What Is a Political Action Committee (PAC)?
Let me explain what a Political Action Committee, or PAC, really is in the U.S. It's essentially a group that gathers campaign donations from its members and then funnels those funds to support or oppose candidates, ballot measures, or laws. You see, these PACs are often set up by people or groups representing business, labor, or ideological interests who want to raise money privately for political campaigns. The very first one started in 1944 to help re-elect President Franklin D. Roosevelt.
How a Political Action Committee Works
At the federal level, an organization becomes a PAC if it receives or spends over $1,000 to influence a federal election. There are strict rules on how PACs can raise and donate money. For instance, they can give $5,000 to a candidate per election, up to $15,000 a year to a national party committee, and $5,000 annually to another PAC. They can take in up to $5,000 per year from any individual, PAC, or party committee.
You have to register a PAC with the Federal Election Commission within 10 days of forming it, providing details like its name, address, treasurer, and any connected groups. Affiliated PACs count as one donor for limits. They must disclose contributors, but sometimes that info comes out after the election, so voters might not know who's funding what during voting.
Types of Political Action Committees (PACs)
PACs come in several forms, each with its own rules. Separate Segregated Funds, or SSFs, are set up by corporations, unions, or associations and can only take money from people linked to that organization. Nonconnected committees aren't tied to any specific group, so they can accept donations from anyone in the public.
Super PACs are different—they can take unlimited contributions from individuals, corporations, unions, and other PACs. Hybrid PACs function as both regular PACs and Super PACs, keeping separate accounts for limited and unlimited activities. Leadership PACs are started by candidates or officeholders to support other candidates, but they're capped at $5,000 per election to federal committees.
PACs vs. Super PACs
Super PACs emerged in 2010 after the SpeechNow.org v. FEC court decision, which loosened rules on political fundraising. They can't donate directly to campaigns, but their managers can coordinate strategies with candidates. Since then, Super PACs have become major players—during the 2012 Republican primaries, they outspent the candidates themselves, mostly with individual donations rather than business money.
Special Considerations
Corporations can't donate directly to campaigns, but the 2010 Citizens United ruling changed that by allowing them to support PACs. This overturned parts of the 2002 reform act. Now, entities like corporations can give limited amounts to regular PACs or unlimited to Super PACs, influencing elections indirectly.
Examples and Who Can Start a PAC
A big example is the National Association of Realtors PAC, which pushes real estate interests. Anyone or any group can start a nonconnected PAC to take public contributions. Corporations, unions, and associations can create SSFs limited to their members.
Advantages of Super PACs
Super PACs have no fundraising limits from any source, and while they disclose donors, those donors can hide behind shell companies.
The Bottom Line
In summary, PACs collect and direct funds to align with their interests in politics. They vary in type with specific rules on money and reporting. They're incredibly influential today, especially Super PACs with their unlimited fundraising from diverse sources.
Key Takeaways
- PACs pool contributions to donate to political campaigns.
- Different PAC types have unique fundraising and disclosure rules.
- Super PACs accept unlimited contributions from various entities.
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