.10
7. Waiver of Reports
3.12
B. Accepting contributions or making expenditures for the
8. Fundraising Notice
3.13
purpose of seeking a nomination or election, even if the
9. Advertising Notices
3.14
intention to seek public office has not been publicly
10. Liability
3.15
announced;1/
IV. WHAT A CANDIDATE MAY NOT DO UNDER THE ACT
3.15
C. Authorizing someone else to solicit contributions or make
expenditures on his/her behalf; or
V. FINANCIAL SOURCES OF CANDIDATE SUPPORT
3.16
A. CONTRIBUTIONS
3.16
*
D. Failing to disavow an unauthorized person's efforts to
B. VOLUNTEER ACTIVITY
3.16
solicit contributions or make expenditures on his/her
C. INDEPENDENT EXPENDITURES
3.17
behalf. Disavowal should be made in writing within 30
D. PARTY SPENDING
3.17
days after the FEC notifies the individual of such
E. PUBLIC FINANCING FOR PRESIDENTIAL CANDIDATES
3.18
activity.
F. CANDIDATE'S PERSONAL FUNDS
3.18
VI. APPENDIX: AID FROM THE FEDERAL ELECTION COMMISSION
3.19
Spending money to determine whether or not an individual should become a
I. GENERAL GUIDELINES
candidate (e.g., conducting a poll) does not automatically constitute a
"contribution" or an "expenditure." However, if an individual who tests
-- Review the law and proposed regulations available from
the waters later becomes a candidate, he must report any money raised and
the FEC. Note especially the definitions which give
spent for that purpose as contributions and expenditures.
special meanings to key words such as "candidate,"
"contribution," "expenditure," "identification," or
"clearly identified candidate."
8/76
3.4
8/76
3.5
III. WHAT A CANDIDATE MUST DO TO COMPLY WITH THE ACT
3.
Other Authorized Committees Register
A.
ESTABLISH CANDIDACY
a.
If a candidate wants any other committee
to work on behalf of his/her campaign, he
1. Candidate Registers
must file a Statement of Authorization (by
FEC Form 2a or letter) empowering it to
a.
Within 30 days after becoming a candidate,
raise or spend money on his/her behalf.
a candidate is required to file a Statement
of Candidate (by FEC Form 2 or letter) desig-
1) The statement designates the authorized
nating:
committee's bank depositories and iden-
tifies the principal campaign committee
1) A principal campaign committee as
where the authorized committee will file
the principal committee to receive
its reports.
contributions and make expenditures
on the candidate's behalf.
2)
Copies of the Statement are filed with
the candidate's principal campaign commit-
2) At least one national or state bank
tee which, in turn, files them with the
as a campaign depository where con-
FEC, the Secretary of the Senate or the
tributions are deposited and from
Clerk of the House, as appropriate.
which expenditures (except those
from a petty cash fund) are made
b.
An authorized committee expecting to receive
through a checking account.
contributions or make expenditures of more than
$1,000 in a calendar year must file a Statement
b.
Statement is filed with the FEC, the Secretary of
of Organization (by FEC Form 1) with the candi-
the Senate or the Clerk of the House, as appropriate.
date's principal campaign committee which, in
turn, files a copy of the Statement with the
2.
Principal Campaign Committee Registers
FEC, the Secretary of the Senate or the Clerk
of the House, as appropriate.
a. Within ten days after being designated by the
candidate, the principal campaign committee must
C.
Upon receipt of the Statement of Organization, the
file a Statement of Organization on FEC Form 1,
FEC will issue an identification number to the
identifying its officers, scope of jurisdiction,
authorized committee.
bank depositories, and affiliated organizations.
B. KEEP RECORDS¹
b.
Statement is filed with the FEC, the Secretary
of the Senate or the Clerk of the House, as
1. A committee must have a chairman and a treasurer (two dif-
appropriate.
ferent individuals) at any time it accepts contributions
or makes expenditures. A vice chairman and/or assistant
C.
Upon receipt of the Statement of Organization,
treasurer may be designated to serve in the absence of a
the FEC will issue an identification number to
chairman or treasurer.
the committee.
See Section III, C, 5, P. 3.9, for where candidates and their authorized
Under the Act, the information required for records is, in some instances,
committees file statements and reports.
more detailed than the information required in reports. For a full dis-
cussion of recordkeeping, see the FEC proposed Disclosure Regulations,
Parts 100-108.
8/76
3.6
8/76
3.7
2.
The candidate, his/her principal campaign committee and
5. All receipts, including contributions of $50 or less,
any other authorized committee must keep an account of
must be deposited in the bank within 10 days after they
all contributions and expenditures. In addition, the
have been received.
committee must record:
6.
Campaign funds must be separated from personal funds.
** a. Any contribution to the candidate or authorized
committee of more than $50, by date, amount, and
7. No single cash disbursement may exceed $100.
name and address of donor;1
8. A written record of petty cash disbursements must be
b. Any contribution to the candidate or authorized
kept, if a petty cash fund is maintained.
committee of more than $100 (given in one trans-
action or in aggregate during a calendar year),
* 9. If, prior to the primary election, a candidate (or
by date, amount, and the donor's name, address,
authorized committee) receives contributions designated
occupation, and principal place of employment;
for the general election, the primary and general elec-
(However, the Commission recommends that commit-
tion contributions must be kept distinct by using accept-
tees record this information for all contribu-
able accounting methods (such as maintaining separate
tions in order to meet the requirement that
bank accounts, separate books or separate records for
they report all contribtuions from one source
each election).
which total more than $100 in a calendar year.)
10. A contribution which appears to be illegal must either
C.
All transfers (i.e., contributions from one
be:
committee to another committee or candidate),
regardless of amount, by date, amount and the
a. Returned to the contributor; or
name and address of the donor or recipient
committee;
b.
Deposited and reported. If the legality of the
contribution cannot be determined within a reason-
d. All expenditures, by date and amount of trans-
able period of time, the treasurer must return it
action and the name and address of recipient; and
and report the refund no later than in the next
report.
e.
Additionally, expenditures over $100 (made in
one transaction or in aggregate during a
11. Reporting committees and candidates must keep copies of
calendar year) must be identified as to their
all statements, reports and supporting records for at
purpose.
least three years after the end of the year in which a
report or statement was filed.
3. A receipted bill or comparable record must be kept for
expenditures to one person which, in the aggregate,
C.
COMPLY WITH REPORTING REQUIREMENTS
exceed $100.
1.
Who reports?
** 4. Committee fundraisers and other individuals receiving
contributions of more than $50 must report them to the
All Federal candidates (except those receiving waivers1/),
treasurer within five days after receiving them.
their principal campaign committees2/ and any other
authorized committee which has registered with a principal
campaign committee must report.
*1/ An anonymous contribution of currency exceeding $50 may not be used for
campaign-related expenses, but may be used for other legal purposes.
For candidate waivers, see Section III, C, 7, below, P. 3.12.
Even if the principal campaign committee does not raise or spend funds,
under the Act it is required to report.
8/76
3.8
8/76
3.9
*b. Office Accounts
2.
Reporting Forms
1) Federal officeholders (and State office-
a. Long Form
holders who are candidates for Federal
office) maintaining office accounts must
Candidates and their authorized committees generally
disclose these accounts by filing reports:
report all receipts and expenditures on the standard
FEC Form 3.
a) On April 15, covering transactions from
September 1 of the preceding year through
b. Short Form
March 31; and
A candidate and his/her principal campaign committee
b) On October 15, covering transactions
may report on the short FEC Form 6, provided the
from April 1 through September 30.
committee has not raised or spent more than $50,000
per election and the candidate has not authorized any
other campaign committee.
2) Any contributions to, or expenditures from, an
office account made to influence Federal elec-
3. Contents of Reports Filed by All Federal Candidates
/
tions are subject to the contribution and
and Their Authorized Committees
expenditure limitations of the Act.
Under the Act, the information required in reports is,
5. Where Reports and Statements Are Filed
in some instances, less detailed than the records which
candidates and their authorized committees are required
Under the Act, candidates and their authorized committees
to keep. For a full discussion of what must be included
must report simultaneously with Federal and State govern-
in reports, see the FEC Campaign Guide for Committees,
ments, as indicated below:
Section VI.2
a. With Federal Government
4. Contents of Additional Reports Filed by Incumbent Candidates
1) Senate candidates and their principal
a. Recording Services
campaign committees file with the
Secretary of the Senate, Washington,
1) During an election year, candidates who are
D.C. 20510.
Members of Congress must report the cost of
recording services furnished by the Senate
2) House candidates and their principal
and House recording studios or paid for by
campaign committees file with the
the Republican or Democratic Senatorial
Clerk of the House of Representatives,
Campaign Committees, the Democratic National
Washington, D.C. 20515.
Congressional Committee or the National
Republican Congressional Committee.
3)
Presidential and Vice-Presidential can-
didates and their principal campaign
* 2) This report must be submitted in a letter
committees file with the Federal Elec-
attached to the principal campaign commit-
tion Commission, 1325 K Street, N.W.,
tee's report, but need not be included in
Washington, D.C. 20463.
the committee's summary of contributions
and expenditures.
Federal candidates who are also State or Federal officeholders are required,
/
An "office account" is one established to support activities of a Federal
additionally, to report office accounts. (See Section 4, b, below.)
or State officeholder, consisting of funds other than government appropria-
2/
See also FEC proposed Disclosure Regulations, Parts 100-108.
tions or the candidate's personal funds. For more specific information on
the reporting of office accounts, see FEC Proposed Regulations on Office
Accounts, Part 113.
8/76
3.10
8/76
3.11
4) Authorized single candidate committees
quarter, the candidate or all the authorized commit-
file:1/
tees, taken collectively, raised or spent more than
$1,000.1/
a) With the principal campaign
committee of the candidate they
b. Annual Reports -- Filed by January 31, covering
support (which consolidates the
the transactions of the preceding year in any
report and transmits it to the
nonelection year in which an individual is a
Senate, House or FEC, as appro-
candidate.
priate); or
C. Pre- and Post-Election Reports
b) In the case of the pre-election
report, with the FEC as well as
1) Pre-election - Filed by the 10th day
with the principal campaign com-
before an election, disclosing trans-
mittee, unless the committee
actions as of the 15th day before an
files its report with the prin-
election.
cipal campaign committee early
enough to permit the principal
a) If filed by registered or cer-
campaign committee to file its
tified mail, report must be
consolidated report by the 10th
postmarked by the 12th day
day before an election.
before the election.
b. With State officers
b) A contribution of $1,000 or
more received between two and
1)
Presidential candidates and their autho-
15 days before an election must
rized committees file with the Secretary
be reported by telegram or hand-
of State2/ of the State in which the
delivered letter within 48 hours
candidate (or authorized committee)
after it is received.
makes an expenditure during a reporting
period.
c) An independent expenditure of
$1,000 or more made between one
2) House and Senate candidates and their
and 15 days before an election
authorized committees file with the
must be reported by telegram or
Secretary of State of the State in
hand-delivered letter within 24
which the candidate seeks election.
hours after it is made.
6. When Reports Are Filed
2) Post-election - Filed by the 30th day
after an election, disclosing transac-
a.
Quarterly Reports -- Filed by the candidate and
tions as of the 20th day after an elec-
each authorized committee by April 10, July 10,
tion.
October 10, and January 31, disclosing transactions
of the preceding calendar quarter if, during that
d.
Monthly Reports
1) Monthly reports are required in an
election year from each Presidential
In addition, if a multicandidate committee is authorized by a candidate,
it must report contributions received and expenditures made on behalf of
that candidate to the principal campaign committee.
1/ During a nonelection year, a candidate or an authorized committee must file
Or equivalent State officer.
the quarterly report only if the candidate or all the authorized committees,
3/
Unless waived. See, below, Section III, C, 7, P. 3.12.
taken collectively, raised and spent a total of more than $5,000 during the
quarter.
8/76
3.12
8/76
3.13
candidate operating in more than
forward all contributions to the principal cam-
one State, and from his or her
paign committee within five days after receiving
authorized committees.
them.
*
2) Reports must be filed by the 20th day
b.
Quarterly Reports
of each month (except January, November
and December), covering transactions of
1) If the FEC is notified (by FEC Form 3a
the preceding month. These reports
or letter) at the end of the first quarter
replace the pre- and post-primary re-
in which this waiver applies, the candidate
ports and the first three quarterly
or committee does not have to file the
reports. However, the fourth quarter
quarterly report:
report and the pre- and post-general
election reports are still required.
** a) In a nonelection year, if the candi-
date or all his/her authorized commit-
e.
Due Dates
tees, taken collectively, did not raise
and spend a total of more than $5,000
1) If mailed first class, reports must be
during the quarter.
received by the filing date.
b) In an election year, if the candidate
2) If sent by registered or certified mail:
or all his/her authorized committees,
taken collectively, did not raise or
a) Pre-election reports must be
spend more than $1,000 during the
postmarked by the 12th day be-
*
quarter. However, if the candidate or
fore the election.
committee has outstanding debts at the
end of the fourth quarter, it must file
b) All other reports must be post-
the fourth quarter report even if neither
marked no later than the filing
contributions nor expenditures exceeded
date.
$1,000.
3) However, the Commission recommends that
* 2) The quarterly report is automatically waived
all reports be sent by registered or
if it is due within 10 days before or after
certified mail so that committees have
an election.
proof of having mailed their reports.
3) Even when quarterly reports are waived, the
7. Waiver of Reports
pre- and post-election and annual reports
must be filed.
* a. Candidate's Reports
* 8. Fundraising Notice
Once the disclosure regulations are put into
effect, a candidate will not have to file any
Any literature, advertisement, letter or pledge card
reports if he or she files a statement (by letter
issued by a political committee to solicit contribu-
or FEC Form 2) with the FEC, pledging to refrain
tions must include on its front page or at the begin-
from making any unreimbursed expenditures and to
ning or end of a broadcast the following statement:
*1/ A candidate receiving a waiver may, however, contribute personal funds to
Unless waived. See, below, Section 7.
his/her principal campaign committee. Such funds must be reported by the
committee as a contribution received.
8/76
3.14
8/76
3.15
"A copy of our report is filed with the Federal
10. Liability
Election Commission and is available for pur-
chase from the Federal Election Commission,
a. Each candidate, each treasurer of a political
Washington, D.C."
committee and any other person required to file
reports or statements is personally responsible
9. Advertising Notices
for the timely, complete and accurate filing of
reports and statements.
a.
Any communication advocating the election or
defeat of a "clearly identified candidate"1/
** b. They will be considered in compliance with the
through public advertising (such as a broad-
law when they have used their best efforts to
cast, billboard, newspaper, magazine or direct
obtain required information.
mailing) must:
1) If authorized by the candidate (or authorized
agent), state:
IV. WHAT A CANDIDATE MAY NOT DO UNDER THE ACT
a) That the communication is
authorized by the candidate;
Candidates and their authorized agents may not:
and
A. Accept contributions of currency amounting to more than $100
* b) The name of the candidate or
from a single source during the campaign period.1
committee which financed the
expenditure.
B. Accept contributions from the treasury of any corporation
or labor organization. However, a candidate may accept funds
2) If not authorized by the candidate (or
from separate segregated funds or political action committees
authorized agent), state:
established by corporations or unions, consisting of voluntary
contributions.
a) That the communication is not
authorized; and
C. Accept contributions from organizations or individuals who are
working under Federal contract. This limit does not apply to
* b) The name of the person who
employees, shareholders or officers of corporations or labor
financed the expenditure and,
organizations with Government contracts.
in the case of a political
committee, the names of its
D. Accept contributions from foreign nationals who do not have
affiliated organizations.
permanent residence in the United States.
* b. The statement must appear on the face or front page
E. Make expenditures in excess of statutory limits, in the case
of printed matter, or at the beginning or end of
of Presidential candidates or nominees (and their authorized
a radio or television broadcast.
committees) who accept public funds.
F. Accept contributions in excess of statutory limits. (See
Section V, A, below.)
1/ Under the Act, a communication refers to a "clearly identified candidate"
If a candidate (or his/her authorized committee) receives an anonymous
when the candidate's name, photograph or drawing appears, or when the
contribution of currency, he or she may not use the amount exceeding
identity of the candidate is apparent by unambiguous reference.
$50 for campaign-related activities. That amount, however, may be used
for any other legal purpose not related to the campaign.
8/76
3.16
8/76
3.17
V.
FINANCIAL SOURCES OF CANDIDATE SUPPORT
a. The purchase of up to $500 worth of food, bev-
erage and invitations provided in connection
A. CONTRIBUTIONS
with campaign-related activity in the volun-
teer's home.
Federal candidates (or their authorized committees) may accept
contributions which do not exceed the limits listed below:
b. An expenditure of up to $500 for travel.
1.
From an individual --
* C. Unlimited personal expenditures for living
$1,000 per election.
expenses related to the campaign.
d. The rental value of the volunteer's home for
2. From a Multicandidate Political Committee
$5,000 per election. 3/
campaign-related activity.
3. From any other group, partnership or committee --
3. For each election, a candidate may buy from a vendor
$1,000 per election.
(whether corporate or not), at cost, food and bever-
age to be used in connection with the campaign, as long
VOLUNTEER ACTIVITY
as the cumulative value of discounts does not exceed
B.
$500 per election.
1. Candidates (and their authorized committees and agents)
may accept personal services of any individual, without
C. INDEPENDENT EXPENDITURES
counting such services as contributions (or expenditures),
provided the services are not compensated by any other
1.
Individuals and groups may make independent expenditures,
in any amount, for the purpose of financing communica-
person
tions expressly advocating the election or defeat of a
2. For each election, a candidate (and his/her authorized
clearly identified candidate provided that:
committees or agents) may allow individuals to volunteer
** a. The expenditure is not made in cooperation,
a variety of services and property, without counting
consultation or concert with, or at the sug-
them as contributions (or expenditures). Such volun-
gestion or request of, any candidate or his/
teer activity includes:
her authorized committees or agents; and
** b. The expenditure is not made to finance a
broadcast or publication of materials prepared
1/ For a more detailed explanation of candidate support permissible under the
by a candidate or his/her authorized committees
Act and pertinent reporting requirements, see FEC Campaign Guide on Contri-
or agents.
butions and Expenditures.
A Multicandidate Political Committee is one which has been registered for
* 2. When an individual requests and receives from a candidate
at least six months, has received contributions from more than 50 persons
FEC guidelines on independent expenditures, he/she is not
and, with the exception of State party committees, has contributed to five
or more Federal candidates.
considered to have conferred, cooperated or consulted
with the candidate.
**3/ However, Senate candidates may accept up to $17,500 during an election year
from the Democratic or Republican Senate Campaign Committee, a national
D. PARTY SPENDING:
/
party committee or a combination of both.
There is one exception to this rule: Candidates may accept legal and
In the general elections, party committees may make limited
accounting services which are compensated by the regular employer of the
person rendering the services, but still not count the value of such ser-
expenditures on behalf of, and perhaps in cooperation with,
Federal candidates.
vices as a contribution (or expenditure), as long as such services are
provided solely for the purpose of ensuring compliance with the Act.
(A partnership is considered the regular employer of a partner who renders
Figures given in this section reflect the 1975 increase of 9.1 percent
such services.) However, such legal and accounting services must be reported.
in the cost of living.
8/76
3.19
8/76
3.18
1. Expenditures by national party committees on behalf of:
F. CANDIDATE'S PERSONAL FUNDS
Presidential candidates -- $3,203,786.96.
** 1. Candidates for the Senate and the House may make
House candidates
--
10,910.00.
unlimited expenditures from their personal funds.
Senate candidates
--
21,820.00 or 2.182c X State VAP
whichever is greater.
** 2. Presidential candidates who accept public financing
may spend up to $50,000 in personal funds per each
2. Expenditures by State party committees2 on behalf of:
election.
House candidates
-- $10,910.00.
Senate candidates
-- 21,820.00 or 2.182c X State VAP,
VI. APPENDIX: AID FROM THE FEDERAL ELECTION COMMISSION
whichever is greater.
A. ADDITIONAL MATERIALS AVAILABLE
*
3. Expenditures by State party committees and subordinate party
committees which benefit Presidential candidates:
1. Registration forms.
State, county, city and congressional district committees
2. Reporting forms.
may each make expenditures up to $1,000 which further the
campaign of a Presidential candidate as long as they are
3. The Federal Election Campaign Act of 1971, as amended
made primarily to influence the general election of the
in 1974 and 1976.
party's other nominees. 3
4. Summary of the 1976 amendments.
E. PUBLIC FINANCING FOR PRESIDENTIAL CANDIDATES⁴/
5. Campaign Guide for Political Committees.
1. In Primaries
6. Campaign Guide on Contributions and Expenditures.
The first $250 of every contribution made by an indivi-
dual to a Presidential primary candidate is eligible
B. CLARIFICATION OF THE LAW
for public matching funds.
1. Routine Assistance
2. In General Elections
The information staff at the Federal Election Commission
The Federal government will grant each major party
wishes to help the public in any way possible. Contact
candidate $21,820,000 provided he agrees to accept
the Commission in Washington, D.C., at 382-4733 or call
no private contributions in the general election.
toll free 800-424-9530.
2. Advisory Opinions
Voting Age Population.
For more complicated questions relating to a specific,
Within a given State, the expenditure limit applies collectively to the State
factual situation, candidates, Federal officeholders and
party and all of the subordinate party committees.
political committees may request an advisory opinion in
Such expenditures do not count against limits, but they must be reported
writing. Requests for opinions and the opinions themselves
by committees which are already reporting. (See FEC proposed Regulations
are made public. A requesting person who in good faith acts
on Contributions and Expenditures, Subsection 110.7(b)(5).)
in accordance with the advisory opinion will not be subject
4/ For a more detailed explanation of public funds, see FEC proposed Regula-
to any penalties as regards the activity in question.
tions on Presidential Primary Matching Fund, Parts 130-134 and FEC proposed
Regulations on General Election Financing, Parts 140-146.
"Personal funds" include any funds which the candidate controlled or had
access to prior to becoming a candidate.
CAMPAIGN GUIDE SERIES
This pamphlet is the third in a new series - the FEC
Campaign Guide. Designed as a basic reference tool, each
guide will have a specific focus. The first three are:
Number One - Committees
Number Two - Contributions/Expenditures
Number Three - Candidates
The Campaign Guide on Contributions and Expenditures
replaces an earlier version printed in February 1976. It is
based on the 1976 amendments and proposed regulations.
From time to time, it will be necessary to revise one or more
pages. In that event, the FEC will mail the revised pages to
all those who have been sent this guide. The new pages will
be coded by number, date and color so they can easily be
substituted for the obsolete pages.