Political Action Committees: Power In Numbers
In the U.S., a political action committee (PAC) pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation. PACs are typically formed to represent business, labor, or ideological interests through collective engagement in political fundraising.
Key Takeaways
- Political action committees (PACs) collect contributions from members to support or oppose political candidates, ballot measures, or legislative movements.
- Various forms and classifications of PACs exist, each with specific fundraising rules and disclosure requirements.
- Notable among them are Super PACs, which can receive unlimited contributions from individuals, corporations, and other PACs, and notably influence campaign funding.
How a Political Action Committee Works
At the federal level, an organization qualifies as a PAC once it receives or spends over $1,000 intending to influence a federal election.
Fundraising and donation activities of PACs are governed by different restrictions. They can donate $5,000 to a candidate per election, $15,000 annually to any national party, and $5,000 annually to other PACs. Conversely, PACs can receive up to $5,000 per year from any one individual, other PACs, or party committees.
Upon formation, a PAC must register with the U.S. Federal Election Committee within 10 days, providing detailed information about the committee’s structure and affiliations. Although PAC contributors’ information must be disclosed, it may not always be available before elections.
Various Types of Political Action Committees (PACs)
PACs can vary significantly based on their structure and sources of funding. Here are some of the most prominent types:
Separate Segregated Funds (SSFs)
Managed by entities like corporations and labor unions, SSFs can only accept funds from individuals connected to their sponsoring entities.
Nonconnected Committees
These can accept contributions from the general public as they are not directly affiliated with any specific entity or organization.
Super PACs
Unique in their capacity to receive unlimited contributions from individuals, corporations, labor unions, and fellow PACs. Yet, direct donations to campaign efforts are forbidden. Instead, Super PACs can spend independently to influence elections.
Hybrid PACs
These entities operate with dual capacities as both PACs and Super PACs, maintaining distinct bank accounts for different activities.
Leadership PACs
Typically established by current political leaders or candidates, they aim to support other candidates for elective offices. Each leadership PAC can contribute up to $5,000 per election to federal candidate committees.
PACs vs. Super PACs
Super PACs emerged post-2010 following the SpeechNow.org v. Federal Election Committee ruling, allowing more deregulated fundraising and distribution of political funds. Although Super PACs can’t donate directly to campaigns, they can collaborate strategically with campaign managers.
Post-2010, Super PACs have significantly shaped the political landscape, sometimes outspending individual candidate campaigns, intensified by contributions primarily from individuals rather than corporations.
Special Considerations
The Citizens United v. Federal Election Committee Supreme Court verdict in 2010 allowed corporations to support PACs, referencing a shift from the 2002 Campaign Reform Act’s restrictions. Entities can now donate unlimited funds to Super PACs for indirect electional influence.
Dynamics of an Example PAC
Consider the National Association of Realtors PAC, one of the largest, emphasizing its industry’s political interests. The influence of such PACs showcases the infrastructural power PACs wield over the election process.
Establishing a PAC
Individuals and groups can venture to create nonconnected committees, taking advantage of public support. Corporations, labor unions, and trade associations, alternatively, form separate segregated funds to collect from their membership.
The Super Power of Super PACs
The expansive fundraising capacity of Super PACs, devoid of traditional PAC limitations, enables them to pool substantial financial heft from diverse contributors. Notably, donors can maintain anonymity through certain legal structures.
Conclusion: The Influence of PACs
PACs aggregating campaign dosages provide substantial leverage over election outcomes, dictated by clear governance norms. However, Super PACs are vanguards in this landscape due to their boundless fundraising. Both traditional PACs and Super PACs exemplify the dynamic interplay between finance and political realm.
Related Terms: election cycle, political funding, citizens united, federal election committee.
References
- Federal Election Commission. “Contribution Limits”,
- Federal Election Commission. “Political Action Committees (PACs)”,
- Washington Post. “Super PACs dominate Reublican primary spending”,
- OpenSecrets. “Top PACs.”
- FEC. “Registering as a PAC.”
