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					Federal Election Commission Campaign Guide
                                               Congressional
                                             Candidates and
                                                Committees
                                                    August 2011
This publication provides guidance on certain aspects of federal
campaign finance law. This publication is not intended to replace
the law or to change its meaning, nor does this publication create
or confer any rights for or on any person or bind the Federal
Election Commission (Commission) or the public. The reader is
encouraged also to consult the Federal Election Campaign Act of
1971, as amended (2 U.S.C. 431 et seq.), Commission regulations
(Title 11 of the Code of Federal Regulations), Commission advisory
opinions, and applicable court decisions.

For further information, please contact:

                                     Federal Election Commission
                                                999 E Street, N.W.
                                          Washington, DC 20463
                                                   (800) 424-9530
                                                   (202) 694-1100

                                                    info@fec.gov
                                                    www.fec.gov
                                                    Congressional
                                                  Candidates and
                                                     Committees
                                                                                       August 2011




Editor’s Note:

In January 2010, the Supreme Court announced its decision in Citizens United v. FEC. In response to the Court’s
decision, the Commission announced it would no longer enforce the statutory provisions or regulations
prohibiting corporations and labor organizations from making independent expenditures and electioneering
communications. Corporations and unions engaged in those activities should comply with the disclaimer
and reporting requirements, since the Court upheld those provisions. The Commission said it would
address other regulations that may have been affected by the Court’s decision in a forthcoming rulemaking.


Rules affected by the Court’s decision include:

   •	11CFR114.2(b)(2) and (3), which implement the Federal Election Campaign Act’s prohibition on
     corporate and labor organization independent expenditures and electioneering communications;

   •	11 CFR 114.4, which restricts the types of communications corporations and
     labor organizations may make to those not within their restricted class;

   •	11 CFR 114.10, which permits certain qualified nonprofit corporations to use their treasury funds
     to make independent expenditures and electioneering communications under certain conditions;

   •	11 CFR 114.14, which places restrictions on the use of corporate and
     labor union funds for electioneering communications; and

   •	11 CFR 114.15, which the Commission adopted to implement the
     Supreme Court’s decision in Wisconsin Right to Life, Inc. v. FEC. 

This publication reflects the guidance provided in the Commission’s public statement, which is available on the
FEC website at http://www.fec.gov/press/press2010/20100205CitizensUnited.shtml.
                                                    Introduction
                                                    This Guide was written to help U.S. House and
                                                    Senate Candidates comply with the Federal Election
                                                    Campaign Act and FEC regulations. It may be used by
                                                    committees supporting Presidential candidates who
About this Guide                                    are not seeking public funding. However, special
                                                    reporting rules apply to Presidential candidates, as
This Campaign Guide for Congressional Candidates    explained in footnotes to the reporting chapters.
and Committees replaces the April 2008 edition. It
summarizes the federal campaign finance laws appli- This publication provides guidance on certain
cable to candidate committees as of August 2011. aspects of federal campaign finance law. It is not
                                                    intended to replace the law or to change its mean-
                                                    ing, nor does this publication create or confer any
                                                    rights for or on any person or bind the Federal
                                                    Election Commission (Commission) or the public.
  Federal Election Commission                       The reader is encouraged also to consult the
  Washington, DC 20463                              Federal Election Campaign Act of 1971, as amended
                                                    (2 U.S.C. 431 et seq.), Commission regulations
  Commissioners:                                    (Title 11 of the Code of Federal Regulations),
           Cynthia L. Bauerly, Chair                Commission advisory opinions and applicable court
           Caroline C. Hunter, Vice Chair           decisions. For further information, please contact:

          Donald F. McGahn II                       Federal Election Commission

          Matthew S. Petersen                              999 E Street NW

          Steven T. Walther                                Washington, DC 20463

          Ellen L. Weintraub                               •	 800/424-9530 (toll free)

  Staff Director:                                          •	 202/694-1100 (local)

          Alec Palmer                                      •	 202/219-3336 (for the hearing impaired)

  Acting General Counsel:                                  •	 info@fec.gov

          Christopher Hughey                               •	 www.fec.gov

                                                    Using This Guide
  Prepared by the Information Division              Citations
   of the Office of Communications                  Authorities primarily cited in this Guide include
  Director:                                         the Federal Election Campaign Act, FEC regulations
          Greg J. Scott                             and FEC Advisory Opinions (AOs). All regula-
                                                    tory citations are to Title 11 of the Code of
  Deputy Director:                                  Federal Regulations (CFR), Parts 100–116, 300,
          Amy L. Kort                               400 and 9001–9039 (2011). Statutory citations
                                                    are to Titles 2 and 26 of the United States Code
   Layout and Design:                               (U.S.C.). Copies of AOs may be obtained from
          James Landon Jones                        the FEC’s Public Records Office (800/424-9530
                                                    or 202/694-1120), the FEC website (http://saos.



                                                                                                           iii
     nictusa.com/saos/searchao) or by calling the FEC’s       Faxline
     automated Faxline, (202/501-3413); in addition,          The FEC maintains a free automated fax-on-
     each AO is summarized in the Commission’s                demand service, Faxline. Documents available on
     newsletter, the Record. AOs are also reported            Faxline include selected parts of Title 2 of the
     in the Federal Election Campaign Financing Guide,        U.S. Code, FEC regulations, Advisory Opinions
     published by Commerce Clearing House, Inc.               (1990-present), forms and schedules, brochures
                                                              and other documents regarding campaign finance.
     Getting More Help                                        To receive documents from the Faxline, call
                                                              202/501-3413 and follow the voice prompts.
     Advisory Opinions
     Any person or group requiring a clarification of         World Wide Web
     the election law with regard to an activity that         Visit the FEC’s home page on the World Wide
     they plan to undertake may request an advisory           Web at http://www.fec.gov. Information on the
     opinion from the FEC. Individuals and organiza-          site includes campaign finance statistical data;
     tions involved in the activity specifically addressed    committee reports for candidates, parties and
     in an AO (or in an activity that is materially           PACs; FEC news releases; reporting dates; forms;
     indistinguishable) may rely on the opinion for           the newsletter; brochures and Campaign Guides.
     legal guidance. Advisory opinion requests may be         The FEC website also offers the capability to
     addressed to the Office of General Counsel at:           search the Commission’s campaign finance database
            Federal Election Commission                       online. The website also offers full text searches of
            999 E Street, NW                                  Commission Advisory Opinions (AOs) issued since
            Washington, DC 20463                              1977. Searches can be made using the name of a
     Toll-Free Line                                           requestor or other information about AOs. In addi-
                                                              tion, the FEC’s Enforcement Query System allows
     Many questions about federal campaign finance            users to search closed enforcement cases by such
     law do not require formal advisory opinions.             search criteria as respondent name or case number.
     Such questions may be addressed to trained
     FEC staff members by calling the FEC’s 800               Compliance with Small Business Regulatory
     number, below. Persons in the Washington,                Enforcement Fairness Act of 1996
     DC, area may call locally. The numbers are:              This Guide serves as the small entity compliance
       •	800/424-9530                                         guide for Congressional candidates and com-
       •	202/694-1100                                         mittees, as required by section 212 of the Small
                                                              Business Regulatory Enforcement Fairness Act of 1996,
       •	202/219-3336 (for the hearing impaired)              Pub. L. No. 104-121, Title II, Stat. 857 (1996).
       •	Hearing-impaired persons may reverse
         the charges when calling long distance.

     Free Publications
     In addition to this Guide, the FEC publishes a
     series of brochures and other publications on
     several aspects of campaign financing and election
     law. E-mail or call the FEC for a list of publications
     currently available, or visit the FEC website.
     Please note that Congressional campaign com-
     mittees have to comply with other laws outside
     the FEC’s jurisdiction; see Appendix G.




iv
Contents
LIST OF TABLES AND EXAMPLES                        vii     2. Brokerage Loans and Other Lines of Credit
                                                              Obtained by Candidate                          36
ChAPTEr 1 Testing the Waters                        1      3. Overdrafts                                     36
  1. Testing the Waters vs. Campaigning             1      4. Investment Income                              36
  2. Contribution Limits and Prohibitions           2      5. Offsets to Operating Expenditures              37
  3. Recordkeeping and Accounting                   2      6. Legal and Accounting Services                  37
  4. Example                                        2
  5. Organizing a Testing-the-Waters Committee      3    ChAPTEr 7 Sources of Support                        39
                                                           1. Contributions                                  39
ChAPTEr 2 Starting the Campaign                     5      2. Free Legal and Accounting Services             39
  1. Candidate Registration Threshold               5      3. Volunteer Activity                             39
  2. Candidate and Committee Registration           5      4. Travel Cost Exemptions                         41
  3. Statement of Candidacy                         6      5. Vendor Discounts on Food and Beverages         42
  4. Treasurer                                      7      6. Support from Other Campaigns                   42
  5. Statement of Organization                      9      7. Party Support                                  43
                                                           8. Corporate/Labor Exceptions                     45
ChAPTEr 3 Understanding Contributions              13
                                                           9. Use of Corporate/Labor Facilities and
  1. What Is a Contribution                        13
                                                              Resources                                      48
  2. Types of Contributions                        13
                                                          10. Fundraisers for Candidates                     49
                                                          11. Independent Expenditures                       50
ChAPTEr 4 Contribution Limits                      17
                                                          12. Electioneering Communications                  50
  1. Overview of Limits                            17
  2. How Limits Work                               20
                                                         ChAPTEr 8 Expenditures and Other Uses of
  3. Contributions to Unauthorized Committees      22              Campaign Funds                            51
  4. Designated and Undesignated Contributions     22      1. Permissible Uses of Campaign Funds             51
  5. Date Contribution Is Made vs. Date of Receipt 23      2. Prohibited Uses of Campaign Funds              53
  6. Joint Contributions                           24
  7. Remedying an Excessive Contribution           24    ChAPTEr 9 Transfers                                 59
  8. Contributions to Retire Debts                 27      1. Transfers Between Candidate’s Committees
  9. Contributions from Partnerships               28         or Same Office                                 59

 10. Contributions from Limited Liability Companies 28     2. Transfers Between Committees of Candidate
                                                              Seeking More Than One Office                   59
 11. Contributions from Minors                     29
                                                           3. Transfers from Candidate’s Nonfederal
 12. Candidate’s Personal Funds                    29
                                                              Committee Are Prohibited                       61
 13. Repayment of Personal Loans from Candidate    30
                                                           4. Transfers of Joint Fundraising Receipts        61
ChAPTEr 5 Prohibited Contributions                 31      5. What is NOT a Transfer                         61
  1. Prohibited Sources                            31
                                                         ChAPTEr 10 Conducting the Campaign                  63
  2. Questionable Contributions                    33
                                                           1. Fundraising                                    63
ChAPTEr 6 Other reportable receipts                35      2. Disclaimers                                    65
  1. Bank Loans                                    35                                                     (Cont.)




                                                                                                                    v
       3. Rates for Political Advertisements              67    19. Reporting Refunds, Returns and
       4. Campaign Travel                                 67        Bounced Checks                           107
                                                                20. Reporting Transfers Between Authorized
     ChAPTEr 11 Keeping records                           73        Committees                               108
       1. Record Retention                                73    21. Reporting Investments                    109
       2. Recording Receipts                              73    22. Completing the Report                    110
       3. Recording Disbursements                         75    23. The Detailed Summary Page                110
       4. Recording Debts and Loans                       76    24. Post-Election Detailed Summary Page      114
       5. Treasurer’s Best Efforts                        76    25. The Summary Page                         114
                                                                26. Filing Amendments                        116
     ChAPTEr 12 Filing reports                            79
       1. Who Reports                                     79   ChAPTEr 14 Winding Down the Campaign          117
       2. Where to File Reports                           80     1. Terminating the Committee                117
       3. When to Report                                  80     2. Conversion to Multicandidate Committee   117
       4. Administrative Fines for Late Filers                   3. Winding Down Costs                       118
          and Nonfilers                                   82     4. Sale of Campaign Assets                  118
       5. Electronic Filing                               83     5. Retiring Debts                           119
       6. Public Inspection of Reports                    86     6. Settling Debts                           119

     ChAPTEr 13 Completing FEC reports                    87   APPENDIX A Earmarked Contributions            123
       1. Reporting Forms and Formats                     87
       2. Special Rules for First Report                  88   APPENDIX B Contributions from
       3. Categorizing Receipts                           88
                                                                          Partnerships                       127

       4. How to Itemize Receipts                         89
                                                               APPENDIX C Joint Fundraising                  131
       5. When to Itemize Receipts                        89
       6. Reporting Contributions, Loans and                   APPENDIX D Communications                     139
          Advances from Candidate                         91
       7. Reporting Joint Contributions                   92   APPENDIX E. Fundraising by Federal
                                                                           Candidates and Officeholders      151
       8. Reporting Redesignations and Reattributions     92
       9. Reporting Free Legal and Accounting Services    93   APPENDIX F. Lobbyist Bundled
      10. Reporting In-Kind Contributions                 94                Contributions                    155
      11. Reporting Reimbursed Advances of
          Personal Funds (Non-Travel)                     95   APPENDIX G. Compliance with Other Laws        163
      12. Reporting Travel Expenses                       97
                                                               APPENDIX h. Definitions                       165
      13. Categorizing Disbursements                      98
      14. How to Itemize Disbursements                    99   INDEX                                         173
      15. When to Itemize Disbursements                  100
      16. Reporting Debts Other Than Loans               101
      17. Reporting Loans                                103
      18. Reporting Bank Loans, Brokerage Loans and
          Other Lines of Credit When Made to
          Candidates                                     105




vi
List of Examples and Tables
      ChAPTEr 2
      Candidate Registration                                    7
      Committee Registration                                    8
      Committee Registration (Page 2)                          10
      Committee Registration (Page 3)                          10
      Committee Registration (Page 4)                          11

      ChAPTEr 4
      Contribution Limits For 2011 – 12                        18

      ChAPTEr 12
      Reporting Deadlines                                      83

      ChAPTEr 13
      Contributions From Other Political Committee
         And Organizations                                     89
      Aggregation Of Contributions                             90
      Contributions From Candidate’s Personal Funds            91
      Joint Contributions                                      92
      Redesignations                                           93
      Reattributions                                           94
      Free Legal And Accounting Services                       94
      In-Kind Contribution (Schedule A)                        95
      In-Kind Contribution (Schedule B)                        95
      Appreciated Goods As Contributions                       96
      Sale Of Appreciated Goods As Contributions               96
      Nontravel Reimbursements                                 97
      Nontravel Staff Advances Made And Reimbursed In
         Different Reporting Periods                           97
      Operating Expenditures                                   99
      Contributions To Other Federal Candidates              100
      Credit Card Transactions (Schedule B)                  101
      Credit Card Transactions (Schedule D)                  101
      Debts Owed By The Committee (Schedule B)               102
      Debts Owed By The Committee (Schedule D)               102
      Bank Loans Endorsed By Candidate                       103
      Loan Payment                                           104
      Loans From Candidate’s Personal Funds (Schedule A)     104
      Loans From Candidate’s Personal Funds (Schedule C)     104
      Candidate Home Equity Line Of Credit (Schedule A)      105
                                                           (Cont.)




                                                                     vii
       Candidate Home Equity Line Of Credit Principal Payment   105
       Candidate Home Equity Line Of Credit Interest Payment    105
       Candidate Home Equity Line Of Credit (Schedule C)        106
       Candidate Home Equity Line Of Credit (Schedule C-1)      107
       Refunded Contributions (Schedule A)                      108
       Refunded Contributions (Schedule B)                      108
       Checks Returned Due To Insufficient Funds                108
       Transfers Between Candidate’s Committees, Same Office    109
       Detailed Summary Page                                    111
       Detailed Summary Page (Continued)                        112
       Post Election Detailed Summary Page                      114
       Summary Page                                             115
       Summary Page (Continued)                                 116

       APPENDIX A
       Earmarked Contribution                                   126

       APPENDIX B
       Partnership Contributions                                129

       APPENDIX C
       Form 1 Filed By Joint Fundraising Representative         133
       Form 1 Filed By PCC Showing Affiliation                  133
       Joint Fundraising (Schedule A)                           136

       APPENDIX F
       Reporting Bundled Contributions                          157
       Reporting Bundled Contributions (Schedule A)             158
       Form 3L Covered Periods And Filing Deadlines             159




viii
                                                    ChAPTEr 1
                                      Testing the Waters
Before deciding to campaign for federal office, an
individual may first want to “test the waters”—that           1. Testing the Waters
is, explore the feasibility of becoming a candidate.             vs. Campaigning
For example, the individual may want to travel
around the state or district to see if there is suf-
ficient support for his candidacy. An individual              Testing the Waters
who merely conducts selected testing the waters
activities that fall within the exemptions in FEC             An individual may conduct a variety of activi-
regulations that are discussed in Section 1 below             ties to test the waters. Examples of permissible
(but does not campaign for office) does not have              testing-the-waters activities include polling,
to register or report as a candidate even if the              travel and telephone calls undertaken to deter-
individual raises or spends more than $5,000                  mine whether the individual should become
on those activities (i.e., the dollar threshold that          a candidate. 100.72(a) and 100.131(a).
would normally trigger candidate registration
(which is discussed in Chapter 2)). Nevertheless,             Campaigning
the individual must comply with the contribution              Certain activities, however, indicate that the
limits and prohibitions. 100.72(a) and 100.131(a);            individual has decided to become a candidate
see also Advisory Opinion (AO) 1985-40.                       and is no longer testing the waters. In that case,
Once an individual begins to campaign or decides              once the individual has raised or spent more than
to become a candidate, funds that were raised                 $5,000, he or she must register as a candidate.
or spent to test the waters apply to the $5,000               Note that, when an individual decides to run
threshold for qualifying as a candidate. 100.72(a)            for office, funds that were raised and spent to
and 100.131(a). Once that threshold is exceeded,              test the waters apply to the $5,000 threshold.
the individual must register with the FEC (candi-             Campaigning (as opposed to testing the waters)
dates for the House of Representatives)1 or the               is apparent, for example, when individuals:
Secretary of the Senate (candidates for the Senate),
and begin to file reports (including in the first               •	Make or authorize statements that refer
report all activity that occurred prior to reaching               to themselves as candidates (“Smith
the $5,000 threshold), as discussed in Chapter 2.                 in 2012” or “Smith for Senate”);
                                                                •	Use general public political advertising to
                                                                  publicize their intention to campaign;
                                                                •	Raise more money than what is rea-
                                                                  sonably needed to test the waters or
                                                                  amass funds (seed money) to be used
                                                                  after candidacy is established;
                                                                •	Conduct activities over a protracted period
                                                                  of time or shortly before the election; or
                                                                •	Take action to qualify for the ballot.
                                                              100.72(b) and 100.131(b).
1   The same guidance for “testing the waters” applies
    to individuals testing the waters for a Presidential
    candidacy. Once the threshold is exceeded, such
    individuals must register their candidacy with the FEC.


                                                                                                                   1
                                                        Chapter 1



    Also, once an individual files FEC Form 2, State-               •	Foreign nationals; or
    ment of Candidacy, he or she is no longer                       •	Federal government contractors.
    considered to be “testing the waters” and must
    file FEC Form 1 (and subsequently file financial           See Chapter 5 for more informa-
    reports) under the rules described in Chapter              tion on contribution prohibitions.
    2, “Starting the Campaign.” AO 1979-51.

                                                               3. recordkeeping and
    2. Contribution Limits                                        Accounting
       and Prohibitions
    Funds raised to test the waters are subject to the         Recordkeeping
    Act’s contribution limits. Moreover, the individual        An individual who tests the waters must keep
    who is testing the waters may not accept funds             financial records. If he or she later becomes a
    from prohibited sources. 100.72(a) and 100.131(a).         candidate, the money raised and spent to test
                                                               the waters must be reported by the campaign as
    Limits                                                     contributions and expenditures. 101.3. See Chapter
                                                               11 for more information on recordkeeping.
    Keep in mind that contribution limits apply to all
    the support given to an individual who is testing
    the waters, even donations from a family member            Separate Bank Account
    or friend. (See the chart on contribution limits           Another consideration, though not a require-
    in Chapter 4.) The limits apply, for example, to:          ment, is the segregation of testing-the-waters
      •	Gifts of money, goods and services;                    funds from personal funds. It is advisable for the
                                                               individual to set up a separate bank account for the
      •	Loans (except bank loans);                             deposit of receipts and the payment of expenses.
      •	Certain staff advances until repaid (see Chap-         If the individual later becomes a candidate, a
        ter 3 for more information on staff advances);         campaign account must be established to keep
      •	Endorsements and guaran-                               the campaign funds separate from the individual’s
        tees of bank loans; and                                personal funds. 102.10, 102.15, 103.2 and 103.3(a).

      •	Funds given or personally loaned to the
        individual to pay for his or her living
        expenses during the testing-the-waters                 4. Example
        period (AO 1978-40). 100.52(a).
                                                               Mr. Jones is interested in running for a seat in
    See Chapter 4 for more informa-                            the U.S. House of Representatives but is unsure
    tion on contribution limits.                               whether he has enough support within his district
                                                               to make a successful bid. He therefore accepts
    Prohibitions                                               up to $2,500 from each of several relatives and
    In observing the law’s prohibitions, the indi-             friends and uses the money to pay for an opinion
    vidual may not accept money from:                          poll. He sees that good records are kept on the
                                                               money raised and spent in his testing-the-waters
      •	Labor organizations (although funds from               effort. The poll results indicate good name recogni-
        a labor separate segregated fund—also                  tion in the community, and Jones decides to run.
        called a PAC—are permissible);
                                                               By making this decision, Jones has crossed the
      •	Corporations, including nonprofit cor-                 line from testing the waters to campaigning. The
        porations (although funds from a cor-                  funds he raised earlier now automatically become
        porate separate segregated fund—also                   contributions and the funds he spent, including
        called a PAC—are permissible);


2
                                                        Testing the Waters



the polling costs, are now expenditures. These
contributions and expenditures count toward
the threshold that triggers candidate status.
Once his contributions or expenditures exceed
$5,000, he becomes a candidate and must register
under the Act. The money raised and spent for
testing the waters must be disclosed on the first
report his principal campaign committee files.
Had Jones decided not to run for federal office,
there would have been no obligation to report the
monies received and spent for testing-the-waters
activity, and the donations made to help pay for
the poll would not have counted as contributions.



5. Organizing a Testing-the-
   Waters Committee
An individual may organize a “committee” for test-
ing the waters. An “exploratory committee” or
“testing-the-waters committee” is not considered
a political committee and does not have to register
or file reports as long as its activities are limited
to testing the waters and it does not engage in
campaigning. The name of the committee, and state-
ments by committee staff, must not refer to the
individual as a candidate. For example, an explor-
atory committee could not be called “Sam Jones
for Congress,” which would indicate that Jones had
already decided to run for federal office. Instead,
the committee could be called “Sam Jones Congres-
sional Exploratory Committee.” See AO 1981-32.
If the potential candidate decides to run for federal
office and becomes a candidate under the Act, then
he or she may designate the exploratory com-
mittee as the principal campaign committee and
change the name of the committee as appropriate.




                                                                             3
                                                ChAPTEr 2
                               Starting the Campaign
1. Candidate registration                             Candidate
   Threshold                                          Within 15 days after an individual becomes a can-
                                                      didate as described in Section 1 above, he or she
An individual triggers registration and reporting     must designate a principal campaign committee.
responsibilities under the Act when campaign          This designation is made by filing either a State-
activity exceeds $5,000 in either contributions       ment of Candidacy (FEC Form 2) or a letter with
or expenditures. (Money raised and spent to test      the same information. (A candidate required to file
                                                      electronically cannot designate a principal campaign
the waters does not count toward this dollar
                                                      committee with a written letter but must instead
threshold until the individual decides to run for
                                                      file Form 2. See below.) 101.1(a) and 102.12(a).
federal office or conducts activities that indicate
he or she is actively campaigning rather than         Senate candidates file their original Form 2
                                                      with the Secretary of the Senate. House can-
testing the waters. (See Chapter 1, “Testing the
                                                      didates file their Form 2 with the FEC.1
Waters.”) The $5,000 threshold is reached when:
  •	The individual and/or persons he or she
                                                      Principal Campaign Committee
    has authorized to conduct campaign activ-
                                                      Within 10 days after it has been designated by
    ity receive over $5,000 in contributions or
                                                      the candidate, the principal campaign committee
    make over $5,000 in expenditures; or
                                                      must register by filing (with the Commission or
  •	The individual fails to disavow unauthorized      Secretary of the Senate, as appropriate) a State-
    campaign activity by writing a letter to the      ment of Organization (FEC Form 1). 102.1(a).2
    FEC within 30 days after being notified by
    the agency that another person or group has       Where to File Reports
    received contributions or made expenditures
                                                      Principal campaign committees of House and
    of more than $5,000 on the individual’s           Presidential candidates must mail in their original
    behalf. 100.3(a)(3) and 102.13(a)(2).             Forms 1 and 2 to the Federal Election Commission,
                                                      999 E Street, NW, Washington, DC 20463. 105.1.
                                                      Principal campaign committees of Senate candi-
2. Candidate and Committee                            dates must mail in their original Forms 1 and 2
   registration                                       to the Secretary of the Senate, Office of Public
                                                      Records, P.O. Box 2517, Alexandria,VA 22301. 105.2.
The registration forms mentioned in this section      When filing a document with the Secretary of the
(FEC Forms 1 and 2) are available from the FEC, on    Senate, it is not necessary to send a copy to the
the Commission website, by fax and as part of the     FEC. The Secretary automatically makes copies of
agency’s FECFile software. Samples of completed       all filings and forwards them to the FEC for review.
forms appear throughout this chapter. Federal         1   Candidates running in Guam, Northern Mariana
candidates and their committees should also               Islands or Puerto Rico must also file a copy
contact the government offices and agencies listed        of their Form 2 in their territory. 108.1.

in Appendix G for additional reporting require-       2   A copy must also be filed with the appropriate office
                                                          in Guam, Northern Mariana Islands or Puerto Rico for
ments that are not within the FEC’s jurisdiction.         candidates running for office in those territories. 108.1.


                                                                                                                       5
                                                         Chapter 2



    Electronic Filing                                           If the candidate designates a new principal
    Under FEC regulations, the Statement of                     campaign committee, the committee must
    Organization (FEC Form 1) and Statement of                  file a new Statement of Organization (FEC
    Candidacy (Form 2) must be filed electroni-                 Form 1) within 10 days after being designated.
    cally if the campaign raises or spends more than            102.1(a). The newly designated committee will
    $50,000 in any calendar year, or has reason to              receive a new FEC identification number.
    expect to do so. 104.18(a). The electronic fil-
    ing requirement does not apply to political                 Other Authorized Committees
    committees that are required to file with the               In addition to the principal campaign com-
    Secretary of the Senate. For more information               mittee, the candidate may designate other
    on electronic filing, see Chapter 12, Section 5.            authorized committees to receive contribu-
    Committees required to file electronically                  tions or make expenditures on his or her
    under section 104.18 as described above must                behalf. The following steps must be taken:
    also include their e-mail address on their
    Statement of Organization. 102.2(a)(1)(vii).                Action by Candidate
                                                                The candidate designates the authorized com-
    Candidates Must Register                                    mittee by filing a statement (either FEC Form
                                                                2 or a letter) with the principal campaign
    for Each Election Cycle                                     committee. 101.1(b) and 102.13(a)(1).
    Candidate                                                   Action by Authorized Committee
    A candidate (including an incumbent) must file              Within 10 days after being designated by
    a new FEC Form 2 for each election cycle in                 the candidate, the authorized committee
    which he is a candidate. For example, Mr. Jones,            must file a registration statement (FEC Form
    who was a candidate for the U.S. House of Rep-              1) with the candidate’s principal campaign
    resentatives in 2010, wishes to run again in 2012.          committee. 102.1(b) and 102.13(a)(1).
    He must file a new FEC Form 2 within 15 days
    after crossing the $5,000 registration threshold            Action by Principal Campaign Committee
    (see Section 1) for the 2012 election cycle.                The principal campaign committee, in turn,
                                                                files the documents with the appropriate fed-
    Principal Campaign Committee                                eral and state offices, as explained above.
    Using Form 2, the candidate may either
    redesignate his previous campaign committee
    (if it has not been terminated) or designate                3. Statement of Candidacy
    a new principal campaign committee.
    If the candidate redesignates an existing commit-
    tee, the committee need only amend its Statement            Line-by-Line Instructions
    of Organization (FEC Form 1) within 10 days                 Line 1. Name and Address of the Committee
    to reflect any new information (e.g., a change
    in the committee’s name or address). 102.2(a)               Enter the name and mailing address of the candidate.
    (2). The redesignated committee will retain its             Line 2. Candidate’s FEC Identification Number
    original FEC identification number. Redesignated
    committees are reminded that, if outstanding                A candidate who has never run before, is run-
    debts remain from the previous election, the                ning in a different district or is seeking a different
    committee must continue to report the debts                 federal office should leave this line blank. When
    as well as the contributions that have been des-            his or her Statement has been received, he or
    ignated by contributors to retire them. 104.11,             she will be assigned an identification number.
    110.1(b)(3) and (4) and 110.2(b)(3) and (4).                Candidates who are seeking reelection, and candi-



6
                                                                                                        Starting the Campaign



                                                                                                                                                                       of the principal campaign commit-
  CANDIDATE REGISTRATION                                                                                                                                               tee must include the name of the
                                                                                                                                                                       candidate. On Line 7, the candidate
   FEC FORM 2                                                                                                                                                          must indicate the year of the elec-
   STATEMENT OF CANDIDACY
                                                                                                                                                                       tion and the full name and street
   1. (a) Name of Candidate (in full)
             Jane Doe
                                                                                                                                                                       address of the candidate’s principal
      (b) Address (number and street)
             626 Street Dr.
                                                         Check if address changed                      2. Candidate’s FEC Identification Number
                                                                                                                                                                       campaign committee. 101.1(a)
      (c) City, State, and ZIP Code                                                                    3. Is This             New                       Amended
             Springfield, VA 00000                                                                        Statement       X   (N)       OR              (A)
   4. Par ty Affiliation                     5. Office Sought                         6. State & District of Candidate                                                 Line 8. Other Authorized Committees
             IND                                US House                                  VA 12
                                        DESIGNATION OF PRINCIPAL CAMPAIGN COMMITTEE                                                                                    A candidate may designate addi-
   7. I hereby designate the following named political committee as my Principal Campaign Committee for the              2012           election(s).
                                                                                                                                                                       tional political committees to accept
                                                                                                                   (year of election)
      NOTE: This designation should be filed with the appropriate office listed in the instructions.
      (a) Name of Committee (in full)
                                                                                                                                                                       contributions or make expenditures
           Doe for Congress                                                                                                                                            on behalf of the candidate—this
      (b) Address (number and street)
           319 Main St.                                                                                                                                                includes joint fundraising represen-
      (c) City, State, and ZIP Code                                                                                                                                    tatives. The name of any committee
           Springfield, VA 00000                                                                                                                                       authorized by the candidate must
                                        DESIGNATION OF OTHER AUTHORIZED COMMITTEES                                                                                     include the name of the candidate.
                                                          (Including Joint Fundraising Representatives)

   8. I hereby authorize the following named committee, which is NOT my principal campaign committee, to receive and expend funds on behalf of my                      For Line 8, the candidate must fill in
      candidacy.

      NOTE: This designation should be filed with the principal campaign committee.
                                                                                                                                                                       the name and street address of any
      (a) Name of Committee (in full)                                                                                                                                  authorized committee(s). 101.1(b).
           Friends of Jane Doe
      (b) Address (number and street)
                                                                                                                                                                       The candidate must sign and date
             229 Hidden View Ln.                                                                                                                                       the Statement of Candidacy.
      (c) City, State, and ZIP Code

            Springfield, VA 00000
                     I certify that I have examined this Statement and to the best of my knowledge and belief it is true, correct and complete.



                     Jane Doe
   Signature of Candidate                                                                              Date

                                                                                                              11/11/2011
                                                                                                                                                                  .
                                                                                                                                                                       4.       Treasurer
   NOTE: Submission of false, erroneous, or incomplete information may subject the person signing this Statement to penalties of 2 U.S.C. §437g.



                                                                                                                                                                       Treasurer Required
                                                                                                                                           FEC FORM 2 (REV. 02/2009)

                                                                                                                                                             The committee must have a
                                                                                                                                                             treasurer before it accepts
dates who have terminated a previous candidacy                                                                                                               contributions or makes expen-
but are now running again for the same seat,                                                                                                 ditures. 102.7(a) and (b). Also, only a treasurer
should use their original identification number.                                                                                             or designated assistant treasurer may sign
                                                                                                                                             FEC reports and statements (see “Vacancy
Line 3. Is This Statement New or Amended?                                                                                                    in Office,” below). 102.2(a) and 104.14(a).
Check “New” if you are filing Form 2 for                                                                                                     The candidate may act as the treasurer.
the first time for this particular office this
cycle. Otherwise, check “Amended.”                                                                                                           Treasurer’s Duties
Line 4-6. Party Affiliation, Office Sought,                                                                                                  The treasurer (or designated assis-
State & District of Candidate                                                                                                                tant treasurer) is responsible for:
Provide the requested information.                                                                                                                     •	Filing complete and accurate reports
                                                                                                                                                         and statements on time. 104.14(d).
Line 7. Principal Campaign Committee
                                                                                                                                                       •	Signing all reports and state-
Each candidate for federal office (other than a                                                                                                          ments. 102.2(a) and 104.14(a).
nominee for the office of Vice President) must des-
ignate in writing a political committee to serve as                                                                                                    •	Depositing receipts in the committee’s desig-
his or her principal campaign committee. The name                                                                                                        nated bank within 10 days of receipt. 103.3(a).



                                                                                                                                                                                                                7
                                                                                       Chapter 2



       •	Authorizing expenditures or
         appointing an agent (either                                   COMMITTEE REGISTRATION
         orally or in writing) to autho-
         rize expenditures. 102.7(c).                                                                                STATEMENT OF
                                                                               FEC
                                                                              FORM 1                                 ORGANIZATION
       •	Monitoring contributions                                                                                                                                                                Office Use Only

         to ensure compliance with                                       1.   NAME OF                                    (Check if name      Example:If typing, type
                                                                              COMMITTEE (in full)                        is changed)         over the lines.
                                                                                                                                                                              12FE4M5
         the law’s limits and prohibi-
         tions. 103.3(b); 110.1(k)(3).                                        Doe for Congress

       •	Keeping the required records                                                                            319 Main St.
                                                                         ADDRESS (number and street)
         of receipts and disbursements
                                                                                  (Check if address
         for three years from the date                                            is changed)                    Springfield                                                    VA                00000
         of the report to which they                                                                                                        Y    T I C                               E   T   A    T     S           E       D       O   C   P I Z
         relate. 102.9(c) and 104.14(b).                                 COMMITTEE'S E-MAIL ADDRESS (Please provide only one e-mail address)

                                                                                                                 doeforcongress@doeforcongress.com
                                                                                     (Check if address

    Treasurer’s Liability                                                            is changed)




    A committee’s treasurer is person-                                   COMMITTEE'S WEB PAGE ADDRESS (URL)
                                                                                                                 www.doeforcongress.com
    ally responsible for carrying out the                                            (Check if address
                                                                                     is changed)

    duties listed above and should under-
    stand these responsibilities (as well                                2.   DATE
                                                                                           M

                                                                                            11
                                                                                               M   /     D

                                                                                                         11
                                                                                                             D   /   Y    Y

                                                                                                                         2011
                                                                                                                              Y   Y




    as his or her personal liability for
                                                                                                                                      C
    fulfilling them) before taking them on.                              3.   FEC IDENTIFICATION NUMBER



    When the Commission brings                    4. IS THIS STATEMENT          X NEW (N)               OR                 AMENDED (A)


    an enforcement action against a               I certify that I have examined this Statement and to the best of my knowledge and belief it is true, correct and complete.

    political committee, the treasurer                                                  Gottlob Frege

                                                                                                                 Gottlob Frege
                                                  Type or Print Name of Treasurer

    is usually named as a respondent                                                                                                                                                     M   M    /    D    D   /   Y   Y       Y   Y

                                                  Signature of Treasurer                                                                       Date       11        11       2011
    along with the committee itself.
    The treasurer can be named and                                       NOTE: Submission of false, erroneous, or incomplete information may subject the person signing this Statement to the penalties of 2 U.S.C. §437g.
                                                                                                             ANY CHANGE IN INFORMATION SHOULD BE REPORTED WITHIN 10 DAYS.
    found liable in his or her official                       Office
                                                                                                                                                                  FEC FORM 1
                                                                                                                                                  For further information contact:

    capacity as a representative of the                        Use
                                                              Only
                                                                                                                                                  Federal Election Commission
                                                                                                                                                  Toll Free 800-424-9530
                                                                                                                                                  Local 202-694-1100
                                                                                                                                                                                                      (Revised 02/2009)


    committee. Also, the treasurer
    can be named and found liable in
    his or her personal capacity if he                                             mittee to name, on its Statement of Organization
    or she knowingly and willfully violates the Act                                under “Designated Agent,” an assistant treasurer
    or intentionally deprives himself or herself of                                who may assume the treasurer’s duties when the
    the operative facts giving rise to the violation.                              treasurer’s office becomes temporarily vacant or
    Even when an enforcement action alleges viola-                                 when the treasurer is unavailable. 102.7(a) and
    tions that occurred during the term of a previ-                                (b). The assistant treasurer should be apprised of
    ous treasurer, the Commission usually names                                    any filing requirements and, if the committee files
    the current treasurer as a respondent in the                                   electronically, should obtain an electronic filing
    action. See the “Statement of Policy Regarding                                 password as well. The committee must report
    Treasurers Subject to Enforcement Proceed-                                     any change in the treasurer’s status within 10
    ings,” 70 Fed. Reg. 3 (January 3, 2005).                                       days by filing an amendment to the Statement
                                                                                   of Organization (FEC Form 1). 102.2(a)(2). See
                                                                                   the next section for information on that form.
    Vacancy in Office
                                                                                                             Committees typically disclose a treasurer’s resig-
    A committee cannot raise or spend funds when                                                             nation by naming a replacement. The committee
    there is a vacancy in the office of treasurer. For                                                       informs the FEC of a change in treasurer by filing
    that reason, the Commission urges every com-


8
                                             Starting the Campaign



an amended FEC Form 1, which is signed by the             required to file electronically must disclose their
new treasurer. However, in some circumstances             e-mail addresses. 102.2(a)(1)(vii). The Commis-
a treasurer simply resigns without the appoint-           sion recommends that all filers disclose an e-mail
ment of a replacement by submitting a letter              address, since the Commission sends courtesy
of resignation to the FEC. (Electronic filers use         reporting reminders and other helpful informa-
Form 99.) The letter’s stated purpose is to amend         tion to the e-mail address listed on Form 1.
the committee’s Statement of Organization to
reflect the resignation of the treasurer as of a          Line 2. Date
particular date. Because a committee cannot raise         Enter the date when the committee
or spend funds without a treasurer, from that             officially became a political commit-
date forward the Commission deems the com-                tee—that is, the date when the committee
mittee dormant until a new treasurer is named.
                                                          exceeded the registration threshold.

                                                          Line 3. FEC Identification Number
5. Statement of Organization                              The Federal Election Commission assigns each
                                                          committee an identification number after the com-
When registering, a committee must include                mittee has filed a registration statement. (This num-
basic information on the Statement of Orga-               ber is used by the FEC for computer indexing and
nization (FEC Form 1). See example on page 8              is not the taxpayer identification number required
(opposite). The registration statement also serves        by the Internal Revenue Service. See Appendix G
as the official designation of the treasurer and
                                                          for information on contacting the IRS.) Only com-
custodian of records, the only two committee
                                                          mittees that have previously filed a Statement of
officers required under the law. 102.2(a)(1).
                                                          Organization should fill in this block with the num-
                                                          ber that was originally assigned to the committee.
Line-by-Line Instructions                                 All new committees will be assigned identification
Line 1. Name and Address of Committee                     numbers when the completed statement has been
                                                          received. Thereafter, the committee must enter the
Enter the full, official name of the committee. The
                                                          number on all statements and reports. 102.2(c).
name of a principal campaign committee and any
other authorized committee must include the               Line 4. Is This Statement New or an Amendment?
name of the candidate. 102.14(a). By contrast,
                                                          Check “New” if you are filing Form 2 for the first
an unauthorized committee (such as a PAC or
                                                          time. Otherwise, check “Amended.” (Amend-
party committee) may not use the name of a
                                                          ments are discussed under “Changes in Com-
candidate in its official name. An unauthorized
committee may, however, use the candidate’s               mittee and/or Contact Information,” below.)
name in the title of a special fundraising project        Line 5. Type of Committee
or other communication, but only if the title
clearly and unambiguously shows opposi-                   The committee must identify itself as either
tion to the named candidate. 102.14(b)(3).                a principal campaign committee or other
                                                          authorized committee. The committee
The address provided on this line is con-
                                                          must choose only one committee type.
sidered the committee’s address of record.
All Commission correspondence will be                     The committee must also disclose the following
sent to this address. 102.2(a)(1)(i).                     information about the candidate who authorized
The committee must disclose the URL for its               it: name, party affiliation, office sought and state
website, if one exists. If the committee is the           and Congressional district (if applicable) in which
principal campaign committee of a candidate for           the candidate seeks election. 102.2(a)(1)(v).3
the House or the Senate, it must also disclose its        3    Joint fundraising representatives should refer to
e-mail address. 102.2(a)(1)(viii). All committees               Appendix C, Section 5 for information on filing Form 1.



                                                                                                                          9
                                                                        Chapter 2



     Line 6. Affiliated Committees
     A principal campaign committee
                                                    COMMITTEE REGISTRATION (PAGE 2)
     lists the names and addresses of
                                                                                                                                                                                  Page 2
     all other committees authorized                              FEC Form 1 (Revised 02/2009)

                                                      5.    TYPE OF COMMITTEE
     by the candidate as affiliated                         Candidate Committee:

     committees. Other authorized                           (a)      X      This committee is a principal campaign committee. (Complete the candidate information below.)


     committees list only the principal                     (b)             This committee is an authorized committee, and is NOT a principal campaign committee. (Complete the candidate
                                                                            information below.)

     campaign committee as an affili-                       Name of
                                                            Candidate
                                                                                Jane Doe

     ated committee. 102.2(b)(1)(i).                        Candidate
                                                                                    IND
                                                                                                      Office                                                                  State        VA
                                                            Party Affiliation                         Sought:      X     House            Senate             President
                                                                                                                                                                              District     12
     Line 7. Custodian of Records
     Enter the name, address and com-
     mittee position of the individual
     who has actual possession of the               COMMITTEE REGISTRATION (PAGE 3)
     committee’s financial records.
     The committee’s treasurer,                                   FEC Form 1 (Revised 02/2009)                                                                                    Page 3

                                                          Write or Type Committee Name
     assistant treasurer or another
                                                           Doe for Congress
     person (such as an accountant                    6.    Name of Any Connected Organization, Affiliated Committee, Joint Fundraising Representative, or Leadership PAC Sponsor
     or bookkeeper) may serve as the
                                                          Friends of Jane Doe
     custodian of records. 102.2(a)
     (1)(iii). (Recordkeeping rules
                                                                                           229 Hidden View Ln.
     are discussed in Chapter 11.)                          Mailing Address




     Line 8. Treasurer and                                                                 Springfield                                                  VA            00000
                                                                                                                  CITY                               STATE                  ZIP CODE
     Assistant Treasurer
                                                            Relationship:       Connected Organization   X Affiliated Committee    Joint Fundraising Representative      Leadership PAC Sponsor

     Provide the name and mailing
     address of the treasurer. 102.2(a)              7.     Custodian of Records: Identify by name, address (phone number -- optional) and position of the person in possession of committee
                                                            books and records.
     (1)(iv). The Commission also urges
                                                                                Herman Lotze
     all political committees to name an                    Full Name
                                                                                           319 Main St.
     assistant treasurer (or “designated                    Mailing Address


     agent”). Only a registered assistant                                                  Springfield                                                  VA            00000
     treasurer may sign FEC reports
                                                            Title or Position                                    CITY                               STATE                   ZIP CODE
     and statements in the treasurer’s
     absence. 102.7(a). The treasurer’s                      Bookkeeper                                                              Telephone number        703            555          0000

     responsibilities are discussed in               8.    Treasurer: List the name and address (phone number -- optional) of the treasurer of the committee; and the name and address of
     detail in the previous section.                       any designated agent (e.g., assistant treasurer).


                                                           Full Name
                                                                                Gottlob Frege
     Line 9. Campaign Depository                           of Treasurer

                                                                                           319 Main St.
                                                           Mailing Address

     A committee must list the
     name and address (but not the                                                          Springfield                                                 VA            00000
                                                                                                                 CITY                               STATE                   ZIP CODE
     account number) of the campaign              Title or Position
                                                   Treasurer                                                                                                 703         555             0000
     depositories it maintains for                                                                                                   Telephone number


     depositing receipts and mak-
     ing disbursements. 102.2(a)(1)
     (vi). Each political committee
     shall maintain at least one checking account or
     transaction account at one of its depositories.
     103.2. (One depository is required.) All committee
     disbursements must be made by check or similar


10
                                                                                          Starting the Campaign



                                                                                                                                        In the case of paper filers, the Form
  COMMITTEE REGISTRATION (PAGE 4)                                                                                                       1 or letter needs to include only:
                                                                                                                                            •	The name and address of the
              FEC Form 1 (Revised 0 2 /2009)                                                                                Page 4
                                                                                                                                              committee (Form 1, Line 1);
       Full Name of
       Designated          Bob Helpsalot
                                                                                                                                            •	The date the change
       Agent

                                    319 Main St
                                                                                                                                              took effect (Line 2);
       Mailing Address

                                                                                                                                            •	The FEC ID number (Line 3);
                                     Springfield                                                VA           00000
                                                          CITY                                STATE                 ZIP CODE
                                                                                                                                            •	An indication that the
       Title or Position
        Assistant Treasurer                                                                           703          555          0000
                                                                                                                                              statement is an amend-
                                                                               Telephone number
                                                                                                                                              ment to the Statement of
                                                                                                                                              Organization (Line 4);
  9.   Banks or Other Depositories: List all banks or other depositories in which the committee deposits funds, holds accounts, rents
       safety deposit boxes or maintains funds.
       Name of Bank, Depository, etc.                                                                                                       •	The changed information
                           Big National Bank
                                                                                                                                              (appropriate line number); and
       Mailing Address
                                     12345 Wilson Blvd                                                                                      •	The name and signature
                                                                                                                                              of the treasurer (or assis-
                                     Arlington                                                  VA           00000
                                                                                                                                              tant treasurer) and the
                                                           CITY                               STATE                  ZIP CODE                 date signed. 102.2(a)(2).


drafts drawn on a designated campaign deposi-
tory. 103.3(a). (Cash disbursements of $100 or
less per transaction may be made from a petty
cash fund. 102.11.) The following institutions
may be designated: state banks, national banks
and depositories insured by the Federal Deposit
Insurance Corporation or the National Credit
Union Administration. 103.1, 103.2 and 103.3(a).

Changes in Committee Officers
and/or Contact Information
A committee must report any change or correc-
tion of information contained in its registration
statement within 10 days after the change. 102.2(a)
(2). A committee may have to file an amendment,
for example, to report a new treasurer, a new
assistant treasurer, a new e-mail address, a change
of address or a new campaign depository. The com-
mittee must indicate on FEC Form 1 (or in a letter,
if the committee does not file electronically) that
the statement is an amendment to its registration.
The amount of information required on an
amended Statement of Organization depends
on whether the committee files on paper or
electronically. If the committee files electroni-
cally, it must submit a fully completed Form 1.




                                                                                                                                                                                11
     Chapter 2




12
                                           Understanding Contributions




                                                 ChAPTEr 3
                        Understanding Contributions
1. What Is a Contribution                                  When an intermediary or conduit collects
                                                           and transmits contributions to the campaign
A contribution is anything of value given, loaned          the special rules in Appendix A apply.
or advanced to influence a federal election.
It is important to understand which receipts               In-Kind Contributions
are considered contributions because:
                                                           Definition
  •	Contributions count toward the threshold               Goods or services offered free or at less than
    that determines whether an individual has              the usual charge result in an in-kind contribution.
    qualified as a candidate under the Federal             Similarly, when a person pays for services on the
    Election Campaign Act (the Act). 100.3(a).             committee’s behalf, the payment is an in-kind
  •	Contributions are subject to the                       contribution. 100.52(d)(1) and 100.111(e)(1). An
    Act’s prohibitions against contribu-                   expenditure made by any person in cooperation,
    tions from certain sources.                            consultation or concert with, or at the request
                                                           or suggestion of, a candidate’s campaign is also
  •	Contributions are subject to the Act’s                 considered an in-kind contribution to the candi-
    limits on the amount of contributions.                 date. 109.20. See Appendix D, “Communications.”
Like all receipts, contributions are also subject to
                                                           Limits
the Act’s recordkeeping and reporting require-
ments. The section below describes different types         The value of an in-kind contribution—the
of contributions. (Contribution limits and prohibi-        usual and normal charge—counts against the
tions are discussed in the chapters that follow.)          contribution limit as a gift of money does.
                                                           Additionally, like any other contribution, in-kind
                                                           contributions count against the contributor’s
                                                           limit for the next election, unless they are
2. Types of Contributions                                  otherwise designated. See Chapter 4, Section 4
                                                           for more information on designating contribu-
                                                           tions. 100.52(d)(1), 100.54 and 100.111(e)(1).
Gifts of Money
                                                           Value
A contribution of money may be made by
check, cash (currency), credit card or other               Goods (such as facilities, equipment, supplies
written instrument. 100.52(c). See also AOs                or mailing lists) are valued at the price the
1999-22, 1995-09 (contributions made over                  item or facility would cost if purchased or
the Internet), 1991-01, 1990-04 and 1978-68.               rented at the time the contribution is made.
                                                           For example, if someone donates a personal
                                                           computer to the campaign, the contribu-
Earmarked Contributions and Bundling                       tion equals the ordinary market price of the
An earmarked contribution is one which the                 computer at the time of the contribution.
contributor directs (either orally or in writ-             Services (such as advertising, printing or con-
ing) to a candidate through an intermediary                sultant services) are valued at the prevailing
or conduit. 110.6(b). Special rules govern                 commercial rate at the time the services are
this type of transaction; see Appendix A.                  rendered. 100.52(d)(2) and 100.111(e)(2).


                                                                                                                 13
                                                           Chapter 3



     Notifying Recipient                                          if a contributor spends $20 to buy a campaign
     The contributor needs to notify the recipient                T-shirt that cost the campaign $5, the contributor
     candidate committee of the value of an in-kind               has made a $20 contribution. See also Chapter
     contribution. The recipient needs this information           14, Section 4, “Sale of Campaign Assets.”
     in order to monitor the contributor’s aggregate
     contributions and to report the correct amount.              Loans
                                                                  A loan, including a loan to the campaign from a
     In-Kind Contributions Designated for More
                                                                  member of the candidate’s family, is considered
     Than One Election in an Election Cycle
                                                                  a contribution to the extent of the outstanding
     In Advisory Opinion 1996-29, the Commission                  balance of the loan. (Bank loans, however, are not
     determined that the value of an in-kind contri-              considered contributions if made in the ordinary
     bution of used computer equipment, received                  course of business and on a basis that assures
     before the primary and designated in writing by              repayment. 100.82(a) through (e). See Chapter 6,
     the contributors for all elections in the cycle,             Section 1.) An unpaid loan, when added to other
     could, in fact, be allocated among all elections in          contributions from the same contributor, must
     the same election cycle. The contribution was                not exceed the contribution limit. Repayments
     distinguishable from the type of in-kind contri-             made on the loan reduce the amount of the
     bution that is used for one particular election              contribution. Once repaid in full, a loan no longer
     (such as printing or mailing costs related to a              counts against the contributor’s contribution limit.
     general election fundraiser). If the candidate had           However, a loan exceeding the limit is unlawful
     lost the primary election, the committee would               even if it is repaid in full. Besides being reported
     have had to refund the amount designated for                 as a contribution, a loan must be continuously
     the general election (in this case, the candidate            reported until it is fully repaid. 100.52(a) and (b),
     was active in each election within the election              100.111(a) and 104.3(d). See Chapter 13, Section
     cycle). The total value of the contribution could            17, for more information on reporting loans.
     not exceed the contributor’s combined limit for
     all the elections in the cycle. The Commission               Endorsements and
     did not address the issue of allocating an in-kind
     contribution over more than one election cycle.
                                                                  Guarantees of Loans
                                                                  An endorsement or guarantee of a loan, including a
     Exceptions                                                   loan derived from a candidate’s brokerage account
     Under limited exemptions in the law, persons may             or other line of credit, counts as a contribution
     provide certain goods and services to a commit-              to the extent of the outstanding balance of the
     tee without making contributions. For example,               loan. Repayments made on the loan reduce the
     when services are volunteered—not paid for by                amount of the contribution. Once the loan is
     anyone—the activity is not considered a contribu-            repaid in full, the endorsement or guarantee no
     tion. 100.74. See Chapter 7 for more information.            longer counts against the endorser’s or guaran-
                                                                  tor’s contribution limit. If a written loan agreement
                                                                  does not stipulate the portion for which each
     Proceeds from Sales                                          endorser or guarantor is liable, then individual
     The entire amount paid to attend a political                 contributions are calculated by dividing the
     fundraiser or other political event or to purchase           amount of the loan by the number of persons who
     a fundraising item sold by a political committee             have endorsed or guaranteed it. 100.52(b)(3).
     is a contribution and counts against the indi-
     vidual’s contribution limit. 100.53. For example,            Candidate’s Use of Jointly Held Collateral
     if a contributor pays $100 to buy a ticket to a              A limited exception to this rule is provided
     fundraising dinner, the entire $100 is considered            when a candidate uses property jointly held
     a contribution to the committee, even though the             with the candidate’s spouse to guarantee a bank
     meal may have cost the committee $30. Similarly,             loan to the campaign and the bank requires the


14
                                          Understanding Contributions



spouse’s signature. Note that this exception              paid “irrespective of the candidacy,” and thus not
applies only if the value of the candidate’s share        considered a contribution, compensation must:
of the property exceeds or equals the amount                •	Result from bona fide employment that is
of the loan. This exception also applies when the             genuinely independent of the candidacy;
candidate’s spouse is the endorser, guarantor or
co-signer of a loan derived from a candidate’s              •	Be exclusively made in consideration for
brokerage account, credit card account or other               services provided by the employee; and
line of credit. For unsecured loans, the spouse             •	Not exceed the amount paid to any other
would not be considered a contributor if the                  similarly qualified person for the same
candidate uses, in connection with the campaign,              work over the same period of time.
only one-half of the available credit. 100.83. For        113.1(g)(6). See AOs 2006-13, 2004-17,
more information, see Chapter 4, Section 12.              2004-08, 1980-115 and 1979-74.
                                                          Note that when a candidate is on leave without
Extensions of Credit                                      pay, the continued payment of fringe benefits
An extension of credit outside of a creditor’s            (such as health insurance and retirement) may
ordinary course of business is considered a con-          also result in contributions from the employer
tribution. 100.55. If the creditor is incorporated,       to the campaign. 114.12(c). (The Commission
an extension of credit beyond the ordinary                has made an exception to this rule for employ-
course of business would result in a prohibited           ers who had pre-existing policies providing for
contribution. For more information on when an             a limited extension of benefits for individuals
extension of credit is considered a contribution,         who take unpaid leave. See AO 1992-03.)
see Chapter 14, Section 6, “Settling Debts.”
                                                          Advances by Individuals
Personal Funds of Individuals
                                                          General Rule
Funds from the Candidate                                  When an individual uses personal funds (or per-
Unlike the other types of contributions listed            sonal credit) to pay for a campaign expense, that
here, contributions (including loans or advances)         payment is generally an in-kind contribution from
made from the candidate’s personal funds to               that individual. 100.52(a). For example, an in-kind
his or her campaign are not subject to any                contribution results if a campaign staff member
limits, though they must still be reported.               pays for postage, office supplies or campaign mate-
110.10(a); AOs 1991-09, 1990-09 and 1985-                 rials with personal funds. This rule also applies to
33. For further information, see Chapter 4,               payments made by volunteers and by the candidate.
Section 12, “Candidate’s Personal Funds.”                 Travel expenses later reimbursed by the committee
                                                          are treated differently. 116.5. See Chapter 7, Section
Unearned Income and Fringe Benefits                       4, “Travel Cost Exemptions” for more information.
A candidate’s salary or wages earned from bona            Although such advances are considered in-
fide employment are considered his or her                 kind contributions until reimbursed, special
personal funds. 100.33. However, compensation             reporting rules apply when individuals pay for
paid to a candidate in excess of actual hours             campaign expenses and later receive reim-
worked is generally considered a contribution             bursement from the committee. See Chap-
from the employer. 100.54; see also AO 2000-              ter 13, Section 11, “Reporting Reimbursed
01. Moreover, under FEC regulations barring               Advances of Personal Funds (Non-Travel).”
personal use of campaign funds, a third party’s
payment of a candidate’s expenses is considered           Travel Exception
a contribution, unless the payment would have             When a campaign staff member, volunteer or
been made irrespective of the candidacy. To be            the candidate uses personal funds to pay for that
                                                          individual’s own travel expenses (transportation,


                                                                                                                   15
                                                          Chapter 3



     meals and lodging), incurred on behalf of a candi-
     date, the payments are not considered contribu-
     tions if they fall under one of two exceptions:
       •	Exempt Unreimbursed Travel: Any individual
         may spend up to $1,000 per candidate, per
         election, on transportation expenses without
         making a contribution, and volunteers may
         spend unlimited amounts on meals and lodging
         in connection with volunteer activity. 100.79.
       •	Reimbursed Travel: Any other payments
         by individuals for travel expenses are not
         considered contributions if the committee
         reimburses them within specified time limits.
         116.5(b). See Chapter 7, Section 4, “Travel
         Cost Exemptions” for more information.

     Congressional Staff
     The official staff of members of Congress cannot
     contribute to their employing member’s campaign.
     See 18 U.S.C. §603. As such, it is important for
     those individuals to avoid advancing any funds to
     the campaign (e.g., buying stamps for a campaign
     mailing). See also 18 U.S.C. §602 for informa-
     tion on solicitation of federal employees.




16
                                              Contribution Limits




                                                ChAPTEr 4
                                   Contribution Limits
Under the Federal Election Campaign Act (the Act)         $5,000 Per Election—
contributions are subject to limits. The chart on the
next page summarizes the Act’s contribution limits.       Multicandidate Committees
This chapter examines the rules concerning the            Political committees that have qualified as
limits placed on contributions to a candidate’s           multicandidate committees have a higher con-
campaign. The limits apply to all types of contribu-      tribution limit: $5,000 per election. 110.2(a)
tions (except contributions made from a candi-            and (b)(1). To qualify as a multicandidate com-
date’s personal funds, as explained in Chapter 3).        mittee, a political committee must have:

It is important to note that a campaign is pro-               •	Been registered for at least six months;
hibited from retaining contributions that exceed              •	Received contributions from more
the limits. 110.9. In the event that a campaign                 than 50 contributors; and
receives excessive contributions, it must fol-                •	Made contributions to at least five candidates
low special procedures for handling such funds                  for federal office. Note, however, that state
(within 60 days); see “Remedying an Excessive                   party organizations are not required to
Contribution” in Section 7 of this chapter.                     meet this third requirement. 100.5(e)(3).
                                                          When making a contribution to a candidate’s
                                                          campaign, a multicandidate PAC or party com-
1. Overview of Limits                                     mittee must notify the campaign in writing that it
                                                          has qualified for multicandidate committee status.
This section outlines the limits the Act places on        110.2(a)(2). (The notice may be pre-printed on the
contributions to a candidate’s campaign. The term         committee’s checks, letterhead or other appropri-
campaign is used in this Guide to mean a candidate        ate materials.)1 When the contributing committee
for a specified federal office, his or her authorized     fails to provide such a notification, the candidate
agents, the principal campaign committee and any          committee’s treasurer should verify whether that
other authorized committees. 2 U.S.C. §441a(a).           committee has qualified in order to avoid accepting
                                                          an excessive contribution. 103.3(b). Multicandidate
$2,500 Per Election                                       status can be verified by consulting the FEC’s Public
Under the Act, individuals and groups (that are           Records Office of the FEC website (http://www.
not prohibited from making contributions, such as         fec.gov/disclosure.shtml). Committees that have
partnerships, sole proprietorships, certain LLCs          satisfied the criteria for multicandidate status and
and Indian tribes) may contribute a maximum of            have filed FEC Form 1M (Notification of Multi-
$2,500 per election to a candidate’s campaign.            candidate Status) will be identified as “qualified.”
(This limit is indexed for inflation in odd-numbered
years, beginning in 2005.) Note that this limit
applies to contributions from the members of a
candidate’s family (e.g., spouse, parent). The limit
also applies to contributions from political com-
mittees other than multicandidate committees (see
                                                          1     As explained in the Explanation and Justification to
“Contributions from Other Candidates” below;                    rules on contributions by multicandidate political
authorized committees of federal candidates have                committees, prescribed January 1, 1994, 58 Fed. Reg.
a $2,000 per election limit). 110.1(a) and (b)(1).              42173( August 6, 1993), available online at http://www.
                                                                fec.gov/law/cfr/ej_compilation/1993/1993-17.pdf.



                                                                                                                          17
                                                                      Chapter 4



     CONTRIBUTION LIMITS for 2011 – 12
              Donors                                              recipients                                     Special Limits
                                                                       State, District
                                 Candidate             PAC1           and Local Party National Party
                                 Committee                              Committee2     Committee3

                                                                                                             Biennial Limit of $117,000*
                                                                          $10,000
             Individual            $2,500*             $5,000              per year             $30,800*      ($46,200 to all candidates
                                  per election4        per year                                  per year    and $70,8005 to all PACs and
                                                                        combined limit                                  parties)
           State, District          $5,000             $5,000
          and Local Party          per election        per year                                                        <none>
            Committee            combined limit     combined limit
                                                                                Unlimited transfers to
                                                                               other party committees               $43,100* to
          National Party            $5,000             $5,000                                                     Senate candidate
           Committee               per election        per year                                                    per campaign6

                                                                           $5,000
               PAC                  $5,000             $5,000                                   $15,000
                                                                           per year                                    <none>
          Multicandidate7          per election        per year                                 per year
                                                                        combined limit

           PAC                     $2,500*                                $10,000
                                                       $5,000                                   $30,800*
     Not Multicandidate           per election8                            per year                                    <none>
                                                       per year                                  per year
                                                                        combined limit


      * These limits are indexed for inflation in odd-numbered years.
      1
          These limits apply both to separate segregated funds (SSFs) and political action committees (PACs).
          Affiliated committees share the same set of limits on contributions made and received.
      2
          A state party committee shares its limits with local and district party committees in that state unless a local or
          district committee’s independence can be demonstrated. These limits apply to multicandidate committees only.
      3
          A party’s national committee, Senate campaign committee and House campaign committee are each considered national
          party committees, and each have separate limits, except with respect to Senate candidates—see Special Limits column.
      4
          Each of the following is considered a separate election with a separate limit: primary election, caucus or
          convention with the authority to nominate, general election, runoff election and special election.
      5
          No more than $46,200 of this amount may be contributed to state and local parties and PACs.
      6
          This limit is shared by the national committee and the Senate campaign committee.
      7
          A multicandidate committee is a political committee that has been registered for at least six
          months, has received contributions from more than 50 contributors and—with the excep-
          tion of a state party committee—has made contributions to at least five federal candidates.
      8
          A federal candidate’s authorized committee(s) may contribute no more than $2,000 per election to
          another federal candidate’s authorized committee(s). 2 U.S.C. §432(e)(3)(B) and 11CFR 102.12(c)(2).




18
                                             Contribution Limits



$43,100 National Party Committee                         permissible), see “Contributions from Unregis-
                                                         tered Organizations” in Chapter 10, Section 1.
Limit for Senate Candidates
With respect to their contributions to Sen-              Affiliated Committees—Shared Limit
ate candidates, the national committees of the
Republican and Democratic parties each share a           Contributions from affiliated committees are
                                                         subject to one overall contribution limit, per
$43,100 limit with their party’s national Senato-
                                                         candidate, per election. Consequently, it is impor-
rial campaign committee. Unlike other candidate
                                                         tant to understand the concept of affiliation.
contribution limits, this one applies to the total
contributions made to a Senate candidate by those        Political committees established, financed,
party committees for the entire campaign period          maintained or controlled by the same person,
(the primary and general elections). 110.2(e). This      organization or group are affiliated. 110.3(a)
limit is indexed for inflation in odd-numbered years.    and (b). This definition applies to all types of
                                                         political committees, including nonconnected
                                                         committees, party committees, corporate/
$100 Limit on Cash Contributions                         labor PACs and authorized committees.
A campaign may not accept more than $100
in cash from a particular source with respect
to any campaign for nomination for elec-
                                                         Party Committees
tion, or election to federal office. 110.4(c).           Although a state party committee operates under
                                                         its own contribution limit, local party committees
                                                         within a state are presumed to be affiliated with
$50 Limit on Anonymous Contributions                     the state party committee.2 This means that contri-
An anonymous contribution of currency is limited         butions from those local party committees that are
to $50. If the campaign receives a larger anony-         required to register as federal political committees
mous contribution, the excess amount may be used         count against the state committee’s limit. 110.3(b)
for any lawful purpose unrelated to any federal          (1)(ii) and (3). See AOs 2005-02 and 1999-04.
election, campaign or candidate. 110.4(c)(3).            Note, however, that the national party com-
                                                         mittee, the House campaign committee and
Contributions from Other Candidates                      the Senate campaign committee are each
A candidate’s authorized committees may accept           considered a separate committee, with
a contribution of up to $2,000 per election from         separate contribution limits (except for the
the authorized committee of another federal              special $43,100 limit for Senate candidates, as
candidate. 102.12(c)(2) and 102.13(c)(2).                explained above). 110.2(e) and 110.3(b)(2).

In addition, principal campaign committees of
active candidates cannot qualify as multicandidate
                                                         Unregistered Local Party Organizations
committees. 102.12(c) and 102.13(c). The prin-           Local party organizations that do not have to
cipal campaign committee of a former candidate           register with the FEC may contribute an aggregate
may, however, become a multicandidate com-               of $1,000 to federal candidates (assuming no other
mittee. AOs 1993-22, 1988-41 and 1985-30.                federal expenditures are made) without triggering a
                                                         reporting requirement with the FEC. 100.5(a).The
The applicable contribution limit for contribu-
                                                         organization must be able to show that the contri-
tions from a nonfederal campaign is $2,500
                                                         bution was made with funds permissible under the
per election. 110.1. However, a contribution
                                                         Federal Election Campaign Act. 102.5. Prior to cross-
of more than $1,000 may trigger registration
by the nonfederal campaign as a federal politi-          2   A local party committee may be considered
                                                             independent of the state party committee if it can
cal committee. 100.5(a). For more information
                                                             meet certain standards as determined by the FEC
and other applicable restrictions (such as the               through its Advisory Opinion process. See 110.3(b)
requirement that the funds given be federally                (3)(i) and (ii). See also AOs 1999-04 and 1978-09.



                                                                                                                  19
                                                          Chapter 4



     ing the registration threshold, the local organiza-
     tion does not share a contribution limit with the           2. how Limits Work
     state party committee. AOs 2005-02 and 1999-04.
                                                                 The limits on contributions to candidates apply
     Corporate/Labor/Membership                                  separately to each federal election in which the
                                                                 candidate participates. A primary election, general
     Organization PACs                                           election, runoff election and special election are
     All separate segregated funds (also called political        each considered a separate election with a sepa-
     action committees or PACs) established, financed,           rate limit.3 100.2. (A special election may itself
     maintained or controlled by the same corporation            involve separate primary, general and/or runoff
     or labor organization are affiliated. For example:          elections, each with a separate contribution limit.)4
       •	PACs established by a parent corpora-                   In some cases, a party caucus or convention is
         tion and its subsidiaries are affiliated.               considered a primary election, as explained below.

       •	PACs established by a national or international
         union and its local unions are affiliated.              Party Caucus or Convention
       •	PACs established by a federation of national            A party caucus or convention constitutes an elec-
         or international unions and the federation’s            tion only if it has the authority under relevant
         state and local central bodies are affiliated.          state law to select a nominee for federal office.
                                                                 (Notable examples of these types of conven-
       •	PACs established by an incorporated                     tions are those held in Connecticut, Utah and
         membership organization and its related                 Virginia.) Otherwise, there is no separate limit for
         state and local entities are affiliated.                a caucus or convention; it is considered part of
     100.5(g)(2) and (3); 110.3(a)(1)(ii) and (2).               the primary process. When the caucus or conven-
     When committees are not automatically affili-               tion does constitute a primary election, reports
     ated under the conditions described above, the              must be filed for the convention as they would
     Commission may nevertheless conclude that                   for the primary. 100.2(c)(1) and (e). See also, for
     two or more committees are affiliated based on              example, AOs 1992-25, 1986-21 and 1986-17. See
     factors listed in the regulations. 100.5(g)(4)(ii)          Chapter 12 for information on filing reports.
     (A)-(J) and 110.3(a)(3)(ii)(A)-(J). The Commission
     makes these decisions, through advisory opinions,           Candidates Who Lose in the Primary
     on a case-by-case basis. For examples, see AOs              A candidate is entitled to an election limit only if
     2009-18, 2006-12, 2005-03, 2004-32, 2002-11 and             he or she seeks office in that election. Thus, a can-
     2001-07 (plus opinions cited within those AOs).             didate who loses the primary (or otherwise does
                                                                 not participate in the general election) does not
     Authorized Committees                                       have a separate limit for the general. If a candidate
     An authorized committee, however, can be affili-            accepts contributions for the general election
     ated only with another authorized committee of              before the primary is held and loses the primary
     the same candidate. 100.5(g)(5) and 110.3(a)                (or does not otherwise participate in the general
     (1)(i). Note that, by definition, an unauthorized           election), the candidate’s principal campaign com-
     committee sponsored by an officeholder (i.e., a             mittee must refund, redesignate or reattribute the
     “leadership PAC”) is not considered to be affili-
     ated with any authorized committees sponsored               3    Presidential campaigns should note that all
     by the same individual. 100.5(e)(6) and (g)(5).                  Presidential primary elections held during a
                                                                      calendar year are considered one election for the
                                                                      purposes of the contribution limits. 110.1(j)(1).
                                                                 4    In AO 2009-15, the Commission ruled that an authorized
                                                                       committee may accept contributions that may be used in
                                                                       a special or emergency election or runoff, even though
                                                                       an election has not been scheduled and may not occur.



20
                                                          Contribution Limits



general election contributions within 60 days of                      election may spend unused primary contributions
the primary or the date that the candidate publicly                   for general election expenses. The contributions
withdraws from the primary race.5 110.1(b)(3)                         would continue to apply toward the contributors’
and 110.2(b)(5). See also in this chapter, Section                    limits for the primary. 110.3(c)(3). The campaign
4, “Designated and Undesignated Contributions”                        of a candidate running in the general election may
and Section 8, “Contributions to Retire Debts.”                       use general election contributions for primary
                                                                      election debts; the contributions would still count
Independent and Non-                                                  against the contributor’s general election limits.
                                                                      110.1(b)(3)(iv). As noted above, should the can-
Major Party Candidates                                                didate lose the primary, contributions accepted
Even when independent and non-major party                             for the general must be refunded, redesignated or
candidates are not involved in an actual pri-                         reattributed within 60 days and may not be used
mary, they are entitled to a primary limit.                           to repay primary election debt. AO 1986-17. There-
They may choose one of the following dates                            fore, candidates should ensure they have enough
to be their “primary” date, and, until that date,                     cash on hand to make those refunds if needed.
they may collect contributions that count
towards the contributor’s primary limits.
                                                                      Unopposed Candidates;
    •	The last day on which, under state law,
      a candidate may qualify for a position
                                                                      Elections Not Held
      on the general election ballot; or                              A candidate is entitled to a sepa-
                                                                      rate contribution limit even if:
    •	The date of the last major primary elec-
      tion, caucus or convention in that state.                           •	The candidate is unopposed in an election;
Non-major party candidates may also                                       •	A primary or general election is not held
choose the date of the nomination by their                                  because the candidate is unopposed;7 or
party as their primary date. 100.2(c)(4).                                 •	The general election is not held because
                                                                            the candidate received a majority of
Primary vs. General Election                                                votes in the previous election.
Campaigns must adopt an accounting system to                          The date on which the election would have
distinguish between contributions made for the                        been held is considered the date of the elec-
primary election and those made for the general                       tion. 110.1(j)(2) and (3). The campaign must file
election, as discussed in Chapter 10, Section                         pre-election reports and, in the case of a general
1, “Fundraising.” 102.9(e). 6 Nevertheless, the                       election, a post-election report. AO 1986-21. See
campaign of a candidate running in the general                        also Chapter 12, Section 3, “When to Report.”

5     In AO 2008-04, the Commission ruled that
       the authorized committee of a Presidential                     Recounts
       candidate receiving primary matching funds may
       issue refunds or obtain redesignations to his or
                                                                      A federal campaign may establish a recount fund
       her Senate campaign for contributions made                     either as a separate bank account of the candidate’s
       in connection with the general election.                       authorized committee or as a separate entity.
6     In AO 2007-03, the Commission ruled that a                      Although they are not considered contributions
       Presidential candidate could solicit and receive private       under the Act, any funds solicited, received, directed,
       contributions for the 2008 Presidential general election
                                                                      transferred or spent in connection with a recount
       without losing eligibility to receive public funding if
       the candidate received his party’s nomination for              are subject to the amount limitations, source
       President, provided that the campaign (1) deposited            prohibitions and reporting requirements of the Act
       and maintained all private contributions designated for
       the general election in a separate account, (2) refrained      7     A primary election that is not held because the
       from using these contributions for any purpose, and                  candidate was nominated by a caucus or convention
       (3) refunded the private contributions in full if the                with authority to nominate is not a separate election
       candidate ultimately decided to receive public funds.                with a separate contribution limit. 110.1(j)(4).



                                                                                                                                    21
                                                          Chapter 4



     under provisions of the Bipartisan Campaign Reform               •	An undesignated contribution made8 after the
     Act (BCRA) that restrict officeholders and candi-                  candidate has won the primary, but before
     dates when soliciting, receiving, directing, transfer-             the general election, applies toward the
     ring or spending funds in connection with a federal                contribution limit for the general election.
     election. See 2 U.S.C. §441i(e). This means that the             •	In the case of the candidate who has lost
     normal contribution limits, reporting requirements                 the primary, an undesignated contribution
     and source restrictions apply. For more informa-                   made after the primary automatically applies
     tion and reporting instructions, see AO 2006-24.                   toward the limit for the next election in
                                                                        which the candidate runs for federal office.
                                                                      •	If the candidate does not plan to run for fed-
     3. Contributions to                                                eral office in the future, the committee may:
        Unauthorized Committees                                          −Presumptively redesignate the con-
                                                                          tribution to retire any primary debts
     If a contributor makes a contribution to a
                                                                          they may have. 110.1(b)(5)(ii)(C); see
     committee not authorized by any candidate
                                                                          “Remedying Excessive Contributions”
     and knows that a substantial portion of the
                                                                          below for proper procedure; or
     contribution will be contributed to or spent on
     behalf of a particular candidate, the contribution                  −Request written redesignation from
     counts against the contributor’s per-election                        the contributor to retire debts
     limit with respect to that candidate. 110.1(h).                      from a previous election cycle.9
                                                                 Otherwise, the committee must return
                                                                 or refund the contribution.
     4. Designated and                                           For additional information on presumptive redesig-
        Undesignated Contributions                               nation, see Section 7 of this chapter, “Remedying an
                                                                 Excessive Contribution.” 110.1(b)(2)(ii) and (b)(3).
     The Commission strongly recommends that cam-
     paigns encourage contributors to designate their            How Contributions Are Designated
     contributions for specific elections. Designated
     contributions ensure that the contributor’s intent          Contributors designate contributions by indicat-
                                                                 ing in writing the specific election to which they
     is conveyed to the candidate’s campaign. In the
                                                                 intend a contribution to apply. 110.1(b)(2)(i).
     case of contributions from political committees,
                                                                 Contributors may make this written designation
     written designations also promote consistency in
                                                                 on the check (or other signed written instru-
     reporting and thereby avoid the possible appear-
                                                                 ment) or in a signed statement accompanying the
     ance of excessive contributions on reports.
                                                                 contribution. 110.1(b)(4). A designation also occurs
                                                                 when the contributor signs a form supplied by
     Effect of Designating vs.                                   the candidate. 110.1(b)(4); see also AO 1990-30.
     Not Designating                                             8      See Section 5 for an explanation of
     Designated contributions count against the                         when a contribution is “made.”
     donor’s contribution limits for the elec-                   9      Note that if a contribution designated to retire the
     tion that is named. Undesignated contribu-                         debt of a previous campaign exceeds the amount
                                                                        of the debt, the contribution must be returned,
     tions count against the donor’s contribution                       refunded, redesignated or reattributed. Contributions
     limits for the candidate’s next election.                          can be designated for debt retirement only if debt
                                                                        exists and if the contributor has not already met the
     For example:                                                       contribution limit for that election. 110.1(b)(3)(i).



22
                                                 Contribution Limits



Campaign Must Retain Designations                            Date Contribution is Received
The campaign must retain copies of contribu-                 The date of receipt is the date the campaign
tion designations for three years. If the designa-           (or a person acting on the campaign’s behalf)
tion appears on the check (or other written                  actually receives the contribution. 102.8(a).
instrument), the campaign must retain a full-size            This is the date used by the campaign for
photocopy. 102.9(c) and (f); 110.1(l)(1).                    reporting purposes, but it also affects the
                                                             application of the net debts outstanding rule
                                                             (discussed in Section 8 of this chapter).

5. Date Contribution Is Made                                 Contributions Charged on Credit Cards
   vs. Date of receipt                                       When the committee receives contributions
                                                             through credit card charges, the date of receipt
The date a contribution is made by the                       is the date on which the committee receives
contributor and the date the contribution                    the contributor’s signed authorization to charge
                                                             the contribution. The treasurer should retain a
is received by the campaign are significant
                                                             copy of the authorization form in the commit-
for purposes of the contribution limits. It is
                                                             tee’s records. See AOs 1995-09 and 1990-04.
important to understand the distinction.
                                                             In-Kind Contributions
Date Contribution is Made                                    The date of receipt for an in-kind contribu-
                                                             tion is the date the goods or services are
The date a contribution is made is the
                                                             provided to the committee, even if the con-
date the contributor relinquishes con-
                                                             tributor pays the bill for the goods or services
trol over it. 110.1(b)(6). For example:                      after they are provided. See 110.1(b)(6).
  •	A hand-delivered contribution is considered
    made on the date it is delivered by the                  Effect of Dates on Undesignated
    contributor to the campaign. 110.1(b)(6).
                                                             Contributions
  •	A mailed contribution is made on the date of
                                                             The date an undesignated contribution is made
    the postmark. 110.1(b)(6). Note that if a cam-           determines which election limit it counts against.
    paign wishes to rely on a postmark as evidence           The date of receipt, however, does not affect
    of the date a contribution was made, it must             the application of the contribution limits. An
    retain the envelope or a copy of it. 110.1(l)(4).        undesignated contribution made on or before
  •	An in-kind contribution is made on the date              Election Day counts against the donor’s limit
    that the goods or services are provided by the           for that election, even if the date of receipt is
                                                             after Election Day and even if the campaign has
    contributor. See AOs 2004-36 and 1996-29.
                                                             no net debts outstanding. On the other hand,
  •	A contribution made via the Internet                     an undesignated contribution made after an
    is considered made on the date the                       election counts against the donor’s limit for
    contributor electronically confirms mak-                 the candidate’s next election. 110.1(b)(2)(ii).
    ing the transaction. AO 1995-09.
  •	An earmarked contribution is considered made             Effect of Dates on Designated
    during the election cycle in which the contribu-         Contributions
    tion is actually made, regardless of the year in         Both the date of receipt and the date a contribu-
    which the election is held. See AOs 2008-08              tion is made affect the application of the net debts
    and 2006-30 (footnote 5). (Note that the con-            outstanding rule to a designated contribution. The
    duit must forward this information to the cam-           date the contribution is made determines whether
    paign.) See Appendix A for more information.             the rule will apply, while the date of receipt governs


                                                                                                                      23
                                                           Chapter 4



     whether the contribution is acceptable under the             Attribution
     rule. For example, a contribution designated for             If the check or statement does not indicate how
     the primary and made before that election will not           much should be attributed to each donor, the
     be subject to the net debts outstanding rule, even           recipient committee must attribute the contribu-
     if the campaign receives the contribution after the          tion in equal portions. 110.1(k)(1) and (2). For
     primary. By contrast, a contribution designated              example, if a committee receives a $1,000 joint
     for—but made after—the primary is acceptable                 contribution signed by two individuals but with
     only to the extent the campaign has net debts                no written attribution, the committee must
     outstanding for the primary on the date of receipt.          attribute a $500 contribution to each donor.
     110.1(b)(3)(i) and (iii). See Section 8 of this chapter.
                                                                  A campaign may request that a contribu-
                                                                  tion be reattributed, as explained below.
     Date of Deposit
     While all contributions must be deposited
     within 10 days, the date of deposit is not used              7. remedying an Excessive
     for reporting or contribution limit purposes.
                                                                     Contribution
                                                                  When a committee receives an excessive contribu-
     6. Joint Contributions                                       tion—one which exceeds the contributor’s limit
                                                                  or the campaign’s net debts outstanding for an
     A joint contribution is a contribution that is made          election—the committee may remedy the violation
     by more than one person using a single check or              by refunding the excessive amount or by seeking a
     other written instrument. Although each individual           redesignation or reattribution of it within 60 days.
     has a separate contribution limit, joint contribu-           Step-by-step procedures for obtaining a reat-
     tors may combine their contribution limits by                tribution or redesignation are explained below.
     contributing a joint contribution (for example,
     a check for $5,000 for a candidate’s primary
     election) as long as both sign the check (or an              Redesignation
     attached statement), as explained below. 110.1(k).           By Contributor
                                                                  With a redesignation, the contributor instructs
     Each Contributor Must Sign the Check                         the committee to use the excessive portion of a
     When making a joint contribution, each con-                  contribution for an election other than the one
     tributor must sign the check (or other written               for which the funds were originally given. For
     instrument) or a statement that accompanies                  example, the contributor may redesignate the
     the contribution. 110.1(k)(1). Note that if the              excessive portion of a contribution made for
     check or an accompanying statement of attribu-               the primary election so that it counts against his
     tion is not signed by each contributor, the entire           or her limit with respect to the general election
     contribution will be attributed only to the party            (provided the contributor has not already con-
     who signed the check. 104.8(c). However, under               tributed the maximum for the general election).
     certain circumstances the committee may pre-                 When requesting a redesignation, the com-
     sumptively reattribute the excessive portion                 mittee must inform the contributor that he
     of a contribution. See “Reattribution” below.                or she may, alternatively, request a refund
                                                                  of the excessive amount. 110.1(b)(5).
     Exception: Partnerships and LLCs
     Contributions from partnerships and                          Presumptive Redesignation by Committee
     certain LLCs are not considered joint                        Under certain circumstances, the committee may
     contributions, but do trigger special attribu-               make a presumptive redesignation of an excessive
     tion requirements; see Appendix B.                           contribution. When an individual or a non-multican-


24
                                               Contribution Limits



didate committee makes an excessive contribution           each contributor.10) Note that a joint contribu-
to a candidate’s authorized committee, the cam-            tion must represent the personal funds of each
paign may presumptively redesignate the excessive          contributor because contributions made in the
portion to the general election if the contribution:       name of another are prohibited. 110.4(b).
  •	Is made before that candi-                             When requesting reattributions, the committee
    date’s primary election;                               must also inform contributors that they may,
  •	Is not designated in writ-                             alternatively, ask for a refund of the excessive
    ing for a particular election;                         portions of their contributions. 110.1(k)(3).
  •	Would be excessive if treated as a pri-
    mary election contribution; and                        Presumptive Reattribution
  •	As redesignated, does not cause the                    By Committee
    contributor to exceed any other contri-                When a committee receives an excessive contribu-
    bution limit. 110.1(b)(5)(ii)(B)(1)-(4).               tion made via a written instrument with more than
Also, the excessive portion of an undesignated             one individual’s name imprinted on it, but only one
contribution made after the primary, but before            signature, the committee may attribute the permis-
the general election, may be automatically                 sible portion to the signer. The committee may
applied to the primary if the campaign’s net               make a presumptive reattribution of the excessive
debts outstanding from the primary equal or                portion to the other individual whose name is
exceed the amount redesignated. 110.1(b)                   imprinted on the written instrument, without
(5)(ii)(C). See Section 8 in this chapter.                 obtaining a second signature, so long as the reat-
The committee is required to notify the contribu-          tribution does not cause the contributor to exceed
tor in writing of the presumptive redesignation            any other contribution limit. 110.1(k)(3)(ii)(B)(1).
within 60 days of the treasurer’s receipt of the con-      The committee is required to notify the contribu-
tribution, and must offer the contributor the option       tors in writing of the presumptive reattribution
to receive a refund instead. 110.1(b)(5)(ii)(C).           within 60 days of the treasurer’s receipt of the
It is important to note that presumptive                   contribution, and must offer the contributors the
redesignations may be made only within                     option to receive a refund if it was not intended
the same election cycle. Also, presumptive                 to be a joint contribution. 110.1(k)(3)(ii)(B)(2)-(3).
redesignation is not an option when the con-
tributor is a multicandidate committee.                    When to Request Redesignations
                                                           and Reattributions
Reattribution
                                                           In many circumstances, the committee will be
By Contributor                                             able to presumptively redesignate or reattrib-
With a reattribution, the contributor instructs            ute contributions. For all other circumstances,
the committee in writing to attribute the exces-           contributions can be redesignated or reat-
sive portion of a joint contribution to another            tributed only by the individual contributor.
individual. For example, if the committee receives         A committee may ask a contributor to redes-
an excessive contribution drawn on a joint check-          ignate and/or reattribute a contribution
ing account, but signed by only one account                (within 60 days of the treasurer’s receipt), for
holder, the committee may seek a reattribution             example, when the committee receives:
signed by each contributor of the excessive
amount to the other account holder. 110.1(k)               10   See the Explanation and Justification published
                                                                with the final rule, 52 Fed. Reg. 760, 765-766
(3). (A joint contribution may also be reattrib-                (January 9, 1987), available online at http://www.
uted so that a different amount is attributed to                fec.gov/law/cfr/ej_compilation/1987/1987-1.pdf.



                                                                                                                     25
                                                           Chapter 4



       •	A designated or undesignated con-                        and receive a redesignation and/or reattribution
         tribution that exceeds the donor’s                       within the 60-day limit, as explained below.
         limit. 110.1(b)(5)(i)(A) and (C).
                                                                  Step 3: Be Prepared to Make Refund
       •	A designated or undesignated contribu-
         tion for an election in which the candidate              When a committee deposits contributions that
         is not running. For example, a contribution              may exceed the limits or net debts outstanding
         that was designated for the general but was              for an election, the committee must not spend
         received before the primary may be redes-                the funds because they may have to be refunded.
         ignated for a future primary if the candidate            To ensure that the committee will be able to
         loses the primary or otherwise does not                  refund the contribution in full, the committee
         run in the general election. 102.9(e); see               may either maintain sufficient funds in its regular
         also AOs 1996-29, 1992-15 and 1986-17.                   campaign depository or establish a separate
                                                                  account used solely for the deposit of possibly
       •	A contribution that is designated for, but               illegal contributions. 103.3(b)(4). Furthermore,
         made after, an election and that exceeds                 the committee must keep a written record not-
         the campaign’s net debts outstanding for                 ing the reason a contribution may be excessive
         that election. 110.1(b)(3)(i) and (5)(i)(B).             and must include this information when reporting
       •	An undesignated contribution (which normally             the receipt of the contribution. 103.3(b)(5).
         applies to the candidate’s upcoming election)
         that the committee wants to use to retire                Step 4: Request Redesignation and/or Reattribution
         debts of a previous election. Note that, if it           When requesting a redesignation, the committee
         is redesignated, the contribution then counts            asks the contributor to provide a written, signed
         against the donor’s contribution limits for              redesignation of the contribution for another elec-
         that previous election. 110.1(b)(5)(i)(D).               tion. The request must also state that the donor
                                                                  may receive a refund of the excessive portion
     Procedures for Obtaining                                     of the contribution if he or she does not wish
                                                                  to redesignate it. 110.1(b)(5)(ii)(A). See also the
     Redesignations and Reattributions                            FEC’s Interpretive Rule on Electronic Redesigna-
     from Contributors                                            tions, 76 FR 16233 (March 23, 2011), available
     The committee treasurer is the person ulti-                  on the FEC website at http://www.fec.gov/law/
     mately responsible for complying with the                    cfr/ej_compilation/2011/notice_2011-02.pdf.
     procedures outlined below. 103.3(a) and (b).                 When requesting a reattribution, the committee
                                                                  asks the contributor whether the contribution
     Step 1: Deposit Contribution                                 was intended to be a joint contribution from
     A committee must deposit contributions within                more than one person. Alternatively, if the original
     10 days of the treasurer’s receipt. (If a contribu-          contribution was a joint contribution, the commit-
     tion is not deposited, it must be returned to the            tee requests that contributors adjust the amount
     contributor within 10 days of receipt. A contri-             attributable to each.11 In either case, the committee
     bution is returned when it is sent back to the               should inform contributors that they must each
     contributor without being deposited.) 103.3(a).              sign the reattribution. The request must notify each
                                                                  contributor that, instead of reattributing the contri-
     Step 2: Determine Whether Excessive
                                                                  bution, he or she may seek a refund of the portion
     The committee must determine whether a                       of the contribution that exceeds the limits or the
     contribution exceeds the donor’s limit or the                campaign’s net debts outstanding. 110.1(k)(3)(ii)(A).
     campaign’s net debts outstanding. The Commission
                                                                  11   See the Explanation and Justification published
     encourages committees to make this determina-
                                                                       with the final rule, 52 Fed. Reg. 760, 766 (January
     tion within 30 days of receiving the contribution.                9, 1987), available online at http://www.fec.gov/
     This allows a committee sufficient time to request                law/cfr/ej_compilation/1987/1987-1.pdf.



26
                                               Contribution Limits



Step 5: Redesignation/Reattribution Made
or Make Refund Within 60 Days                              8. Contributions to
Within 60 days after the date of the commit-                  retire Debts
tee’s receipt of the contribution either:
                                                           If a committee has net debts outstand-
  •	The contributor must provide the committee
                                                           ing after an election is over, a campaign
    with a redesignation or reattribution; or
                                                           may accept contributions after the elec-
  •	The committee must refund the exces-                   tion to retire the debts provided that:
    sive portion of the contribution.                           •	The contribution is designated for that elec-
103.3(b)(3).                                                      tion (since an undesignated contribution made
                                                                  after an election counts toward the limit for
A contribution is properly redesignated if,
                                                                  the candidate’s upcoming election, unless
within the 60-day period, the contributor
                                                                  the campaign requests its redesignation);
provides the committee with a written, signed
statement redesignating the contribution                        •	The contribution does not exceed the con-
for a different election. 110.1(b)(5)(ii)(B).                     tributor’s limit for the designated election; and

A contribution is properly reattributed if, within              •	The campaign has net debts outstand-
the 60-day period, the contributors provide the                   ing for the designated election on the
                                                                  day it receives the contribution.
committee with a written statement reattributing
the contribution. The statement must be signed             110.1(b)(3)(i) and (iii).
by all contributors and must indicate the amount
attributable to each donor. (If the contributors do        How to Calculate Net
not specify how to divide the contribution, the            Debts Outstanding
committee must attribute the contribution equally
among the contributors.) 110.1(k)(2) and (3)(ii)(B).       A campaign’s net debts outstanding consist
                                                           of unpaid debts incurred with respect to the
Step 6: Keep Records and Report                            particular election minus cash on hand plus
                                                           the total amounts owed to the campaign in the
The committee must keep documentation for
                                                           form of credits, refunds of deposits, returns
each reattribution and redesignation to verify
                                                           and receivables or a commercially reason-
that it was received within the 60-day time limit.
                                                           able estimate of the collectible amount, and
Documentation for a reattribution or a redes-
                                                           loans exceeding $250,000.12 110.1(b)(3)(ii).
ignation must include one of the following:
  •	A copy of the postmarked envelope                      Unpaid Debts
    bearing the contributor’s name, return                 Unpaid debts include the following:
    address or other identifying code;                          •	All outstanding debts and obligations;
  •	A copy of the signed statement reat-                        •	The estimated cost of raising funds
    tributing or redesignating the contribu-                      to liquidate the debts; and
    tion with a date stamp showing the
                                                                •	If the campaign is terminating, estimated
    date of the committee’s receipt; or                           winding down costs (for example, office
  •	A copy of the written redesignation or                        rental, staff salaries and office supplies).
    reattribution dated by the contributor.                110.1(b)(3)(ii).
110.1(l)(6).                                               12     For an illustration of how the net debts outstanding
The documentation relating to a reat-                             calculation is performed, see the Explanation and
                                                                  Justification published with the final rule, 52 Fed. Reg.
tribution or redesignation must be                                762 (January 9, 1987), available online at http://www.fec.
retained for three years. 102.9(c).                               gov/law/cfr/ej_compilation/1987/1987-1.pdf#page=3



                                                                                                                               27
                                                           Chapter 4



     Cash on Hand
                                                                  10. Contributions from
     Cash on hand consists of the resources available to
     pay the campaign’s total debts, including currency,
                                                                      Limited Liability
     deposited funds, traveler’s checks, certificates of              Companies
     deposit, treasury bills and any other investments
     valued at fair market value. 110.1(b)(3)(ii)(A).             Corporation v. Partnership
     For the purpose of calculating net debts                     For purposes of contribution limitations and
     outstanding for the primary, cash on hand                    prohibitions, a limited liability company (LLC) is
     need not include contributions desig-                        treated as either a corporation or a partnership.
     nated for the general. 110.1(b)(3)(iv).                      An LLC is treated as a corporation if:
                                                                       •	It has chosen to file, under Internal Revenue
     Adjustment to Net Debts Total                                       Service (IRS) rules, as a corporation; or
     A campaign first calculates its net debts out-                    •	It has publicly traded shares. 110.1(g)(3).
     standing as of the day of the election. Thereafter,          An LLC is treated as a partnership if:
     the campaign continually recalculates its total                   •	It has chosen to file, under IRS
     net debts outstanding as additional funds are                       rules, as a partnership; or
     received for, or spent on, the election for which
                                                                       •	It has made no choice, under IRS
     the debt remains. 110.1(b)(3)(ii) and (iii).
                                                                         rules, as to whether it is a corpora-
                                                                         tion or a partnership. 110.1(g)(2).
     Contributions Exceeding Net Debts                            If an LLC is treated as a corporation, it is pro-
     If, on the same day, a campaign receives several             hibited from making contributions to candidate
     contributions that, together, exceed the amount              committees, but it can establish an SSF (see
     needed to retire its debts, the campaign may:                Chapter 5 for general information on the cor-
                                                                  porate prohibition). If it is considered a partner-
       •	Accept a proportionate amount of each
                                                                  ship, it is subject to the contribution limits for
         contribution and either refund the remaining
                                                                  partnerships outlined in Appendix B. 110.1(g).
         amount or ask contributors to redesignate the
         excessive portions for another election; or
                                                                  Single Member LLC
       •	Accept some contributions in full and
                                                                  If a single member LLC does not require
         either return or refund the others or
                                                                  corporate tax treatment, it may make con-
         seek redesignations or reattributions for
                                                                  tributions; the contributions will be attrib-
         them. (See “Redesignations” and “Reat-                   uted to the single member, not the LLC.
         tributions” in Section 7 above.)
                                                                  Notifying Recipient Committee
     110.1(b)(3).
                                                                  An LLC must, at the time it makes a contri-
                                                                  bution, notify the recipient committee:
     9. Contributions from                                             •	That it is eligible to make the contribution; and
        Partnerships                                                   •	How the contribution is to be
                                                                         attributed among members.
     Partnerships are permitted to make contribu-                 This requirement will prevent the recipi-
     tions according to special rules. 110.1(e) and               ent committee from inadvertently accept-
     (k)(1). For further details, see Appendix B.                 ing an illegal contribution. 110.1(g)(5).


28
                                                Contribution Limits



                                                              •	Dividends and interest from, and pro-
11. Contributions from Minors                                   ceeds from sale or liquidation of,
                                                                stocks and other investments;
An individual who is under 18 years old may make
                                                              •	Income from trusts, if established
contributions to candidates and political commit-
                                                                before the election cycle;
tees, subject to the limit of $2,500 per election, if:
                                                              •	Income from trusts established by
  •	The decision to contribute is made know-
                                                                bequests (even after candidacy);
    ingly and voluntarily by the minor;
                                                              •	Bequests to the candidate;
  •	The funds, goods or services contributed
    are owned or controlled by the minor,                     •	Personal gifts that had been customar-
                                                                ily received by the candidate prior to the
    proceeds from a trust for which he or she
                                                                beginning of the election cycle; and
    is a beneficiary or funds withdrawn by the
    minor from a financial account opened                     •	Proceeds from lotteries and simi-
    and maintained in his or her name; and                      lar games of chance.

  •	The contribution is not made using funds                100.33(a) and (b).
    given to the minor as a gift for the purpose            Assets Jointly Held with Spouse
    of making the contribution, and is not in any
                                                            A candidate may also use, as personal funds, his
    way controlled by another individual. 110.19.
                                                            or her portion of assets owned jointly with a
                                                            spouse (for example, a checking account or jointly
                                                            owned stock). If the candidate’s financial interest
12. Candidate’s                                             in an asset is not specified, then the candidate’s
  Personal Funds                                            share is deemed to be half the value. 100.33(c).
                                                            Some banks may require a spouse to cosign
When candidates use their personal funds for                a loan obtained by the candidate using jointly
campaign purposes, they are making contribu-                held assets as collateral. While an endorsement
tions to their campaigns. Unlike other contribu-            or guarantee of a loan normally constitutes a
tions, these candidate contributions are not                contribution, in this instance the spouse is not
subject to any limits. 110.10; AOs 1991-09,                 considered a contributor as long as the candidate’s
1990-09, 1985-33 and 1984-60. They must,                    share in the collateral equals or exceeds the
however, be reported (as discussed below).                  amount of the loan. 100.52(b)(4); AO 1991-10.

Contributions from members of the candidate’s               EXAMPLE: A candidate obtains a $5,000 bank
family are subject to the same limits that apply to         loan for his campaign using, as collateral, property
                                                            valued at $20,000 held jointly (in equal shares)
any other individual. For example, a candidate’s
                                                            with his wife. Both co-sign the loan. Because the
parent or spouse may not contribute more
                                                            candidate’s interest in the property is $10,000,
than $2,500, per election, to the candidate.
                                                            which exceeds the amount of the loan, his wife
                                                            has not made a contribution by co-signing it.
Definition of a Candidate’s
“Personal Funds”                                            What Are Not Considered
The personal funds of a candidate include:                  Personal Funds
  •	Assets which the candidate has a legal right            Personal Gifts and Loans
    of access to or control over, and which
                                                            If any person, including a relative or friend of the
    he or she has legal title to or an equitable
                                                            candidate, gives or loans the candidate money
    interest in, at the time of candidacy;                  in connection with his or her campaign, the
  •	Income from employment;                                 funds are not considered personal funds of the


                                                                                                                   29
                                                           Chapter 4



     candidate even if they are given to the candidate            hand as of the day after the election, as a contribu-
     directly. Instead, the gift or loan is considered a          tion by the candidate. 116.11(c). AO 2003-30.
     contribution from the donor to the campaign,                 Note that a runoff election has a separate limit
     subject to the per-election limit and report-                for purposes of FEC regulations at 116.11. For
     able by the campaign. This is true even if the               example, if a candidate loaned the committee
     candidate uses the funds for personal living                 $345,000 for the primary election, the committee
     expenses while campaigning. 100.52; See AOs                  could repay the candidate up to $250,000 from
     1985-33 and 1982-64; see also AO 1987-01.                    contributions made after the date of the primary
     Bank Loans Used in Connection with Campaign                  election. Similarly, if the candidate loaned $300,000
                                                                  for a primary runoff election, the committee could
     Bank loans are not considered contributions from             repay the candidate up to $250,000 from contribu-
     the bank if they comply with FEC regulations on              tions made after the date of the runoff election.
     bank loans. (See “Bank Loans” in Chapter 6.)
     When a candidate obtains a bank loan for
     use in connection with his or her campaign,
     the loan is considered to be from the bank
     and not from the candidate’s personal funds.
     The candidate is acting as the agent of the
     campaign. 102.7(d) and AO 1985-33.



     13. repayment of Personal
         Loans from Candidate
     For personal loans (including advances of per-
     sonal funds or endorsements of bank loans
     to the committee) from the candidate to his
     or her authorized committee made on or
     after November 6, 2002, that aggregate more
     than $250,000, the following rules apply sepa-
     rately to the primary and general elections:
       •	The committee may use contributions to repay
         the candidate for the entire amount of the
         loan or loans only if those contributions were
         made on or before the day of the election; and
       •	The committee may use contributions to
         repay the candidate only up to $250,000 of
         the personal loans from contributions made
         after the date of the election. 116.11(b).
     Furthermore, if the committee uses the amount
     of cash-on-hand as of the date of the election
     to repay the candidate for loans in excess of
     $250,000, it must do so within 20 days of the elec-
     tion. 116.11(c). During that time, the committee
     must treat the portion of candidate loans that
     exceed $250,000, minus the amount of cash-on-




30
                                                   Prohibited Contributions




                                                         ChAPTEr 5
                                  Prohibited Contributions
Campaigns are prohibited from accepting con-                       Federal Election Campaign Act permits corporations,
tributions from certain types of organizations                     labor organizations, incorporated membership
and individuals. 110.9, 110.20, 114.2(c) and 115.2.                organizations, trade associations and national banks
These prohibited sources are listed below.1                        to use their treasury funds for certain election-
If a committee is uncertain whether a con-                         related activities that benefit candidates. See
tribution comes from a prohibited source, it                       Chapter 7, Sections 8 and 9 for more information.
must follow the procedures described under
“Questionable Contributions,” below.                               Federal Government Contractors
                                                                   Campaigns may not accept or solicit contributions
                                                                   from federal government contractors. 115.2. Since
1. Prohibited Sources                                              corporate contributions are already prohibited,
                                                                   the government contractor ban applies primarily
                                                                   to contributions from a partnership (or a limited
Corporations, Labor Organizations,                                 liability company) with a government contract. It
National Banks                                                     also applies to the personal and business funds
                                                                   of (1) individuals under contract to the federal
Campaigns may not accept contributions made                        government and (2) sole proprietors of busi-
from the general treasury funds of corpora-                        nesses with federal contracts. 115.4 and 115.5.
tions, labor organizations or national banks.2
114.2(a), (b) and (d). This prohibition applies                    The spouses of individuals and sole propri-
to any incorporated organization, including                        etors who are federal government contrac-
a nonstock corporation, a trade association,                       tors and employees of federal government
an incorporated membership organization                            contractors, however, may make contributions
and an incorporated cooperative.3                                  from personal funds. 115.5 and 115.6.

EXAMPLE: The owner of an incorporated “mom
and pop” grocery store is not permitted to use a                   Foreign Nationals
business account to make contributions. Instead,                   Campaigns may not solicit or accept contribu-
the owner would have to use a personal account.                    tions from foreign nationals.4 Federal law prohibits
                                                                   contributions, donations, expenditures and dis-
A campaign may, however, accept contributions
                                                                   bursements solicited, directed, received or made
from separate segregated funds (PACs) established
                                                                   directly or indirectly by or from foreign nationals
by corporations, labor organizations, incorporated
                                                                   in connection with any election — federal, state
membership organizations, trade associations and
                                                                   or local. This prohibition includes contributions
national banks. 114.2 and 114.5. Moreover, the
                                                                   or donations made to political committees and
1   These organizations and persons are, in turn, prohibited       building funds and to make electioneering com-
    from making contributions in connection with, or for the       munications. 110.20(b)-(g). Furthermore, it is
    purpose of influencing, federal elections. 114.2(a) and (b).
                                                                   a violation of federal law to knowingly provide
2   National banks and federally chartered corporations            substantial assistance in the making, acceptance
    may not make contributions in connection with
    any election—federal, state or local. 114.2(a).                4   Foreign nationals may not make contributions
3   However, a political committee that has                            or donations in connection with any election—
    incorporated for liability purposes only is not                    federal, state or local—either directly or
    considered a prohibited source. 114.12(a).                         through any other person. 110.20(b).



                                                                                                                          31
                                                           Chapter 5



     or receipt of contributions or donations in con-             “Green Card” Exception
     nection with federal and nonfederal elections                An individual who is not a citizen of the United
     to a political committee, or for the purchase or             States is eligible to make a contribution if he
     construction of an office building. 110.20(h). This          or she has a “green card” indicating that he or
     prohibition includes, but is not limited to, acting          she is lawfully admitted for permanent resi-
     as a conduit or intermediary for foreign national            dence in the United States. 110.20(a)(3)(ii).
     contributions and donations. 110.20(g) and (h).
                                                                  Domestic Subsidiaries of Foreign Corporations
     A person acts knowingly for the purposes
     of this section when he or she has:                          In advisory opinions, the Commission has said
                                                                  that a United States corporation that is a sub-
       •	Actual knowledge that the funds have                     sidiary of a foreign corporation may sponsor a
         come from a foreign national;                            separate segregated fund which can in turn make
       •	Awareness of certain facts that would                    contributions to federal candidates as long as:
         lead a reasonable person to believe that                      •	The foreign parent does not finance election-
         there is a substantial probability that the                     related contributions or expenditures
         money is from a foreign national; or                            either directly or through the subsidiary.5
       •	Awareness of facts that should have                           •	No foreign national (including the foreign
         prompted a reasonable inquiry into whether                      parent) participates in the operations
         the source of funds is a foreign national.                      of the separate segregated fund or in
     110.20(a)(4).                                                       its administration (such as by appointing
                                                                         officers) or in any decision to make dona-
     Pertinent facts that satisfy the “know-                             tions, contributions, disbursements or
     ing” requirement include knowledge of:                              expenditures in connection with any federal
       •	Use of a foreign passport or passport number;                   or nonfederal election. See 110.20(i).
       •	Use of a foreign address;                                See also AOs 2009-14, 2006-15, 2000-17,
                                                                  1995-15, 1992-16, 1990-08 and 1985-03.
       •	A check or other written instru-
         ment drawn on an account or wire                         Determining Nationality of Contributor
         transfer from a foreign bank; or                         The Commission stated, in AO 1998-14, that the
       •	Contributor or donor living abroad.                      use of any surname on a contribution check (or
                                                                  similar instrument) would not, by itself, give any
     110.20(a)(5)(i)-(v).
                                                                  reason to inquire as to the person’s national-
                                                                  ity. Nonetheless, the Commission advised the
     Definition of Foreign National                               committee to take the following minimally
     A foreign national is:                                       intrusive steps to ensure that the contributions
                                                                  it received did not come from foreign nationals:
       •	An individual who is: (1) not a citizen of
         the United States and (2) not lawfully                        •	Ensure that public political ads and solicita-
         admitted for permanent residence (as                            tions directed to audiences outside the
         defined in 8 U.S.C. §1101(a)(20)); or                           U.S. contain a summary of the foreign
                                                                         national prohibition of 2 U.S.C. §441e.
       •	A foreign principal, as defined in 22 U.S.C.
                                                                       •	Make further inquiry into the nationality of the
         §611(b). Section 611 defines a foreign prin-
                                                                         contributor if the committee receives a contri-
         cipal as a group organized under the laws
                                                                         bution postmarked from any non U.S. territory.
         of a foreign country or having its principal
         place of business in a foreign country. The                   •	Make further inquiry into the nationality of
         statute specifically mentions foreign gov-                      the contributor if the committee receives a
         ernments, political parties, partnerships,               5      Refer to AO 1982-34 for a discussion of
         associations and corporations. 110.20(a)(3).                    financing the administrative costs of an SSF.



32
                                           Prohibited Contributions



    contribution indicating that either the bank         tion limits or the campaign’s net debts outstanding
    or the account owner has a foreign address.          are described in Chapter 4, Sections 7 and 8.)
In all of the above instances, if the contribution is
submitted along with credible evidence (e.g., a copy     Return or Deposit Contribution
of a valid U.S. passport) that the contributor is a      When receiving a contribution of questionable
U.S. citizen, a U.S. national or a permanent resident    legality, a committee must, within 10 days of
alien, no further inquiry need be made. However,         the treasurer’s receipt, take one of two steps:
if the committee has actual knowledge that the
                                                            •	Return the contribution to the
contributor is in fact a foreign national, it may not         donor without depositing it; or
rely on these documents as a defense. 110.20(a)(7).
                                                            •	Deposit the contribution. 103.3(b)(1).

Contributions in the Name of Another
                                                         Be Prepared to Make Refund
A contribution made by one person in the
name of another is prohibited. 2 U.S.C. 441f;            If it decides to deposit the questionable con-
                                                         tribution, the committee must make sure that
110.4(b). For example, an individual who has
                                                         the funds are not spent because they may
already contributed up to the limit to the cam-
                                                         have to be refunded. To ensure this, the com-
paign may not give money to another person
                                                         mittee may either maintain sufficient funds in
to make a contribution to the same candidate.
                                                         its regular campaign depository or establish a
Similarly, a corporation is prohibited from using
                                                         separate account used solely for the deposit
bonuses or other methods of reimbursing                  of possibly illegal contributions. 103.3(b)(4).
employees for their contributions. 114.5(b)(1).

                                                         Document the Possibility
Candidate Employed by
                                                         of Illegal Contribution
Prohibited Source
                                                         The committee must keep a written record
As noted in Chapter 4, Section 12, a candidate’s         noting the reason why a contribution may
salary or wages earned from bona fide employ-            be prohibited and must include this informa-
ment are considered his or her personal funds.           tion when reporting the receipt of the con-
100.33(b). However, compensation paid to a               tribution. 103.3(b)(5). See also Chapter 11,
candidate in excess of actual hours worked, or in        Section 2, “Recording Receipts,” under the
consideration of work not performed, is gener-           subheading “Possibly Illegal Contributions.”
ally considered a contribution from the employer.
113.1(g)(6)(iii). If the employer is a corporation,      Seek Evidence of Legality
federal government contractor, or another pro-
hibited source, the excess payment would result          Within 30 days of the treasurer’s receipt of a
in a prohibited contribution under the regulations       possibly prohibited contribution, the committee
                                                         must make at least one written or oral request
applicable to that employer. See 110.20 (foreign
                                                         for evidence that the contribution is legal. Evi-
nationals), 114.2(c) (corporations and labor
                                                         dence of legality includes, for example, a written
organizations) and 115.2 (federal contractors).
                                                         statement from the contributor explaining why
                                                         the contribution is legal, or an oral explana-
                                                         tion that is recorded by the committee in a
2. Questionable Contributions                            memorandum. 103.3(b)(1) and AO 1995-19.

If a committee receives a contribution of question-
able legality, it must follow the five procedures
                                                         Confirm Legality or
described below. 103.3(a) and (b). (Procedures for       Refund Contribution
handling contributions that exceed the contribu-         Within these 30 days, the committee must either:


                                                                                                               33
                                                                 Chapter 5



         •	Confirm the legality of the contribution; or                 Contributor Unknown
         •	Refund the contribution. 103.3(b)(1).                        If, however, the identity of the original contribu-
                                                                        tor cannot be determined or is in question, the
     Disgorge Prohibited Contribution                                   committee may disburse the funds to a gov-
                                                                        ernmental entity (federal, state or local), or to
     Discovered Late                                                    a qualified charitable organization described in
     If a committee deposits a contribution that                        2 U.S.C. §170(c). AOs 1995-19 and 1991-39.
     appears to be legal and later discovers that it
     is prohibited (based on new information not                        Prohibited In-kind Contribution
     available when the contribution was deposited),                    If the prohibited contribution was an in-kind
     the committee must disgorge the contribution                       contribution, the committee should disgorge an
     within 30 days of making the discovery. 103.3(b)                   amount equal to the value of the contribution
     (2). This situation might arise, for example, if the               to the appropriate party as determined above.
     committee learned that a past contributor was a
     foreign national or had a contract with the federal                Insufficient Funds
     government. As another example, the committee                      If the committee does not have sufficient
     might find out that a corporation reimbursed                       funds to disgorge the contribution when the
     employees for their contributions to the commit-                   illegality is discovered, the committee must
     tee (and had thus made corporate contributions                     use the next funds it receives. 103.3(b)(2).
     and contributions in the name of another).

     Contributor Known
     If the identity of the original contributor is
     known, the committee must refund the funds
     to the source of the original contribution.
     103.3(b)(2). Alternatively, the committee may
     pay the funds to the U.S. Treasury. AO 1996-
     05; but see Fireman v. United States, 44 Fed. Cl.
     528 (1999).6 To do so, send the funds to:
             U.S. Department of the Treasury
             Financial Management Services
             Credit Accounting Branch
             3700 East-West Highway
             Hyattsville, MD 20782
     The committee should include a cover let-
     ter that explains that the funds being sent
     represent potential violations of the Federal
     Election Campaign Act and requests that the
     funds be placed in the “general fund account.”




     6     In Fireman, the Court of Federal Claims suggested
            that a contributor of illegal contributions might
            have a right to have the contributions refunded to
            him rather than disgorged to the U.S. Treasury



34
                                              Other Reportable Receipts




                                                  ChAPTEr 6
                            Other Reportable Receipts
This chapter describes campaign receipts that                exceed the amount of the loan and any senior liens.
are not considered contributions and, therefore,             The committee must ensure that the bank has
are not subject to contribution limits; all receipts         established a “perfected security interest” in the
must nevertheless be reported by the campaign.               collateral (that is, has taken steps to legally protect
                                                             its interest in the collateral in the event that the
                                                             committee defaults on the loan). 100.82(e)(1)(i).
1. Bank Loans                                                Note that if a candidate obtains a loan using
                                                             assets jointly owned with his or her spouse, the
                                                             amount of the loan may not be greater than the
Conditions                                                   candidate’s share of the property (usually one
A candidate or his or her committee may                      half); otherwise, a contribution from the spouse
obtain a loan, including a line of credit,                   results. 100.52(b)(4). (See Chapter 4, Section 12,
from a bank, provided that the loan:                         under the subheading, “Assets Jointly Held with
                                                             Spouse” for a narrow exception to this rule.)
  •	Bears the bank’s usual and customary inter-
    est rate for the category of loan involved;              Guarantees or Endorsements. An endorsement
  •	Is evidenced by a written instrument;                    or guarantee of a bank loan is considered a
                                                             contribution by the endorser or guarantor and is
  •	Is subject to a due date or amor-                        thus subject to the law’s prohibitions and limits on
    tization schedule; and                                   contributions. 100.52(b)(3) and 100.82(e)(1)(ii).
  •	Is made on a basis which assures
    repayment (see below).                                   Pledge of Future Receipts
100.82(a).                                                   If the committee pledges its future receipts as
                                                             security for the loan, then the amount loaned by
If a loan fails to meet any of these condi-                  the bank may not exceed a reasonable estimate of
tions, then a prohibited contribution
                                                             anticipated receipts, based on documentation pro-
from the lending institution results.
                                                             vided by the candidate or committee (such as cash
                                                             flow charts or fundraising plans). 100.82(e)(2)(i)
Methods of Assuring Repayment                                and (ii). Future receipts might include, for example,
A loan is made on a basis which assures repayment            anticipated contributions or interest income.
if it is obtained using one or more of the follow-           The committee must also set up a separate
ing authorized methods of securing the loan:                 account for the receipt of funds pledged for
                                                             the repayment of the loan. The account may be
Traditional Methods
                                                             established with either the lending institution or a
A committee may use one of the follow-                       different depository. If the account is established
ing traditional methods of securing the                      at a depository other than the lending institution,
loan, or a combination of the two:                           then the committee must execute an assignment
Collateral. A loan may be secured using assets of            of the account’s funds to the lending institution
the candidate or the committee, such as real estate,         and notify the depository of the assignment. The
personal property, cash on deposit, certificates             loan agreement must require the committee to
of deposit and stocks. The fair market value of              deposit the pledged funds into the account estab-
the assets must, on the date of the loan, equal or           lished for this purpose. 100.82(e)(2)(iii) and (iv).


                                                                                                                       35
                                                          Chapter 6



     Other Methods of Assuring Repayment                         credit directly to the lending institution or to
     The Commission may, on a case-by-case basis,                the candidate. 100.83(d). All such loans to the
     approve methods of assuring repayment other                 committee derived by these methods must be
     than those described above. 100.82(e)(3). See,              reported by the committee. 100.83(e). The com-
     for example, AO 1994-26. A committee should                 mittee must report the loan from the candidate
     request an advisory opinion from the Commis-                as a receipt and repayment of the loan to the
     sion before entering into a loan agreement that             candidate as a disbursement. 104.3(a)(3)(vii)
     relies on alternative sources of repayment.                 and (b)(2)(iii)(A). See Chapter 13, Section 18.

     Schedule C-1/C-P-1
     When a committee obtains a loan from a bank                 3. Overdrafts
     or other permissible lending institution (or the
     candidate obtains one on behalf of his or her               If a bank honors a check written by a political
     committee), the committee must file Schedule                committee with insufficient funds in its check-
     C-1 (or Schedule C-P-1 for Presidential can-
                                                                 ing or savings account, no contribution from
     didates) with the report covering the period
                                                                 the bank results as long as the overdraft:
     in which the loan was obtained. 104.3(d)(1).
     If the loan is obtained by the committee (rather                 •	Is made on an account subject to
     than by the candidate), the treasurer must sign                    automatic overdraft protection;
     the schedule and attach a copy of the loan                       •	Is subject to a definite interest rate which
     or line of credit agreement. See Chapter 13.                       is the usual and customary rate; and
     Both Schedule C-1 and Schedule C-P-1 (for
     Presidential candidates) include a statement to                  •	Is subject to a definite repayment schedule.
     be signed by an officer of the lending institution          100.82(d).
     certifying that the information provided by the
                                                                 An overdraft that does not meet the above
     committee is accurate and that the terms and
     conditions of the loan comply with FEC rules.               conditions is a prohibited contribution. 114.2.
                                                                 Note that if the overdraft protection is based
                                                                 on a line of credit extended by the bank,
     2. Brokerage Loans and                                      draws on that line of credit must be disclosed
                                                                 on Schedule C-1, as discussed above.
        Other Lines of Credit
        Obtained by Candidate
     Candidates may use funds derived from an
                                                                 4. Investment Income
     advance on their brokerage account, credit
     card account or other line of credit to finance             Interest earned on investments, such as interest
     their campaigns, if the extension of credit is:             earned on invested funds and dividends earned
                                                                 on securities, are not considered contribu-
       •	In accordance with applicable law;
                                                                 tions. Such funds, however, must be transferred
       •	Under commercially reasonable terms; and                back into the main campaign depository before
       •	Made by persons who make such loans                     being disbursed by the campaign. Additionally,
         in the normal course of their business.                 tax laws apply. If a committee receives inter-
     100.83(a).                                                  est from a bank it must list that bank on the
     The candidate’s authorized committee has                    committee’s Form 1.See 103.3(a); AOs 1999-
     the option of repaying loans derived from a                 08, 1997-06, 1986-18 and 1980-39, as well as
     candidate’s brokerage account or other line of              Appendix G, “Compliance with Other Laws.”


36
                                         Other Reportable Receipts



5. Offsets to Operating
   Expenditures
Offsets to operating expenditures, such as
returns by vendors of deposits, reimbursements
for expenses shared by committees, refunds and
rebates are not considered contributions. Note,
however, that rebates to campaigns must be offered
in the ordinary course of business and on the same
terms and conditions as those offered to nonpoliti-
cal entities. Otherwise, the rebate may be consid-
ered a contribution—a prohibited contribution if
a corporation pays the rebate. See, for example,
AOs 2004-37 (see responses to Questions 2 and
4), 1996-02, 1994-10, 1987-24 and 1986-22.



6. Legal and Accounting
   Services
The value of legal and accounting services
provided without charge in accordance with
the guidelines described in the next chapter is
not a contribution. 100.86; 114.1(a)(2)(vii).




                                                                     37
     Chapter 6




38
                                             Sources of Support




                                               ChAPTEr 7
                                    Sources of Support
Support may be given to campaigns in a                  Use of Equipment
variety of ways, as described below.
                                                        This exemption covers only the services pro-
                                                        vided to ensure compliance. The employer
                                                        cannot donate equipment, such as computers,
1. Contributions                                        to the campaign without making a contribution
                                                        (a prohibited contribution if the employer is an
Contributions are the most common source of             incorporated entity). However, the use of the
campaign support. Earlier chapters explain the          employer’s resources, such as computer equip-
Federal Election Campaign Act’s (the Act) limits        ment, necessary to enable the employee to provide
and prohibitions on contributions. Remember             the service is not considered a contribution by
that all contributions are reportable. See Chap-        the employer. AOs 1989-13 and 1980-137.
ter 3, Section 2, “Types of Contributions.”
                                                        Volunteer Services
                                                        If an individual personally volunteers legal or
2. Free Legal and                                       accounting services without compensation,
   Accounting Services                                  the work is considered personal volunteer
                                                        activity (see “Personal Services,” below)
                                                        and the above restrictions do not apply.
The Exemption
Any entity (e.g., a committee, a corporation, a
union, a partnership) may provide a campaign with       3. Volunteer Activity
free legal and accounting services as long as:
  •	The services are provided only for
    the purpose of ensuring the cam-
                                                        Personal Services
    paign’s compliance with the Act;                    Basic Rule: No Compensation
  •	The entity paying for the service is                An individual may volunteer personal services
    the regular employer of the indi-                   to a campaign without making a contribu-
    vidual performing the service;                      tion as long as the individual is not com-
  •	The employer does not hire additional               pensated by anyone for the services. 100.74.
    employees to render the services or to free         Volunteer activity is not reportable.
    regular employees to perform the service; and       EXAMPLE: An attorney, working as a volunteer
                                                        (i.e., he receives no compensation from any-
  •	The campaign reports the value of the service
                                                        one), writes policy papers for the campaign.
    (the amount paid by the employer), as well as
    the name of each person who performed the           Note, however, that if volunteers are, in fact, paid
    service and the date the service was provided.      by any person for their services, the activity is
                                                        no longer considered volunteer activity, and the
100.86, 100.146 and 114.1(a)(2)
                                                        payments, if made by someone other than the
(vii). See AO 2006-22.                                  campaign itself, result in in-kind contributions,
For more information on reporting free legal and        which must be reported by the campaign. 100.54.
accounting services, see Chapter 13, Section 9.


                                                                                                               39
                                                         Chapter 7



     (Exception: “Free Legal and Accounting Services,”          corporation or union to produce campaign materi-
     above.) See AOs 2007-08, 1982-04 and 1980-42.              als, reimbursement is required regardless of how
                                                                much time is spent on the activity. 114.9(c). (For
     Foreign National as Campaign Volunteer                     information on a campaign’s use of corporate or
     Although he or she may not make contributions              labor facilities, see Section 9, “Use of Corporate/
     or expenditures (including advances of personal            Labor Transportation and Facilities,” later in this
     funds), an individual who is a foreign national may        chapter. For information on the use by a volun-
     participate in campaign activities as an uncompen-         teer of an employer’s computer and Internet
     sated volunteer. In doing so, the volunteer must be        access, see “Internet Volunteer Activity” below.)
     careful not to participate in the decision-making
     process of the campaign. Commission regulations
     specifically prohibit foreign nationals from par-
                                                                Use of Real or Personal
     ticipating in the decisions of any person involving        Property: Activities in Home,
     election-related activity. 11 CFR 110.20(i) and            Church, Community Room
     2 USC §441e. See AO 2004-26. For example, a
     foreign national volunteer may attend committee            Individuals, in the course of volunteering personal
     events and campaign strategy meetings, but may             services, may use their homes—or the recreation
     not be involved in the management of the commit-           room of the residential complex where they live—
     tee. 110.20(i); AOs 2007-22, 2004-26 and 1987-25.          for campaign-related activities without making a
                                                                contribution. (A nominal fee paid by an individual
     Incidental Volunteer Activity at                           volunteer for the use of a recreation room is not
     Corporate/Labor Facilities                                 considered an in-kind contribution to the campaign
     Generally, if an individual provides services to a         and is not, therefore, reportable.) Volunteers may
     campaign during paid working hours, the employer           use a church or community room for campaign
     makes a contribution to the campaign. 100.54               activities as long as the facility is regularly used for
     and 114.9. However, an employee, stockholder or            noncommercial purposes by members of the com-
     member of a corporation or labor organization              munity, without regard to political affiliation. (Again,
     may make occasional, isolated or incidental use of         a nominal fee paid by an individual volunteer for
     corporate/labor organization facilities for his or         the use of the room is not a contribution.) 100.75
     her own individual volunteer activities on behalf          and 100.76. For rules concerning the use of a home
     of a campaign. Note that the Commission has said           computer, see “Internet Volunteer Activity” below.
     that the use of facilities during one (1) hour per
     week or four (4) hours per month is considered             Food, Drink, Invitations for Home,
     “incidental use.” For example, an employee may
     use an office phone to make calls that pertain to          Church or Community Room Event
     political volunteer work. If the volunteer activity is     When holding a campaign-related activity in his
     limited to “incidental use” of the facilities the vol-     or her home, church or community room, an
     unteer does not have to reimburse the organiza-            individual may spend up to $1,000 per candidate,
     tion for use of the facilities (only for any increased     per election, for food, beverage and invitations
     overhead or operating costs). 114.9(a) and (b).            for the event without making a contribution. (For
     When use of the facilities exceeds “incidental use,”       example, two individuals living together may spend
     the volunteer must reimburse the organization              up to $2,000 per candidate, per election.) Any
     the usual and normal rental fee within a com-              amount spent in excess of $1,000, however, must
     mercially reasonable time. Such reimbursement              be reported by the campaign as an in-kind contri-
     is considered an in-kind contribution from the             bution. 100.77. Note that in AO 1980-63, the Com-
     volunteer and must be reported by the benefiting           mission said that if an individual co-hosts an event
     campaign committee. 100.52(d) and 114.9(a)(2)              held in someone else’s home, any expenses paid by
     and (b)(2). Or, if any person (including an employee,      the nonresident co-host are considered contribu-
     stockholder or member) uses the facilities of a            tions to the campaign benefiting from the event.


40
                                                 Sources of Support



Internet Volunteer Activity                                 and may count as a contribution and/or expen-
                                                            diture. See Appendix D, “Communications.”
General Exception
An uncompensated individual or group of
uncompensated individuals may engage in certain             4. Travel Cost Exemptions
voluntary Internet activities for the purpose of
influencing a federal election without restriction.
These exempted activities would not result in a             Unreimbursed Travel Expenses
contribution or an expenditure under the Act and            The exemptions described below apply only to
would not trigger any registration or reporting             an individual’s payments for his or her own travel
requirements with the FEC. This exemption applies           expenses; if an individual uses personal funds to
to individuals acting with or without the knowledge         pay the travel expenses of another, an in-kind
or consent of a campaign or a political party com-          contribution results. 100.93(b). For the general
mittee. 100.94 and 100.155. Exempted Internet               rules concerning campaign travel, including the
activities include, but are not limited to, sending or      rules for using non-commercial transportation,
forwarding electronic mail, providing a hyperlink to        see Chapter 10, Section 4, “Campaign Travel.”
a website, creating, maintaining or hosting a website
and paying a nominal fee for the use of a website.          $1,000 Transportation Exemption
                                                            An individual (including the candidate, a paid staff
Use of Employer’s Computer and Internet Access              member or a volunteer) may voluntarily spend
A corporation or a labor organization may permit            up to $1,000 for unreimbursed transportation
its employees, shareholders, officials and mem-             expenses on behalf of the campaign without mak-
bers to use its facilities for individual volunteer         ing a contribution. However, when an individual’s
Internet activity, without making a prohibited              payments for such transportation expenses
contribution. The individual volunteer must comply          exceed $1,000 per candidate, per election, the
with the corporation’s or labor organization’s              payments are considered contributions—unless
internal policies for computer and Internet use,            they are reimbursed by the candidate’s commit-
and must complete the normal amount of work                 tee in a timely manner (see below). 100.79(a)(1).
for which the employee is paid, or is expected
to perform. Also, the activity must not increase
                                                            Volunteer’s Exemption for Meals and Lodging
the overhead or operating costs of the organiza-            A campaign volunteer may spend unlim-
tion, and the activity must not be coerced. The             ited amounts for his or her own meals
organization may not condition the availability of          and lodging without making a contribu-
the Internet or the computer on their being used            tion, as long as the expenses are inciden-
for political activity or for support for or opposi-        tal to volunteer activity. 100.79(b).
tion to any particular candidate or political party.
114.9(a) and (b). (For rules on communications              Reimbursed Travel Expenses
by a corporation or labor organization using a
                                                            When the candidate or an individual work-
computer or the Internet, see Section 8, “Cor-
                                                            ing on behalf of the candidate pays any
porate/Labor Exceptions,” later in this chapter.)
                                                            other travel expense, no contribution will
Not Exempt: Paid Web Communications                         result if the committee reimburses the indi-
                                                            vidual within the following time limits:
If an individual or group of individuals pays a fee
to place a communication on another person or                  •	If the expense was paid with cash or
entity’s website, the communication is considered                a personal check, within 30 days from
general public political advertising, and thus quali-            the date the expense was incurred.
fies as a public communication. 100.26. As such,               •	If the expense was paid with a credit
it may require a disclaimer and/or reporting,                    card, within 60 days of the closing


                                                                                                                   41
                                                        Chapter 7



         date on the credit card billing state-                tees involved in the expense must reimburse
         ment where the charge first appears.                  that committee for their portion of the expense
     Outside of these time limits, the payments                within a reasonable period of time to avoid a
     are in-kind contributions. 116.5(b); AO 2003-             contribution. See AOs 2007-24, 2004-37 and
     31. See Chapter 13, Section 12, “Reporting                2004-36. Note that payments by nonfederal
     Travel Expenses” for reporting rules. For                 campaigns for shared expenses involving certain
     reimbursement for non-commercial travel see               public communications must be made from funds
     Chapter 10, Section 4, “Campaign Travel.”                 that are subject to the limitations, prohibitions
                                                               and reporting requirements of the Act. 300.71.

     5. Vendor Discounts on                                    “Coattail” Support in
        Food and Beverages                                     Campaign Materials
                                                               Under the “coattail” provision of the Act, a
     A vendor of food or beverages (even if incorpo-
                                                               federal candidate may be mentioned in some
     rated) may sell food and beverages to a campaign
                                                               campaign materials produced by another federal
     at a discount. The amount charged must at least
     equal the vendor’s cost for the items. If the value       candidate’s campaign or by the campaign of a
     of the discount—the difference between the                nonfederal candidate. The committee making the
     normal charge and the amount paid by the cam-             expenditure must report it, but the candidate
     paign—does not exceed $1,000 per candidate,               named in the ad has no reporting responsibility.
     per election, the discount is not considered a            The payment for the materials is not a con-
     contribution. Discounts exceeding $1,000, however,        tribution to the referenced federal candidate
     are in-kind contributions and must be reported            provided that the guidelines below are followed.
     as such. A corporate vendor may not exceed the            Example: A U.S. House campaign may produce
     $1,000 discount limit since corporate contribu-           a yard sign that includes the name of a U.S. Sen-
     tions are prohibited. 100.78 and 114.1(a)(2)(v).          ate candidate without allocating a portion of the
     A discount that is given in the ordinary course           cost as an in-kind contribution to that candidate
     of business is not a contribution, regardless of
                                                               as long as the conditions listed below are met.
     the value of the discount. 100.78 and 100.138.
                                                               Guidelines to Qualify for Exemption
                                                                    •	The materials must be limited to items
     6. Support from Other                                            such as pins, bumper stickers, handbills,
        Campaigns                                                     brochures, posters and yard signs;
                                                                    •	The materials must be distributed by volun-
     This section describes ways in which campaigns                   teers (for example, by hand) or by mail using
     may assist one another without making a contribu-
                                                                      lists developed by the candidate’s campaign
     tion. For the rules on campaign-to-campaign con-
                                                                      (but not by direct mail—see below); and
     tributions, see Chapter 4, Section 1 under the sub-
     heading, “Contributions from Other Candidates.”                •	The materials may not be distributed through
                                                                      public political advertising such as broadcast
     Shared Expenses                                                  media, newspapers, magazines, billboards
                                                                      or direct mail (a mailing by a commercial
     Campaigns may share common expenses (e.g.,                       vendor or made from a commercial list).
     rent for a shared headquarters or printing for a
     brochure that promotes each campaign) without             1      This special provision creates, in part, an exception
                                                                      to the above contribution limits. That is, without
     a contribution resulting, as long as each com-
                                                                      special treatment, political parties ordinarily would
     mittee pays its attributed portion of the costs.                 be subject to the general limitation on contributions
     If one committee pays a bill, the other commit-                  by a multicandidate political committee.



42
                                              Sources of Support



Note that the portion of the cost allocable to           Although these expenditures may be coordinated
a federal candidate must be paid from funds              with a campaign, the party committee must
subject to the limits and prohibitions of the            actually make the expenditure on behalf of the
Act, even if a nonfederal campaign pays for the          campaign; money given directly to the candidate’s
materials. 100.88(a) and (b) and 100.148.                campaign is not a coordinated party expenditure.

Endorsements and Solicitations                           Coordinated Party Expenditure Limits
by Federal Candidates                                    The party’s national committee has a coordi-
A public communication in which a federal can-           nated spending limit for each U.S. Senate and
didate endorses, or solicits funds for, another          House nominee in the general election. See
candidate for federal or nonfederal office does not      109.32. The national committee may designate
result in a contribution to the endorsing (or solicit-   (in writing) the party’s national Senatorial Com-
ing) candidate unless the communication promotes         mittee or national Congressional Committee to
or supports the endorsing (or soliciting) candidate      spend its allowance with respect to a particular
or attacks or opposes his opponent in the election.      nominee, but those committees do not have
109.21(g). For more information, see Appendix D,
                                                         separate spending limits. 109.32(b) and 109.33;
“Communications.” See also Appendix E for further
                                                         see also AO 1976-108. The national committee
information on soliciting funds for other candidates.
                                                         may also designate a state or local party com-
                                                         mittee to make its expenditures. 109.33(a).

7. Party Support                                         A state party committee has a separate coordi-
                                                         nated spending limit for each Senate and House
In addition to making contributions (up to               general election nominee seeking election in that
$5,000 per election as a multicandidate commit-          state. The state committee may designate (in
tee), party committees may support a candidate           writing) a national party committee to spend its
through other activities described below. These          allowance with respect to a particular nominee.
other activities are reportable by the political         Although local party committees have no sepa-
party committee but not by the campaign of the
                                                         rate coordinated spending allowance, they may
candidate receiving the support. Note that some
                                                         be designated in writing by either the national
of these activities may trigger additional report-
                                                         committee or the state committee to make
ing responsibilities or funding provisions for the
                                                         coordinated party expenditures. 109.33(a) and
party committee. For detailed information, see
the Campaign Guide for Political Party Committees.       (b)(1). When making coordinated party expen-
                                                         ditures, party organizations that are not federal
                                                         political committees must nevertheless use funds
Coordinated Party Expenditures                           that are permissible under the Act. 102.5(b).
The Act creates a special exception to the
                                                         Coordinated party expenditure limits for Senate
contribution limits for certain party activities
supporting candidates. 2 U.S.C. §441a(d). The            and House candidates are calculated as follows:2
national party committee and the state party                 •	Senate Candidate: State voting age popula-
committee each have an additional special contri-              tion x 2 cents, multiplied by the Cost of Living
bution limit for coordinated party expenditures                Adjustment (COLA); or $20,000 multiplied
made in connection with the general election                   by the COLA, whichever is greater.
campaigns of U.S. House and Senate candidates.
109.32. (Coordinated party expenditures are also         2     The Cost of Living Adjustment (COLA) has a
                                                               considerable effect on party spending limits. For
called “441a(d) expenditures” because they are                 example, the spending limit for a House candidate
provided for in 2 U.S.C. §441a(d) of the Act.)                 for a special election in 2011 is $44,200.



                                                                                                                   43
                                                                   Chapter 7



         •	house Candidate:3 $10,000 multiplied by                        Party Independent Expenditures
           the COLA, or, in states with only one rep-
           resentative, the same as the Senate limit.                     Party committees may make independent expendi-
                                                                          tures on behalf of, or in opposition to, candidates.
     The Commission publishes in the Federal Reg-                         Such expenditures are not subject to contribu-
     ister, the FEC Record and on the Commission’s                        tion or coordinated party expenditure limits.5
     website, the dollar amounts of the coordi-
     nated party expenditure limits. 110.17(e).                           Permissible Sources
                                                                          Since independent expenditures expressly advo-
     Coordinated Party Expenditures                                       cate the election or defeat of federal candidates,
     vs. In-Kind Contributions                                            they must be financed with funds from the party’s
                                                                          federal account. For more information regarding
     When making either coordinated party                                 independent expenditures, see this chapter, Sec-
     expenditures or in-kind contributions, a party                       tion 11, and Appendix D, “Communications.”
     committee purchases goods or services for
     the benefit of a campaign. The committee may
     decide whether to treat an expenditure made                          Exempt Party Activities
     on behalf of the candidate as a coordinated                          Two types6 of grassroots activities—preparation,
     party expenditure or as an in-kind contribution.                     display and distribution of campaign materials
     (As previously noted, monetary contributions                         and slate cards (see below)—undertaken by state
     given directly to the campaign do not qualify as                     and local party committees in support of specific
     coordinated party expenditures.) 109.37(b).                          federal candidates are unlimited because they are
     Despite their similarity, coordinated                                exempt from the definition of contribution. Note
     party expenditures differ from in-kind                               that although they are exempt from contribution
     contributions in several ways:                                       limitations, such activities often qualify as federal
                                                                          election activity and thus may be subject to certain
         •	Coordinated party expenditures may be                          funding restrictions. Moreover, payments made
           made in connection with the general election                   by an unregistered party organization for such
           only (although they may be made during the                     materials count towards the organization’s FEC
           primary period—see 109.34), whereas in-kind                    registration threshold. For more information on
           contributions may be made for any election.4                   federal election activity (FEA), exempt activities
         •	Coordinated party expenditures count against                   and party committee registration thresholds, see
           the special spending limits explained above,                   the Campaign Guide for Political Party Committees.
           whereas in-kind contributions count against
           the committee’s per-candidate, per-election                    Sources of Funds
           limits on contributions (e.g., $5,000).                        Many local party organizations are not registered
         •	Coordinated party expenditures are reported                    political committees under the Act and may,
           by the party committee only, whereas in-kind                   under state law, accept donations that would
           contributions and party coordinated com-                       be prohibited or excessive under the Act. These
           munications are reported by both the party                     funds may not be used to pay for exempt party
           committee and the recipient campaign.                          activities. Instead, the party must use funds


                                                                          5    See FEC v. Colorado Republican Federal Campaign
                                                                               Committee, 518 U.S. 604 (1996).
     3     The limit applies to candidates for Delegate                   6    There is a third type of exempt activity for
           (American Samoa, District of Columbia, Guam,                        registration and GOTV activity conducted by a
           Northern Mariana Islands,Virgin Islands) and Resident               state or local party committee on behalf of the
           Commissioner (Puerto Rico). 109.32(b)(2)(ii).                       Presidential and Vice-Presidential nominees of
     4     A post general runoff does not constitute                           that party. 100.89. For the conditions and details
           a general election triggering an additional                         regarding this type of exempt activity, see the
           §441a(d) expenditure allowance.                                     Campaign Guide for Political Party Committees.



44
                                               Sources of Support



that are permissible under federal law. 100.80                 is, a mailing by a commercial vendor or from
and 100.87; 100.140 and 100.147; 102.5(b).                     a commercial list).7 100.80 and 100.140.

Campaign Materials                                            •	The content is limited to the identification
                                                                of each candidate (pictures may be used),
A state or local party committee or organization                the office or position currently held, the
may prepare and distribute campaign materials                   office sought and party affiliation. The list
such as pins, bumper stickers, handbills, brochures,            must exclude any additional biographical data
posters or yard signs without having its pay-                   on candidates and their positions on issues
ments for such items considered contributions or                as well as statements on party philosophy.
expenditures if the following conditions are met:               Certain voting information, however, may be
  •	The activity is conducted on behalf of the                  given, such as time, place and instructions on
    party’s nominees for the general election.                  voting a straight party ticket. AO 1978-89.
  •	The materials are distributed by volunteers,          See AO 2008-06.
    not through public advertising such as
    broadcast media, newspapers, magazines or             Reporting
    billboards or by direct mail (that is, a mailing by   The campaign of a candidate supported through
    a commercial vendor or from commercial lists).        exempt party activities is not required to report
  •	The party committee does not use mate-                them. If these activities are conducted by a federally
    rials purchased by the national party                 registered party committee, the party committee
    committee or money transferred from                   must report them. (Note that these exempt activi-
    the national party committee specifi-                 ties may trigger federal registration and reporting
    cally to purchase the materials.                      obligations for a local party organization. 100.5(c).)

  •	The party committee does not use funds des-
    ignated by a donor for a particular candidate.
                                                          8. Corporate/Labor Exceptions
  •	A payment from a state or local candidate
    to help pay for the materials does not                Although corporations (including incorpo-
    exceed his or her share of the expenses.              rated trade associations and membership
100.87; See AOs 2010-01 and 2008-06.                      organizations) and labor organizations are
                                                          prohibited from using their treasury funds
Slate Cards and Sample Ballots                            to make contributions in connection with
A state or local party committee or organization          federal elections, they are permitted to:
may prepare and distribute a slate card, sample               •	Establish separate segregated funds (popu-
ballot, palm card or other printed list naming                  larly referred to as PACs), which can sup-
candidates for any public office. The payments                  port federal candidates (114.1(a)(2)(iii));
are not considered contributions or expendi-
tures on behalf of any federal candidate listed               •	Provide certain free legal and account-
as long as the following conditions are met:                    ing services to a campaign (See
                                                                Section 2 of this chapter);
  •	The list names at least three can-
    didates running for election to any                       •	Allow employees, stockholders and members
    public office within the state.                             to make incidental use of their facilities for vol-
                                                                unteer campaign work (see Section 3 above );8
  •	The list is not distributed through public
    advertising such as broadcast media, newspa-
    pers, magazines or billboards. Note, however,         7     See the Explanation and Justification at 45 Fed.
                                                                Reg. 15080, 15081-15082 (March 7, 1980),
    that it may be distributed by direct mail (that             available online at http://www.fec.gov/law/cfr/
                                                                ej_compilation/1980/1980-8.pdf#page=2.
                                                          8     For information on a campaign’s use of corporate/
                                                                labor facilities, see Section 9, this chapter.



                                                                                                                      45
                                                         Chapter 7



       •	Sponsor communications to the restricted               Coordination Defined
         class (e.g., a corporation’s executives and
                                                                An expenditure is coordinated if it is made in coop-
         stockholders and their families; a labor
                                                                eration, consultation or concert with, or at the
         organization’s members and their families)             request or suggestion of, a candidate, a candidate’s
         that contain express advocacy and may                  authorized committee, or their agents, or a politi-
         be coordinated with a candidate; and                   cal party committee or its agents.9 109.20(a). FEC
       •	Sponsor certain election-related communica-            regulations provide for a three-part test to deter-
         tions to other employees and/or the general            mine whether a communication is coordinated, and
                                                                thus, represents an in-kind contribution (unless
         public as long as they are not coordinated
                                                                it is otherwise exempt under FEC regulations).
         with a candidate. See Citizens United v. FEC.
                                                                See 109.21 and Appendix D, “Communications.”
     This section focuses on the last two items.
                                                                Communications to Restricted Class
     Restricted Class                                           As noted above, a corporation may use its general
     A corporation’s restricted class consists of its           treasury funds to pay for independent expenditures
     executive and administrative personnel, its stock-         and electioneering communications. See Citizens
     holders and the families of those two groups.              United v. FEC. In addition, under Commission regula-
                                                                tions a corporation may make certain communica-
     A labor organization’s restricted class consists
                                                                tions to its restricted class, as described below.
     of its members, executive and administrative
     personnel and the families of those two groups.            Coordination
     A membership organization’s restricted class               As corporation or labor organization may com-
     generally includes the executive and administrative        municate with its restricted class in a manner that
     personnel of the organization, the organization’s          expressly advocates the election or defeat of a
     members and the families of those two groups.              clearly identified candidate, and the organization
     (Note: If a member is incorporated, a member-              may coordinate these communications with the
     ship organization or trade association would               candidate without making a prohibited contribu-
     communicate with the personnel of the member               tion. While such coordination does not transform
                                                                the restricted class communication into an in-kind
     corporation with whom they normally conduct
                                                                contribution, it may provide evidence that could
     business. See the Campaign Guide for Corporations
                                                                jeopardize the independence of future communica-
     and Labor Organizations for more information.)             tions to those outside the restricted class by the
                                                                organization or its SSF. 114.2(c) and 114.3(a)(1).
     Coordination with the Candidate                            Permitted Restricted Class Communications
     An expenditure that is coordinated between a
                                                                Corporations and labor organizations may
     candidate or the candidate’s campaign and a third          engage in certain types of communications to the
     party is considered an in-kind contribution to the         restricted class provided they follow the guidelines
     candidate, which the candidate must report as a            contained in the FEC regulations. The pertinent
     contribution received and an expenditure made.             regulations and some examples are listed below.
     104.13(a), 109.20(b) and 109.21(b). Because the                 •	Publications. A corporation or labor orga-
     Act prohibits corporations and labor organiza-                    nization may produce and distribute
     tions from making contributions, it is important to               publications that endorse or solicit funds
     avoid coordination with corporations and labor                    for a candidate or party (as long as the
     organizations regarding communications outside                    publications are not reproductions of the
     the restricted class except to the extent permit-          9      For the purposes of 11 CFR part 109 only,
     ted under FEC regulations at 11 CFR 114.4.                        “agent” is defined at 11 CFR 109.3.



46
                                                 Sources of Support



    candidate’s campaign materials and the                  with any candidate or party committee to the
    organization does not actually collect the              extent permitted in those sections.10114.2(c).
    funds). 114.2(f)(4)(ii) and 114.3(a) and (c)(1).        Note that any election-related communica-
  •	Web pages and e-mails. A corporation or                 tions made to those outside the restricted class
    labor organization may endorse or solicit               may also be made to the restricted class.
    funds for a candidate or party through an
    e-mail directed solely to members of its                Types of Communications
    restricted class. Likewise, a corporation or            Corporations and labor organizations may engage
    labor organization may set up a web page,               in the following types of election-related commu-
    accessible only by its restricted class, which          nications that go beyond the restricted class pro-
    may contain express advocacy or solicitations.          vided they follow the guidelines contained in FEC
    Note that in either case the organization               regulations. The pertinent regulation is listed below.
    may not actually collect the funds, but may                  •	Campaign-Related Candidate Appearances Before
    provide the address of the campaign to which                   All Employees and Their Families. The candidate,
    contributions may be sent. 114.2(f)(4)(ii) and                 but not the sponsoring organization, may ask
    114.3(a). See also AOs 1997-16 and 1996-01.                    for support and may solicit contributions.
  •	Candidate and Party Appearances. A candidate                   Note, however, that the candidate may not
    or party representative may make an appear-                    accept contributions, but he or she may leave
    ance before the restricted class. He or she                    envelopes and campaign materials for the
    may solicit and accept contributions before,                   audience. 114.4(b)(1). Coordination between
    during or after the appearance. 114.3(c)(2).                   the candidate and the corporation or labor
  •	Get-Out-The-Vote and Voter Registration Drives                 organization may include discussions regard-
    and Phone Banks. The corporation or labor                      ing the structure, format and timing of the
    organization may run voter drives and phone                    appearance, and the candidate’s position on
    banks urging the restricted class to vote for                  issues, but may not include any discussion of
    a particular candidate or to register with                     the candidate’s plans, projects or needs relat-
    a particular party. 114.3(c)(3) and (4).                       ing to his or her campaign. 114.4(b)(1)(vii).

  •	Endorsements. Endorsements may be                            •	Noncampaign-Related Candidate Appearances
    announced during a candidate appear-                           Before the General Public. Incumbent federal
    ance or in a publication to the restricted                     officeholders may make appearances in their
    class. 114.3(c) and 114.4(c)(6).                               official officeholder capacity. The discussion
                                                                   must be limited to issues of concern to the
                                                                   sponsoring organization and avoid any refer-
Communications to Those                                            ence to campaign activity or solicitation of con-
Outside the Restricted Class                                       tributions. Note that an organization cannot
As noted above, a corporation may use its                          pay for the candidate or the candidate’s staff
general treasury funds to pay for independent                      to travel to such an officeholder event if the
expenditures and electioneering communica-                         candidate holds a campaign event in the same
tions. See Citizens United v. FEC. In addition, under              area while there. 106.3(b)(3). AO 1996-11.
Commission regulations a corporation may                         •	Candidate Appearances at Schools, Colleges or
make certain communications to individuals                         Universities. Candidates may make appearances
outside the restricted class, as described below.                  at educational institutions without the appear-
Disbursements by corporations and labor                            ance being a prohibited contribution, provided
organizations for election-related activities                      that the school makes a reasonable effort to
described in 11 CFR 114.4 (i.e., communica-                        ensure that the appearance is in an academic
tions that reach beyond the restricted class)                      setting (such as a speech or a question/answer
will not cause those activities to be contribu-             10     See 114.4(b)(1)(vii), 114.4(c)(2), 114.4(c)(3)(v), 114.4(c)
tions or expenditures, even when coordinated                       (4), 114.4(c)(5)(i) and (ii), 114.4(c)(6)(ii) and 114.4(d)(1).



                                                                                                                                    47
                                                            Chapter 7



        setting) rather than a campaign setting (such              Facilities
        as a rally or event) and the school does not
                                                                   If a campaign uses the facilities of a corporation or
        expressly advocate the election or defeat of,
                                                                   labor organization, the campaign must reimburse
        nor favor, any specific candidate. Alternatively,          the organization within a commercially reasonable
        the facilities of the school may be provided               time and at the usual and normal rental charge.
        to the campaign provided that the usual and                Use of facilities may include, for example, the use
        normal rental charge is paid in the ordinary               of telephones, typewriters or office furniture.
        course of business. For more information on                114.9(d). If another political committee or an
        such appearances, see 114.4(c)(7)(i) and (ii).             individual reimburses a corporation or labor
                                                                   organization for the campaign-related use of its
       •	Candidate Debates. Candidate debates may
                                                                   facilities, the payment is considered an in-kind
         be sponsored by a broadcaster, bona fide                  contribution from that committee or individual
         newspaper, magazine or other periodical or                to the campaign. (In the case of a political com-
         a nonprofit organization (i.e., those organiza-           mittee sponsored by the organization providing
         tions under 501(c)(3) or (c)(4) of the Internal           the facilities, it is also advisable that payment be
         Revenue Code), in accordance with section                 made to the organization in advance in order
         110.13 of the FEC regulations. In particular, a           to avoid a prohibited contribution from the
         debate must include at least two candidates               organization.) Note, however, that employees,
         and should not be structured to promote                   stockholders and members of a corporation or
                                                                   labor organization may make incidental use of an
         or advance one candidate over the other.
                                                                   organization’s facilities, subject to the corporation
       •	Endorsements. The corporation or labor                    or labor organization’s own rules, for volunteer
         organization may, without coordinating                    work without having to reimburse the organization
         with the candidate or his or her campaign,                (except for any increased overhead), as explained
         publicly announce endorsements through                    in Section 3 of this chapter. 114.9(a) and (b).
         a press release and press conference con-
         ducted through its normal media contacts.                 Meeting Rooms
         The endorsement may also be posted on a
                                                                   Usual and Normal Rental Rate
         web page that is accessible to the general
         public if the corporation or labor organiza-              Candidates and political parties may, at the discre-
                                                                   tion of the organization, rent a corporation or
         tion normally posts its press releases online
                                                                   labor organization’s meeting rooms at the usual
         and the release is posted along with all other
                                                                   and normal rate, provided reimbursement is made
         corporate or organization press releases.                 within a commercially reasonable time. 114.9(d).
         114.4(c)(6)(i) and (ii); see AO 1997-16.
                                                                   Provided by Organization’s Political Committee
                                                                   As with other facilities, if the organization’s
     9. Use of Corporate/Labor                                     political committee pays for the room as an
                                                                   in-kind contribution, it is advisable that pay-
        Facilities and resources                                   ment be made in advance to avoid a prohib-
                                                                   ited contribution from the organization.
     When using the facilities and resources of a
     corporation (including an incorporated trade                  For Free or at a Discount
     association or membership organization) or labor              A candidate may be able to use the rooms for free
     organization, a campaign must pay the organization            or at a discount under the following conditions:
     according to the rules described below. Otherwise,                 •	The corporation or labor organization
     the use may result in a prohibited contribution                      customarily makes its meeting rooms avail-
     from the corporation or labor organization.                          able to civic and community groups;


48
                                              Sources of Support



  •	The corporation or labor organiza-                   cases where the fundraiser is a restricted-class
    tion makes the rooms available to                    only event and the funds collected are treated
    other candidates upon request; and                   not only as contributions to the candidate, but
  •	The corporation or labor organization                also as contributions both to and from the SSF
    makes the rooms available to the candidates          of the corporation/labor organization. 114.2(f)
    on the same terms given to other groups              (2)(iii) and (4)(iii). In this case, the event may not
    (i.e., for free or at a discount if those are        raise funds in excess of the SSF’s candidate con-
    the terms offered to other groups).                  tribution limit ($5,000 for a multicandidate PAC).
                                                         Alternatively, the campaign may collect the funds.
114.13.
                                                         Events Beyond the Restricted Class
Use of Corporate/Labor
Name or Trademark                                        Event Sponsored by Corporate/Labor SSF
                                                         Because the organization’s SSF may make com-
A corporation or a labor organization may not
                                                         munications to the general public using the funds
use the corporation’s names, trademarks or
                                                         it has raised, it may sponsor fundraising events
service marks to facilitate the making of contri-
                                                         for candidates and invite outside individuals and
butions to a federal political committee, and a
                                                         political committees. 114.5(i). All related costs
federal political committee may not knowingly
                                                         paid for by the SSF, including staff time, mailing,
accept or receive such facilitated contributions.
                                                         room rental and catering charges, may count as
For example, a campaign may not recognize the
                                                         an-kind contribution to the candidate, depending
corporate (or labor) employers of individual
                                                         on whether the event is coordinated with the
contributors in connection with a fundraising
                                                         candidate or campaign. 109.20(b) and100.52(d).
event. These restrictions do not apply to the
                                                         Note that, as with other uses of corporate/labor
use of a name as part of the name of a political
                                                         facilities, the SSF must pay in advance for any use
committee. 114.2(d) and (f). See AO 2007-10.
                                                         of corporate/labor staff, food service or mailing
                                                         lists. Additionally, it is advisable that the SSF pay
                                                         for rooms and equipment in advance to avoid a
10. Fundraisers for Candidates                           prohibited contribution from the organization.

                                                         Use of Corporate/Labor Staff, Food Services and
Restricted Class Events                                  Mailing Lists for Events Beyond the Restricted Class.
Under the exemptions at 114.3(c)(2) permit-              A corporation or labor organization may only
ting candidate appearances before the restricted         allow its food services and mailing lists to be used
class (summarized in Section 8 of this chapter),         for candidate fundraisers if it receives payment in
the corporation or labor organization may allow          advance at the fair market value for the goods or
a candidate to solicit its restricted class at an        services. 114.2(f)(1) and (2). Likewise, a corporation
event without the related costs for the event            or labor organization may direct its personnel to
counting as a contribution. The candidate may            work on these fundraisers, so long as employees
also collect funds at the appearance. However,           are not coerced into providing on-the-job fun-
corporate or labor organization staff are pro-           draising services if they do not wish to perform
hibited from collecting funds for the campaign,          them. In all cases, advance payment by a source
with a limited exception discussed in the next           who may legally make a contribution or expendi-
paragraph. 114.2(f) and 114.3(c)(2)(ii) and (iii).       ture (such as the campaign or the organization’s
                                                         SSF) is required in order to avoid a prohibited
Collection of Funds                                      contribution by the organization. FEC regula-
An exception to the general prohibition on cor-          tions specifically require advance payments for:
porate or labor organization staff’s collection of
funds at a candidate’s fundraising event exists in


                                                                                                                  49
                                                            Chapter 7



       •	The services of corporate or labor per-                   and which is not made in coordination with any
         sonnel directed to carry out candidate                    candidate or his or her campaign or political party.
         fundraising activities as part of their job;              100.16, 109.21 and 109.37. Independent expen-
       •	The use of catering or other food ser-                    ditures are not subject to any limits but may be
         vices arranged for or provided by the                     subject to reporting requirements. (The campaign
         corporation or labor organization; and                    of a candidate benefiting from an independent
                                                                   expenditure has no reporting obligation.) See Citi-
       •	The use of the organization’s list of clients,            zens United v FEC and AOs 2010-11 and 2010-09.
         customers, vendors or other persons outside
         the restricted class for purposes of soliciting           Appendix D provides detailed information on
         contributions or distributing invitations.                independent expenditures. The appendix may be
                                                                   reproduced and distributed by a campaign to anyone
       •	114.2(f)(2)(i)(A), (C) and (E).                           who requests FEC guidelines on independent spend-
     Note, however, that if a corporation is providing the         ing. Campaign staff should pay special attention to
     services (such as catering or personnel) in its ordi-         the section “Coordinated Communications” which
     nary course of business as a commercial vendor, pay-          explains when the independence of an expenditure
     ment does not have to be made in advance as long              is compromised through contact with a campaign
     as: (1) the payment is at the usual and normal charge;        and thus results in an in-kind contribution, subject
     and (2) the payment schedule conforms to normal               to contribution limits, to the campaign. If a corpora-
     business practice. Otherwise, a prohibited contribu-          tion or labor organization funds the coordinated
     tion results. 100.52(d)(1) and (2); 114.2(f)(1); 116.3;       expenditure, it results in a prohibited contribution.
     see also, for example, AOs 1994-33 and 1991-18.

     Collection of Funds
                                                                   12. Electioneering
     As with restricted-class only events, corporate or
     labor organization staff may not collect contribu-                Communications
     tions at an event that is coordinated, unless the
     funds collected are treated not only as contribu-             Any broadcast, cable or satellite communica-
     tions to the candidate, but also as contributions             tion that is publicly distributed within 30 days
     both to and from the SSF of the corporation/                  of a primary or 60 days of a general election,
     labor organization. 114.2(f)(2)(iii) and (4)(iii).            refers to a clearly identified federal candidate
     Alternatively, the campaign may collect the funds.            and is targeted to the relevant electorate is an
                                                                   electioneering communication. 100.29(a).
     Reporting                                                     If a registered political committee makes an
     If the campaign makes the advance payment for                 electioneering communication, it must report
     the costs of the event, it must report the cost               it as it reports an expenditure or indepen-
     as a campaign expenditure. If the advance pay-                dent expenditure under the Act. 104.20(b).
     ment is made by any other source, such as the
     corporation or labor organization’s SSF or an                 Coordination of Electioneering
     individual, the campaign must report it as an
     in-kind contribution received, where the event’s              Communications
     costs are required to be treated as an in-kind                If a communication is considered coordinated
     contribution, as described above. 104.3(a) and (b).           under the Commission’s three-part test, it results
                                                                   in an in-kind contribution subject to contribu-
                                                                   tion limitations, source prohibitions and report-
     11. Independent Expenditures                                  ing. To avoid receiving an illegal excessive or
                                                                   prohibited contribution, campaigns should avoid
     An independent expenditure is an expenditure                  certain interactions with those making elec-
     for a communication that expressly advocates the              tioneering communications. See 109.21(d) and
     election or defeat of a clearly identified candidate          Appendix D, Section 2 for more information.


50
                                   Expenditures and Other Disbursements




                                                 ChAPTEr 8
    Expenditures and Other Uses of Campaign Funds
While campaigns have wide discretion in                case basis, including meal, travel, vehicle and legal
deciding how to spend their funds, the Federal         expenses. For example, if a campaign pays for the
Election Campaign Act (the Act) places certain         candidate’s travel and subsistence in connection
restrictions on the use of campaign funds, as          with his or her campaign activities, those pay-
explained in this section. Note that the use           ments are also considered operating expenditures.
of campaign funds is also addressed in House           Generally, as long as such expenses would not
and Senate rules, over which the Commis-               exist irrespective of the candidate’s campaign or
sion has no jurisdiction (see Appendix G).             duties as a federal officeholder, they are considered
For reporting purposes, it is important to             permissible. See Section 2, “Case-by-Case Deter-
understand the term expenditure, because               mination of Personal Use,” for more information.
expenditures count toward the threshold that           Note, however, that if a candidate pays for
determines whether an individual is a candidate        his or her living expenses with personal
under the Act. 100.3(a). An expenditure is a           funds, the payments are not considered
purchase, payment, distribution, loan, advance,        expenditures and are not reportable by the
deposit or gift of money or anything of value          campaign. 100.153 and 113.1(g)(1)(ii)(C).
made to influence a federal election. 100.111(a).
                                                       Loan Repayments
“Disbursement” is a broader term that covers
both expenditures and other kinds of payments          The repayment of both the principal and the inter-
(those not made to influence a federal election).      est of a loan owed by the committee are permis-
All disbursements are reportable by the campaign.      sible expenses. Repayments of the principal are not
                                                       considered to be a “payment” for the purposes of
                                                       the definition of expenditure, and thus are itemized
                                                       separately on the FEC report. 100.111(c). Repay-
1. Permissible Uses of                                 ments of the interest on a loan are considered
   Campaign Funds                                      operating expenditures for reporting purposes.
                                                       See Chapter 13, Section 17, “Reporting Loans,”
                                                       for information on reporting loan repayments.
Campaign-Related Expenses
                                                       Transfers to Other Authorized Committees
By definition, the Act allows campaign funds
to be used for purposes in connection with             Funds may be transferred between authorized
the campaign to influence the federal elec-            committees of the same candidate (for example,
tion of the candidate. 2 USC 439a(a); 113.2.           from a previous campaign committee to a cur-
                                                       rent campaign committee) without limit as long
Operating Expenditures                                 as the committee making the transfer has no
Payments for day-to-day expenses, such as staff        net debts outstanding. 110.3(c) and 116.2(c)
salaries, rent, travel, advertising, telephones,       (2). See, for example, AO 1987-04. See Chap-
office supplies and equipment, fundraising,            ter 9, “Transfers,” for more information.
etc., are permissible operating expenditures.          Alternatively, a candidate may redesignate a
Interest paid on a loan is also considered             former campaign committee as the principal
an operating expenditure. AO 1991-09.                  campaign committee of his or her current cam-
Certain other expenses are considered to be            paign and use the excess funds of the previous
permissible operating expenditures on a case-by-       campaign in the current campaign. AO 1980-30.



                                                                                                               51
                                                         Chapter 8



     See Chapter 13, Section 20, for infor-                     Non-Campaign Related Expenses
     mation on reporting transfers.
                                                                Additionally, campaign funds may be used for
     Refunds of Contributions                                   the following purposes that are not related to
     Campaigns may refund any contribution, but                 the candidate’s campaign for federal office:
     must refund (or otherwise disgorge) a contri-                   •	To defray the ordinary and neces-
     bution that is from a prohibited source or in                     sary expenses incurred in connection
     excess of the contribution limits. See Chapter                    with an individual’s duties as of a federal
     5, Section 2, “Questionable Contributions,” for                   officeholder (House and Senate rules
     more information. For information on reporting                    may apply; see Appendix G), such as:
     refunds, see Chapter 13, Section 19, “Report-                      −Travel expenses for a federal officeholder
     ing Refunds, Returns and Bounced Checks.”                           and his or her accompanying spouse and
     In-Kind Contributions                                               children, provided that the travel is under-
                                                                         taken to participate in a function that is
     Any in-kind contribution received by a committee                    directly connected to the officeholder’s bona
     must be reported as an operating expenditure                        fide official responsibilities. 113.2(a)(1). See,
     (even though money has not been expended by                         for example, AOs 2005-09 and 1997-02; and
     the committee) in addition to being reported as
     a contribution received. 104.13(a). This report-                   −Winding down costs of a federal office-
     ing adjustment allows the committee to balance                      holder’s office for a period of six months
     its cash on hand. For more information, and                         after leaving office. 113.2(a)(2). See, for
     an example of reporting in-kind contributions,                      example, AOs 1996-44 and 1996-14 (House
     see Chapter 13, “Completing FEC Reports.”                           and Senate rules may apply; see AOs 2000-
                                                                         37 and 1996-45; and see Appendix G).
     Written Agreements to Make Expenditures                         •	Donations to charities (organiza-
     A written agreement to make an expendi-                           tions defined in 26 U.S.C. §170(c) of
     ture, such as a media contract, constitutes                       the Internal Revenue Code).1 113.2(b).
     an expenditure. 100.112. For information on                       See, for example, AO 2005-06;
     reporting expenditures and debts incurred,                      •	Unlimited transfers to any national,
     see Chapter 13, “Completing FEC Reports.”                         state or local party committee. 113.2(c).
     Ballot Initiative Communications and Donations                    See, for example, AO 2004-22;

     Payments for ads in which a candidate endorses a                •	Donations to state and local candidates,
     ballot initiative on an issue with which he or she is             subject to the provisions of state law.
     closely associated are expenditures in connection                 113.2(d). See 2 U.S.C. §439a(a)(5); and
     with the campaign. AOs 2006-04 and 2004-29.                     •	Any other lawful purpose, unless
     A campaign may also support or oppose bal-                        expressly prohibited by the Act. 113.2(e).
     lot initiatives and make donations to com-                        See 2 U.S.C. §439a(a)(6). (Prohibited
     mittees established to do so under state                          purposes are summarized below.)
     election laws. Such donations are considered
     expenditures under the Act. See AO 2004-29.
     Special rules apply to a federal candidate
                                                                1      Campaign funds may not be converted to personal
     or officeholder’s fundraising for such orga-                      use. Commission regulations state that donations
     nizations, see Appendix E, Section 1.                             of campaign funds to a charitable organization do
                                                                       not constitute the personal use of campaign funds
                                                                       unless the candidate (former or current) receives
                                                                       compensation from the donee organization before the
                                                                       organization has expended, for purposes unrelated
                                                                       to the candidate’s personal benefit, the entire
                                                                       amount donated by the campaign. 113.1(g)(2).



52
                                      Expenditures and Other Disbursements



Contributions to Other Federal Candidates                 Conversely, any expense that results
and Nonfederal Candidates                                 from campaign or officeholder activ-
A federal candidate committee may contribute              ity falls outside the personal use ban.
up to $2,000 per election to the committee                EXAMPLE: A candidate may not make tuition
of another federal candidate. 102.12(c)(2) and            payments with campaign funds, unless the costs
102.13(c)(2). Contributions from federal can-             are associated with training campaign staff.
didate committees to state or local candidate
committees are subject to state law. 300.62. For
more information on reporting donations to
                                                          What is Not Personal Use
other candidates, see Chapter 13, Section 14.             In addition to the “irrespective test,” Commission
                                                          regulations include other uses of funds that do
                                                          not constitute personal use and thus are permis-
2. Prohibited Uses of                                     sible uses of campaign funds. 113.1(g) and 113.2.
   Campaign Funds                                         Charitable Donations
                                                          Gifts to charity are not considered personal use
Certain Air Travel                                        expenses as long as the candidate does not receive
                                                          compensation from the charitable organiza-
Title VI, section 601 of the Honest Leadership and        tion before it has expended the entire amount
Open Government Act of 2007 (HLOGA) (Pub. L.              donated. Note that the amount donated must
No. 81, 121 Stat.735), signed into law on Sep-            have been used for purposes that do not person-
tember 14, 2007, significantly restricts the use of
                                                          ally benefit the candidate. 113.1(g)(2). See also
campaign funds for air travel by federal candidates
                                                          AOs 2005-06, 1997-01, 1996-40 and 1994-20.
and officeholders.2 In general, expenditures from
campaign funds for non-commercial air travel              Transfer of Campaign Assets
are prohibited unless they are in accordance
                                                          The sale or transfer of a campaign asset (see
with 100.93. 113.5. See Chapter 10, Section 4,
                                                          Chapter 14, “Winding Down the Campaign”) to
“Campaign Travel” for further information.
                                                          either the candidate or a third party does not
                                                          constitute personal use as long as the transaction
Personal Use of Campaign Funds                            is made at the fair market value. 113.1(g)(3).
Using campaign funds for personal use is pro-
hibited. 2 USC 439a(b)(1) and 113.2(e). Com-              Gifts
mission regulations provide a test, called the            On special occasions, campaign funds may be
“irrespective test,” to differentiate legitimate          used to purchase gifts or make donations of
campaign and officeholder expenses from per-              nominal value to persons other than the mem-
sonal expenses. Under the “irrespective test,”            bers of the candidate’s family. 113.1(g)(4).
personal use is any use of funds in a campaign
account of a candidate (or former candidate)              Candidate Salary
to fulfill a commitment, obligation or expense            The candidate may receive a salary from
of any person that would exist irrespective of            his or her campaign committee only
the candidate’s campaign or responsibilities as a         under the following conditions:
federal officeholder. 113.1(g). More simply, if the
expense would exist even in the absence of the              •	The salary must be paid by the prin-
candidacy or even if the officeholder were not                cipal campaign committee;
in office, then the personal use ban applies.               •	The salary must not exceed the lesser of
                                                              the minimum annual salary for the federal
2    The provisions of HLOGA also apply to nonconnected
     committees (known as “leadership PACs”) sponsored        office sought or what the candidate received
     by candidates for the House of Representatives.          as earned income in the previous year;


                                                                                                               53
                                                           Chapter 8



       •	Individuals who elect to receive a salary                campaign worker whose death arises out of, or in
         from their campaign committees must                      the course of, campaign activity. 113.1(g)(1)(i)(B).
         provide income tax records and additional
         proof of earnings from relevant years                    Clothing
         upon request from the Commission;                        The campaign cannot pay for attire for political
       •	Payments of salary from the commit-                      functions (for example, a new tuxedo or dress),
         tee must be made on a pro-rata basis                     but it can pay for clothing of de minimis value that
         (i.e., a candidate may not receive a whole               is used in the campaign, such as T-shirts or caps
         year’s salary if he or she is not a candidate            imprinted with a campaign slogan. 113.1(g)(1)(i)(C).
         for an entire twelve-month period);                      Tuition Payments
       •	Incumbent federal officehold-                            The campaign may pay for tuition costs that are
         ers may not receive a salary pay-                        for training campaign staff to perform campaign
         ment from campaign funds; and                            tasks. Also, in AO 1997-11, the Commission
       •	The first payment of salary shall be made no             allowed a federal officeholder to use campaign
         sooner than the filing deadline for access to            funds to cover her costs for a Spanish immer-
         the primary election ballot in the state in              sion class that she took to better communicate
         which the candidate is running for office.               with her constituents. 113.1(g)(1)(i)(D).
       •	Salary payments may continue until the date              Mortgage, Rent and Utility Payments
         when the candidate is no longer considered
                                                                  The campaign may not pay for mortgage, rent or
         a candidate for office or until the date of the
                                                                  utilities for the personal residence of the candidate
         general election or general election runoff.
                                                                  or the candidate’s family even if part of the resi-
         For special elections, payments may continue
                                                                  dence is being used by the campaign. 113.1(g)(1)
         from the date that the special election is
                                                                  (i)(E). However, the Commission has allowed the
         set until the date of the special election.
                                                                  use of campaign funds to pay for home security
     113.1(g)(1)(i)(I).                                           enhancements made in response to threats to an
                                                                  officeholder’s safety. In these cases, the security
     Automatic Personal Use                                       upgrades were not considered personal use
                                                                  because the threats would not exist irrespec-
     The regulations list some expenses that are
                                                                  tive of the officeholders’ candidacy or duties as
     automatically considered to be personal
                                                                  an officeholder. AOs 2011-05 and 2009-08.
     use. Based on these rules, the following
     paragraphs discuss what kinds of expenses                    In addition, the campaign may pay for long
     the campaign can and cannot pay for.                         distance calls made for campaign pur-
                                                                  poses from the candidate’s residence or
     Household Food Items and Supplies                            the residence of his or her family.
     The candidate cannot use campaign funds to pay               EXAMPLE: A campaign committee may not rent
     for food purchased for daily consumption inside              space in the candidate’s home, but it may rent
     the home or supplies needed to maintain the                  part of an office building owned or leased by the
     household. The campaign may, however, pay for                candidate for use in his or her campaign, as long
     food and supplies for fundraising activities and             as it pays no more than the fair market value for
     campaign meetings (even when they take place                 the space. AO 1995-08. See also AO 2000-02.
     in the candidate’s home). 113.1(g)(1)(i)(A).
                                                                  Investment Expenses
     Funeral, Cremation and Burial Expenses                       The campaign may not pay for investment
     Campaign funds cannot be used to cover expenses              expenses such as acquiring securities on
     related to deaths within the candidate’s family.             margin unless all of the investment and its
     They may, however, be used to cover funeral,                 proceeds are used for the purpose of influenc-
     cremation and burial expenses for a candidate or             ing the candidate’s election for federal office


54
                                       Expenditures and Other Disbursements



or for one of the permissible non-campaign                 Case-by-Case Determination
uses of funds discussed above in Section 1.
                                                           of Personal Use
Entertainment                                              For other expenses not mentioned above, the
The campaign may not pay for admission to                  Commission will determine, on a case-by-case
sporting events, concerts, theater and other               basis, whether the expense is one that would
forms of entertainment. Campaign funds may be              exist irrespective of the candidate’s campaign
used, however, if the entertainment is part of a           or duties as a federal officeholder and would
specific officeholder or campaign activity. They           be considered a personal use expense. For
may not be used for a leisure outing at which              example, the Commission addresses payments
the discussion occasionally focuses on the cam-            for meals, travel, vehicles, mixed-use and legal
paign or official functions.3 113.1(g)(1)(i)(F).           expenses on a case-by-case basis. 113.1(g)(1)(ii).

Dues, Fees and Gratuities                                  Meal Expenses
Campaign funds may not be used to pay for dues             Campaign funds may be used to pay for meals
to country clubs, health clubs, recreational facili-       during face-to-face fundraising events. By contrast,
ties or other nonpolitical organizations unless the        a candidate may not use campaign funds to take
payments are made in connection with a specific            his or her family out to dinner. 113.1(g)(1)(ii)(B).
fundraising event that takes place on the organiza-        Travel Expenses
tion’s premises. See, for example, AO 1995-26.
                                                           Campaign funds may be used to pay the costs of
Campaign funds may be used for member-                     travel to activity that is related to the campaign
ship dues in an organization that may have                 or to a candidate’s duties as a federal officeholder.
political interests. 113.1(g)(1)(i)(G).                    (Note, however, that 2007 changes to the statute
EXAMPLE: A candidate or officeholder may use               mandate specific conveyances and payments. See
campaign funds to pay for a membership in a                “Certain Air Travel” above and Chapter 10, Sec-
civic or community group in his or her district            tion 4 for more information.) Thus, the costs of
in order to maintain political contacts with               travel for a candidate (and the candidate’s spouse
constituents or the business community.4                   and minor children) may be used to pay for travel
                                                           to functions directly related to the campaign or
Salary Payments to Candidate’s Family                      those directly connected to the individual’s official
Campaign funds may be used to make salary pay-             responsibilities as a federal officeholder. 113.2(a)
ments to members of the candidate’s family only if:        (1); see AO 2005-09. The regulations, however,
                                                           prohibit the use of campaign funds for personal
    •	The family member is providing a bona                expenses collateral to travel—either campaign or
      fide service to the campaign; and                    officeholder—unless personal funds are used to
    •	The payments reflect the fair market                 reimburse the committee. 113.1(g)(1)(ii)(C). See,
      value of those services. 113.1(g)(1)(i)(H).          for example, AOs 2002-05, 2000-37 and 1996-19.
      See also AOs 2001-10 and 1992-04.                    See also “Mixed Use” below for trips that involve
                                                           both official/campaign and personal travel.
Any salary payments to family members in excess
of the fair market value constitute personal use.          Vehicle Expenses
3     From the Explanation and Justification for           Campaign funds may be used to pay for a vehicle
      the final rules, 60 Fed. Reg. 7866, February 9,      that is used for campaign-related purposes, assum-
      1995 (online at http://www.fec.gov/law/cfr/ej_       ing that the costs related to the personal use of
      compilation/1995/1995-05_Personal_Use.pdf#page=6).
                                                           the vehicle are de minimis. AO 2001-03. Campaign
4     From the Explanation and Justification for
                                                           funds cannot be used to pay for expenses relat-
      the final rules, 60 Fed. Reg. 7867, February 9,
      1995 (online at http://www.fec.gov/law/cfr/ej_       ing to the personal use of a campaign vehicle
      compilation/1995/1995-05_Personal_Use.pdf#page=7).   unless those expenses are de minimis, that is,


                                                                                                                   55
                                                           Chapter 8



     unless they are insignificant in relation to the                   date or officeholder (AOs 2009-12,
     overall vehicle use. 113.1(g)(1)(ii)(D). See also                  2005-11, 1998-01 and 1997-12);
     “Mixed Use” below for vehicle use that involves                   •	Investigations by the House or Sen-
     both official/campaign and personal travel.
                                                                         ate pertaining to any activity conducted
     Mixed Use                                                           by the candidate/officeholder (AOs
                                                                         2009-12, 2008-07 and 1998-01);
     In the event of travel or vehicle expenses that
     commingle personal and campaign or officeholder                   •	Responding to press inquiries pertaining to any
     activity, the beneficiary of the personal use                       of the above (AOs 2009-12, 2008-07, 2006-35,
     expenses must reimburse the committee within                        2005-11, 2001-09, 1998-01 and 1997-12); and
     thirty days for the entire amount associated with                 •	Suits involving former and current staff
     the personal activities (the amount over and above                  members of the candidate/officeholder, which
     what the cost would have been had the trip/vehicle                  relate to the candidate’s campaign and duties
     use been solely for campaign/officeholder-related                   as a federal officeholder (AO 2009-20).
     purposes). The reimbursement does not constitute
     a contribution. See, for example, AOs 1992-12 and            Relating to Other Activity
     1984-59. The committee must maintain logs of the
                                                                  In specific situations the Commission has con-
     expenses to help the Commission determine on a
                                                                  cluded that campaign funds may be used to pay
     case-by-case basis what portion was for personal
                                                                  for up to 50 percent of legal expenses that do
     use rather than for campaign-related activity or
                                                                  not relate directly to allegations arising from
     officeholder duties. 113.1(g)(8). AO 2001-03.
                                                                  campaign or officeholder activity (e.g. activity
     Legal Expenses                                               prior to becoming a candidate or officeholder
     Using the irrespective test summarized above,                or activity of a business owned by the candidate/
     the Commission decides on a case-by-case basis               officeholder) if the candidate or officeholder is
     whether legal expenses are considered “personal              required to provide substantive responses to the
     use” and thus are expenses that a candidate may              press regarding the allegations of wrongdoing. See,
     not pay for using campaign funds. 113.1(g)(1)(ii)(A).        for example, AOs 2005-11, 1998-01 and 1997-12.

     Relating to Campaign or Officeholder Activity
                                                                  Salary, Compensation and Other
     In several advisory opinions the Commission
     has said that campaign funds may be used to pay
                                                                  Payments Paid On Behalf of Candidates
     for up to 100 percent of legal expenses related              General Rule
     to campaign or officeholder activity, where such
                                                                  Generally, when a third party (not the can-
     expenses would not have occurred had the
     individual not been a candidate or officeholder.             didate or the candidate’s committee) pays
                                                                  for personal use expenses, the third party
                                                                  makes a contribution, subject to the restric-
     EXAMPLES:                                                    tions and limitations of the Act. 113.1(g)(6).
       •	Suits where the candidate/officeholder was
         the plaintiff, provided he derived no financial          Exceptions
         benefit from court awards (AO 1997-27);                  No contribution will result, however, if the pay-
       •	Suits where the candidate/officeholder                   ment would have been made irrespective of
         was the defendant and the litigation                     the candidacy. For example, a third party may
         arose directly from campaign activity                    make the following payments on behalf of a
         or the candidate’s status as a candidate                 candidate without making a contribution:
         (AOs 2009-10, 2003-17 and 1995-23);                           •	Payments to a legal expense trust fund
       •	Investigations pertaining to the can-                           established under House and Sen-
         didate/officeholder’s role as a candi-                          ate rules (see 113.1(g)(6)(i));


56
                                   Expenditures and Other Disbursements



  •	Payments for personal living expenses
    made from funds that are the candidate’s
    personal funds, including an account the
    candidate holds jointly with a family member
    (See 100.153, and 113.1(g)(6)(ii)); and
  •	Payments that began prior to candidacy. For
    example, if the candidate’s parents had been
    making college tuition payments for the candi-
    date’s children, the parents could continue to
    do so during the campaign without making a
    contribution. See 100.153 and 113.1(g)(6)(iii).

Salary or Compensation Paid to Candidate
Compensation paid to a candidate by a third party
as a continuation of payments made prior to can-
didacy (for example, payments of salary) are not
considered contributions as long as such payments:
  •	Result from bona fide employment
    independent of the candidacy;
  •	Are exclusively in consideration of the services
    provided as part of this employment; and
  •	Represent pay not in excess of that nor-
    mally received for such services. 113.1(g)(6)
    (iii). See also AOs 2006-13 and 2004-17.

Promotion of Candidate’s Books
Generally, the expense of marketing a book would
exist irrespective of a candidate’s campaign, and
thus a campaign cannot ordinarily use its funds to
pay such an expense. In limited situations, however,
the Commission has permitted the use of campaign
funds to promote a candidate’s book, as follows:
  •	A campaign could incur de minimis costs
    to post on its website material promot-
    ing the book’s release and linking to
    an online bookseller. AO 2006-07.
  •	A campaign could incur costs for planning
    book-related events and handling press and
    public inquiries where the candidate donates
    royalties to charitable organizations and thus
    does not personally gain from the use of cam-
    paign assets to promote the book. AO 2006-18.
See also AO 2008-17, where the Commission ruled
that payments to a co-author by the principal cam-
paign committee would constitute personal use.


                                                                          57
     Chapter 8




58
                                                     Transfers




                                              ChAPTEr 9
                                             Transfers
This chapter describes the different types of               net debts outstanding. 110.3(c)(4) and 116.2(c)
transfers that authorized committees may receive            (2). Note that, for the purposes of the contribu-
and make. Transfers of funds and assets between             tion limits, contributions transferred from the
federal committees authorized or established                previous campaign to the current campaign must
by the same candidate are generally unlimited               be aggregated with contributions by the same
because the committees are considered affiliated            contributors to the current campaign only if the
committees. Note, however, that an authorized               transferred contributions were originally made:
committee of a federal candidate may not accept                  •	After the previous election was held; or
any transfers of funds or assets from a com-
mittee established by the same candidate for                     •	After the candidate withdrew or
a nonfederal election. See Section 3, below.                       otherwise ceased to be a candi-
                                                                   date in the previous election.1
                                                            110.3(c)(4)(iii) and (iv).
1. Transfers Between                                        See Chapter 4, Section 5, for information
   Candidate’s Committees                                   on how to determine the date when a con-
                                                            tribution is made. Other rules also apply to
   for Same Office                                          contributions that a committee receives after
                                                            an election; see Chapter 4, Section 4, “Desig-
                                                            nated and Undesignated Contributions.”
In the Same Election
Funds and assets may be transferred without
limit between a candidate’s principal campaign              2. Transfers Between
committee and the candidate’s other authorized
committees for the same office during the same                 Committees of
election. Note, however, that an authorized                    Candidate Seeking More
committee may not transfer funds to another                    Than One Office
authorized committee of the same candidate
if the transferring committee has net debts
outstanding. 110.3(a)(1)(i) and 116.2(c)(2).                In the Same Election Cycle
                                                            When an individual seeks election to more than
Between Primary and General Election                        one federal office during the same election cycle
Campaign in Same Election Cycle                             or overlapping election cycles, he or she must
Funds that went unused in the primary election              establish separate principal campaign committees
may be transferred without limit to a candi-                and must maintain completely separate campaign
date’s general election campaign. 110.3(c)(3).              organizations. 110.8(d)(1). Contributors also

                                                            1      An individual ceases to be a candidate in an election as
In Different Elections                                             of the earlier of the following dates: the date on which
                                                                   the candidate publicly announces that he or she will
Funds and assets may be transferred without limit                  no longer be a candidate in that election for that office
between committees authorized by a candidate                       and ceases to conduct campaign activities with respect
for the same office in different elections as long                 to that election; or the date on which the candidate
                                                                   is or becomes ineligible for nomination or election
as the transferring committee does not have                        to that office by operation of law. 110.3(c)(4)(iv).



                                                                                                                               59
                                                          Chapter 9



     have separate limits with respect to the separate           Guidelines for Transfers When No Longer
     campaigns of the same candidate. Special transfer           “Actively Seeking” Multiple Offices
     rules apply to transfers between these commit-              Once a candidate is no longer “actively seek-
     tees. The situations to which these rules apply             ing” election to more than one federal office,
     can be illustrated with the following examples:             transfers between the two campaigns are
       •	Candidate A runs for both the House                     permissible, within the following guidelines:
         and the Presidency in the 2012 primary                       •	The transferor committee’s available funds
         election (as permitted by state law).                          should be viewed as those contributions
       •	Candidate B begins the 2012 election cycle                     most recently received that add up to the
         as a House candidate, but later begins a                       amount of the transfer from cash on hand.
         campaign for a Senate seat in 2012.                          •	The transferor committee must be able to
     Prohibited While “Actively Seeking”                                demonstrate that such cash on hand contains
     More Than One Office                                               sufficient funds at the time of the transfer that
                                                                        comply with the limitations and prohibitions
     No transfers of funds or assets may be made                        of the Act to cover the amount transferred.
     between a candidate’s separate campaign
     committees while the candidate is “actively                      •	Contributions transferred must be aggregated
     seeking” more than one office at the same                          with any contributions made by the same
     time. 110.3(c)(5) and 110.8(d)(2). In the above                    contributor to the committee receiving the
     examples, Candidate A would be prohibited                          transfer. Amounts that would cause a con-
     from transferring funds because he was “actively                   tributor to exceed his or her per-election
     seeking” two offices at the same time.                             contribution limit must be excluded from
                                                                        the transfer, i.e., the funds available for trans-
     Additional rules prohibit any transfers to or from                 fer would be reduced by such amounts.
     a campaign account of a Presidential candidate
     who has accepted public financing, regardless of            110.3(c)(5)(ii).
     the timing or amount of the transfer. 110.3(c)              By taking these steps, Candidate B in the above
     (5)(iii). This restriction would apply to Candi-            example could transfer funds between her two
     date A (above) if he received public funds for              campaigns once she was no longer “actively
     his Presidential campaign. See AO 1995-03.                  seeking” two offices at the same time. Note
                                                                 that the recipient committee will need to iden-
     Definition of No Longer “Actively Seeking”                  tify the contributors whose contributions are
     Under FEC rules, a candidate is no longer                   included in the transfer by using memo entries.
     “actively seeking” nomination or election
     to a particular office once he or she:                      In Different Election Cycles
       •	Becomes ineligible for nomination or elec-              When an individual seeks different offices in differ-
         tion to that office by operation of law;                ent election cycles, surplus funds from the earlier
       •	Publicly announces that he or she is                    campaign that remain after the general election
         withdrawing from one race and ceases                    may be transferred to the later campaign without
         to campaign for that election, other than               aggregating the contributions of the original
         fundraising to retire outstanding debts;                contributor to the two committees. 110.3(c)(4).
       •	Has filed a termination report (see Chapter 14,         EXAMPLE: Candidate X runs for the House in
         Section 1, “Terminating the Committee”); or             2012, and for the Senate in 2016. Any surplus
       •	Has notified the Commission in writ-                    funds for the 2012 House campaign that remain
         ing that his or her campaign will conduct               after the 2012 general election may be transferred
         no further activities with respect to that              to the 2016 Senate campaign. The 2016 Senate
         election, other than fundraising to retire              Committee would not have to disclose those
         outstanding debts. 110.3(c)(5)(i).


60
                                                    Transfers



contributors whose contributions to the 2012               Note that these transactions must not
House Committee were included in the transfer.             be reported as transfers. For informa-
                                                           tion on reporting, see Chapter 13.

3. Transfers from Candidate’s
   Nonfederal Committee
   Are Prohibited
A candidate’s authorized (federal) committee may
not accept funds or assets transferred from a
committee established by the same candidate for
a nonfederal election campaign. At its option, how-
ever, a nonfederal committee of the same candidate
may refund its leftover funds to its contributors
and may coordinate arrangements with the federal
campaign for a solicitation of those same persons.
The full cost of this solicitation must be paid by the
federal committee. 110.3(d). See also AO 1996-33.



4. Transfers of Joint
   Fundraising receipts
Transfers of receipts raised in compliance with
joint fundraising procedures are unlimited. 102.6(a)
(1)(iii) and 110.3(c)(2). A committee receiving
such a transfer must not only report the total
amount transferred but must also itemize, as
necessary, its share of gross proceeds as contribu-
tions from the original contributors. 102.17(c)(8)
(i)(B). For more information, see Appendix C.



5. What is NOT a Transfer
Note that, while each of the above sections
discusses transfers between committees, not all
receipts or disbursements to other committees
are transfers. The following are not transfers:
  •	Contributions to or from other can-
    didates (federal or nonfederal);
  •	Contributions to or from PACs; and
  •	Contributions from party committees, although
    an authorized committee may make unlimited
    transfers to party committees. 113.2(c).


                                                                                                    61
     Chapter 9




62
                                             Conducting the Campaign




                                                    ChAPTEr 10
                              Conducting the Campaign
This chapter outlines the rules that apply to              a special notice on their solicitations to inform
three areas of campaign activity: fundraising,             solicitees that contributions are not tax deduct-
advertising and travel. It also details the rules          ible. There are substantial penalties for failure
that apply to disclaimer notices for com-                  to comply with this provision. Contact the IRS
munications by an authorized committee.                    for more information (see Appendix G, Sec-
                                                           tion 4, “Tax Laws,” for contact information).

                                                           Fundraising on the Internet
1. Fundraising                                             Campaign committees may solicit contributions
                                                           over the Internet as long as the solicitation:
Fundraising Notices                                          •	Includes the proper disclaimers (see “Dis-
                                                               claimer Notices,” later in this chapter);
Certain statements by the campaign must
be present on solicitations, as follows:                     •	Requests confirmation that the contribu-
                                                               tion is not from a prohibited source; and
Authorization Notice
                                                             •	Requests contributor information.
When a campaign solicits contributions through
                                                           104.7(b)(1), 110.11. See Chapter 11, Sec-
public communications, or on a campaign web-
                                                           tion 5, “Treasurer’s Best Efforts” and
site, it must include a clear and conspicuous
                                                           AOs 1999-36, 1999-22 and 1999-9.
notice on the solicitation stating that it was
authorized and paid for by the campaign: Paid              Joint Fundraising
for by the Sam Jones for Congress Committee.               Campaigns may engage in joint fundraising with
110.11(a)(1) and (b)(2). See “Disclaimer Notices”          other committees. 102.17. For the rules that
later in this chapter for more information.                govern this special activity, see Appendix C.
“Best Efforts” Rules
When making solicitations, committees and their            Transmitting Contributions
treasurers must make “best efforts” to obtain,             Forwarding Contributions
maintain and report the name, address, occupa-
                                                           Every person who receives contributions for a
tion and employer of each contributor who gives
                                                           campaign must forward them to the treasurer
more than $200 in an election cycle. In order
                                                           of the candidate’s authorized committee within
to show that the committee has made “best
                                                           10 days of receipt. The date of receipt is the
efforts,” solicitations must specifically request
                                                           date the person acting as a conduit obtains
that information and inform contributors that
                                                           possession of a contribution. 102.8(a). See also
the committee is required by law to use its best
                                                           Appendix A, “Earmarked Contributions.”
efforts to collect and report it. This request must
be clear and conspicuous. 104.7(a). For details, see       Forwarding Records
Chapter 11, Section 5, “Treasurer’s Best Efforts.”
                                                           A person receiving contributions for a campaign
IRS Notice Requirements                                    must also forward the following recordkeep-
                                                           ing information along with the contributions:
Section 6113 of the Internal Revenue Code
requires political committees whose gross annual
receipts normally exceed $100,000 to include


                                                                                                               63
                                                        Chapter 10



       •	For contributions exceeding $50, the                  See also AO 1982-38.
         amount, date of receipt and the con-                  When itemizing such a contribution in its report,
         tributor’s name and address.                          a campaign should note that the contribution con-
       •	For contributions exceeding $200, the                 tains only federally permissible funds. Contributions
         complete identification of the contributor            from such unregistered organizations are subject
         (full name and mailing address, occupa-               to the $2,500 per election limit.1 110.1(b). These
         tion and employer) as well as the amount              organizations should be aware, however, that mak-
         and date of receipt of the contribution.              ing contributions to federal campaigns and political
     102.8(a).                                                 committees may trigger their own registration as
                                                               a federal political committee. State political action
     No Commingling                                            committees sponsored by corporations, labor
     Campaign receipts must not be commingled with             organizations or trade associations, in particular,
     personal funds of any individual, such as by deposit-     must register as federal separate segregated funds
     ing contributions in a personal account. 102.15.          within 10 days of the decision to make a contribu-
                                                               tion to a federal candidate. Additional requirements
                                                               regarding their solicitations also apply. See 100.5(b)
     Accepting Contributions                                   and 102.2(c); see also AOs 2003-29, 1985-18
     General Rule                                              and 1982-40.2 Contributions by other types of
                                                               unregistered organizations (for example, local
     A campaign is prohibited from knowingly accept-           party organizations or committees not sponsored
     ing any contributions from prohibited sources.2           by an incorporated entity or labor organiza-
     U.S.C. 441a(f).The treasurer of a political com-          tion) count against a $1,000 per year aggregate
     mittee is responsible for examining all contri-           registration threshold. See 100.5(a) and (c).
     butions to make sure they are not illegal (i.e.,
     prohibited or excessive). See “Questionable
     Contributions,” Chapter 5, Section 2. 103.3(b).           Depositing Funds
                                                               Within 10 days of receiving a contribution
     Contributions from Unregistered Organizations             (or any receipt of money), the treasurer must
     When campaigns accept contributions from                  deposit it in the campaign depository. 103.3(a).
     groups that are not political committees registered       See Chapter 5, Section 2, “Questionable
     with the Federal Election Commission (such as             Contributions,” for information on deposit-
     state PACs, unregistered local party commit-              ing or returning questionable contributions.
     tees or nonfederal campaigns), they must make
     sure that the funds are permissible under the             Accounting for Primary and
     Federal Election Campaign Act (the Act). This is an
     important consideration because campaign laws             General Election Contributions
     in some states permit nonfederal political groups         If, before the primary election, a campaign
     to accept funds that would violate the limits and         receives contributions designated for the general
     prohibitions of the Act. To avoid a possible viola-       election, it must use an acceptable account-
     tion of the Act, a campaign must be certain that          ing method to distinguish between primary
     an unregistered group making a contribution:              contributions and general election contribu-
       •	Can demonstrate through a reasonable
         accounting method that it has sufficient              1     As noted in Chapter 4, Section 1, this limit is indexed
         federally acceptable funds to cover the                     for inflation and adjusted in odd-numbered years.
         amount of the contribution or expen-                  2     Authorized committees may want to refer state
         diture at the time it is made; or                           political action committees of corporations, labor
                                                                     organizations and trade associations to these citations.
       •	Has established a separate account containing               Such committees are best advised to register a federal
         only funds permissible under the Act. 102.5(b).             separate segregated fund with the FEC before soliciting
                                                                     or making any contributions on the federal level.



64
                                                Conducting the Campaign



tions. Commission regulations suggest two                     Wording of Disclaimer Notice
accounting methods that are acceptable:
                                                              Authorized and Financed by Campaign
  •	Maintaining separate accounts
                                                              If the campaign authorizes and finances a cov-
    for each election; or
                                                              ered communication (including any solicitation),
  •	Maintaining separate books and                            the notice must state that the communica-
    records for each election.                                tion was paid for by the authorized commit-
                                                              tee. Additional requirements (see below)
102.9(e).
                                                              apply for print, television and radio ads.
                                                              Example:“Paid for by the Sam Jones for
                                                              Congress Committee.” 110.11(b)(1).
2. Disclaimers
                                                              Authorized but Not Financed by Campaign
Any public communication made by a political                  If a covered communication, including any
committee, even those that do not contain a                   solicitation, is authorized by the campaign but
solicitation or express advocacy, must include                paid for by another person, the communica-
a disclaimer. 2 U.S.C. 441d(a); 110.11(a).                    tion must identify the person who paid for
                                                              it and state that it was authorized by the
                                                              campaign. Additional requirements apply for
Public Communications                                         print, television and radio ads (see below).
Public communications include electioneering                  Example:“Paid for by the XYZ Commit-
communications and any other form of general                  tee and authorized by the Sam Jones for
public political advertisement, including com-                Congress Committee.” 110.11(b)(2).
munications made using the following media:
                                                              Not Authorized or Financed by Campaign
  •	Broadcast, cable or satellite;
                                                              Although this type of notice is not used by a
  •	Newspaper or magazine;                                    candidate’s campaign, campaign staff should be
  •	Outdoor advertising facility;                             aware that if a committee (including a party com-
                                                              mittee that makes an independent expenditure)
  •	Mass mailing (more than 500 substan-                      pays for a communication (including any solicita-
    tially similar mailings within 30 days);                  tion) that refers to their candidate but is not
                                                              authorized by the campaign, the notice must state
  •	Phone bank (more than 500 substan-
                                                              that it was not authorized by any candidate or
    tially similar calls within 30 days); and
                                                              candidate’s committee, identify the entity that
  •	Communications placed for a fee                           paid for the communication and provide at least
    on another person’s website.                              one of the following: the payor’s permanent street
                                                              address, telephone number, or website address.3
100.26, 100.27 and 100.28.
                                                              Additional requirements apply for print, televi-
The following communications are not                          sion and radio ads (see Appendix D, Section 7).
considered to be public communica-                            Example:“Paid for by the XYZ PAC (www.
tions, but still require a disclaimer:                        xyzpac.org) and not authorized by any candi-
                                                              date or candidate’s committee.” This type of
  •	Electronic mail: More than 500 sub-
                                                              notice must be used on independent expen-
    stantially similar communications sent
    by a political committee; and                             3   When persons outside the campaign use public
                                                                  communications to solicit contributions, the solicitation
  •	Web sites of political committees.                            must carry a notice stating who paid for the solicitation
                                                                  and whether or not it was authorized by the
110.11(a).                                                        candidate or the committee. 110.11(a)(3) and (b).



                                                                                                                              65
                                                          Chapter 10



     ditures and electioneering communications                   Multiple-Paged Document
     that are not authorized by a candidate or a                 A disclaimer need not appear on the
     candidate’s campaign. 110.11(b)(3) and (d)(3).              front page or cover of a multiple-
                                                                 paged document. 110.11(c)(2)(iv).
     Party Committee Coordinated
     Communications on Behalf of Candidate                       Package of Materials
     A party committee that pays for a communica-                Each communication that would require a
     tion that is a coordinated party expenditure                disclaimer if distributed separately must still
     must identify the party committee as the payor              display the disclaimer when included in a pack-
     in the disclaimer. Prior to the date the party’s            age of materials. 110.11(c)(2)(v). For example, if
                                                                 a campaign poster is mailed with a solicitation
     candidate is nominated, it is sufficient for the
                                                                 for contributions, a separate disclaimer must
     party committee to state who has paid for the
                                                                 appear on the solicitation and the poster.
     communication. Subsequent to the nomina-
     tion, the disclaimer must state that it was paid
     for by the party committee and authorized
                                                                 Special Rules for Television
     by the candidate. 110.11(d)(1) and (2).                     and Radio Ads
     Preemption of State Law                                     Authorized by Candidate’s Committee –
                                                                 the “Stand by Your Ad” Provision
     An authorization notice does not have to comply
                                                                 In addition to the requirements noted under
     with state or local law if the communication
                                                                 “Wording of Disclaimer Notice” above, radio and
     is made only with respect to federal elections.
                                                                 television communications that are authorized or
     108.7(b). See also, for example, AO 1986-11.
                                                                 paid for by a campaign require additional language.
     However, state or local laws governing the                  For such radio and television ads, the candidate
     placement or location of signs on roads are not             must deliver an audio statement identifying
     superseded by federal law. See AO 1981-27.                  himself or herself and stating that he or she has
                                                                 approved of the communication.4 For example:
     Clear and Conspicuous Placement                             “I am [candidate’s name], a candidate for [federal
                                                                 office sought], and I approved this advertisement.”
     of Disclaimer Notice
                                                                 In a television ad, the disclaimer
     A disclaimer notice must be clearly and conspicu-           must be conveyed by:
     ously displayed. A notice is not clearly and conspic-
                                                                     •	A full-screen view of the candi-
     uously displayed if the print is difficult to read or if
                                                                       date making the statement; or
     the placement is easily overlooked. 110.11(c)(1).
                                                                     •	A voiceover with an image of the can-
     Special Rules for Printed Communications                          didate occupying no less than 80%
                                                                       of the vertical screen height.
     In printed communications, the disclaimer must be
     contained within a printed box set apart from the           110.11(c)(3). See also AO 2007-33.
     contents of the communication. The print of the             Additionally, television communications must
     disclaimer must be of sufficient size to be “clearly        contain a clearly readable written statement
     readable” by the recipient of the communication,            of approval, similar to what is spoken, that
     and the print must have a reasonable degree of              appears at the end of the communication for a
     color contrast between the background and the               period of at least four seconds with a reason-
     printed statement. 110.11(c)(2)(ii) and (iii). Black        4     Under the Communications Act, administered
     text in 12-point font on a white background is one                by the Federal Communications Commission,
                                                                       candidates must also identify the office they are
     way to satisfy this requirement for printed material              seeking in order to be entitled to the lowest unit
     measuring no more than 24 inches by 36 inches.                    charge. See 47 USC §315(b) and AO 2004-43.



66
                                             Conducting the Campaign



able degree of color contrast between the                  4. Campaign Travel
background and the disclaimer statement (e.g.,
black text on white background). The written               This section explores rules for travel payments.
statement must occupy at least four percent of             Generally, campaigns may pay for campaign-related
the vertical picture height. 110.11(c)(3)(iii).            travel as operating expenditures. As explained
                                                           in Chapter 7, “Sources of Support,” an in-kind
Not Authorized by Candidate’s Committee                    contribution generally results from the source
                                                           of payment for the travel unless an exemption
A radio or television communication that is not
                                                           for individual travel applies or the campaign
authorized by the candidate’s committee must also          pays for its own campaign travel. 100.93. See
include (in addition to the statements identifying         Chapter 7, Section 4, “Travel Cost Exemptions,”
who paid for the communication and that it is              for details on when payments for campaign
not authorized by any candidate or candidate’s             travel by individuals are considered exempt.
committee) an audio statement that “(the name
of the person or committee responsible for the             Commercial Transportation
communication) is responsible for the content              If a campaign uses an aircraft that is operated
of this advertising” and, if applicable, the name          for commercial air service, such as a commercial
of the committee’s connected organization. For             airline or charter service, or another means of
details on the specific requirements for such              commercial transportation, the campaign must
notices, see Appendix D, Section 7. 110.11(c)(4).          pay the usual and normal charge for that service
                                                           to avoid receiving an in-kind contribution from
                                                           the service provider. See 100.52(a) and (d).
When Disclaimer Not Required
A disclaimer is not required when:                         Non-Commercial Air Travel
  •	It cannot be conveniently printed (e.g.,               The Honest Leadership and Open Government Act
    pens, bumper stickers, campaign pins, cam-             of 2007 (HLOGA) (Pub. L. No. 110-81, 121 Stat.
    paign buttons and similar small items);                735) amended the Act to restrict campaign-related
                                                           travel on non-commercial aircraft. Under HLOGA,
  •	Its display is not practicable (e.g., wearing          candidates for the U.S. House of Representatives,
    apparel, water towers and skywriting); or              their authorized committees, and their leadership
                                                           PACs are prohibited from making any expenditure
  •	The item is of minimal value, does not contain
                                                           for non-commercial air travel, with an exception
    a political message and is used for adminis-           for travel on government aircraft and on aircraft
    trative purposes (e.g., checks and receipts).          owned or leased by the candidate or an immedi-
    110.11(f); See also AOs 2004-10 and 2002-09.           ate family member of the candidate. 2 U.S.C.
                                                           439a(c)(2) and (3). HLOGA also specified new
                                                           reimbursement rates that Senate, Presidential and
3. rates for Political                                     Vice-Presidential candidates and their authorized
                                                           committees must pay when making expenditures
   Advertisements                                          for flights aboard non-commercial aircraft.5 Rules
                                                           governing the use of non-commercial aircraft
Rates charged by newspapers and magazines for              by “campaign travelers” are described below.
campaign advertising must be comparable to                 HLOGA defines the term “campaign traveler” as
those charged for noncampaign advertisements.              any individual traveling in connection with an elec-
110.11(g). Rates charged for radio and televi-
                                                           5   The provisions of HLOGA also apply to nonconnected
sion advertisements are regulated by the Federal               committees sponsored by candidates for the
Communications Commission. See Appendix G.                     House of Representatives (“leadership PACs”).



                                                                                                                    67
                                                                  Chapter 10



     tion for federal office on behalf of a candidate or                     •	The lowest unrestricted and non-discounted
     political committee, and candidates who travel on                         coach airfare in the case of travel between
     behalf of their own campaigns. The term campaign                          a city served by regularly scheduled coach
     traveler also includes any member of the news                             commercial airline service, but not regularly
     media traveling with a candidate. Candidates are                          scheduled first-class commercial airline service,
     only considered campaign travelers when they                              and a city served by regularly scheduled coach
     are traveling in connection with an election for                          commercial airline service (with or without
     federal office. This term does not include Members                        first-class commercial airline service); or
     of Congress when they engage in personal travel
                                                                             •	The normal and usual charter fare or
     or any other travel that is not in connection with
                                                                               rental charge for a comparable commercial
     an election for federal office. 100.93(a)(3)(i).
                                                                               aircraft of sufficient size to accommodate
     Presidential, Vice-Presidential and                                       all campaign travelers and security person-
     Senate Candidate Travel                                                   nel, if applicable, in the case of travel to or
     Candidates for President,Vice-President and the                           from a city not regularly served by regularly
     Senate pay the pro rata share of the fair market                          scheduled commercial airline service.
     value on non-commercial flights. 100.93(c)(1). The                  To avoid the receipt of an in-kind contribution,
     pro rata share is determined by dividing the fair                   the committee must reimburse the service
     market value of the normal and usual charter fare                   provider no later than seven calendar days
     or rental charge for a comparable aircraft of com-                  after the date the flight began. 100.93(c)(3).
     parable size by the number of campaign travelers
     flying on behalf of each candidate on the flight.6                  Travel on behalf of House Candidates
     The pro rata share is calculated based on the num-                  and House Leadership PACs
     ber of candidates represented on a flight, regard-                  House candidates, individuals traveling on behalf of
     less of whether the individual candidate is actually                House candidates, their authorized committees, or
     present on the flight. A candidate is represented                   the leadership PACs of House candidates are gen-
     on a flight if a person is traveling on behalf of that              erally prohibited from engaging in non-commercial
     candidate or the candidate’s authorized committee.                  campaign travel on aircraft.7 100.93(c)(2). This
     Travel on behalf of Leadership PACs                                 prohibition cannot be avoided by payments to
     of Senate, Presidential and Vice-                                   the service provider, even if the payments derive
     Presidential and Senate Candidates                                  from the personal funds of a House candidate.
     For non-commercial travel on behalf of                              Travel on behalf of Other Committees
     leadership PACs of Senate, Presidential and
                                                                         The reimbursement rate structure for campaign
     Vice-Presidential candidates, the reimburse-
                                                                         travelers who are traveling on behalf of politi-
     ment for that travel is the responsibility of the
                                                                         cal party committees, separate segregated funds
     committee on whose behalf the travel occurs.
                                                                         (SSFs), nonconnected committees and certain
     The reimbursement rates are as follows:
                                                                         leadership PACs is the same reimbursement
         •	The lowest unrestricted and non-discounted                    rate structure described above under “Travel
           first-class airfare in the case of travel                     on behalf of Leadership PACs of Senate, Presi-
           between cities served by regularly scheduled                  dential and Vice-Presidential Candidates.”
           first-class commercial airline service;
                                                                         7     This prohibition does not apply when the travel would
     6     The term “comparable aircraft” means an aircraft                    be considered an expenditure by someone other
           of similar make and model as the aircraft that                      than the House candidate, the House candidate’s
           actually makes the trip, with similar amenities as                  authorized committee or the House candidate’s
           that aircraft. The Commission’s new regulations                     leadership PAC (for example, if the House candidate
           interpret HLOGA to include helicopters when                         were traveling on behalf of a Senate candidate
           determining “comparable aircraft.” 100.93(a)(3)(vi).                instead of on behalf of his or her own campaign).



68
                                          Conducting the Campaign



Aircraft Owned or Leased by Candidate                   burse the pro rata share per campaign traveler of
or Immediate Family                                     the costs associated with the trip.8 100.93(g)(1)(iii).
Expenditures are allowed for travel aboard aircraft     Repayment must be made by the candidate’s
that are “owned or leased” by a candidate or a          committee in accordance with the normal
candidate’s immediate family, including an aircraft     business practices of the entity administering
owned or leased by any entity in which the can-         the shared-ownership or lease agreements.
didate or a member of the candidate’s immediate
                                                        Other Non-Commercial Transportation
family has an ownership interest provided that 1)
the entity is not a public corporation, and 2) the      For non-commercial travel via other means, such
use of the aircraft is not more than the candidate’s    as limousines and all other automobiles, trains and
                                                        buses, a political committee must pay the service
or immediate family member’s proportionate
                                                        provider the normal and usual fare or rental
share of ownership allows.100.93(g). However, if
                                                        charge for a comparable commercial conveyance
the candidate seeks to avoid receiving an in-kind
                                                        of sufficient size to accommodate all campaign
contribution from the service provider (can-            travelers, including members of the news media
didates, members of their immediate family or           traveling with a candidate and security personnel,
entities in which either owns an interest) for the      if applicable. Payment for the travel must be made
candidate’s use of the aircraft, the candidate must     30 days from the receipt of the invoice, but no
reimburse the service provider. Although federal        more than 60 days following the date the travel
candidates may make unlimited contributions             commenced. 100.93(d). The campaign must keep in
to their campaigns, such contributions must be          its records an itinerary showing the departure and
reported by their authorized committees. 110.10.        arrival cities and the dates of departure and arrival;
Contributions from all other persons, including         a list of all passengers on such trip, along with a
family members, are subject to the applicable           list of which passengers are and are not campaign
                                                        travelers or security personnel; and the commercial
amount limits and source prohibitions. 110.1.
                                                        fare or rental charge available for a comparable
In instances where the candidate uses the aircraft      conveyance of sufficient size. 100.93(i)(3).
within the limits of a shared-ownership arrange-
ment, the candidate’s committee must reimburse          Government Conveyances
the candidate, the candidate’s immediate family         Candidates and representatives of political commit-
member or the administrator of the aircraft for the     tees may make campaign travel via governmental
applicable rate charged to the candidate, immedi-       conveyances, such as government aircraft, subject
ate family member, or corporation or other entity       to specific reimbursement requirements. Can-
through which the aircraft is ultimately available to   didates, their authorized committees or House
                                                        candidate leadership PACs must reimburse the
the candidate. This amount is treated as a personal
                                                        federal, state or local government entity providing
contribution from the candidate if the candidate
                                                        the aircraft at either of the two following rates:
is the owner or lessee. House candidates are
prohibited from exceeding the candidate’s propor-           •	“Per candidate campaign traveler” reimburse-
tional share of ownership interest in the aircraft.           ment rate, which is the normal and usual
                                                              charter fare or rental charge for a comparable
For Senate, Presidential and Vice-Presidential
                                                              aircraft of sufficient size to accommodate all
candidates, the reimbursement rate would be
                                                              of the campaign travelers. The pro rata share
based upon the pro rata share of the charter rate             is calculated by dividing the normal and usual
where the proportional share of the ownership                 charter fare or rental charge by the number
interest is exceeded. 100.93(g) and 100.93(c)(1).             of campaign travelers on the flight that are
In instances where a candidate or a candidate’s
                                                        8     Such costs include, but are not limited to, the cost of
immediate family member wholly owns the aircraft,             fuel and crew and a proportionate share of annual
the candidate’s authorized committee must reim-               and recurring maintenance costs. 100.93(g)(1)(iii).



                                                                                                                        69
                                                          Chapter 10



         traveling on behalf of candidates, authorized           Mixed Travel
         committees or House candidate leadership
         PACs, including members of the news media,              When a candidate makes a trip involving both
         and security personnel. No portion of the               campaign and noncampaign stops, only the travel
                                                                 costs related to the campaign are expenditures.
         normal and usual charter fare or rental charge
                                                                 If, however, a candidate conducts any campaign
         may be attributed to any other passengers,
                                                                 activity at a given stop, that stop is considered
         except for members of the news media and
                                                                 campaign related, unless the campaign activ-
         government-provided security personnel, as
                                                                 ity is merely incidental. In no case, however,
         provided in 100.93(b)(3). 100.93(e)(1)(i); or
                                                                 may campaign funds be used for non-travel
       •	“Private traveler reimbursement rate,” as spec-         expenses that are not related to official or
         ified by the governmental entity providing the          campaign-related activity. See AO 2002-05.
         aircraft, per campaign traveler. 100.93(e)(1)(ii).
                                                                 Example: If a candidate makes a noncampaign
     For campaign travelers who are traveling on                 speech at a civic association luncheon and, on
     government aircraft, but are not traveling with             the way out, chats with a few attendees about
     or on behalf of a candidate or candidate’s com-             his campaign in response to their questions, the
     mittee, the reimbursement must be equal either              conversation does not convert the appearance into
     to the lowest unrestricted and non-discounted               a campaign-related event. On the other hand, if a
     first-class commercial airline service that is              candidate flew into a city for a trip that involved
     geographically closest to the military airbase              both personal vacation days and days spent cam-
     or other location actually used, or, for all other          paigning, an incremental approach to paying for
     travel, the applicable rate from among the                  the trip would be required, to avoid the campaign
     rates specified in 100.93(c)(3). 100.93(e)(2).              paying the lodging, subsistence and sightseeing
     Members of the news media who are traveling                 expenses on the vacation days — an expense that
     with a candidate on government aircraft and                 would be considered an impermissible personal use
     security personnel not provided by a govern-                of campaign funds. Because of the non-incidental
     ment entity must be included in the number                  nature of the campaign days, the airfare would
     of campaign travelers for the purposes for                  be considered a campaign-related expense.
     identifying a comparable aircraft of sufficient             Expenditures for campaign-related stops are
     size to accommodate all campaign travelers.                 calculated on an actual cost-per-mile basis,
                                                                 starting at the point of origin of the trip, includ-
     A political committee must reimburse the
                                                                 ing each campaign-related stop, and ending
     governmental entity providing the convey-
                                                                 at the point of origin. 106.3(b)(2) and (3).
     ance within the time frame specified by
     the governmental entity. 100.93(e)(1).                      As explained in Chapter 8, campaign funds
                                                                 may be used for mixed use travel; however,
                                                                 the committee must be reimbursed within
     Reporting and Recording Travel Costs                        thirty days for the entire amount associated
     Payments for campaign-related travel are generally          with the personal activities (the amount over
     reported as operating expenditures when they                and above what the cost would have been had
     are paid with campaign funds or by an individual            the trip/vehicle use been solely for campaign/
     from personal funds. 106.3(a) and (b)(1). Special           officeholder-related purposes). 113.1(g)(1)(ii)(C).
     rules apply, however, when the candidate or                 Individuals other than candidates must allocate
     another individual uses his or her personal funds           their mixed campaign and noncampaign travel
     to pay for travel expenses and is later reim-               expenses on a reasonable basis. 106.3(c)(1).
     bursed. See Chapter 13 for more information.                Example: A candidate travels by plane from
     Refer to 100.93(j) for the recordkeeping                    Philadelphia to Las Vegas for a campaign speech.
     requirements for travel on non-commercial                   While in Nevada, the candidate travels by plane
     aircraft and travel by other conveyances.                   from Las Vegas to Reno for a personal trip. The can-


70
                                                  Conducting the Campaign



didate then flies back to Philadelphia from Reno. To
determine the candidate’s campaign-related travel
expenses, the committee must create a fictional
itinerary from Philadelphia to Las Vegas and back.
Thus the campaign would derive the cost-per-mile
of campaign travel from the commercial rate for a
round-trip flight from Philadelphia to Las Vegas, and
the candidate must reimburse the committee for
the difference in costs between the fictional trip
and the actual trip. See the explanation and justifi-
cation for 113.1 at 60 FR 7869 (February 9, 1995).
On February 6, 2002, the Commission adopted
an interpretive rule to clarify that the travel
allocation and reporting requirements of 11
CFR 106.3(b) do not apply to the extent that a
candidate9 pays for certain travel expenses using
funds authorized and appropriated by the federal
government. 67 FR 5445 (February 6, 2002).
Candidates should consult with the House Com-
mittee on Standards of Official Conduct or the
Senate Select Committee on Ethics regarding the
use of appropriated funds for travel expenses.

Travel to and from Washington, DC
Costs for travel between Washington, DC, and
the state or Congressional District in which an
individual is a candidate are not reportable unless
paid for by the campaign (or another political
committee) in connection with campaign-related
travel. 106.3(d). Consult the House and Senate
rules for further guidance; see Appendix G.




9   This interpretive rule does not apply to Presidential or
    Vice-Presidential campaigns that are covered by the
    Presidential Campaign Fund Act.26 U.S.C. §9001 et seq.



                                                                            71
     Chapter 10




72
                                              Keeping Records




                                              ChAPTEr 11
                                     Keeping Records
In order to comply fully with the reporting require-        $50 (amount, date of receipt and con-
ments of the Federal Election Campaign Act (the             tributor’s name and address); or
Act), a committee must keep detailed records. The         •	In the case of small contributions collected
recordkeeping requirements for a committee’s                at a fundraiser (such as gate receipts, cash
receipts and disbursements are explained below.             contributions), keep records of the name
                                                            of the event, the date and the total amount
                                                            of contributions received on each day of
1. record retention                                         the event. AOs 1981-48 and 1980-99.
                                                          •	These amounts are reported under
Treasurers of authorized committees (and                    the category “unitemized contributions
other political committees) are responsible for             from individuals” (see Chapter 13).
keeping copies of each statement and report,
together with original back-up records, for             Contributions Exceeding $50
three years after the report or statement               Records must identify each contribu-
is filed. 102.9(c); 104.14(b)(2) and (3).               tion of more than $50 by:
                                                          •	Amount;

2. recording receipts                                     •	Date of receipt; and
                                                          •	Contributor’s name and address.
With respect to receipts, the Act requires that         102.9(a)(1).
records be kept for contributions and disburse-
ments. 2 U.S.C. 432(c)-(d). The treasurer of a          Furthermore, political committees must maintain
political committee shall keep these records and        either a full-size photocopy or digital image of each
copies of all reports filed for three years after       check or written instrument by which a contribu-
the report is filed. 2 U.S.C. 432(d); 104.14(b).        tion of more than $50 is made. 102.9(a)(4).

                                                        Contributions Aggregating Over $200
Total Contributions                                     For each contribution that exceeds $200, either
Records must show figures for total                     by itself or when added to the contributor’s previ-
contributions received using any accept-                ous contributions made during the same calendar
able accounting method. 102.9(a).                       year, records must identify that contribution by:
                                                          •	Amount;
Identifying Contributors                                  •	Date of receipt; and
Contributions of $50 or Less                              •	Contributor’s full name and address,
In advisory opinions, the Commission has                    occupation and employer.
recommended two possible accounting                     If a person has already contributed an aggregate
methods that satisfy recordkeeping require-             amount of over $200 during a calendar year, each
ments for contributions of $50 or less:                 subsequent contribution, regardless of amount,
  •	Keep the same information required for              must be identified in the same way. 102.9(a)(2).
    identifying contributions that exceed               Please note that contributions to authorized com-
                                                        mittees are aggregated on a calendar-year basis


                                                                                                                73
                                                         Chapter 11



     for recordkeeping purposes, but are aggregated             Acceptable Accounting Method
     on a per-election basis for purposes of monitoring         If a committee receives contributions desig-
     contribution limits, and on an election-cycle basis        nated for use in the general election, prior
     for reporting purposes. See 102.9(a)(2), 104.3(a)(4),      to the primary election, then the committee
     110.1(b) and 110.2(b) and Chapter 4 of this Guide.         must use an acceptable accounting method to
     Designated, Redesignated and                               distinguish between contributions received for
     Reattributed Contributions                                 the primary election and contributions received
                                                                for the general election. Acceptable accounting
     A committee must retain the written cop-                   methods include: designating separate accounts
     ies of contributors’ designations, redesigna-              for each election, or establishing separate books
     tions and reattributions. 102.9(f). Also, for any          and records for each election. 102.9(e)(1).
     contributions presumptively redesignated or
     reattributed, the committee must retain any                The committee’s records must demonstrate
     writings from contributors that accompany                  that, prior to the primary election, recorded
     the contribution and any notices sent from the             cash on hand was at all times greater than or
     committee to the contributor. 110.1(l)(4)(ii).             equal to the sum of general election contri-
                                                                butions received minus the sum of general
     Contributions from Political Committees                    election disbursements made. 102.9(e)(2).
     Records must identify each contribution from a
     political committee, regardless of amount, by:             Date of Receipt
       •	Amount;                                                General Rule
       •	Date of receipt; and                                   A contribution’s date of receipt is the date
       •	Name and address of the politi-                        on which the person receiving the contribu-
         cal committee. 102.9(a)(3).                            tion on behalf of the committee obtains
                                                                possession of it. 102.8(a). That is the date
     Possibly Illegal Contributions                             used for recordkeeping and reporting.
     As noted in earlier chapters, when a committee             The date of receipt may be earlier than the date
     has reason to question the legality of a contri-           the committee treasurer receives the money,
     bution, it has specific time frames in which to            since a person collecting contributions (other
     clarify whether the contribution is permissible.           than an authorized agent) has 10 days (or 30
     While investigating a contribution, the committee          days for contributions of $50 or less) in which
     must keep a written record noting the basis of             to forward them to the treasurer. 102.8(a).
     concern for each deposited contribution which:
       •	Requires a written redesignation and/or reat-          Contributions Charged on Credit Cards
         tribution from the contributor (see Chapter            When the committee receives contributions
         4). (For presumptive redesignations and                through credit card charges, the date of receipt
         reattributions, see “Designated, Redesignated          is the date on which the committee receives
         and Reattributed Contributions” above.); or            the contributor’s signed authorization to charge
       •	Requires confirmation that it is not from              the contribution. The treasurer should retain a
         a prohibited source (see Chapter 5).                   copy of the authorization form in the commit-
                                                                tee’s records. See AOs 1995-09 and 1990-04.
     103.3(b)(1) and (5).
     See Chapter 5, Section 2, “Questionable                    In-Kind Contributions
     Contributions,” for more information on the                The date of receipt for an in-kind contribu-
     committee’s responsibility to determine the                tion is the date the goods or services are
     legality of possibly illegal contributions.                provided to the committee, even if the con-
                                                                tributor pays the bill for the goods or services
                                                                after they are provided. See 110.1(b)(6).


74
                                                           Keeping Records



(For information on how to determine the value of                        •	Purpose (a brief but specific description
an in-kind contribution, see Chapter 3, Section 2.)                        of why the disbursement was made, such
                                                                           as “dinner expense” or “postage”).2
Deposit of Receipts                                                  102.9(b)(1).

Once the treasurer (or authorized agent)                             Disbursements Exceeding $200
receives a contribution or other receipt, he                         For each single disbursement that exceeds
or she must deposit it within 10 days. Con-                          $200, the committee must keep a receipt,
tributions not deposited within 10 days must                         invoice or canceled check (in addition to
be returned to their donors. 103.3(a)                                the information above). 102.9(b)(2).

                                                                     Advances for Travel and Subsistence
3. recording Disbursements                                           When a committee advances $500 or less to
                                                                     the candidate, staff members or volunteers for
                                                                     travel expenses—including transportation, food
Check and Cash Disbursements                                         and lodging—the committee must retain:

Disbursements must be made by check or similar                           •	The expense voucher or other expense
                                                                           account documentation; and
draft drawn on an account maintained at the
committee’s designated depository. 102.10 and                            •	The canceled check made out to the
                                                                           individual receiving the payment.
103.3(a); See also AOs 1993-04 and 1982-25.
                                                                     102.9(b)(2)(i)(B).
However, the committee may maintain a petty
cash fund for small disbursements. A written                         When a committee advances more than
                                                                     $500 for travel and subsistence expenses,
record of petty cash disbursements must be kept
                                                                     the committee must obtain and retain:
if a petty cash fund is maintained. Payments from
                                                                         •	A receipt (or invoice) from the per-
petty cash to one person for any one purchase
                                                                           son providing goods or services in
or transaction may not exceed $100. 102.11.                                excess of $200 per transaction to the
Regardless of whether a disbursement is made                               person requesting the advance;
by check or from a petty cash fund, the required                         •	A cancelled check from the person request-
recordkeeping information must be maintained.                              ing the advance showing payment to the
                                                                           person providing goods or service; or
Recording Disbursements                                                  •	A monthly credit card billing statement or
                                                                           customer receipt from the person request-
All Disbursements                                                          ing the advance, and that person’s cancelled
                                                                           check showing payment of such bill.
The committee must keep a record
of each disbursement, including:                                     AO 1984-08.

    •	Amount;
                                                                     Credit Card Transactions
    •	Date;
                                                                     For credit card transactions, the
    •	Name and address of payee;1 and                                committee must retain:
1     Except in the case of travel advances of $500 or               2     A list of acceptable/unacceptable descriptions of
      less, the payee is the person providing the goods                    “purpose” was published in a Policy Statement at 75
      or services to the committee. In the case of such                    FR 887 (January 9, 2007). This notice and an updated
      travel advances, the payee is the person receiving                   list of unacceptable “purpose” statements are available
      the advance. 102.9(b)(2)(i)(A) and AO 1984-08.                       online at http://www.fec.gov/law/policy.shtml#purpose.



                                                                                                                                     75
                                                          Chapter 11



       •	A monthly billing statement; or                         104.7(a). The criteria for making “best efforts”
       •	The customer receipt for each transaction; and          vary, depending on the type of transaction.

       •	The canceled check used to pay
         the credit card account.
                                                                 Contributor Information
                                                                 If an individual who has contributed more than
     102.9(b)(2)(ii).
                                                                 $200 during the election cycle fails to provide the
                                                                 required recordkeeping information (i.e., name,
     Credit Union Checks or Share Drafts                         mailing address, occupation and employer), the
     Carbon copies of share drafts or checks drawn               committee must be able to show that it made
     on credit union accounts may be used as records,            “best efforts” to obtain, maintain and report that
     provided the monthly account statement (show-               information. To demonstrate “best efforts,” the
     ing that the draft or check was paid by the                 committee must be able to show that it requested
     credit union) is also retained. 102.9(b)(2)(iii).           the information—first, in the solicitation materi-
                                                                 als that prompted the contribution and, second,
                                                                 if the information is not obtained, in a follow-up
     Best Efforts to Document                                    request. 104.7(b)(1) and (2). Furthermore, if
     Disbursements                                               the requested information is not received until
     If a treasurer fails to receive a receipt, invoice          after the contribution has been reported, the
     or canceled check (required for disbursements               committee must report the information using
     exceeding $200), he or she can demonstrate                  one of the procedures described under “File
     his or her best efforts to obtain the informa-              Amendments if Necessary,” below. 104.7(b)(4).
     tion by making at least one written effort                  Solicitation Materials3
     per transaction to obtain a duplicate copy
     of the needed documentation. 102.9(d).                      To satisfy the “best efforts” standard, the
                                                                 solicitation must include a statement explain-
                                                                 ing that the campaign is required to use its
                                                                 best efforts to obtain and report certain
     4. recording Debts and Loans                                information from the contributor. This state-
                                                                 ment is referred to as the “best efforts”
     Although the Act does not contain specific                  notification; two examples are listed below:
     recordkeeping requirements for debts and
     loans owed by (or to) the campaign, commit-                     •	“Federal law requires us to use our best
     tees are required to keep detailed records of                     efforts to collect and report the name,
     transactions required to be disclosed on the                      mailing address, occupation and name of
                                                                       employer of individuals whose contribu-
     committee’s FEC reports. See 104.14(b).
                                                                       tions exceed $200 in an election cycle;” or
                                                                     •	“To comply with Federal law, we must use our
     5. Treasurer’s Best Efforts                                       best efforts to obtain, maintain and submit the
                                                                       name, mailing address, occupation and name
     Committees and their treasurers must make best                    of employer of individuals whose contribu-
                                                                       tions exceed $200 per election cycle.”
     efforts to obtain and maintain (and ultimately
     report) the information required by law with                104.7(b)(1)(i)(B)
     respect to itemized receipts and disbursements.             3     Any contribution which is reported by a committee
     When reporting information is incomplete, the                     with all required contributor information will meet
     committee and the treasurer will be in compliance                 the reporting requirements, whether or not the
     with the law if they can demonstrate that they                    committee asked for the information or used the
                                                                       language specified under “Solicitation Materials.” See
     used “best efforts” in trying to obtain, maintain                 the Explanation and Justification published with the final
     and report the needed information. 102.9(d) and                   rule, 58 Fed. Reg. 57725, 57727 (October 27, 1993).



76
                                               Keeping Records



The request for the information and the best             File Amendments If Necessary
efforts notification must be clear and con-              If requested information about a contribution
spicuous. If the committee solicitations include         is received after the contribution has been dis-
response materials, the best efforts notice and          closed on a report, the committee must either:
the request for the contributor information must           •	File a Schedule A with its next regularly
be placed on these materials. The notice will not            scheduled report, containing memo entries
be considered to be “clear and conspicuous” if:              listing all contributions for which new con-
                                                             tributor information has been received; or
  •	The notification is printed in smaller type
    than the solicitation and response materials;          •	File amendments to the original reports.
  •	The printing is difficult to read; or                In either case, the entries must cross-reference
                                                         the prior reports to which they relate. However,
  •	The notification is placed where it can              the committee is only required to submit the
    be easily overlooked. 104.7(b)(1).                   information for contributions received during
                                                         the current two-year election cycle. 104.7(b)(4)
Follow-Up Request Within 30 Days                         (ii). See Chapter 13, Section 26, “Filing Amend-
If the contributor does not provide sufficient           ments,” for instructions on filing amendments.
reporting information when making a contribution,
the committee must make at least one request
for the information after the contribution is
received. This follow-up request must be made
for any solicited or unsolicited contribution that
exceeds the $200 threshold and lacks the neces-
sary information (see “Contributions Aggregat-
ing over $200” in Section 2 of this chapter).
The request must be made within 30 days of
receipt of the contribution; it may not include an
additional solicitation or material on any other sub-
ject, but it may thank the contributor. The follow-up
request may be made orally or in writing, but a
written request must be accompanied by a pre-
addressed postcard or envelope for the response.
Oral requests must be documented in a memoran-
dum. 104.7(b)(2). A political committee may also
use e-mail to request missing contributor informa-
tion. AOs 1999-17 and 1995-09. Committees must
retain records of follow-up requests. 102.9(d).

Use of Information from Prior Records
If the contributor does not respond to the
follow-up request, but the committee possesses
the information in its contributor records,
fundraising records or prior reports filed dur-
ing the same two-year election cycle, then the
committee must use that information when
disclosing the contribution. 104.7(b)(3).


                                                                                                            77
     Chapter 11




78
                                                         Filing Reports



                                                      ChAPTEr 12
                                                Filing Reports
1. Who reports                                                            certification, or a signed certification on paper
                                                                          along with the CD or diskette (For specific
                                                                          instructions on how to file electronically using
Principal Campaign Committee                                              a CD or diskette, see the Electronic Filing
                                                                          section of the FEC website at http://www.
The principal campaign committee must file                                fec.gov/support/faq_filing.shtml#EFQ18).
periodic reports on financial activity until
the committee has retired any debts,1 filed a                      104.18(g).
termination report and received notification                       For more information on electronic fil-
from the FEC that the committee’s termina-                         ing, see Section 5 in this chapter.
tion report has been accepted (see Chapter
14, Section 1). 102.3(b) and 104.1(a).                             Other Authorized Committees
Treasurer’s Duties                                                 Only principal campaign committees file reports
                                                                   and statements with the appropriate federal
A committee treasurer is responsible for signing
                                                                   offices. Other authorized committees of the
and filing timely, complete and accurate reports and
                                                                   candidate file with the principal campaign com-
statements. 104.14(d). See Chapter 2, Section 4 for
                                                                   mittee, as explained in Section 2, below.
a complete summary of the treasurer’s duties. Trea-
surers are considered in compliance with the Fed-
eral Election Campaign Act (the Act) when they have                Candidate Does Not Report
made their “best efforts” to obtain, maintain and                  Campaign Activity
report required information. (See Section 3, “When
                                                                   Apart from filing a Statement of Candidacy (FEC
to Report,” later in this chapter and Section 5,
                                                                   Form 2), a candidate has no personal reporting
“Treasurer’s Best Efforts,” in Chapter 11.) If a trea-
                                                                   obligation under the Act. If a candidate receives
surer is unable to obtain information after making
                                                                   contributions, obtains loans for campaign activity or
his or her best efforts, that fact should be noted on
                                                                   makes disbursements, he or she is acting as a cam-
the report where the information is incomplete.
                                                                   paign agent. The transactions are reported by the
When filing electronically, a committee treasurer                  principal campaign committee. 101.2 and 102.7(d).
must verify that all electronically filed documents
have been examined by the treasurer and (to the
best of that person’s knowledge) are accurate
                                                                   Candidate Must File Personal
and complete. In order to verify electronically                    Financial Reports
filed documents, the treasurer must either:                        Under the Ethics in Government Act, candidates for
    •	Obtain a personal password (which serves                     federal office must file personal financial reports.
      as the treasurer’s electronic signature)                     House candidates file such reports with the Clerk
      from the FEC (available through the elec-                    of the House of Representatives and Senate
      tronic filing office at 202/694-1307); or                    candidates file those reports with the Secretary
                                                                   of the Senate. Candidates for President and Vice
    •	File on a CD or 3.5” diskette and include, as                President (except the incumbent President and
      a separate file, a digitized copy of a signed                Vice President) file their personal financial dis-
1     Neither the committee seeking to terminate nor any
                                                                   closure forms with the FEC, and the Commission
      other authorized committee of the same candidate             is the agency responsible for public disclosure
      may have any outstanding debts or obligations. 102.3         of those forms. However, detailed review and


                                                                                                                              79
                                                                   Chapter 12


     approval of those forms is the responsibility of the
     Office of Government Ethics. See Appendix G.                         3. When to report
                                                                          Committee treasurers must file reports on time
                                                                          (the Commission cannot grant extensions). Gen-
     2. Where to File reports                                             eral rules on when to file reports are outlined
                                                                          below. The FEC sends more detailed information
                                                                          to treasurers by e-mail shortly before reports are
     Filing with the Federal Government                                   due. (For this reason, it is especially important
         •	Principal campaign committees of House and                     to list a current e-mail address on the commit-
           Presidential candidates file reports and state-                tee’s FEC Form 1 (Statement of Organization).)
           ments with the Federal Election Commission,                    Additionally, the Record, the FEC’s monthly newslet-
           999 E Street, NW, Washington, DC 20463.                        ter, publishes reporting announcements, as does
           105.1 and 105.3. (Note that committees in                      the FEC’s website, http://www.fec.gov/info/filing.
           Guam, Northern Mariana Islands and Puerto                      shtml. This section summarizes filing requirements
           Rico also have state filing requirements.2)                    applicable to all authorized committees of House
         •	Principal campaign committees of Sen-                          and Senate campaigns. Presidential committees
           ate candidates file reports and statements                     file reports according to a different schedule than
           with the Secretary of the Senate. 105.2.                       the one presented in this section. See 104.5(b).

     When filing a document with the Secretary of the                     Quarterly Reports
     Senate, it is not necessary to send a copy to the                    Once an individual has become a candidate, his
     FEC. The Secretary automatically makes copies of                     or her principal campaign committee (and other
     all filings and forwards them to the FEC for review.                 authorized committees) must file quarterly
                                                                          reports. 104.5(a). Quarterly reports cover activ-
     Filing with the Principal                                            ity through the end of the calendar quarter and
     Campaign Committee                                                   are due on April 15, July 15 and October 15. The
                                                                          fourth quarterly report—called the year-end
     Authorized committees of a campaign other                            report—is due on January 31 of the following
     than the principal campaign committee submit                         year (additional reports are required during the
     their reports and statements to the principal                        candidate’s election year; see below). All authorized
     campaign committee. The principal campaign                           committees must file quarterly reports, even if
     committee, in turn, files these reports and state-                   the candidate decides to retire, withdraws from
     ments, along with its own, with the appropriate                      the race prior to the primary election, loses the
     federal and state offices. When filing reports of                    primary or drops out of the race prior to the
     receipts and disbursements (FEC Form 3), the                         general election. See 2 U.S.C. §434(a)(2). Com-
     principal campaign committee must also file                          mittees must continue to file quarterly reports
     a consolidated report (FEC Form 3Z), which                           until the Commission notifies them in writing
     summarizes information included in its own                           that their termination report has been accepted.
     report and those filed by other authorized com-
     mittees. 102.1(b) and 104.3(f). Note that only                       The Commission may waive a quarterly report
     authorized committees of the current campaign                        if a pre-election report (see below) is due
     need to be included in the consolidated report.                      during the period beginning on the 5th day
                                                                          and ending on the 15th day after the close
     2     Copies of reports for House and Senate candidates              of the calendar quarter. 104.5(a)(1)(iii).
           running for federal office in Guam, Northern Mariana
           Islands or Puerto Rico must be filed with the
           appropriate office in those territories. Presidential          Election Year Reporting
           committees must file a copy of each report in Guam,
           Northern Mariana Islands or Puerto Rico if the
                                                                          Election years are years in which regu-
           campaign makes an expenditure in those territories             larly scheduled federal elections are
           during the reporting period. 105.3 and 108.2.                  held (even-numbered years).


80
                                                          Filing Reports


Pre-Election Reports                                                running in the general election include this form
In addition to quarterly reports, a com-                            with the year-end report following the election).
mittee must file pre-election reports:
                                                                    Last-Minute Contributions (48-Hour Notice)
    •	A pre-primary report must be filed
      before the election in which the                              Campaign committees must file special notices
      candidate seeks nomination.3                                  regarding contributions of $1,000 or more
                                                                    received less than 20 days but more than 48
    •	A pre-general election report must be filed
      if the candidate runs in the general election.                hours before 12:01 a.m. of the day of any elec-
                                                                    tion in which the candidate is running. (These
    •	A pre-runoff report must be filed
                                                                    are often called “48-Hour Notices.”) This rule
      when a candidate is involved in a run-
      off election (Note: this may be either                        applies to all types of contributions to any autho-
      a primary or a general election).                             rized committee of the candidate, including:

A pre-election report is due 12 days before the                       •	Contributions from the candidate;
election and covers activity through the 20th day                     •	Loans from the candidate and
before the election.4 If sent by registered or certi-                   other non-bank sources; and
fied mail, priority mail with a delivery confirmation,
express mail with a delivery confirmation, or                         •	Endorsements or guarantees of loans
overnight delivery service with an online tracking                      from banks. (See Chapter 3, Section 2.)
system, the report must be postmarked no later                      Committees filing electronically must file
than the 15th day before the election. 104.5(a)(2)(i).
                                                                    their 48-hour notices electronically. See
Authorized committees must file appropri-                           Section 5, “Electronic Filing” below.
ate pre- and post-election reports even
if the candidate is unopposed or if the                             Paper-filing committees may file their 48-hour
election is not held. AO 1986-21.                                   notices using FEC Form 6. Alternatively, a
                                                                    paper-filing committee may file online using
Post-General Election Reports                                       the FEC’s web-based forms (http://www.fec.
There is no requirement for post-primary reports,                   gov/elecfil/online.shtml), or may use its own
but a committee must file a post-general elec-                      paper or stationery for the notice, provided
tion report if the candidate runs in the general                    that it contains the following information:
election. A post-general election report covers
activity through the 20th day after the election                      •	The candidate’s name and the office sought;
and is due 30 days after the election. 104.5(a)(2)                    •	The identification of the contributor; and
(ii). Committees filing the post-general report
                                                                      •	The amount and date of receipt
must include the Post-Election Detailed Sum-
mary Page. See Chapter 13, Section 24, for more                         of the contribution.
information. (Committees of campaigns not                           Committees filing paper forms may fax the
3     Note that in those states in which the party                  notice to the appropriate office using the fol-
      caucus or convention has authority to select                  lowing numbers: FEC, 202/219-0174; Secretary
      a nominee (Virginia) or has authority to select
                                                                    of the Senate, 202/224-1851. The committee
      a nominee and is held in addition to a primary
      (Connecticut and Utah), pre-election reports                  should keep fax receipts of all transmissions.
      must be filed for the caucus or convention. See
      “Party Caucus or Convention” in Chapter 4.                    The FEC or the Secretary of the Senate must
4     In AO 2000-29, the Commission determined                      receive the notice within 48 hours of the commit-
       that the last day to qualify for a position on               tee’s receipt of the contribution. The committee
       the general election ballot in Louisiana must
       be considered the primary election date for
                                                                    must itemize all last-minute contributions in the
       Louisiana candidates. See 11 CFR 100.2(c)(4)(i).             committee’s next scheduled report. 104.5(f).


                                                                                                                          81
                                                              Chapter 12



     Special Elections                                               By Diskette or CD
     Filing dates for special elections are published                While most electronic filers find it more conve-
                                                                     nient to file through the Internet, the Commis-
     on the FEC’s website, in the FEC Record and in
                                                                     sion also accepts properly-formatted electronic
     the Federal Register. The Commission also notifies
                                                                     reports on compact discs (CDs) or 3.5” 1.44 MB
     the principal campaign committees of candidates
                                                                     diskettes (either hand delivered or sent by other
     who are on the ballot in a special election.                    delivery means, such as the U.S. Postal Service). It
     If a regularly scheduled report is due                          is important to note that all mail sent to the FEC
     within 10 days of the date a special elec-                      through the U.S. Postal Service undergoes special
     tion report is due, the Commission may                          processing which might damage the information on
     waive the regular report. 104.5(h).                             a CD or diskette. For specific instructions on how
                                                                     to file electronically using a CD or diskette, see
                                                                     the Electronic Filing section of the FEC website at
     Meeting the Filing Deadline                                     http://www.fec.gov/support/faq_filing.shtml#EFQ18.
     By Registered Mail, Certified Mail, Priority Mail               Mandatory Electronic Filing
     with Delivery Confirmation, Express Mail with
                                                                     Some committees must file electronically (See
     Delivery Confirmation or Overnight Delivery
                                                                     Section 5, “Electronic Filing”). If a committee
     If a statement or report is sent by registered                  required to file electronically files a paper report
     mail, certified mail or overnight mail with an                  instead of an electronic report, the report will
     online tracking system,5 it is considered filed                 be considered not filed. The committee may
     on the date of the U.S. postmark. (Note the                     be subject to the Commission’s enforcement
     special rule for pre-election reports, above.)                  process for nonfilers and may have its name
     100.19. The committee should retain evidence                    published as a nonfiler. See 104.18(a)(2).
     that it delivered the report to the U.S. Postal
     Service or the overnight delivery service, in the
     event of a delivery failure. See 111.35(b)(1).                  4. Administrative Fines for
     By First Class Mail
                                                                        Late Filers and Nonfilers
     If a statement or report is sent by first class mail,           The Administrative Fines Program, which is
     it is considered filed on the date it is received               based on amendments to the Federal Elec-
     by the Secretary of the Senate or the Federal                   tion Campaign Act,6 assesses civil money
     Election Commission. 100.19(b)(2) and 104.5(e).                 penalties for violations involving:
     The risk of timely delivery is on the filer.                        •	Failure to file reports on time;
     By Electronic Filing                                                •	Failure to file reports at all; and
     An electronic report is considered “filed” when                     •	Failure to file 48-hour notices.
     it is received and validated by the Commission’s                If the Commission finds “reason to believe”
     computer system on or before 11:59 p.m. (Eastern                (RTB) that a committee violated the law, the
     Time) on the filing date. Incomplete or inaccurate              Commission will notify the committee in writing
     reports that do not pass the FEC’s validation                   of its finding and the amount of the civil money
     program will not be considered filed. The Com-                  penalty. 111.32. The committee will have 40 days
     mission will notify the filer that the report has               6     Public Law 106-58, 106th Cong., Section 640, 113
     not been accepted. 100.19(c) and 104.18(e)(2).                        Stat. 430, 476-77 (1999); Commission authority
                                                                           extended in Public Law No. 106-67, 107th Cong.,
     5    Overnight mail is often used to refer to priority                Section 642, 115 Stat 514, 555 (2001), again in Public
          mail having a delivery confirmation, express mail                Law No. 108-199, 108th Cong., Section 639, 118
          having a delivery confirmation, or an overnight                  Stat 3 (2004) and again in Public Law No. 109-115,
          delivery service with an on-line tracking system.                Section 721, 119 Stat 2396, 2493-2494 (2006).



82
                                                         Filing Reports



    Reporting Deadlines

    Report Type                                      Covering                                  Due
                                          January 1 — March 31                  April 15
    Quarterly                                                                   July 15
                                          April 1 — June 30
                                          July 1 — September 30                 October 15
                                          October 1 — December 31               January 31


    Pre-Election                        First day of the current report-      12 days before the election
    (Both Pre-Primary and Pre-          ing period through the 20th day
    General as well as Pre-Runoff, if   before the election
    appropriate)



    Post-General                         First day of the current report-     30 days after the general
                                         ing period through the 20th day      election
                                         after the general election


    48 Hour Notices                     Contributions received less            Within 48 hours of receipt of
    (Reporting contributions of         than 20 days but more than             contribution
    $1,000 or more)                     48 hours before the election


to either pay the civil money penalty or submit                           control, and they filed the late report within
a written challenge to the Commission action. If                          24 hours after those circumstances ended
the committee challenges the finding, it will be                          (also called the “best efforts” defense).
reviewed by an independent reviewing officer                       Excuses involving negligence, illness, inexperience,
who was not involved in the RTB finding. After                     unavailability of committee staff or treasurer, failure
the Commission considers the reviewing officer’s                   to know filing dates, failure to use Commission
recommendation and the committee’s response,                       software properly, delays caused by vendors or
if any, the Commission will determine whether                      failure of the committee’s computers, software
the committee violated 2 U.S.C. §434(a) and, if                    or Internet service provider do not qualify for
so, will assess a civil money penalty based on the                 the “best efforts” defense. 111.35(c) and (d).8
schedules of penalties. The committee will then
have 30 days to pay the penalty or seek court
review of the case.7 See 111.34 and 111.35.
                                                                   5. Electronic Filing
Respondents must demonstrate one of the
following situations in their challenge:                           Campaign committees of House and Presidential
     •	The RTB filing is based on factual errors;                  candidates must file all reports and statements
     •	The RTB civil money penalty is                              electronically if their total contributions or
       improperly calculated; or                                   total expenditures exceed, or are expected to
                                                                   exceed, $50,000 in a calendar year. The require-
     •	They could not file due to reasonably                       ment to file electronically does not apply to
       unforeseen circumstances beyond their                       Senate candidate committees (or other com-
                                                                   mittees that support only Senate candidates),
7       For more information on the Administrative
        Fine Program, see 11 CFR 111.30 to 111.45,
        Subpart B, and the Commission’s website                    8       These rules are effective as of April 30, 2007.
        at http://www.fec.gov/af/af.shtml.                                 See 72 Fed. Reg. 14662 (March 29, 2007).



                                                                                                                             83
                                                                 Chapter 12


     who are required to file their reports on                                   -         Refunds of Contributions
     paper with the Secretary of the Senate.9                                    =         Total Contributions
     Any committees that are required to file elec-
                                                                        or
     tronically, but that file on paper or fail to file, may
     be subject to enforcement action as nonfilers.                              Total Operating Expenditures
     104.18(a)(2). See the previous section, “Admin-                             +         Contributions Made
     istrative Fines for Late Filers and Nonfilers.”
                                                                                 =         Total Expenditures
     Because electronic filing is more efficient and
     cost effective than paper filing, even House and                   Have Reason to Expect to Exceed the Threshold
     Presidential committees that do not meet the                       Once committees actually exceed the
     $50,000 threshold requirement are encouraged                       $50,000 yearly threshold they have “reason
     to voluntarily file their reports electronically.                  to expect to exceed” the threshold in the
     Please note, however, that voluntary electronic                    following two calendar years. 104.18(a)(3)
     filers must continue to file electronically for
                                                                        (i). Consequently, committees must continue
     the remainder of the calendar year unless the
                                                                        to file electronically for the next two calen-
     Commission determines that extraordinary
                                                                        dar years (January through December).
     and unforeseeable circumstances make contin-
     ued electronic filing impractical. 104.18(b).                      Exception
                                                                        A campaign committee that met or exceeded
     Methods of Electronic Filing                                       the $50,000 threshold and began filing elec-
     Most committees filing electronically find it con-                 tronically is not required to file electronically
     venient to do so via an Internet connection with a                 for the following two calendar years if it meets
     password. Committees may, however, submit their                    all three of the following requirements:
     electronic reports on compact discs (CDs) or
                                                                             •	Has $50,000 or less in net debts outstanding
     3.5” 1.44 MB diskettes (either hand delivered or
                                                                               on January 1 of the year following an election;
     sent by other means such as U.S. Postal Service).
     Electronic filers must file all their reports, notices,                 •	Anticipates terminating prior to
     designations and statements electronically, and                           the next election year; and
     the reports must adhere to the FEC’s Electronic                         •	Supports a candidate who has not qualified
     Filing Specifications Requirements.10 104.18(d).                          for the next election and does not intend to
                                                                               become a candidate in the next election.
     Calculating the Threshold                                          104.18(a)(3)(i).
     Committees should use the follow-
                                                                        Note that such committees must finish fil-
     ing formulas to determine whether their
                                                                        ing electronically for the calendar year in
     total expenditures or total contributions
                                                                        which they exceeded the threshold.
     are over $50,000 per calendar year:
                                                                        Committees With No History
             Total Contributions Received11                             New committees with no history of cam-
                                                                        paign finance activity on which to base their
     9    Senate candidates are encouraged to voluntarily file
          electronically an unofficial copy of their reports with
                                                                        expectations have reason to expect to
          the FEC (in addition to their official paper copy with the    exceed the $50,000 yearly threshold if:
          Secretary of the Senate) to ensure faster disclosure.
                                                                        The committee receives contributions
     10   Available online at http://www.fec.gov/elecfil/
                                                                        or makes expenditures that exceed one-
          vendors.shtml or on paper from the FEC.
                                                                        quarter of the threshold amount in the first
     11   Including the outstanding balance of any
           loans made, guaranteed or endorsed by                        calendar quarter of the calendar year (i.e.,
           the candidate or other person.                               exceeds $12,500 by the end of March); or


84
                                                     Filing Reports


The committee receives contributions or makes                  may not be processed in time for a committee
expenditures that exceed one-half of the thresh-               to use the password to file a timely report.
old amount in the first half of the calendar year              Note: For the initial Form 1 the treasurer
(i.e., exceeds $25,000 by the end of June).                    can get a password by faxing or mailing a
104.18(a)(3)(ii).                                              signed statement which contains the sentence
                                                               “I represent that I am the duly appointed
Verification Requirements                                      treasurer and have authority as such to sign
                                                               FEC reports for the above committee.”
The political committee’s treasurer must verify the
electronically filed reports by submitting either:             Assigning the Password
  •	A signed, written certification along                      Once the password office receives the letter
    with the diskette or CD; or                                requesting a password, it will verify that the
  •	A digitized copy of the signed certification               requester is listed as the treasurer (and assistant
    as a separate file in an electronic (i.e., not             treasurer, if applicable) of that committee on
    transmitted by diskette or CD) submission.                 that committee’s Statement of Organization
                                                               (FEC Form 1). Only the committee’s treasurer
The signed verification must certify that the
                                                               and assistant treasurer can receive a password.
treasurer or assistant treasurer has exam-
ined the submitted report, and that, to the                    If the requester is listed on the Statement of
best of his or her knowledge, the report is                    Organization, then a representative from the pass-
true, correct and complete. 104.18(g).                         word office will call the requester and ask him or
                                                               her to choose a password. This password will be
Obtaining a Password                                           assigned immediately. Passwords are case sensitive
                                                               and must be entered exactly as initially assigned.
Requesting a Password
                                                               Lost or Forgotten Password
A committee’s treasurer or assistant treasurer
can obtain a password by faxing a request let-                 The Commission cannot provide a trea-
ter to the password office at 202/219-0674.                    surer’s password to a treasurer or committee
Requests may also be mailed to the Federal                     if a treasurer forgets or loses the password
Election Commission, 999 E Street NW, Wash-                    because the passwords are encrypted. Instead,
ington, DC 20463. A password request must:                     the treasurer must ask for a new password,
                                                               repeating the process described above.
  •	Include the committee’s name and nine-
    digit FEC identification number;                           New Treasurers and New E-filers
  •	Be signed by the treasurer and also by the                 In some cases, a committee may have a new
    assistant treasurer if the assistant treasurer             treasurer who has been neither assigned a pass-
    is the individual requesting the password;                 word nor has a signature on file and, due to the
  •	Include the treasurer’s phone number                       requirement that all filing information be submitted
    and, if applicable, the phone number                       electronically, cannot amend the Statement of
    of the assistant treasurer; and                            Organization to indicate the change of position.
                                                               Under these circumstances, the new treasurer
  •	Be printed on the committee’s letterhead
                                                               must submit a password request letter which con-
    (if the committee has official letterhead).
                                                               tains the sentence “I represent that I am the duly
A sample request can be viewed on the FEC’s web-               appointed treasurer and have authority as such
site at http://www.fec.gov/elecfil/passwords.shtml.            to sign FEC reports for the above committee.”
Requests sent by fax can usually be processed                  Once a password is received, an amended Form
within a few hours. However, committees are                    1 must be filed to indicate the change of position.
encouraged to request a password as early as                   Treasurers of committees e-filing for the first
possible. Requests received near a filing deadline             time must also submit a password request letter.


                                                                                                                      85
                                                           Chapter 12



     Special Requirements                                         of a campaign staff member) for each fictitious
                                                                  contributor. The committee must adjust its sub-
     The following documents have special sig-                    totals for itemized and unitemized contributions
     nature and submission requirements:                          accordingly on the Detailed Summary Page. If a
       •	Schedule C1 (Loans and Line of Credit),                  solicitation or commercial mailing is sent to one
         including copies of loan agreements; and                 of the fictitious names, the committee will know
       •	Form 8 (Debt Settlement Plan).                           that someone has illegally used the names of
                                                                  contributors disclosed on its reports. The com-
     These two forms, in addition to being included               mittee may then file a complaint with the FEC.
     in the electronic report, must be submitted on
     paper or in a digitized format (submitted as a               When a committee files a report containing ficti-
     separate file in the electronic report). 104.18(h).          tious names, a list of the fictitious names should
                                                                  be sent under separate cover directly to the FEC’s
                                                                  Reports Analysis Division—not the Secretary of
                                                                  the Senate (where Senate candidates’ reports
     6. Public Inspection of reports                              are filed). The list will be kept confidential.

     All reports filed by political committees are
     available for public inspection and copying (for a           Sale or Use of Committee’s
     minimal fee) in the FEC’s Public Records Office.             Contributor List
     They are also available on the Commission’s                  The sale or use restriction does not prevent
     website (http://www.fec.gov/disclosure.shtml).               a committee from compiling its own list of
     Copies of reports may also be purchased by                   contributors and distributing it to others.
     mail. For more information, call 800/424-9530                Under certain conditions, a committee may
     (press 2 when prompted) or 202/694-1120.                     donate, sell, trade or rent its own contribu-
                                                                  tor list to other committees and organizations.
     “Sale or Use” Restriction                                    AOs 2002-14, 1982–41 and 1981–53.

     The Act prohibits anyone from selling or using
     the names and addresses of individual contribu-
     tors, copied from FEC reports, for commercial
     purposes or for the purpose of soliciting funds.
     This “sale or use” restriction, however, does
     not apply to the names and addresses of politi-
     cal committees that are listed in FEC reports. 2
     U.S.C. 438(a)(4); 104.15; see also AO 2003-24.

     “Salting” Reports to Detect Misuse
     When preparing a report to be filed, a com-
     mittee may “salt” the report with up to 10
     fictitious names in order to detect impermis-
     sible uses of individual contributor informa-
     tion by other organizations. 104.3(e).
     Salting can be done by taking a portion of the
     subtotal for unitemized contributions and allocat-
     ing it, as itemized contributions, among several
     fictitious contributors. The committee itemizes
     each fictitious contribution on a Schedule A,
     providing a real address (such as the address



86
                                                    Completing FEC Reports



                                                        ChAPTEr 13
                                    Completing FEC Reports
1. reporting Forms                                               campaign committee and all other authorized
                                                                 committees. The principal campaign committee
   and Formats                                                   files Form 3Z along with its own report and those
                                                                 of the other authorized committees. 104.3(f).
FEC reports are filed either electronically or on
paper, as explained in the previous chapter. This
section explains each format’s requirements.                     Requirements for Electronic Filers
                                                                 Committees that receive contributions or make
Form 3                                                           expenditures of more than $50,000 in any calendar
                                                                 year, or have reason to expect to do so, must file
FEC Form 3 (or an electronic version) must                       all reports and statements electronically. Com-
be used by principal campaign committees and                     mittees that are required to file electronically, but
other authorized committees of candidates for                    that file on paper or fail to file, may be subject to
the U.S. House of Representatives and U.S. Sen-                  enforcement action as nonfilers. 104.18(a)(2). See
ate to disclose receipts and disbursements.1                     Chapter 12, Section 4, “Administrative Fines for
Form 3 Booklet                                                   Late Filers and Nonfilers.” FECFile software, avail-
                                                                 able free from the FEC, generates Form 1, Form 3
The Form 3 booklet contains Form 3 (Sum-                         and Form 6. Filers can download the software from
mary Page and Detailed Summary Page), the                        the FEC’s website at www.fec.gov/elecfil/electron.
schedules listed below and Form 3Z.                              shtml. Filers can also use other software as long
Schedules                                                        as it meets FEC format specifications. For more
                                                                 information about the electronic filing require-
Committees may be required to file the fol-                      ment, see Section 5 of the preceding chapter.
lowing schedules as attachments to Form 3:
    •	Schedule A—Itemized Receipts                               Requirements for Paper Filers
    •	Schedule B—Itemized Disbursements                          FEC forms filed on paper should be typed
    •	Schedule C—Loans                                           (either on a typewriter or on a computer—see
    •	Schedule C-1—Loans and Lines of                            below for more information on computerized
      Credit from Lending Institutions                           forms); printing in ink is also acceptable (but not
                                                                 recommended) as long as the forms are legible.
    •	Schedule D—Debts and Obligations                           Because filings will be imaged and photocopied
Form 3Z                                                          several times before being placed on the public
                                                                 record, it is required that committees submit the
If a candidate has more than one authorized                      original report—not a copy – with an original
committee for the same campaign, the principal                   signature. 104.14. Committees submitting illeg-
campaign committee must also file Form 3Z. The                   ible documents will be required to refile.
one-page form, which consolidates information
for the entire campaign, contains information
taken from the current reports of the principal                  Reporting Instructions
                                                                 Instructions for filling out each form and schedule
1     Presidential campaign committees use FEC Form              are available online at http://www.fec.gov/info/
      3P and its supporting schedules (or an electronic          forms.shtml. Although written specifically for
      version). Form 3P and instructions are available online
      at http://www.fec.gov/info/forms.shtml#candidates.



                                                                                                                         87
                                                          Chapter 13


     paper filers, the instructions contain informa-             *The faxline numbers for Schedules A, B, C and D
     tion that is useful for electronic filers as well.          produce both Form 3 and Form 3X versions of
                                                                 the schedules; House and Senate candidate com-
     Online Web Forms                                            mittees should be sure to use the Form 3 version.

     Online filing via the FEC’s web forms is                    FEC website
     available for the following FEC Forms:                      All FEC reporting forms and instructions,
       •	FEC Form 6 (48-hour notices of                          including Form 1, Form 2 and Form 3, are
         last minute contributions);                             available on the Commission’s website at
       •	FEC Form 8 (Debt settlement plan).                      http://www.fec.gov/info/forms.shtml.

     For more information, and to access the online
     forms, visit http://www.fec.gov/elecfil/online.shtml.
                                                                 2. Special rules for First report
     Computerized Forms                                          When filing the first report due after registering
     A committee that files on paper may develop                 as a political committee, the principal campaign
     its own computer-produced forms, reduced to                 committee (and other authorized committees
     the size of FEC forms, but it must submit them              of the campaign) must disclose all financial activ-
     for approval by the FEC prior to using them.                ity that occurred before registration and before
     The submission must include sample formats of               the individual became a candidate (including any
     each applicable schedule (with sample data). The            testing-the-waters activity), beginning with the first
     proposed format (and accompanying cover letter)             date of activity through the end of the current
     should be mailed or hand delivered to the atten-            reporting period. 101.2(b), 101.3, 104.3(a) and (b).
     tion of the Reports Analysis Division. 104.2(d); FEC
     Directive 37. Please note that this is not an option
     for committees required to file electronically.             3. Categorizing receipts
     How to Obtain Paper Forms                                   Committees must report receipts under the
                                                                 different categories listed on the Detailed Sum-
     Fax on Demand                                               mary Page of Form 3. These categories are:
     The reporting forms (and instructions) are avail-             •	Lines 11(a)(i) and (ii), Contribu-
     able on the FEC Faxline 202/501-3413. Below                     tions from Individuals/Persons Other
     are the document numbers of the reporting                       Than Political Committees
     forms for candidates and their committees:
                                                                   •	Line 11(b), Contributions from
       •	Form 1 - Statement of Organization - #801                   Political Party Committees;
       •	Form 2 - Statement of Candidacy - #802                    •	Line 11(c), Contributions from Other
       •	Form 3 - Financial Reporting for Authorized                 Political Committees (e.g., PACs);
         (i.e., Candidate) Committees - #803                       •	Line 11(d), Contributions from the Candidate;
       •	Form 6 - 48-Hour Notice of Contri-                        •	Line 12, Transfers from Other
         butions/Loans Received - #806                               Authorized Committees;
       •	Form 8 - Debt Settlement Plan - #808                      •	Lines 13(a) and (b), Loans;
       •	Schedule A* - Itemized Receipts - #825                    •	Line 14, Offsets to Operating Expenditures; and
       •	Schedule B* - Itemized Disbursements - #826               •	Line 15, Other Receipts.
       •	Schedule C* and C-1 - Loans - #827                      For detailed information describing each
       •	Schedule D* - Debts and Obligations - #828              category see “The Detailed Summary
                                                                 Page” section later in this chapter.


88
                                                                                                Completing FEC Reports


For each category, a committee must disclose                                                                                                         •	Election to which a contribution or loan
the total for the current reporting period and                                                                                                         was designated (indicated by checking “pri-
the cumulative election-cycle total. In addition                                                                                                       mary,” “general” or “other” in the election
to reporting these totals, a committee often has                                                                                                       designation box) (For more information
to itemize receipts by providing supplemental                                                                                                          on designating contributions for a specific
information on supporting Schedule As. 104.3(a)                                                                                                        election, see Chapter 4, Section 4, “Desig-
(3) and (4). A committee must use a separate                                                                                                           nated and Undesignated Contributions”);
Schedule A for each category of receipts that                                                                                                        •	Date of receipt;
must be itemized, i.e., the committee may not
mix different categories of receipts on the same                                                                                                     •	Amount of receipt; and
schedule. Electronic filers must input all data for                                                                                                  •	Aggregate election-cycle-to-date total
each contributor or payer separately so that the                                                                                                       of all receipts (within the same cat-
software can properly generate the required infor-                                                                                                     egory) from the same source.
mation, including the aggregated election-cycle-                                                                                           100.12, 104.3(a)(4) and 104.8(a).
to-date total. It is recommended that committees
                                           Note that the date of receipt for both record-
complete the supporting Schedules first before
                                           keeping and reporting purposes is the date
transferring totals to the Detailed Summary Page.
                                                          that the campaign, or a person
                                                          who receives a contribution
  CONTRIBUTIONS FROM OTHER POLITICAL COMMITTEES AND on behalf of the campaign, first
  ORGANIZATIONS                                           receives a contribution, rather
                                                          than the date on the check or
     SCHEDULE A (FEC Form 3)
                                                          the date of deposit. 102.8(a).           FOR LINE NUMBER:                 PAGE            OF
                                                                     Use separate schedule(s)      (check only one)
     ITEMIZED RECEIPTS                  X                 (See Chapter 4, Section 5, “Date
                                                                     for each category of the
                                                                     Detailed Summary Page
                                                                                                        11a
                                                                                                        12
                                                                                                                      11b
                                                                                                                      13a
                                                                                                                                11c
                                                                                                                                13b
                                                                                                                                               11d
                                                                                                                                               14        15

                                                          Contribution is Made v. Date of
      Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
      or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

          NAME OF COMMITTEE (In Full)
        Doe for Congress Committee
                                                          Receipt” for more information.)
          Full Name (Last, First, Middle Initial)

     A.   Ellie James for U.S. Senate
          Mailing Address
                                                                                                      Date of Receipt                                   If a contributor is self-employed,
          543 Stormybrook Street                                                                       02                 21          2012              that should be stated in the
                                                                                                        M     M   /    D    D   /     Y    Y    Y    Y



          City                                           State        Zip Code
          Great Falls                                    VA           00000
                                                                                                                                                        “Employer” space on Schedule A.
          FEC ID number of contributing
                                                        C             00000001                        Amount of Each Receipt this Period
          federal political committee.

          Name of Employer                             Occupation                                                     ,
                                                                                                                      ▲             2,000.00
                                                                                                                                    ,
                                                                                                                                    ▲    .
                                                                                                                                         ▲
                                                                                                                                                        If he or she is not employed, the
          Receipt For:                                 Election Cycle-to-Date
                                                                                                                                                        space may be left blank, but the
           X                                                                    ▼
               Primary
               Other (specify) ▼
                                 General
                                                                 ,
                                                                 ▲              2,000.00
                                                                                ,
                                                                                ▲    .
                                                                                     ▲
                                                                                                                                                        “Occupation” space should still
                                                                                                                                                        be completed (e.g., “unemployed,”
                                                                                                                                                        “retired,” “homemaker.”) See
                                                                                                                                                        Chapter 11, Section 5, “Treasurer’s
4. how to Itemize receipts                                                                                                             Best Efforts” regarding steps that must be taken
                                                                                                                                       to obtain information about contributors.
For each receipt to be itemized, the
committee must report the:
  •	Name of source of receipt (i.e., the name of the                                                                                       5. When to Itemize receipts
    person who gave something of value or paid
    money to the candidate or the committee);                                                                                              Some receipts must be itemized regardless of
  •	Mailing address of source;                                                                                                             their amount, while others need not be item-
                                                                                                                                           ized until their aggregate election-cycle-to-date
  •	Employer of source (if source is                                                                                                       total exceeds a threshold dollar value. These
    an individual contributor);                                                                                                            concepts are further explained below.
  •	Occupation of source (if source
    is an individual contributor);



                                                                                                                                                                                                     89
                                                             Chapter 13



     Regardless of Amount                                                            contributions and other receipts on an election-
                                                                                     cycle basis, as explained in the next paragraphs.
     Within the following four categories of receipts
     listed on the Detailed Summary Page, every                                      Election Cycle
     receipt must be itemized regardless of amount:                                  An election cycle begins the day after the general
       •	Contributions from party committees and                                     election for a seat or office and ends on the day
         organizations (including those that do not                                  of the next general election for that seat or office.
         qualify as political committees under the Fed-                              100.3(b). The length of the election cycle, thus,
         eral Election Campaign Act (the Act)) (Line 11(b));                         depends on the office sought. The election cycle
       •	Contributions from other political committees                               is two years for House candidates, four years for
         and organizations (including all committees                                 Presidential candidates and six years for Senate
         that are political committees under the Act)                                candidates. For example, the election cycle for
         (Line 11(c). See example on previous page);                                 a 2012 Senate candidate began on November 8,
                                                                                     2006 (the day after the previous general elec-
       •	Transfers from affiliated com-                                              tion), and will end on November 6, 2012 (the day
         mittees (Line 12); and                                                      of the general election). On the other hand, the
       •	Loans (Lines 13(a) and 13(b)).                                              election cycle for 2012 House candidates began
     See 104.3(a)(4)(ii), (iii)(A) and (iv).                                         on November 3, 2010 (the day after the 2010
                                                                                     general election), and will end on November 6,
                                                                                     2012 (the day of the 2012 general election).
     Itemization Threshold Exceeded
     Within the other categories, receipts from                                      Example of Aggregation
     each source must be itemized if they:                                           Suppose an individual makes two con-
       •	Exceed $200; or                                                             tributions to a principal campaign com-
                                                                                     mittee during an election cycle.
       •	Aggregate over $200 when
         added to other receipts
         (within the same category)
         received from the same source
                                                    AGGREGATION OF CONTRIBUTIONS
         during an election cycle.
                                                                                                                                                    FOR LINE NUMBER:                PAGE             OF
                                                      SCHEDULE A (FEC Form 3)                                         Use separate schedule(s)      (check only one)
     The categories of receipts                       ITEMIZED RECEIPTS                                               for each category of the
                                                                                                                      Detailed Summary Page
                                                                                                                                                      X 11a
                                                                                                                                                         12
                                                                                                                                                                      11b
                                                                                                                                                                      13a
                                                                                                                                                                                11c
                                                                                                                                                                                13b
                                                                                                                                                                                                11d
                                                                                                                                                                                                14        15

     that are subject to this $200                     Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                       or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.


     threshold for itemization are:                        NAME OF COMMITTEE (In Full)
                                                            Doe for Congress Committee
                                                           Full Name (Last, First, Middle Initial)
       •	Contributions from indi-                     A.   Kane, Sally
                                                           Mailing Address
                                                                                                                                                       Date of Receipt

                                                           211 Spruce Street                                                                             03               01                2012
                                                                                                                                                         M    M   /    D    D   /       Y   Y    Y    Y


         viduals/persons other than                        City                                           State        Zip Code
                                                           Clifton                                        VA           00000
         political committees;                             FEC ID number of contributing
                                                                                                         C                                             Amount of Each Receipt this Period
                                                           federal political committee.
                                                                                                                                                                                            185.00
       •	Contributions from                                Name of Employer
                                                           First National Bank
                                                                                                        Occupation
                                                                                                                       Banker
                                                                                                                                                                      ,
                                                                                                                                                                      ▲             ,
                                                                                                                                                                                    ▲          .
                                                                                                                                                                                               ▲

         the candidate;                                    Receipt For:
                                                                  Primary      X    General
                                                                                                        Election Cycle-to-Date
                                                                                                                                 ▼

                                                                  Other (specify) ▼
                                                                                                                  ,
                                                                                                                  ▲              ,
                                                                                                                                 ▲   260.00
                                                                                                                                        .
                                                                                                                                        ▲
       •	Offsets to operating
         expenditures; and
       •	Other receipts. See                                                         Primary Election Contribution
         104.3(a)(4)(i), (v) and (vi).
                                                                                     The donor contributes $75 just before the
     Aggregation: Election Cycle vs. Per Election                                    candidate’s primary election. Because it is undes-
     Note that authorized committees must aggregate                                  ignated, the contribution automatically applies
     contributions on a per-election basis when moni-                                to the primary limit. The contribution does not
     toring contribution limits. See Chapter 4. For pur-                             exceed $200 and is his first contribution to
     poses of reporting, however, committees aggregate                               the candidate, so the committee includes the



90
                                                                                                Completing FEC Reports


amount in its total of unitemized contributions                                                                                                Expenditures by Candidate
(Line 11(a)(ii) on the Detailed Summary Page).                                                                                                 Campaign expenditures made by the candidate
General Election Contribution                                                                                                                  from personal funds that are not to be reimbursed
                                                                                                                                               are reported as in-kind contributions from the
During the following reporting period, but after                                                                                               candidate and reported like other in-kind contribu-
the primary election, the same donor makes a                                                                                                   tions. See “Reporting In-Kind Contributions” later
$185 contribution. This contribution must be                                                                                                   in this chapter for more information on reporting
itemized since the aggregate total of the donor’s                                                                                              these expenditures by candidates. If, on the other
contributions for the election cycle ($260)                                                                                                    hand, a personal expenditure by the candidate
now exceeds the $200 threshold for itemiza-                                                                                                    is intended to be reimbursed, it is treated as an
tion. When itemizing the $185 contribution on                                                                                                  advance from the candidate for reporting pur-
Schedule A, the committee checks “General” in                                                                                                  poses. See Section 11 on reporting advances.
the election designation box and reports the
donor’s aggregate election-cycle total as $260,                                                                                                Loans from Candidate’s Personal Funds
even though $75 applies to the primary and                                                                                                     The candidate may loan personal funds to the com-
$185 to the general. (See example opposite.)                                                                                                   mittee and may charge interest at a commercially
                                                                                                                                               reasonable rate, provided the committee reports
                                                                                                                                               the loan and the interest rate from the outset on
6. reporting Contributions,                                                                                                                    Schedule C. The committee continues to report
   Loans and Advances                                                                                                                          the loan until it is repaid. 116.11; AO 1986-45. See
                                                                                                                                               Section 17 of this chapter, “Reporting Loans.”
   from Candidate
                                                                                                                                               Bank Loans Obtained by Candidate for
Contributions (including loans and                                                                                                             Campaign Related Purposes
advances) from the candidate must be          If a candidate obtains a bank loan for campaign-
reported by the campaign as follows:          related purposes, the committee must report the
Contributions from Candidate                  loan from the candidate as a receipt and repayment
                                              of the loan to the candidate as a disbursement
Personal funds contributed to the campaign    104.3(a)(3)(vii)(B) and (b)(2)(iii)(A) and 100.82(c).
are reported on Line 11(d) as contributions   In addition, both the original loan and payments
from the candidate. (See example below.)      to reduce principal must be reported on Schedule
                                                               C each reporting period until the
                                                               loan is repaid. Furthermore, a com-
  CONTRIBUTIONS FROM CANDIDATE’S PERSONAL FUNDS                mittee that obtains a loan from a
                                                               bank must also file Schedule C-1
      SCHEDULE A (FEC Form 3)                                  with the first report due after
                                                                     Use separate schedule(s)
                                                                                                   FOR LINE NUMBER:
                                                                                                   (check only one)
                                                                                                                                    PAGE            OF


                                            X
                                                               the new loan. 104.3(d). See also
                                                                     for each category of the
      ITEMIZED RECEIPTS                                              Detailed Summary Page
                                                                                                        11a           11b       11c            11d
                                                                                                        12            13a       13b            14        15


                                                               Section 17, “Reporting Loans.”
      Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
      or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

           NAME OF COMMITTEE (In Full)
            Doe for Congress Committee
           Full Name (Last, First, Middle Initial)
           Doe, Jane
                                                                                                                                                              Contributions Intended to be Loans
      A.                                                                                              Date of Receipt
           Mailing Address
           626 Pritham Ave.                                                                             02                10              2012                Receipts that are intended as con-
                                                                                                        M     M   /    D    D   /     Y    Y    Y    Y



           City                                          State        Zip Code
           Springfield                                    VA           00000
           FEC ID number of contributing
                                                                                                                                                              tributions (rather than loans) from
                                                        C                                             Amount of Each Receipt this Period
           federal political committee.

           Name of Employer                            Occupation                                                     ,
                                                                                                                      ▲             1,000.00
                                                                                                                                    ,
                                                                                                                                    ▲    .
                                                                                                                                         ▲
                                                                                                                                                              the candidate may not later be con-
           U.S. House                                    U.S. Representative
           Receipt For:                                Election Cycle-to-Date
                                                                                                                                                              verted into loans. For that reason,
             X                                                                  ▼
                Primary
                Other (specify) ▼
                                  General

                                                                 ,
                                                                 ▲              2,200.00
                                                                                ,
                                                                                ▲    .
                                                                                     ▲
                                                                                                                                                              the campaign should initially report
                                                                                                                                                              such transactions as loans to be
                                                                                                                                                              repaid. AOs 2006-37 and 1997-21.




                                                                                                                                                                                                      91
                                                                                                             Chapter 13


     Last-Minute Contributions or Loans from Candidate                                                                                   record each contribution according to the rules set
     Note that contributions or loans from the                                                                                           out in Chapter 11.) 110.1(k)(2). If neither contribu-
     candidate of $1,000 or more, received less than                                                                                     tor has previously contributed to the committee
     20 days but more than 48 hours before any                                                                                           during the year, the committee does not have to
     election in which the candidate is running, must                                                                                    itemize either contribution; nor does it have to
     be reported on a “48-Hour Notice.” (See “Last-                                                                                      itemize the $300 total joint contribution. If, on the
     Minute Contributions in Chapter 12, Section 3.)                                                                                     other hand, the $300 check is accompanied by a
                                                                                                                                         signed statement attributing $250 to one individual
                                                                                                                                         and $50 to the other, the $250 contribution must
                                                                                                                                         be itemized. The $50 contribution is included in
     7. reporting Joint                                                                                                                  the total of unitemized contributions reported
        Contributions2                                                                                                                   on Line 11(a)(ii) of the Detailed Summary Page.3



                                                                                                                                                                             8. reporting
           JOINT CONTRIBUTIONS                                                                                                                                               redesignations and
              SCHEDULE A (FEC Form 3)                                        Use separate schedule(s)
                                                                                                           FOR LINE NUMBER:
                                                                                                           (check only one)
                                                                                                                                             PAGE             OF             reattributions4
              ITEMIZED RECEIPTS                                              for each category of the
                                                                             Detailed Summary Page
                                                                                                             X   11a           11b       11c             11d
                                                                                                                 12            13a       13b             14        15
              Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions



                                                                                                                                                                             Receipt of Original
              or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

                   NAME OF COMMITTEE (In Full)
                    Doe for Congress Committee

              A.
                   Full Name (Last, First, Middle Initial)
                   Bigshot, William
                   Mailing Address
                                                                                                              Date of Receipt                                                Contribution
                   555 8th Street                                                                                03                20                2012
                                                                                                                 M     M   /    D    D   /       Y   Y    Y    Y



                   City
                   Herndon
                                                                 State
                                                                 VA
                                                                              Zip Code
                                                                              00000
                                                                                                                                                                             When itemizing a contribution
                   FEC ID number of contributing
                   federal political committee.                 C                                             Amount of Each Receipt this Period                             that must first be redesignated
                   Name of Employer                            Occupation                                                      ,
                                                                                                                               ▲             ,
                                                                                                                                             ▲       500.00
                                                                                                                                                        .
                                                                                                                                                        ▲                    or reattributed before it is
                   Bigshot and Co.                               Executive
                   Receipt For:
                        Primary        X  General
                                                               Election Cycle-to-Date
                                                                                        ▼                                                                                    legally acceptable, a committee
                                                                                            500.00
                        Other (specify) ▼                                ,
                                                                         ▲              ,
                                                                                        ▲      .
                                                                                               ▲                                                                             must include a statement on
                                                                                                                                                                             Schedule A noting that the
                   Full Name (Last, First, Middle Initial)

              B.   Bigshot, Lucy                                                                              Date of Receipt
                   Mailing Address
                   555 8th Street                                                                                03
                                                                                                                 02                20
                                                                                                                                   10                2012                    legality of the contribution
                                                                                                                 M     M   /    D    D   /       Y   Y    Y    Y



                   City                                          State        Zip Code
                   Herndon                                       VA           00000
                   FEC ID number of contributing
                                                                                                                                                                             is in question.5 103.3(b)(5).
                   federal political committee.                 C                                             Amount of Each Receipt this Period


                   Name of Employer                            Occupation                                                      ,
                                                                                                                               ▲             , 500.00
                                                                                                                                             ▲ 1000.00
                                                                                                                                                   .
                                                                                                                                                   ▲
                   Wigs and More
                   Receipt For:
                        Primary        X  General
                                                                 Store Owner
                                                               Election Cycle-to-Date
                                                                                        ▼                                                                                    Receipt of
                                                                                            500.00
                        Other (specify) ▼
                                                                         ,
                                                                         ▲              ▲ 2200.00
                                                                                        ,     .
                                                                                              ▲
                                                                                                                                                                             Redesignation or
                                                                                                                                                                             Reattribution
                                                                                                                                                              A committee must also comply
     For purposes of reporting, a committee treats a                                                                                     with special procedures when reporting the receipt
     joint contribution as though the individuals par-                                                                                   of reattributions and redesignations of contribu-
     ticipating in the contribution had made their con-                                                                                  tions that were originally itemized on previous
     tributions separately, and itemizes them separately                                                                                 reports. (There is no need to report a reattribu-
     on Schedule A as required. (See example above.)                                                                                     tion or redesignation if the original contribution
     110.1(k)(1). For example, if a committee receives
     a $300 check with two signatures but with no
                                                                                                                                         3                As explained in the Explanation and Justification
     written attribution, the committee attributes the                                                                                                    to revised rules on contribution limits, prescribed
     contribution equally between the donors—$150 to                                                                                                      April 8, 1987, 52 Fed. Reg. 760 (January 9, 1987).
     each contributor. (Note that the committee must                                                                                     4                Redesignations and reattributions
                                                                                                                                                          are explained in Chapter 4.
     2   See also Chapter 4 for more information                                                                                         5                This procedure applies to any contribution that
         on joint contributions.                                                                                                                          appears to be illegal or that is questionable.



92
                                                                                                Completing FEC Reports


                                                                                                                                                                    date the redesignation or reattribu-
    REDESIGNATIONS                                                                                                                                                  tion was received and, in the case
                                                                                                                                                                    of a redesignation, the election for
      SCHEDULE A (FEC Form 3)                                        Use separate schedule(s)
                                                                                                   FOR LINE NUMBER:
                                                                                                   (check only one)
                                                                                                                                     PAGE            OF
                                                                                                                                                                    which the contribution was redesig-
      ITEMIZED RECEIPTS                                              for each category of the
                                                                                                     X   11a           11b       11c            11d
                                                                     Detailed Summary Page
                                                                                                         12            13a       13b
      Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                                                                                                                14        15        nated. 104.8(d)(2) and (3). (See the
      or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

           NAME OF COMMITTEE (In Full)
                                                                                                                                                                    examples at left and on page 94.)
            Doe for Congress Committee
           Full Name (Last, First, Middle Initial)

      A.   Bancroft, Carrie
           Mailing Address
           426 9th St.
           City                                          State        Zip Code
                                                                                                      Date of Receipt

                                                                                                         12
                                                                                                         M     M   /    D

                                                                                                                           02
                                                                                                                             D   /     Y

                                                                                                                                           2011
                                                                                                                                            Y    Y    Y
                                                                                                                                                                    Refund of Excessive Portion
           Annandale                                     VA           00000
           FEC ID number of contributing
                                                                                                                                                                    If a committee requests a redesigna-
                                                        C                                             Amount of Each Receipt this Period
           federal political committee.

           Name of Employer                            Occupation                                                      ,
                                                                                                                       ▲             5,000.00
                                                                                                                                     ,
                                                                                                                                     ▲    .
                                                                                                                                          ▲
                                                                                                                                                                    tion or reattribution but does not
           James & Smith                                 Attorney                                                                                                   receive it within 60 days of the
           Receipt For:                                Election Cycle-to-Date
                                                                                                                 MEMO
            X                                                                                            See year-end report
                                                                                ▼
                  Primary
                  Other (specify) ▼
                                    General

                                                                 ,
                                                                 ▲              5,000.00
                                                                                ,
                                                                                ▲    .
                                                                                     ▲                   Redesignation below
                                                                                                                                                                    contribution’s receipt, the committee
           Full Name (Last, First, Middle Initial)                                                                                                                  must refund the excessive portion of
      B.   Bancroft, Carrie                                                                           Date of Receipt
           Mailing Address
           426 9th St.                                                                                   01
                                                                                                         02
                                                                                                         M     M   /    D

                                                                                                                           15
                                                                                                                           10
                                                                                                                             D   /     Y

                                                                                                                                           2012
                                                                                                                                            Y    Y    Y
                                                                                                                                                                    the contribution within 60 days of the
           City
           Annandale
                                                         State
                                                         VA
                                                                      Zip Code
                                                                      00000                                                                                         treasurer’s receipt of the contribu-
           FEC ID number of contributing
           federal political committee.                 C                                             Amount of Each Receipt this Period
                                                                                                                                                                    tion and disclose the refund on its
                                                                                                                       ,         -2,500.00
                                                                                                                                  ▲ 1000.00
                                                                                                                                  ,     .
           Name of Employer
           James & Smith
                                                       Occupation
                                                         Attorney
                                                                                                                       ▲                ▲
                                                                                                                                                                    next report (see Section 19 of this
                                                                                                                 MEMO
                                                                                                                                                                    chapter). 103.3(b)(3) and 104.8(d)(4).
           Receipt For:                                Election Cycle-to-Date
            X
                                                                                ▼
                Primary           General
                                                                                5,000.00                 Redesignated below
                                                                 ,              ▲ 2200.00
                                                                                ,     .
                Other (specify) ▼
                                                                 ▲                    ▲
           Full Name (Last, First, Middle Initial)

      C.   Bancroft, Carrie                                                                           Date of Receipt
           Mailing Address
           426 9th St.                                                                                   01
                                                                                                         02                15
                                                                                                                           10              2012
                                                                                                         M     M   /    D    D   /     Y    Y    Y    Y



           City
           Annandale
                                                         State
                                                         VA
                                                                      Zip Code
                                                                      00000                                                                                         9. reporting Free Legal
                                                                                                                                                                    and Accounting Services
           FEC ID number of contributing
           federal political committee.                 C                                             Amount of Each Receipt this Period


           Name of Employer                            Occupation                                                      ,
                                                                                                                       ▲             2,500.00
                                                                                                                                     ▲ 1000.00
                                                                                                                                     ,     .
                                                                                                                                           ▲
           James & Smith                                 Attorney
           Receipt For:                                Election Cycle-to-Date                                          MEMO
                               X
                                                                                ▼
                Primary           General
                                                                                                                   Redesignated                                  An authorized committee may receive
                                                                 ,              ▲ 2200.00
                                                                                5,000.00
                                                                                ,     .
                Other (specify) ▼
                                                                 ▲                    ▲

                                                                                                                                                                 free legal and accounting services
                                                                                                                                                                 provided solely to help the commit-
was not itemized.6) On the report covering the                                                                                                                   tee comply with the Act, as explained
period during which the committee received the                                                                                                       in Chapter 7. If the value of services paid for by
redesignation or reattribution, the committee                                                                                                        one person (the employer) exceeds $200 or
must disclose, as a memo entry, information on                                                                                                       aggregates over $200 during an election cycle, the
both the original contribution and the redesigna-                                                                                                    committee must itemize the following informa-
tion or reattribution. The memo entry appears                                                                                                        tion as a memo entry on a separate Schedule A:
on a Schedule A for the category of contribution                                                                                                          •	The name of each employee per-
involved. (For example, a reattribution would                                                                                                               forming the services;
appear with other itemized contributions on a
Schedule A used for “Contributions from Individu-                                                                                                         •	The name and address of the employer
als/Persons Other Than Political Committees.”)                                                                                                              of the person providing the services;

The first part of the memo entry discloses all                                                                                                            •	The amounts paid for the ser-
the information on the contribution as it was                                                                                                               vices by the employer; and
originally reported on Schedule A. The second                                                                                                             •	The dates the services were performed.
part of the memo entry discloses as a negative                                                                                                              100.86 and 104.3(h). The Schedule A should
entry the amount of the redesignation. The third                                                                                                            be clearly labeled as exempt legal or account-
part discloses information on the contribution as                                                                                                           ing services. (See example on page 94.)
it was redesignated or reattributed, including the

6    As explained in the Explanation and Justification
     to revised rules on contribution limits, prescribed
     April 8, 1987, 52 Fed. Reg. 760 (January 9, 1987).



                                                                                                                                                                                                             93
                                                                                                                              Chapter 13



     REATTRIBUTIONS                                                                                                                                                                              10. reporting In-Kind
                                                                                                                                                                                                     Contributions
                                                                                                    FOR LINE NUMBER:                                  PAGE                     OF
       SCHEDULE A (FEC Form 3)                                         Use separate schedule(s)     (check only one)
       ITEMIZED RECEIPTS                                               for each category of the
                                                                       Detailed Summary Page
                                                                                                      X   11a                 11b                 11c                  11d



                                                                                                                                                                                                 Schedules A and B
                                                                                                          12                  13a                 13b                  14                  15
       Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
       or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

            NAME OF COMMITTEE (In Full)
             Doe for Congress Committee                                                                                                                                                          When determining whether to
            Full Name (Last, First, Middle Initial)
            Richmond, Howard
       A.
            Mailing Address
                                                                                                       Date of Receipt
                                                                                                                                                                                                 itemize an in-kind contribution, a
            40 Shepard Cir.                                                                               12                      09                           2011
                                                                                                          M       M       /       D       D       /        Y       Y       Y       Y



            City
            Centreville
                                                          State
                                                          VA
                                                                         Zip Code
                                                                         00000
                                                                                                                                                                                                 committee should treat it the same
            FEC ID number of contributing
            federal political committee.                 C                                             Amount of Each Receipt this Period                                                        as a monetary contribution. The only
            Name of Employer                            Occupation                                                            ,
                                                                                                                              ▲                       5,000.00
                                                                                                                                                      ,
                                                                                                                                                      ▲    .
                                                                                                                                                           ▲                                     difference is that the amount of an
             Space Tech                                   Engineer
                                                                                                                  MEMO
            Receipt For:
                    Primary      X    General
                                                        Election Cycle-to-Date
                                                                                 ▼
                                                                                                          See year-end 2011
                                                                                                                                                                                                 in-kind contribution must also be
                                                                                 5,000.00
                    Other (specify) ▼
                                                                   ,
                                                                   ▲             ,
                                                                                 ▲    .
                                                                                      ▲                   Reattribution below                                                                    included in the committee’s total
       B.
            Full Name (Last, First, Middle Initial)
            Richmond, Howard                                                                           Date of Receipt
                                                                                                                                                                                                 operating expenditures in order
            Mailing Address
            40 Shepard Cir.                                                                               02                      01
                                                                                                                                  10                           2012                              to avoid inflating cash on hand. An
                                                                                                          M       M       /       D       D       /        Y       Y       Y       Y



            City                                          State          Zip Code
            Centreville                                   VA             00000
            FEC ID number of contributing
                                                                                                                                                                                                 in-kind contribution must be item-
                                                         C                                             Amount of Each Receipt this Period
            federal political committee.

            Name of Employer                            Occupation                                                            ,
                                                                                                                              ▲                   -2,500.00
                                                                                                                                                   ▲ 1000.00
                                                                                                                                                   ,     .
                                                                                                                                                         ▲
                                                                                                                                                                                                 ized as an operating expenditure
             Space Tech                                   Engineer                                                                                                                               on Schedule B only if it has to
            Receipt For:                                Election Cycle-to-Date                                    MEMO
                                 X
                                                                                 ▼

                                                                                                                                                                                                 be itemized as a contribution on
                 Primary           General
                                                                                                          Reattributed below
                                                                   ,             ▲ 2200.00
                                                                                 2,500.00
                                                                                 ,     .
                 Other (specify) ▼
                                                                   ▲                   ▲
            Full Name (Last, First, Middle Initial)
            Richmond, Jessie
                                                                                                                                                                                                 Schedule A. (For information on
       C.                                                                                              Date of Receipt
            Mailing Address
            40 Shepard Cir.                                                                               02
                                                                                                          M       M       /

                                                                                                                                  01
                                                                                                                                  10
                                                                                                                                  D       D       /        Y

                                                                                                                                                               2012
                                                                                                                                                                   Y       Y       Y
                                                                                                                                                                                                 how to value an in-kind contribu-
            City                                          State          Zip Code
            Centreville                                   VA             00000                                                                                                                   tion, see Chapter 3, Section 2.)
                                                                                                                                                                                                 (See example on opposite page.)
            FEC ID number of contributing
            federal political committee.                 C                                             Amount of Each Receipt this Period


            Name of Employer                            Occupation                                                            ,
                                                                                                                              ▲                       2,500.00
                                                                                                                                                      ▲ 1000.00
                                                                                                                                                      ,     .
                                                                                                                                                            ▲
             None                                         Homemaker
                                                                                                                              MEMO
                                                                                                                                                                                                 Advances of Personal Funds
            Receipt For:                                Election Cycle-to-Date
                                 X
                                                                                 ▼
                 Primary           General
                                                                                                                          Reattributed
                                                                   ,             ▲ 2200.00
                                                                                 2,500.00
                                                                                 ,     .
                 Other (specify) ▼
                                                                   ▲                   ▲


                                                                                                                                                                                                 Although an advance of personal
                                                                                                                                                                                                 funds by an individual to purchase
                                                                                                                                                                                                 goods and services (with the excep-
                                                                                                                                                                                                 tion of some travel costs) is consid-
                                                                                                                                                                                                 ered an in-kind contribution, special
     FREE LEGAL AND ACCOUNTING SERVICES                                                                                                                                                          reporting rules apply if it is to be
                                                                                                                                                                                                 reimbursed. For more information,
                                                                                                                                                          PAGE                     OF
                                                                                                                                                                                                 see the next sections on reporting
                                                                                                      FOR LINE NUMBER:
        SCHEDULE A (FEC Form 3)                                          Use separate schedule(s)     (check only one)
                                                                         for each category of the
        ITEMIZED RECEIPTS                                                                                     11a                 11b                 11c                  11d

                                                                                                                                                                                                 advances and travel expenses.
                                                                         Detailed Summary Page
                                                                                                              12                  13a                 13b                  14               15
        Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
        or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

             NAME OF COMMITTEE (In Full)
              Doe for Congress Committee
             Full Name (Last, First, Middle Initial)
             Thomason, Steve
                                                                                                                                                                                                 Reporting Appreciated
                                                                                                                                                                                                 Goods as Contributions
        A.                                                                                                Date of Receipt
             Mailing Address
             145 Netherton Rd.                                                                                02                      19                           2012
                                                                                                              M       M       /       D       D       /        Y       Y       Y       Y



             City                                          State          Zip Code
             Tysons Corner                                 VA             00000
             FEC ID number of contributing
             federal political committee.                 C                                               Amount of Each Receipt this Period                                                     When a committee receives
             Name of Employer                            Occupation                                                               ,
                                                                                                                                  ▲                       3,000.00
                                                                                                                                                          ,
                                                                                                                                                          ▲    .
                                                                                                                                                               ▲                                 an in-kind contribution whose
             Pierce, James & Dewey                        Accountant
                                                                                                                          MEMO
             Receipt For:
               X  Primary           General
                                                         Election Cycle-to-Date
                                                                                    ▼
                                                                                                                   Exempt accounting                                                             value may appreciate over time,
                                                                     ,            3,000.00
                                                                                  ,    .                                services
                  Other (specify) ▼
                                                                     ▲            ▲    ▲
                                                                                                                                                                                                 such as stock or artwork, spe-
                                                                                                                                                                                                 cial reporting rules apply:
                                                                                                                                                                                                 •	 Itemize the initial gift, if necessary,
                                                                                                                                                                                                 as a memo entry on Schedule A (see
                                                                                                                                                                                                 “When to Itemize Receipts,” above).
                                                                                                                                                                                                 Under “Amount,” report the fair
                                                                                                                                                                                                 market value of the contribution on



94
                                                                                            Completing FEC Reports


                                                                                                                                                                           the date the item was received.
IN-KIND CONTRIBUTION (SCHEDULE A)                                                                                                                                          Do not include that amount in
                                                                                                                                                                           the total for Line 11(a)(i) on
   SCHEDULE A (FEC Form 3)                                             Use separate schedule(s)
                                                                                                      FOR LINE NUMBER:
                                                                                                      (check only one)
                                                                                                                                             PAGE               OF
                                                                                                                                                                           the Detailed Summary Page. No
                                                                                                                                   X 11c
                                                                                                                                                                           itemization on Schedule B is nec-
                                                                       for each category of the
   ITEMIZED RECEIPTS                                                   Detailed Summary Page
                                                                                                          11a             11b                            11d
                                                                                                          12              13a            13b             14          15


                                                                                                                                                                           essary. (See example on page 96.)
   Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
   or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

        NAME OF COMMITTEE (In Full)
         Doe for Congress Committee
        Full Name (Last, First, Middle Initial)
                                                                                                                                                                           •	       Once the item is sold,
        Gold Nugget Corporation PAC
   A.
        Mailing Address
                                                                                                         Date of Receipt
                                                                                                                                                                           report the sale price as a con-
        100 Commerce Ave.                                                                                 02                  20                     2012
                                                                                                          M     M     /    D       D     /       Y   Y      Y    Y



        City
        Springfield
                                                           State
                                                           VA
                                                                        Zip Code
                                                                        00000
                                                                                                                                                                           tribution on Line 11(a)(i) if the
        FEC ID number of contributing
        federal political committee.                       C            00000000                         Amount of Each Receipt this Period                                purchaser is known or as an
        Name of Employer                                Occupation                                                        ,
                                                                                                                          ▲                  ,
                                                                                                                                             ▲       260.00
                                                                                                                                                        .
                                                                                                                                                        ▲                  “other receipt” on Line 15 if the
        Receipt For:
          X  Primary           General
                                                         Election Cycle-to-Date
                                                                                  ▼
                                                                                                                                  In-Kind                                  purchaser is unknown. Itemize the
                                                                                  1,260.00
             Other (specify) ▼
                                                                   ,
                                                                   ▲              ,
                                                                                  ▲    .
                                                                                       ▲                                                                                   transaction on Schedule A if nec-
                                                                                                                                                                           essary. (See example on page 96.)
                                                                                                                                                                           Also, if the purchaser is known,
                                                                                                                                                                           then the amount of the purchase,
IN-KIND CONTRIBUTION (SCHEDULE B)                                                                                                                                          when aggregated with other con-
                                                                                                                                                                           tributions by the purchaser, must
                                                                                                     FOR LINE NUMBER:                        PAGE               OF
                                                                                                                                                                           fall within the contribution limits.
  SCHEDULE B (FEC Form 3)                                            Use separate schedule(s)        (check only one)
                                                                                                           X
  ITEMIZED DISBURSEMENTS
                                                                                                                                                                           104.13(b). See also AOs
                                                                     for each category of the
                                                                                                                17                 18                 19a            19b
                                                                     Detailed Summary Page
                                                                                                                20a                20b                20c            21
   Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
   or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                              2000-30 and 1989–06.
        NAME OF COMMITTEE (In Full)

         Doe for Congress Committee
        Full Name (Last, First, Middle Initial)

        Gold Nugget Corporation PAC
  A.                                                                                                     Date of Disbursement


                                                                                                          02                  20                     2012
                                                                                                                                                                           11. reporting
                                                                                                          M     M     /       D    D     /       Y   Y      Y    Y

        Mailing Address
        100 Commerce Ave.
        City                                               State        Zip Code                        Amount of Each Disbursement this Period
        Springfield
        Purpose of Disbursement
        In-Kind: Postage
                                                           VA           00000
                                                                                                                          ,
                                                                                                                          ▲                  ,
                                                                                                                                             ▲       260.00
                                                                                                                                                        .
                                                                                                                                                        ▲                      reimbursed
                                                                                                                                                                               Advances of
        Candidate Name                                                                   Category/
                                                                                           Type
        Office Sought:            House            Disbursement For:
                                                       X
                                                                                                                                                                               Personal Funds
                                 Senate                    Primary          General
                                 President                 Other (specify) ▼
        State:              District:



                                                                                                                                                                               (Non-Travel)
                                                                                                                                                 As explained in Chapter 7 and in the previ-
                                                                                                                                                 ous section, when any individual, including a
                                                                                                                                                 volunteer, a committee staff member or the
                                                                                                                                                 candidate, uses his or her personal funds or
                                                                                                                                                 personal credit to pay a vendor for a cam-
                                                                                                                                                 paign expense and is later reimbursed by the
                                                                                                                                                 committee, special reporting rules apply.

                                                                                                                                                 Non-Travel Advances Made
                                                                                                                                                 and Reimbursed Within
                                                                                                                                                 Same Reporting Period
                                                                                                                                                 Non-travel advances that are made and reimbursed
                                                                                                                                                 within the same reporting period are considered
                                                                                                                                                 contributions and must be reported as follows:
                                                                                                                                                         •	Do not report the original advance unless, at
                                                                                                                                                           the end of the reporting period, the amount



                                                                                                                                                                                                                  95
                                                                                                                      Chapter 13



     APPRECIATED GOODS AS CONTRIBUTIONS                                                                                                                                     Non-Travel Advances
                                                                                                                                                                            Made and Reimbursed
          SCHEDULE A (FEC Form 3)
          ITEMIZED RECEIPTS
                                                                          Use separate schedule(s)
                                                                          for each category of the
                                                                                                        FOR LINE NUMBER:
                                                                                                        (check only one)
                                                                                                          X 11a            11b         11c
                                                                                                                                           PAGE


                                                                                                                                                        11d
                                                                                                                                                             OF

                                                                                                                                                                            in Different
                                                                                                                                                                            Reporting Periods
                                                                          Detailed Summary Page
                                                                                                             12            13a         13b              14            15
          Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
          or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

               NAME OF COMMITTEE (In Full)
                Doe for Congress Committee                                                                                                                                  Non-travel advances that
               Full Name (Last, First, Middle Initial)

          A.   Kane, Sally
               Mailing Address
                                                                                                           Date of Receipt                                                  are to be reimbursed in a
               211 Spruce Street                                                                             01                21                  2012
                                                                                                            M     M    /    D      D   /       Y   Y     Y     Y



               City                                          State           Zip Code                                                                                       later reporting period must
               Clifton                                       VA              00000
               FEC ID number of contributing
                                                            C                                              Amount of Each Receipt this Period
                                                                                                                                                                            be reported as follows:
               federal political committee.

                                                                                                                           ,               ,       185.00
                                                                                                                                                      .
               Name of Employer
               First National Bank
                                                           Occupation
                                                                             Banker
                                                                                                                           ▲               ▲          ▲                        •	Do not report the original
               Receipt For:
                      Primary      X    General
                                                            Election Cycle-to-Date
                                                                                     ▼                                                                                           advance unless, at the end of
                      Other (specify) ▼
                                                                      ,              ,   260.00
                                                                                            .
                                                                      ▲              ▲      ▲
                                                                                                                                                                                 the reporting period in which
                                                                                                                                                                                 the advance was made, the
                                                                                                                                                                                 amount of previous contribu-
                                                                                                                                                                                 tions in the election cycle
     SALE OF APPRECIATED GOODS AS CONTRIBUTIONS                                                                                                                                  from the person making the
                                                                                                                                                                                 advance plus the amount
          SCHEDULE A (FEC Form 3)
                                                                                                        FOR LINE NUMBER:                   PAGE               OF                 of the advance minus the
                                                                            Use separate schedule(s)    (check only one)
          ITEMIZED RECEIPTS                                                 for each category of the
                                                                            Detailed Summary Page
                                                                                                             11a
                                                                                                             12
                                                                                                                           11b
                                                                                                                           13a
                                                                                                                                       11c
                                                                                                                                       13b
                                                                                                                                                        11d
                                                                                                                                                        14         X 15
                                                                                                                                                                                 amount of the reimburse-
           Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
           or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                            ment is greater than $200 (i.e.
               NAME OF COMMITTEE (In Full)
                Doe for Congress Committee
                                                                                                                                                                                 previous contributions + the
          A.
               Full Name (Last, First, Middle Initial)
               Bull Market Brokerage                                                                       Date of Receipt
                                                                                                                                                                                 advance - the reimbursement
               Mailing Address
               1212 King Street                                                                              03
                                                                                                             M     M   /

                                                                                                                               31
                                                                                                                               D   D   /       Y

                                                                                                                                                   2012
                                                                                                                                                    Y    Y        Y
                                                                                                                                                                                 > $200). In that case, report
               City                                           State          Zip Code
               Alexandria                                     VA             00000                                                                                               the advance as a memo entry
               FEC ID number of contributing
                                                             C
                                                                                                                                                                                 contribution on Schedule A;
                                                                                                           Amount of Each Receipt this Period
               federal political committee.

               Name of Employer                             Occupation                                                     ,
                                                                                                                           ▲               ,
                                                                                                                                           ▲       750.00
                                                                                                                                                      .
                                                                                                                                                      ▲

               Receipt For:                                 Election Cycle-to-Date
                                                                                                            XYZ Corp stock sold                                                •	Report the amount of the
                    Primary               General
                                                                                     ▼
                                                                                                               through broker.
                      Other (specify) ▼
                                                                        ,
                                                                        ▲            ,
                                                                                     ▲   750.00
                                                                                            .
                                                                                            ▲                Purchaser unknown.                                                  advance outstanding at the
                                                                                                                                                                                 end of the reporting period
                                                                                                                                                                                 as a debt on Schedule
                                                                                                                                                                                 D if it exceeds $500 or
      of previous contributions in the election                                                                                                                                  has been outstanding for
      cycle from the person making the advance                                                                                                                                   more than 60 days (see
      plus the amount of the advance minus the                                                                                                                                   example at right); and
      amount of the reimbursement is greater
      than $200 (i.e., previous contributions +                                                                                                               •	Report the reimbursement, once made, as an
      the advance - the reimbursement > $200).                                                                                                                  operating expenditure and, if reimbursements
      In that case, report the advance as a memo                                                                                                                to that person exceed $200 in the election
      entry contribution on Schedule A; and                                                                                                                     cycle, itemize it on Schedule B (with a cross-
                                                                                                                                                                reference to the memo entry on Schedule A
     •	Report the reimbursement as an operat-                                                                                                                   for the advance—if the advance was itemized).
       ing expenditure and, if reimbursements
       to that person exceed $200 in the elec-                                                                                                      See examples on opposite page. See AO 1992-01.
       tion cycle, itemize it on Schedule B (with
       a cross-reference to the memo entry
       on Schedule A for the advance—if the
       advance was itemized). AO 1992-01.




96
                                                                                                Completing FEC Reports



NONTRAVEL REIMBURSEMENTS                                                                                                                                                       12. reporting Travel
                                                                                                                                                                                   Expenses
                                                                                                       FOR LINE NUMBER:                       PAGE               OF
  SCHEDULE B (FEC Form 3)                                             Use separate schedule(s)         (check only one)
                                                                                                             X
  ITEMIZED DISBURSEMENTS
                                                                                                                                                                               As explained in Chapter 10,
                                                                      for each category of the
                                                                                                                  17                18                 19a             19b
                                                                      Detailed Summary Page
                                                                                                                  20a               20b                20c             21
   Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
   or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                                  when a committee pays for its
       NAME OF COMMITTEE (In Full)

        Doe for Congress Committee
                                                                                                                                                                               own travel expenses, it reports
       Full Name (Last, First, Middle Initial)
                                                                                                                                                                               the payment as an operating
       Lotze, Herman
                                                                                                           Date of Disbursement
  A.

       Mailing Address                                                                                      01
                                                                                                            M     M     /

                                                                                                                                20
                                                                                                                                D   D     /       Y

                                                                                                                                                      2012
                                                                                                                                                      Y      Y    Y
                                                                                                                                                                               expenditure. In certain situations,
       912 Geist Street
       City
       Springfield
                                                            State
                                                            VA
                                                                           Zip Code
                                                                           00000
                                                                                                           Amount of Each Disbursement this Period                             the payment may be made by a
                                                                                                                                                      750.00
       Purpose of Disbursement
       Reimbursement for office supplies
                                                                                                                            ,
                                                                                                                            ▲                 ,
                                                                                                                                              ▲          .
                                                                                                                                                         ▲                     campaign traveler. In that case, no
                                                                                                                                                                               contribution results if the individual
       Candidate Name                                                                      Category/
                                                                                             Type
       Office Sought:             House             Disbursement For:
                                 Senate
                                 President
                                                        X   Primary
                                                            Other (specify) ▼
                                                                             General
                                                                                                                                                                               is reimbursed by the committee
       State:              District:
                                                                                                                                                                               within certain time periods.

                                                                                                                                                                               Travel Expenses
                                                                                                                                                                               Reimbursed Within
NONTRAVEL STAFF ADVANCES MADE AND REIMBURSED IN
DIFFERENT REPORTING PERIODS                                                                                                                                                    30 or 60 Days
                                                                                                                                                                               As explained in Chapter 7, no
                                                                                                        FOR LINE NUMBER:                      PAGE               OF
                                                                                                                                                                               contribution results when the
  SCHEDULE A (FEC Form 3)
  ITEMIZED RECEIPTS
                                                                         Use separate schedule(s)
                                                                         for each category of the
                                                                         Detailed Summary Page
                                                                                                        (check only one)
                                                                                                          X 11a             11b           11c             11d                  committee reimburses an indi-
                                                                                                             12             13a
                                                                                                                                                                               vidual for travel expenses within
                                                                                                                                          13b             14              15
   Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
   or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

       NAME OF COMMITTEE (In Full)
        Doe for Congress Committee
                                                                                                                                                                               the following time periods:
                                                                                                                                                                                  •	If the individual paid with
       Full Name (Last, First, Middle Initial)

  A.   Allen, Lisa                                                                                         Date of Receipt
       Mailing Address
       828 Pine Street                                                                                     01                   02                2012
                                                                                                                                                                                    cash or a personal check,
                                                                                                            M     M     /       D   D     /       Y   Y      Y    Y



       City                                                 State          Zip Code
       McLean                                               VA             00000
       FEC ID number of contributing
                                                          C                                                Amount of Each Receipt this Period
                                                                                                                                                                                    within 30 days from the date
       federal political committee.

       Name of Employer                                  Occupation                                                         ,
                                                                                                                            ▲                 ,
                                                                                                                                              ▲       750.00
                                                                                                                                                         .
                                                                                                                                                         ▲                          the expense was incurred.
                                                                                                            In-kind, printing
       Receipt For:
        X   Primary                General
                                                         Election Cycle-to-Date
                                                                                  ▼
                                                                                                            to be reimbursed
                                                                                                                                                                                  •	If the individual paid with
               Other (specify) ▼
                                                                     ,            1,000.00
                                                                                  ,    .
                                                                     ▲            ▲    ▲
                                                                                                                                                                                    a credit card, within 60
                                                                                                                                                                                    days of the closing date
  SCHEDULE D (FEC Form 3)                                                                           (Use separate
                                                                                                                                          PAGE                   OF                 on the credit card billing
                                                                                                      schedule(s)           FOR LINE NUMBER:
  DEBTS AND OBLIGATIONS
  Excluding Loans
                                                                                                       for each
                                                                                                    numbered line)
                                                                                                                            (check only one)
                                                                                                                                                                  X
                                                                                                                                                                      9
                                                                                                                                                                      10
                                                                                                                                                                                    statement. 116.5(b). (See
   NAME OF COMMITTEE (In Full)

       Doe for Congress Committee
                                                                                                                                                                                    Chapter 7, Section 4, “Reim-
        A. Full Name (Last, First, Middle Initial) of Debtor or Creditor                                 Nature of Debt (Purpose):
                                                                                                                                                                                    bursed Travel Expenses,”
         Allen, Lisa
        Mailing Address                                                                                    Print job-                                                               for more information.)
         828 Pine Street                                                                                   to be reimbursed
        City           State                                     Zip Code
        McLean                 VA                                   00000
          Outstanding Balance Beginning This Period                                                                                                                            Reimbursed Within Time Limit
                       ,
                       ▲             ,
                                     ▲
                   Amount Incurred This Period
                                                 0.00
                                                  .
                                                  ▲
                                                                         Payment This Period               Outstanding Balance at Close of This Period
                                                                                                                                                                               and in Same Reporting Period
                       ,             ,       750.00
                                                .                     ,               ,        0.00
                                                                                                .                           ,                 ,       750.00
                                                                                                                                                         .
                       ▲             ▲          ▲                     ▲               ▲         ▲                           ▲                 ▲          ▲
                                                                                                                                                                               When the committee makes
                                                                                                                                                                               a reimbursement within
                                                                                                                                                                               these time limits, the commit-
                                                                                                                                                                               tee reports the advance and
                                                                                                                                                                               reimbursement as follows:
                                                                                                                                                                                  •	The original advance is
                                                                                                                                                                                    not reported; and




                                                                                                                                                                                                                        97
                                                       Chapter 13


       •	The reimbursement is reported as an operat-                the advance plus any other contributions
         ing expenditure on Line 17. AO 1992-01.                    made by the same person within the elec-
                                                                    tion cycle, minus any reimbursements made
     Reimbursed Within Time Limit but                               in the reporting period, exceeds $200;
     in Later Reporting Period
                                                                •	Report the amount of the advance outstand-
     Note that, if the reimbursement is made within
                                                                  ing at the end of the reporting period as a
     the appropriate time limit but not within the
                                                                  debt on Schedule D if it exceeds $500 or has
     reporting period in which the advance was made,
                                                                  been outstanding for more than 60 days; and
     the committee must report the advance on
     Schedule D as a debt if it exceeds $500. Once the          •	Report the reimbursement as an operating
     reimbursement is actually made, the committee                expenditure and, if reimbursements to that
     reports it as an operating expenditure and item-             person exceed $200 in the election cycle, item-
     izes it on Schedule B if reimbursements to any               ize it on Schedule B (with a cross-reference
     one person exceed $200 for the election cycle.               to the memo entry on Schedule A for the
                                                                  advance—if the advance was itemized).
     Travel Advances Not Reimbursed
     Within 30 or 60 Days                                     Special Rule for Reporting
     Not Reimbursed Within Time Limit but
                                                              Reimbursements (for Travel
     Within Same Reporting Period                             and Subsistence Advances)
     Travel advances that are not reimbursed                  If the total amount reimbursed for a travel
     within the appropriate 30 or 60 day time limit           or subsistence expense is $500 or less, the
     (116.5(b)) but that are reimbursed within the            committee should report the individual receiv-
     reporting period in which the advance is made            ing the reimbursement as the payee. If the
     are considered in-kind contributions 100.93(i).          total amount exceeds $500 and payments to
     Such advances must be reported as follows:               any one vendor used for the expenses total
       •	Report the original advance as a memo entry          over $200 for the election cycle, additional
         contribution on Schedule A if the total of           information is required to achieve full disclo-
         the advance plus any other contributions             sure. In this instance the committee must:
         made by the same person within the elec-               •	Report the individual receiving reim-
         tion cycle, minus any reimbursements made                bursement as payee; and
         in the reporting period, exceeds $200; and
                                                                •	Report the payments aggregating over $200
       •	Report the reimbursement as an operating                 to any one vendor as memo entries on
         expenditure and, if reimbursements to that               Schedule B. See AO 1996-20, footnote 3.
         person exceed $200 in the election cycle, item-
         ize it on Schedule B (with a cross-reference
         to the memo entry on Schedule A for the
         advance—if the advance was itemized).                13. Categorizing
     Not Reimbursed Within Time Limit and
                                                                  Disbursements
     Not Within Same Reporting Period
                                                              Like receipts, disbursements are
     Travel advances that are not reimbursed                  divided into several categories on the
     within the appropriate 30 or 60 day time limit           Detailed Summary Page of Form 3.
     (116.5(b)) and that are not reimbursed within
                                                              These categories are:
     the reporting period in which the advance
     was made must be reported as follows:                      •	Line 17, Operating Expenditures
       •	Report the original advance as a memo entry            •	Line 18, Transfers to Other
         contribution on Schedule A if the total of               Authorized Committees


98
                                           Completing FEC Reports


  •	Line 19(a), Repayments of Loans Made                                              •	Category/Type of disbursement (numbered
    or Guaranteed by the Candidate                                                      categories detailed on the Instructions for
  •	Line 19(b), Repayments of All Other Loans                                           Schedule B, Itemized Disbursements; available
                                                                                        online at http://www.fec.gov/pdf/forms/fec-
  •	Line 19(c), Total Loan Repayments                                                   frm3i.pdf), (filling in this category is optional);
  •	Line 20(a), Refunds of Contribu-                                                  •	Date of disbursement; and
    tions (made by) Individuals/Persons
    Other than Political Committees                                                   •	Amount of disbursement.

  •	Line 20(b), Refunds of Contributions                                       104.3(b)(4) and 104.9.
    (made by) Political Party Committees
  •	Line 20(c), Refunds of Contributions (made by)                             Purpose
    Other Political Committees (such as PACs)                                  For reporting purposes, the “purpose” of disburse-
  •	Line 20(d), Total Contribution Refunds                                     ment refers to a brief statement or description
                                                                               about the reason for the disbursement. The
  •	Line 21, Other Disbursements.                                              description must be sufficiently specific, when
For detailed information describing each                                       considered within the context of the payee’s
category see “The Detailed Summary                                             identity, to make the reason for the disbursement
Page” section later in this chapter.                                           clear. 104.3(b)(4)(i)(A) and (B). The Commission
For each category, a committee must disclose                                   has published a non-exhaustive list of accept-
the total for the current reporting period and                                 able and unacceptable purpose descriptions at
the election-cycle-to-date total. In addition to                               http://www.fec.gov/law/policy.shtml#purpose.
reporting these totals, a committee often has to
itemize disbursements by providing supplemental                                Election Designation
information on supporting Schedules B. 104.3(b)(2)                             When itemizing a disbursement, the commit-
and (4). A committee must use a separate Schedule                              tee does not need to check the box designat-
B for each category of disbursements that must                                 ing it for a particular election (“primary,”
be itemized; the committee may not mix different                               “general” or “other”), unless the entry relates
categories of disbursements on the same sched-                                 to a contribution to another candidate. In that
ule. Electronic filers must separately enter each                              case, the committee must indicate the elec-
disbursement when entering data in order to cor-                               tion to which it relates (see example below.)
rectly generate the report. Paper-filing committees
should complete the supporting Schedules first so
that they may transfer totals from these Schedules
to the Detailed Summary Page.

                                             OPERATING EXPENDITURES
14. how to Itemize
    Disbursements
                                                                                                                                               FOR LINE NUMBER:                      PAGE               OF
                                               SCHEDULE B (FEC Form 3)                                          Use separate schedule(s)       (check only one)
                                               ITEMIZED DISBURSEMENTS                                           for each category of the
                                                                                                                Detailed Summary Page
                                                                                                                                                     X   17                18                 19a            19b
                                                                                                                                                         20a               20b                20c            21
                                                Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

For each disbursement that must                     NAME OF COMMITTEE (In Full)

                                                     Doe for Congress Committee
be itemized, the committee must                     Full Name (Last, First, Middle Initial)

                                                    Quick Printing Inc.
                                                                                                                                                   Date of Disbursement
                                               A.
include the following information:                  Mailing Address                                                                                 01
                                                                                                                                                    M    M     /

                                                                                                                                                                       28
                                                                                                                                                                       D   D     /       Y

                                                                                                                                                                                             2012
                                                                                                                                                                                             Y      Y    Y



                                                    567 4th Street
  •	Name of payee;                                  City
                                                    Fair Lakes
                                                                                                      State
                                                                                                      VA
                                                                                                                   Zip Code
                                                                                                                   00000
                                                                                                                                                  Amount of Each Disbursement this Period

                                                    Purpose of Disbursement                                                                                        ,                 ,       300.00
                                                                                                                                                                                                .
                                                    Printing Brochures                                                              006                            ▲                 ▲          ▲
  •	Address of payee;                               Candidate Name                                                                 Category/
                                                                                                                                     Type


  •	Purpose of disbursement (a
                                                    Office Sought:             House           Disbursement For:
                                                                              Senate                   Primary          General
                                                                              President                Other (specify) ▼

    brief description of why the                    State:              District:



    disbursement was made);


                                                                                                                                                                                                                   99
                                                                                                                                Chapter 13



      Contributions to Other Candidates                                                                                                                        15. When to Itemize
      Contributions to other candidates are included in                                                                                                            Disbursements
      the total for Line 21 (“Other Disbursements”) and
      are itemized on Schedule B for that Line if they are
      made to a federal candidate for any amount or are                                                                                                        Regardless of Amount
      made to a nonfederal candidate and exceed $200
      for the election cycle to date. When itemizing a                                                                                                         Three categories of disbursements must
      contribution to another candidate (either federal                                                                                                        be itemized regardless of amount:
      or nonfederal, e.g., state or local), the commit-                                                                                                                 •	Transfers (Line 18);
      tee must report the information listed above.                                                                                                                     •	Loan Repayments (Lines 19(a) and 19(b)); and
      Additional Information Required for                                                                                                                               •	Contributions to other federal candidates
      Contributions to Other Federal Candidates                                                                                                                           (Line 21). 104.3(b)(4)(ii), (iii) and (v).
      If the contribution is to a federal candi-                                                                                                               Refunds of contributions must be item-
      date, the committee must also itemize:                                                                                                                   ized only if the incoming contribution
        •	The recipient candidate’s name;                                                                                                                      had to be itemized on Schedule A.

        •	The office sought by check-
          ing the appropriate box;                                                                                                                             Itemization Threshold Exceeded
        •	The state and, if applicable, Con-                                                                                                                   Two categories of disbursements are subject to
          gressional district; and                                                                                                                             the $200 election cycle threshold for itemization:

        •	The election for which the contribution                                                                                                                       •	Operating Expenditures (Line 17); and
          was made (by checking the appropriate                                                                                                                         •	Other Disbursements (encompassing all
          box—“primary,” “general” or “other”).                                                                                                                           disbursements that do not fit into the other
          It is recommended that the commit-                                                                                                                              categories) (Line 21). 104.3(b)(4)(i) and (vi).
          tee designate any contributions it makes.                                                                                                            A disbursement under these categories
          104.3(b)(3)(v). (See example below.)                                                                                                                              must be itemized if it:
                                                                                                                                                                                          •	Exceeds $200; or
        CONTRIBUTIONS TO OTHER FEDERAL CANDIDATES                                                                                                                                         •	Aggregates over $200 when
                                                                                                                                                                                            added to other disbursements
           SCHEDULE B (FEC Form 3)                                            Use separate schedule(s)
                                                                                                             FOR LINE NUMBER:                     PAGE             OF                       (within the same category)
                                                                                                             (check only one)
           ITEMIZED DISBURSEMENTS                                             for each category of the
                                                                              Detailed Summary Page
                                                                                                                      17
                                                                                                                      20a
                                                                                                                                        18
                                                                                                                                        20b
                                                                                                                                                         19a
                                                                                                                                                         20c        X
                                                                                                                                                                        19b
                                                                                                                                                                        21
                                                                                                                                                                                            made to the same payee
            Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
            or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                                      during an election cycle.
                NAME OF COMMITTEE (In Full)

                 Doe for Congress Committee
                Full Name (Last, First, Middle Initial)
                                                                                                                                                                                     Credit Card Transactions
                Cunningham for Senate
           A.                                                                                                    Date of Disbursement


                Mailing Address                                                                                   03
                                                                                                                  M   M     /

                                                                                                                                    29
                                                                                                                                    D   D     /    Y

                                                                                                                                                       2012
                                                                                                                                                         Y     Y    Y
                                                                                                                                                                      In the case of operating expen-
                77 Center Street
                City
                Houston
                                                                  State
                                                                  TX
                                                                                Zip Code
                                                                                00000
                                                                                                                Amount of Each Disbursement this Period               ditures charged on a credit card,
                                                                                                                                                  2,000.00
                Purpose of Disbursement
                Contribution                                                                      011
                                                                                                                                ,
                                                                                                                                ▲                 ,
                                                                                                                                                  ▲    .
                                                                                                                                                       ▲              a committee must itemize a pay-
                                                                                                                                                                      ment to a credit card company
                Candidate Name
                Richard Cunningham
                                                                                                 Category/
                                                                                                   Type
                Office Sought:             House           Disbursement For:
                                    X     Senate                   Primary       X  General
                                                                                                                                                                      if the payment exceeds the $200
                                          President                Other (specify) ▼
                         TX
                State:              District:
                                                                                                                                                                      aggregate threshold for itemization
                                                                                                                                                                      explained above. The committee
                                                                                                                                                      must also itemize, as a memo entry, any specific
                                                                                                                                                      transaction charged on a credit card if the payment
                                                                                                                                                      to the actual vendor exceeds the $200 threshold.
                                                                                                                                                      The memo entry must also include the name
                                                                                                                                                      and address of the vendor, the purpose of the



100
                                        Completing FEC Reports


disbursement and the amount of
the disbursement. Finally, any credit   CREDIT CARD TRANSACTIONS (SCHEDULE B)
card debt must be reported fol-
lowing the procedures outlined in                                                                                                                                FOR LINE NUMBER:                          PAGE              OF
                                          SCHEDULE B (FEC Form 3)
the next section. 102.9(b)(2) and         ITEMIZED DISBURSEMENTS
                                                                                                                          Use separate schedule(s)
                                                                                                                          for each category of the
                                                                                                                          Detailed Summary Page
                                                                                                                                                                 (check only one)
                                                                                                                                                                           X   17                18                19a               19b


104.9. (See examples on right.)
                                                                                                                                                                               20a               20b               20c               21
                                           Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                           or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.
                                               NAME OF COMMITTEE (In Full)

                                                Doe for Congress Committee
                                               Full Name (Last, First, Middle Initial)



16. reporting                                   Credit Card Company
                                          A.                                                                                                                             Date of Disbursement


                                                                                                                                                                           02                28                    2012
                                                                                                                                                                          M    M     /       D   D     /       Y   Y     Y       Y

                                               Mailing Address
                                                12 Muche Ct.
    Debts Other                                City
                                                Philadelphia
                                                                                                            State
                                                                                                              PA
                                                                                                                              Zip Code
                                                                                                                              00000
                                                                                                                                                                         Amount of Each Disbursement this Period


                                                                                                                                                                                         ,                 1,300.00
                                                                                                                                                                                                           ,    .
    Than Loans
                                               Purpose of Disbursement
                                                Credit Card Payment - see below                                                                       001                                ▲                 ▲    ▲
                                               Candidate Name                                                                                       Category/
                                                                                                                                                      Type
                                               Office Sought:           House                     Disbursement For:
                                                                       Senate                             Primary          General
                                                                       President                          Other (specify) ▼



Schedule D: Continuous
                                               State:            District:
                                               Full Name (Last, First, Middle Initial)

                                                Southeast Airlines
                                                                                                                                                                         Date of Disbursement
                                          B.


Reporting                                                                                                                                                                  01                12                    2012
                                                                                                                                                                          M    M     /       D   D     /       Y   Y     Y       Y
                                               Mailing Address
                                                777 Jetstream Way
                                               City                                                         State             Zip Code
                                                                                                                                                                         Amount of Each Disbursement this Period
                                                Dulles                                                        VA              00000
Debts and obligations must be                  Purpose of Disbursement
                                                Airline Tickets                                                                                       002
                                                                                                                                                                                         ,
                                                                                                                                                                                         ▲                 ,
                                                                                                                                                                                                           ▲       750.00
                                                                                                                                                                                                                      .
                                                                                                                                                                                                                      ▲

reported continuously until repaid.            Candidate Name                                                                                       Category/

                                                                                                                                                                                     MEMO
                                                                                                                                                      Type

104.3(d) and 104.11. Unpaid bills              Office Sought:                House
                                                                            Senate
                                                                                                 Disbursement For:
                                                                                                          Primary          General                                             credit card co.
                                                                                                          Other (specify) ▼
and written contracts or agree-
                                                                            President
                                               State:                 District:
                                               Full Name (Last, First, Middle Initial)
ments to make expenditures                C.                                                                                                                             Date of Disbursement


are considered debts. 100.112.
                                                                                                                                                                          M    M     /   D       D     /    Y      Y     Y   Y
                                               Mailing Address



Debts and obligations (other than
                                               City                                                   State          Zip Code                                            Amount of Each Disbursement this Period

                                               Purpose of Disbursement
                                                                                                                                                                                         ,                 ,                 .
loans—see Section 17 for report-               Candidate Name                                                                                       Category/
                                                                                                                                                                                         ▲                 ▲                 ▲


ing loans, below) are reported on              Office Sought:                House                Disbursement For:
                                                                                                                                                      Type



Lines 9 and 10 of the Summary
                                                                            Senate                        Primary                   General
                                                                            President                     Other (specify)
                                                                                                                                  ▼
                                               State:                 District:
Page and itemized on Schedule D                                                                                                                                                                            1,300.00
                                           SUBTOTAL of Disbursements This Page (optional) ..................................................................                             ,
                                                                                                                                                                                         ▲                 ,
                                                                                                                                                                                                           ▲    .
                                                                                                                                                                                                                ▲
                                                                                                                                                                 ▼



according to the following rules:          TOTAL This Period (last page this line number only) ...............................................................                           ,                 ,1,300.00
                                                                                                                                                                                                                 .
                                                                                                                                                                                         ▲                 ▲     ▲
                                                                                                                                                                 ▼




  •	A debt of $500 or less is                                                                                                                                                  FEC Schedule B (Form 3) (Revised 02/2003)


    reportable once it has been
    outstanding 60 days from
    the date incurred (the date
    of the transaction, not the
    date the bill is received). The     CREDIT CARD TRANSACTIONS (SCHEDULE D)
    debt is disclosed on the next
    regularly scheduled report.                SCHEDULE D (FEC Form 3)                                                                                      (Use separate
                                                                                                                                                              schedule(s)
                                                                                                                                                                                                 PAGE
                                                                                                                                                                                    FOR LINE NUMBER:
                                                                                                                                                                                                                       OF

                                               DEBTS AND OBLIGATIONS                                                                                           for each             (check only one)                         9
                                                                                                                                                                                                                       X 10
  •	A debt exceeding $500 must                 Excluding Loans
                                               NAME OF COMMITTEE (In Full)
                                                                                                                                                            numbered line)



                                                  Doe for Congress Committee
    be reported in the report                     A. Full Name (Last, First, Middle Initial) of Debtor or Creditor                                                   Nature of Debt (Purpose):

    covering the date on which                        Credit Card Company
                                                  Mailing Address
                                                                                                                                                                       Credit card debt
    the debt was incurred.                        City
                                                      12 Muche Ct.
                                                                  State                                            Zip Code
                                                      Philadelphia PA                                               00000
    104.3(d), 104.11 and 116.6(c).                      Outstanding Balance Beginning This Period

                                                                  ,            ,1,200.00
                                                                                     .
The committee must use sepa-                                      ▲            ▲     ▲
                                                              Amount Incurred This Period                                  Payment This Period                        Outstanding Balance at Close of This Period


rate Schedule D forms for debts                                   ,
                                                                  ▲            1,300.00
                                                                               ,
                                                                               ▲    .
                                                                                    ▲                                     ,
                                                                                                                          ▲             ,1,300.00
                                                                                                                                        ▲     .
                                                                                                                                              ▲                                     ,
                                                                                                                                                                                    ▲                1,200.00
                                                                                                                                                                                                     ,
                                                                                                                                                                                                     ▲    .
                                                                                                                                                                                                          ▲

owed by the committee (Line
10) versus debts owed to the
committee (Line 9). Paper filers
must label each schedule accord-
ingly by checking the appropri-


                                                                                                                                                                                                                                           101
                                                                     Chapter 13


      ate box at the top of the form;
      electronic filing programs will           DEBTS OWED BY THE COMMITTEE (SCHEDULE B)
      label the Schedules for you.
                                                                                                                                                             FOR LINE NUMBER:                         PAGE             OF
                                                       SCHEDULE B (FEC Form 3)                                                Use separate schedule(s)       (check only one)

      Exception                                        ITEMIZED DISBURSEMENTS                                                 for each category of the
                                                                                                                              Detailed Summary Page
                                                                                                                                                                    X     17
                                                                                                                                                                          20a
                                                                                                                                                                                            18
                                                                                                                                                                                            20b
                                                                                                                                                                                                             19a
                                                                                                                                                                                                             20c
                                                                                                                                                                                                                            19b
                                                                                                                                                                                                                            21
                                                       Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions

      Regularly recurring administra-                  or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.
                                                            NAME OF COMMITTEE (In Full)

      tive expenses such as rent,                            Doe for Congress Committee
                                                            Full Name (Last, First, Middle Initial)
      utilities and salaries are not                   A.    WCFS-FM
                                                                                                                                                                 Date of Disbursement


                                                                                                                                                                   01                   31                 2012
                                                                                                                                                                   M      M     /       D   D     /    Y     Y     Y    Y


      considered to be debts until                          Mailing Address
                                                             1290 Tower Street
      they are past due. 104.11(b).
                                                            City                                                 State            Zip Code                       Amount of Each Disbursement this Period
                                                             Winchester                                          VA               00000
                                                            Purpose of Disbursement
                                                                                                                                                                                    ,                 2,500.00
                                                                                                                                                                                                      ,    .
                                                             Radio Advertisement                                                                    004                             ▲                 ▲    ▲
                                                            Candidate Name
                                                             Jane Doe
                                                                                                                                                 Category/


      Debts Owed by the
                                                                                                                                                   Type
                                                            Office Sought:               House            Disbursement For:                                        See Schedule D
                                                                                        Senate                    Primary             General



      Committee
                                                                                         President                Other (specify) ▼
                                                            State:                 District:




      The committee reports the
      total of outstanding debts (from
      Schedule D) plus the balance              DEBTS OWED BY THE COMMITTEE (SCHEDULE D)
      of loans owed by the commit-
      tee (from Schedule C) on Line
                                                            SCHEDULE D (FEC Form 3)                                                                      (Use separate
                                                                                                                                                                                                PAGE             OF

      10 of the Summary Page.                               DEBTS AND OBLIGATIONS
                                                                                                                                                           schedule(s)
                                                                                                                                                            for each
                                                                                                                                                                                FOR LINE NUMBER:
                                                                                                                                                                                (check only one)                        9
                                                            Excluding Loans                                                                              numbered line)                                            X 10
                                                            NAME OF COMMITTEE (In Full)

      Itemizing Debts Owed                                     Doe for Congress Committee
                                                                                                                                                              Nature of Debt (Purpose):
                                                               A. Full Name (Last, First, Middle Initial) of Debtor or Creditor


      Schedule D is used to report:                                WCFS-FM
                                                               Mailing Address                                                                                Radio Advertisement;
                                                                   1290 Tower Street                                                                          See Schedule B, Line 17
        •	The outstanding amount owed                          City
                                                                   Winchester
                                                                               State
                                                                                                 VA
                                                                                                                         Zip Code
                                                                                                                         00000
          on a debt or obligation;                                   Outstanding Balance Beginning This Period

                                                                               ,
                                                                               ▲            ,
                                                                                            ▲         0.00
                                                                                                       .
                                                                                                       ▲
        •	Payments made to                                                 Amount Incurred This Period

                                                                                            5,500.00
                                                                                                                              Payment This Period               Outstanding Balance at Close of This Period

                                                                               ,
                                                                               ▲            ,
                                                                                            ▲    .
                                                                                                 ▲                            ,
                                                                                                                              ▲          ,2,500.00
                                                                                                                                         ▲     .
                                                                                                                                               ▲                               ,
                                                                                                                                                                               ▲                 3,000.00
                                                                                                                                                                                                 ,
                                                                                                                                                                                                 ▲    .
                                                                                                                                                                                                      ▲
          reduce the debt;
        •	Complete name and
          address of creditor; and
        •	The nature and purpose of the debt.                                                Special Debt Reporting Problems
      The instructions for Schedule D (available                                             Debts of Unknown Amount
      online at http://www.fec.gov/pdf/forms/fec-
      frm3i.pdf#page=18) explain what additional                                             If the exact amount of a debt is not known, the
      information is required. Note that payments                                            committee reports an estimated amount. The
      to reduce debts must also be reported under                                            committee must either amend the report (and
      the appropriate category of disbursement                                               all subsequent reports) to indicate the correct
      on the Detailed Summary Page (for example,                                             amount, once a correct figure is known, or include
      Line 17 for a payment on a bill for an operat-                                         the correct figure, along with an explanation of
      ing expenditure). (See examples at right.)                                             the change, in the report for the reporting period
                                                                                             during which the amount is determined. 104.11(b).

      Settlement of Debts                                                                    Unpayable Debts
      Special rules apply to debts that are forgiven                                         If a debt cannot be paid because the creditor
      or settled for less than their full amount.                                            has gone out of business or cannot be located,
      See Chapter 14 for more information.                                                   the treasurer may write to the FEC to request
                                                                                             permission to discontinue reporting the debt.
                                                                                             The letter must demonstrate that the debt
                                                                                             is at least two years old and that efforts to


102
                                          Completing FEC Reports


ascertain the current address of the credi-                                    17. reporting Loans
tor and to reach the creditor have been made
by registered or certified letter and either in                                All loans received by a committee must be item-
person or by phone. The committee must con-                                    ized and continuously reported until extinguished.
tinue to report the debt until the Commission                                  104.3(a)(4)(iv) and (d); 104.11. All repayments
determines that the debt is unpayable. 116.9.                                  made on a loan must also be itemized. 104.3(b)
Disputed Debts                                                                 (4)(iii). Procedures for reporting loans and
                                                                               loan repayments are explained below. See also
A disputed debt is a bona fide disagreement                                    “Reporting Contributions, Loans and Advances
between the creditor and the committee as to                                   from Candidate” in Section 6 of this chapter.
the existence of a debt or the amount owed by
the committee. 116.10. If the creditor provided
something of value, notwithstanding the disputed                               Schedule A: Initial Receipt of Loan
amount, then the committee must disclose:                                      A committee must itemize the receipt of a loan,
  •	The amount the committee admits it owes;                                   regardless of amount, on a separate Schedule A
                                                                               for the appropriate loan category (“made/guaran-
  •	The amount the creditor claims is owed; and                                teed by the candidate” or “all other loans”). (See
  •	Any amounts the committee has paid                                         examples of Schedule A below.) 104.3(a)(4)(iv).
    the creditor.
The committee may also note
on the report that disclosure of
                                         BANK LOANS ENDORSED BY CANDIDATE
a disputed debt is not an admis-
sion of liability or a waiver of any                                                                                                       FOR LINE NUMBER:                  PAGE            OF
                                             SCHEDULE A (FEC Form 3)
claims against the creditor. Once            ITEMIZED RECEIPTS
                                                                                                             Use separate schedule(s)
                                                                                                             for each category of the
                                                                                                                                           (check only one)
                                                                                                                                                11a            11b       11c            11d
                                                                                                                                                          X 13a
                                                                                                             Detailed Summary Page

a disputed debt is resolved, the
                                                                                                                                                12                       13b            14        15
                                              Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                              or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

committee should report the cor-                  NAME OF COMMITTEE (In Full)
                                                   Doe for Congress Committee
rect amount on the next report,                   Full Name (Last, First, Middle Initial)
                                                  National Trust Bank
along with a statement explaining            A.                                                                                               Date of Receipt
                                                  Mailing Address
                                                  800 Lincoln Ave.                                                                              03                 01              2012
                                                                                                                                                M     M    /    D    D   /     Y    Y    Y    Y




that the dispute was resolved.                    City
                                                  Reston
                                                                                                 State
                                                                                                 VA
                                                                                                              Zip Code
                                                                                                              00000
                                                  FEC ID number of contributing
                                                  federal political committee.                  C                                             Amount of Each Receipt this Period

                                                                                                                                                                         20,000.00
Debts Owed to the                                 Name of Employer                             Occupation                                                      ,
                                                                                                                                                               ▲          ,
                                                                                                                                                                          ▲    .
                                                                                                                                                                               ▲

                                                  Receipt For:
                                                                                                                                                          (guaranteed)
                                                                                               Election Cycle-to-Date
                                                   X   Primary           General
                                                                                                                        ▼



Committee                                              Other (specify) ▼
                                                                                                         ,
                                                                                                         ▲         20,000.00
                                                                                                                    ,
                                                                                                                    ▲    .
                                                                                                                         ▲



The committee must continuously
report a debt owed to the com-
mittee on Schedule D if the debt exceeds $500 or                               Schedule B: Interest and
has been outstanding 60 days. 104.3(d) and 104.11.                             Principal Payments
Payments received on the debt are also reported
on Schedule D until the debt is retired. The debt                              A committee must report interest paid on a
repayments received must also be reported on                                   loan as an operating expenditure, itemizing the
the appropriate Line number of the Detailed Sum-                               payment on a Schedule B for operating expen-
mary Page and itemized on Schedule A if neces-                                 ditures once interest payments to one payee
sary. On Line 9 of the Form 3 Summary Page, the                                aggregate over $200 in an election cycle.
committee enters the total of outstanding debts                                Payments to reduce principal must be item-
owed to it (from Schedule D), plus the balance of                              ized, regardless of amount, on a Schedule B
outstanding loans owed to it (from Schedule C).                                for the appropriate category of loan repay-
Paper filers must be sure to label the Schedule                                ment (“made/guaranteed by the candidate”
D as “debt owed to the committee” by checking                                  or “all other loans”). 104.3(b)(4)(iii). (See
the box for Line 9 at the top of Schedule D.                                   Schedule B example on page 104.)


                                                                                                                                                                                                       103
                                                                                                                           Chapter 13


                                                                                                                                                                                sible lending institution must
        LOAN PAYMENT                                                                                                                                                            also file Schedule C-1 with the
                                                                                                                                                                                first report due after a new
           SCHEDULE B (FEC Form 3)                                          Use separate schedule(s)
                                                                                                           FOR LINE NUMBER:
                                                                                                           (check only one)
                                                                                                                                                           PAGE                 loan or line of credit has been
                                                                                                                                                                                   OF


                                                                                                                                                             X
           ITEMIZED DISBURSEMENTS
                                                                                                                                                                                established. 104.3(d)(1). A new
                                                                            for each category of the
                                                                                                                      17                       18                      19a                     19b
                                                                            Detailed Summary Page
                                                                                                                      20a                      20b                     20c                     21
            Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
            or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                          Schedule C-1 must also be filed
                NAME OF COMMITTEE (In Full)

                 Doe for Congress Committee
                                                                                                                                                                                with the next report if the terms
           A.
                Full Name (Last, First, Middle Initial)

                National Trust Bank
                                                                                                               Date of Disbursement                                             of the loan or line of credit are
                                                                                                                03                     30                     2012              restructured. Additionally, in the
                                                                                                                M    M         /       D       D       /       Y       Y       Y       Y

                Mailing Address
                800 Lincoln Avenue
                City
                Reston
                                                                  State
                                                                  VA
                                                                               Zip Code
                                                                               00000
                                                                                                              Amount of Each Disbursement this Period
                                                                                                                                                                                case of a committee that has
                                                                                                                                   ,                       ▲ 271.18
                                                                                                                                                           ,     .              obtained a line of credit, a new
                Purpose of Disbursement
                Loan Principal payment                                                          009                                ▲                             ▲
                Candidate Name
                                                                                                                                                                                Schedule C-1 must be filed with
                                                                                               Category/
                                                                                                 Type
                Office Sought:             House           Disbursement For:
                                          Senate
                                          President
                                                                   Primary
                                                                   Other (specify) ▼
                                                                                    General
                                                                                                                                                                                the next report whenever the
                State:              District:
                                                                                                                                                                                committee draws on the line of
                                                                                                                                                                                credit. 104.3(d)(1) and (3). (See
      Schedule C: Continuous Reporting                                                                                                                                          example of Schedule C-1 on
                                                                                                                                                               page 106.) For loans derived from a candidate
      In addition, both the original loan and payments                                                                                                         loan, the reporting on Schedule C-1 is simplified.
      to reduce principal must be reported on Schedule                                                                                                         See the next section for more information.
      C each reporting period (see
      examples) until the loan is repaid.

      Committee Has No Other                                                                           LOANS FROM CANDIDATE’S PERSONAL FUNDS (SCHEDULE A)
      Debts or Obligations
                                                                                                                                                                                                                                                                FOR LINE NUMBER:                      PAGE            OF
                                                                                                               SCHEDULE A (FEC Form 3)                                                                                   Use separate schedule(s)               (check only one)
      If the committee has no other                                                                            ITEMIZED RECEIPTS                                                                                         for each category of the
                                                                                                                                                                                                                         Detailed Summary Page
                                                                                                                                                                                                                                                                     11a
                                                                                                                                                                                                                                                                     12        X 13a
                                                                                                                                                                                                                                                                                        11b       11c
                                                                                                                                                                                                                                                                                                  13b
                                                                                                                                                                                                                                                                                                                 11d
                                                                                                                                                                                                                                                                                                                 14             15

      debts, the Schedule C balance of                                                                         Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                                                                               or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.


      the total amount owed on loans is                                                                             NAME OF COMMITTEE (In Full)
                                                                                                                     Doe for Congress Committee
      entered on Line 10 of the Form 3                                                                              Full Name (Last, First, Middle Initial)
                                                                                                                    Doe, Jane                                                          (personal funds)
                                                                                                               A.                                                                                                                                                  Date of Receipt

      Summary Page (“Debts and Obli-                                                                                Mailing Address
                                                                                                                    626 Pritham Ave.
                                                                                                                                                                                                                                                                    M
                                                                                                                                                                                                                                                                     02
                                                                                                                                                                                                                                                                           M       /     D
                                                                                                                                                                                                                                                                                           10
                                                                                                                                                                                                                                                                                              D   /     Y
                                                                                                                                                                                                                                                                                                            2012
                                                                                                                                                                                                                                                                                                             Y    Y     Y



                                                                                                                    City                                                                                 State               Zip Code
      gations Owed by the Committee”).                                                                              Springfield                                                                           VA                  00000
                                                                                                                    FEC ID number of contributing
                                                                                                                    federal political committee.                                                         C                                                         Amount of Each Receipt this Period

                                                                                                                                                                                                                                                                                                      1,000.00
      Committee Has Other Debts or                                                                                  Name of Employer
                                                                                                                    U.S. House
                                                                                                                                                                                                     Occupation
                                                                                                                                                                                                         U.S. Representative
                                                                                                                                                                                                                                                                                       ,
                                                                                                                                                                                                                                                                                       ▲              ,
                                                                                                                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                                                                                                                           ▲

      Obligations (Reported on Schedule D)                                                                          Receipt For:
                                                                                                                     X   Primary           General
                                                                                                                                                                                                     Election Cycle-to-Date
                                                                                                                                                                                                                                      ▼
                                                                                                                                                                                                                                                                           Personal funds
                                                                                                                         Other (specify) ▼
                                                                                                                                                                                                                     ,
                                                                                                                                                                                                                     ▲                2,200.00
                                                                                                                                                                                                                                      ,
                                                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                                                           ▲
      If the committee has other debts
      or obligations that are reported
      on Schedule D, the total amount
      owed on loans is entered on Line
      3 at the bottom of Schedule C
                                                                                                       LOANS FROM CANDIDATE’S PERSONAL FUNDS (SCHEDULE C)
      and is carried over to the last
                                                                                                                                                                                                                                                                                                     PAGE              OF
      page of Schedule D along with                                                                           SCHEDULE C (FEC Form 3)                                                                                                             Use separate schedule(s)
                                                                                                                                                                                                                                                  for each category of the
                                                                                                                                                                                                                                                                                        FOR LINE NUMBER:
                                                                                                                                                                                                                                                                                                                       X
                                                                                                              LOANS                                                                                                                                                                     (check only one)                    13a

      the other debts and obligations.
                                                                                                                                                                                                                                                  Detailed Summary Page
                                                                                                                                                                                                                                                                                                                            13b

                                                                                                               NAME OF COMMITTEE (In Full)

      The total from Schedule D is then                                                                              Doe for Congress Committee
                                                                                                                    LOAN SOURCE Full Name (Last, First, Middle Initial)                                                                                                    Election:
      entered on Line 10 of the Form                                                                                Jane Doe – personal funds                                                                                                                                  X       Primary
                                                                                                                                                                                                                                                                                       General

      3 Summary Page reflecting all                                                                                 Mailing Address
                                                                                                                    626 Pritham Ave.
                                                                                                                                                                                                                                                                                       Other (specify) ▼



      outstanding debts or obligations.                                                                             City
                                                                                                                    Springfield
                                                                                                                                                                                                     State
                                                                                                                                                                                                          VA
                                                                                                                                                                                                                                 ZIP Code
                                                                                                                                                                                                                                 00000

      Schedule C-1: Additional Information                                                                            Original Amount of Loan                                                            Cumulative Payment To Date                                Balance Outstanding at Close of This Period


                                                                                                                                               ,                       1,000.00
                                                                                                                                                                       ,    .                                            ,                ,           0.00
                                                                                                                                                                                                                                                       .                               ,              ,1,000.00
                                                                                                                                                                                                                                                                                                            .
      for Loans from Lending Institutions                                                                           TERMS
                                                                                                                                               ▲                       ▲    ▲                                            ▲                ▲            ▲                               ▲              ▲     ▲

                                                                                                                                                       Date Incurred                                                         Date Due                      Interest Rate                                    Secured:


      A committee that obtains a loan                                                                                      03                      23                          2012                                                       none                   none
                                                                                                                                                                                                                                                                   .                                                        X
                                                                                                                           M       M       /       D       D       /       Y       Y       Y    Y    M    M      /   D       D    /   Y       Y   Y   Y

                                                                                                                                                                                                                                                                   ▲                       % (apr)
                                                                                                                                                                                                                                                                                                                 Yes            No

      from a bank or other permis-


104
                                                                                                  Completing FEC Reports


                                                                                                                                                                                                   Line-by-line instructions for fill-
CANDIDATE HOME EQUITY LINE OF CREDIT (SCHEDULE A)                                                                                                                                                  ing out the schedule appear in
                                                                                                                                                                                                   the Form 3 instruction booklet.
   SCHEDULE A (FEC Form 3)                                             Use separate schedule(s)
                                                                                                      FOR LINE NUMBER:
                                                                                                      (check only one)
                                                                                                                                                      PAGE                      OF
                                                                                                                                                                                                   The committee treasurer or
                                                                                                                                                                                                   designated assistant treasurer
                                                                       for each category of the
   ITEMIZED RECEIPTS                                                                                      11a                    11b              11c                      11d
                                                                                                                     X 13a
                                                                       Detailed Summary Page
                                                                                                          12                                      13b                      14                15


                                                                                                                                                                                                   must sign the schedule on Line
   Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
   or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

        NAME OF COMMITTEE (In Full)
         Doe for Congress Committee                                                                                                                                                                G and attach a copy of the
                                                                                                                                                                                                   loan agreement. 104.3(d)(2).
        Full Name (Last, First, Middle Initial)

   A.   Doe, Jane                                                                                        Date of Receipt
        Mailing Address
        626 Pritham Ave.                                                                                  03                      15                           2012
                                                                                                          M     M        /        D      D        /        Y       Y        Y        Y



        City
        Springfield
                                                           State
                                                           VA
                                                                        Zip Code
                                                                        00000
                                                                                                                                                                                                   Finally, an authorized representa-
        FEC ID number of contributing
        federal political committee.                     C                                               Amount of Each Receipt this Period                                                        tive of the lending institution must
        Name of Employer                                Occupation                                                           ,
                                                                                                                             ▲                    50,000.00
                                                                                                                                                   ,
                                                                                                                                                   ▲    .
                                                                                                                                                        ▲                                          sign the statement on Line I.
        U.S. House                                         U.S. Representative
        Receipt For:                                    Election Cycle-to-Date                                    home equity
         X   Primary           General
                                                                                 ▼
                                                                                                                line of credit
             Other (specify) ▼                                     ,
                                                                   ▲          60,000.00
                                                                               ,
                                                                               ▲    .
                                                                                    ▲


                                                                                                                                                                                                   18. reporting Bank
                                                                                                                                                                                                       Loans, Brokerage
CANDIDATE HOME EQUITY LINE OF CREDIT PRINCIPAL PAYMENT                                                                                                                                                 Loans and Other
                                                                                                                                                                                                       Lines of Credit
                                                                                                                                                                                                       When Made to
                                                                                                     FOR LINE NUMBER:                                     PAGE                      OF
   SCHEDULE B (FEC Form 3)                                            Use separate schedule(s)       (check only one)
   ITEMIZED DISBURSEMENTS                                             for each category of the
                                                                      Detailed Summary Page
                                                                                                                    17                       18                X       19a                   19b
                                                                                                                    20a                      20b                       20c                   21
    Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
    or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.
        NAME OF COMMITTEE (In Full)
                                                                                                                                                                                                       Candidates
         Doe for Congress Committee
   A.
        Full Name (Last, First, Middle Initial)

        National Trust Bank
                                                                                                         Date of Disbursement                                                                      Bank loans to candidates and loans
                                                                                                           03                         30                           2012                            derived from advances on a candi-
                                                                                                           M    M            /       D   D            /        Y       Y        Y        Y

        Mailing Address
        800 Lincoln Avenue
        City
        Reston
                                                           State
                                                           VA
                                                                         Zip Code
                                                                         00000
                                                                                                         Amount of Each Disbursement this Period
                                                                                                                                                                                                   date’s brokerage accounts, credit
        Purpose of Disbursement                                                                                                  ,                        5,000.00
                                                                                                                                                          ,    .
         Line of Credit Payment (Candidate Loan)
        Candidate Name
                                                                                                                                 ▲                        ▲    ▲
                                                                                                                                                                                                   cards, home equity line of credit,
         Jane Doe
                                                                                         Category/

        Office Sought:        X   House            Disbursement For:
                                                                                           Type
                                                                                                                                                                                                   or other lines of credit obtained
                                                       X
                                 Senate
                                  President
                                                           Primary
                                                            Other (specify) ▼
                                                                             General
                                                                                                                                                                                                   for use in connection with his or
        State:   VA         District: 12
                                                                                                                                                                                                   her campaign must be reported
                                                                                                                                                                                                   by the committee. 100.83. The
                                                                                                                                                                                                   committee must report the loan
CANDIDATE HOME EQUITY LINE OF CREDIT INTEREST PAYMENT                                                                                                                                              from the candidate as a receipt
                                                                                                                                                                                                   and repayment of the loan to
   SCHEDULE B (FEC Form 3)                                                                           FOR LINE NUMBER:                                     PAGE                      OF             the candidate as a disbursement.
                                                                      Use separate schedule(s)       (check only one)
   ITEMIZED DISBURSEMENTS                                             for each category of the
                                                                      Detailed Summary Page
                                                                                                           X    17
                                                                                                                20a
                                                                                                                                         18
                                                                                                                                         20b
                                                                                                                                                                   19a
                                                                                                                                                                   20c
                                                                                                                                                                                             19b
                                                                                                                                                                                             21
                                                                                                                                                                                                   104.3(a)(3)(vii)(B) and (b)(2)(iii)(A).
    Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions


                                                                                                                                                                                                   Schedule A
    or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.
        NAME OF COMMITTEE (In Full)

         Doe for Congress Committee
        Full Name (Last, First, Middle Initial)                                                                                                                                                    The candidate may choose either
        National Trust Bank
   A.                                                                                                    Date of Disbursement


        Mailing Address                                                                                   03
                                                                                                          M     M        /

                                                                                                                                  30
                                                                                                                                  D      D        /        Y

                                                                                                                                                               2012
                                                                                                                                                                   Y        Y        Y
                                                                                                                                                                                                   to loan or to contribute the loan
        800 Lincoln Avenue
        City
        Reston
                                                           State
                                                           VA
                                                                        Zip Code
                                                                        00000
                                                                                                        Amount of Each Disbursement this Period                                                    proceeds to the authorized com-
        Purpose of Disbursement
                                                                                                                             ,                        ,            350.00
                                                                                                                                                                      .                            mittee. If the candidate treats the
        Interest payment on candidate loan                                                                                   ▲                        ▲               ▲

                                                                                                                                                                                                   funds as a personal contribution,
        Candidate Name
        Jane Doe
                                                                                         Category/
                                                                                           Type
        Office Sought:        X   House            Disbursement For:
                                 Senate
                                  President
                                                       X    Primary
                                                            Other (specify) ▼
                                                                             General
                                                                                                                                                                                                   the receipt of the contribution
                 VA                   12
        State:              District:
                                                                                                                                                                                                   from the candidate must be
                                                                                                                                                                                                   reported on Schedule A for Line
                                                                                                                                                                                                   11(d). If the candidate treats the
                                                                                                                                                                                                   funds as a loan, the receipt of the
                                                                                                                                                                                                   loan must be reported on Schedule
                                                                                                                                                                                                   A for Line 13(a). (See example on


                                                                                                                                                                                                                                             105
                                                                                                                              Chapter 13


                                                                                                                                                                             T
                                                                                                                                                                            •	 he types and value of collateral
        CANDIDATE HOME EQUITY LINE OF CREDIT (SCHEDULE C)                                                                                                                   or other sources of repayment
                                                                                                                                                                            that secure the loan, advance
            SCHEDULE C (FEC Form 3)
                                                                                                                                            PAGE         OF                 or line of credit. 104.3(d)(1).
                                                                                                 Use separate schedule(s)      FOR LINE NUMBER:
            LOANS                                                                                for each category of the                                   X
                                                                                    Unlike loans to committees, when
                                                                                                                               (check only one)                 13a
                                                                                                 Detailed Summary Page
                                                                                                                                                                13b

            NAME OF COMMITTEE (In Full)

                Doe for Congress Committee                                          reporting bank loans obtained by
                                                                                    the candidate or loans derived
               LOAN SOURCE Full Name (Last, First, Middle Initial)                                                        Election:

               Jane Doe – Home equity line of credit        X                                                                 Primary
                                                                                                                              General
               Mailing Address
               626 Pritham Ave.
                                                                                    from the candidate’s broker-              Other (specify) ▼


               City
               Springfield             VA    00000
                                                               State
                                                                                    age account, credit card, home
                                                                                    ZIP Code



                 Original Amount of Loan                                            equity line of credit or other
                                                                   Cumulative Payment To Date                     Balance Outstanding at Close of This Period


                     ,
                     ▲
                          50,000.00
                           ,
                           ▲    .
                                ▲         ,
                                          ▲    ▲
                                                5,000.00
                                                ,    .
                                                     ▲        ,
                                                              ▲
                                                                45,000.00
                                                                 ,
                                                                 ▲    .
                                                                      ▲             line of credit, the committee is
                                                                                    not required to submit the loan
               TERMS
                                   Date Incurred                                Date Due                  Interest Rate                            Secured:

                 03    15    2012   01   31     2014     6.00 %
                                                          .        X
                  M    M   /   D     D   /   Y     Y   Y   Y   M    M   /   D   D    /   Y   Y   Y   Y

                                                          ▲
                                                                                    agreement to the Commission.                    (apr)
                                                                                                                                                      Yes        No



                                                                                    Note, however, that Schedule
                                                                                    C-1 must still be filed when the
      page 106.) If the funds are designated as a contribu-          candidate obtains a loan and then contributes
      tion, then the committee cannot repay the underly-             the proceeds to the committee. 104.3(d)(4).
      ing loan to the financial institution. AO 2006-37.
                                                                                                                                                        Keeping Records
      Schedule B
                                                                                                                                                        The committee must retain records relat-
      If the funds are designated as a loan, the com-                                                                                                   ing to the loan for three years after the date
      mittee’s repayment to the lending institution                                                                                                     of the election in which the candidate ran.
      or the candidate is reported as an itemized                                                                                                       Additionally, the candidate must preserve the
      entry on Schedule B. The committee is not                                                                                                         following records for three years after the elec-
      required to report repayments by the can-                                                                                                         tion for which he or she was a candidate:
      didate to the lending institution. 104.3(b)(4).
      The loan must also be continually reported on                                                                                                             •	Records to demonstrate the ownership of
      Schedule C or C-P until it is extinguished.                                                                                                                 the accounts or assets securing the loans;
                                                                                                                                                                •	Copies of the executed loan agreements
      Schedule C                                                                                                                                                  and all security and guarantee statements;
      The committee need only list the candidate as                                                                                                             •	Statements of account for all accounts
      the source of the loan on Schedule C. However,                                                                                                              used to secure any loan for the period
      the type of loan the candidate receives (i.e.                                                                                                               the loan is outstanding such as broker-
      bank loan, brokerage account, credit card, home                                                                                                             age accounts or credit card accounts and
      equity line of credit, other line of credit) must                                                                                                           statements on any line of credit that was
      also be disclosed in either the first box for                                                                                                               used for the purpose of influencing the
      endorsers and guarantors with a notation for                                                                                                                candidate’s election for federal office;
      loan type or in the box for “Loan Source” after
      the candidate’s name. (See example above.)                                                                                                                •	Documentation to establish the
                                                                                                                                                                  source of the funds in the account
      Schedule C-1                                                                                                                                                and the time of the loan; and
      The committee must disclose, in the report                                                                                                                •	Documentation for all payments made on the
      covering the period when the loan was                                                                                                                       loan by any person. 104.14(b)(3) and (4).
      obtained, the following information on
      Schedule C-1 (see example opposite):
        •	The date, amount, and interest rate of
          the loan, advance or line of credit;
        •	The name and address of the
          lending institution; and


106
                                                                                                       Completing FEC Reports



CANDIDATE HOME EQUITY LINE OF CREDIT (SCHEDULE C-1)                                                                                                                             19.      reporting
                                                                                                                                                                                         refunds, returns
  SCHEDULE C-1 (FEC Form 3)                                                                                                             Supplementary for
                                                                                                                                                                                         and Bounced
  LOANS AND LINES OF CREDIT FROM LENDING INSTITUTIONS
  Federal Election Commission, Washington, D.C. 20463
                                                                                                                                        Information found on
                                                                                                                                        Page              of Schedule C                  Checks
  NAME OF COMMITTEE (In Full)                                                                                              FEC IDENTIFICATION NUMBER

   Doe for Congress Committee                                                                                              C                     00033000
  LENDING INSTITUTION (LENDER)
  Full Name
                                                                              Amount of Loan


                                                                                        ,           50,000.00
                                                                                                     ,    .
                                                                                                                                         Interest Rate (APR)

                                                                                                                                                         6.00
                                                                                                                                                          .            %
                                                                                                                                                                               Refunds v. Returns
   National Trust Bank                                                                  ▲            ▲    ▲                                               ▲
  Mailing Address
                                                                               Date Incurred or Established           03
                                                                                                                      M    M        /

                                                                                                                                        15
                                                                                                                                        D    D       /    Y

                                                                                                                                                              2012
                                                                                                                                                               Y   Y   Y       A refund occurs when the com-
  800 Lincoln Avenue
  City                                           State       Zip Code          Date Due                               01
                                                                                                                      M    M        /

                                                                                                                                        31
                                                                                                                                        D    D       /    Y

                                                                                                                                                              2014
                                                                                                                                                               Y   Y   Y
                                                                                                                                                                               mittee has actually deposited a
  Reston                                         VA 00000
                                                                                                                                                                               contribution in its bank depository
                                                  X
                                                                                                                       M    M       /    D   D       /    Y    Y   Y   Y

      A. Has loan been restructured?                     No             Yes    If yes, date originally incurred

      B. If line of credit,                                                                  Total
                                                                                                                                                                               and then pays it back to the con-
           Amount of this Draw:                          ,
                                                         ▲               ,
                                                                         ▲    0.00
                                                                               .
                                                                               ▲
                                                                                             Outstanding
                                                                                             Balance:                           ,
                                                                                                                                ▲                ,
                                                                                                                                                 ▲            0.00
                                                                                                                                                               .
                                                                                                                                                               ▲               tributor by issuing a check. When a
                                                                                                                                                                               committee refunds a contribution
      C. Are other parties secondarily liable for the debt incurred?
            XNo          Yes    (Endorsers and guarantors must be reported on Schedule C.)
                                                                                                              What is the value of this collateral?
                                                                                                                                                                               to a donor, the committee must
      D. Are any of the following pledged as collateral for the loan: real estate, personal
         property, goods, negotiable instruments, certificates of deposit, chattel papers,
         stocks, accounts receivable, cash on deposit, or other similar traditional collateral?                                 ,
                                                                                                                                ▲        250,000.00
                                                                                                                                           ,
                                                                                                                                           ▲    .
                                                                                                                                                ▲
                No        X   Yes       If yes, specify:           real estate                                                                                                 include the refund in the total
                                                                                                              Does the lender have a perfected security

      E. Are any future contributions or future receipts of interest income, pledged as
                                                                                                              interest in it?   No         Yes
                                                                                                                                                                               for the appropriate category of
         collateral for the loan?     No X        Yes If yes, specify:
                                                                                                                  What is the estimated value?

                                                                                                                                ,
                                                                                                                                ▲                ,
                                                                                                                                                 ▲            0.00
                                                                                                                                                               .
                                                                                                                                                               ▲               refund on the Detailed Summary
           A depository account must be established pursuant
           to 11 CFR 100.82(e)(2) and 100.142(e)(2).
                                                                                Location of account:
                                                                                                                                                                               Page (Lines 20(a), (b) or (c)). If the
                     Date account established:
                      M   M   /     D   D    /     Y     Y     Y    Y
                                                                                Address:
                                                                                                                                                                               committee previously itemized the
                                                                                City, State, Zip:

      F. If neither of the types of collateral described above was pledged for this loan, or if the amount pledged does not equal or                                           incoming contribution on Schedule
         exceed the loan amount, state the basis upon which this loan was made and the basis on which it assures repayment.
                                                                                                                                                                               A, then it must itemize the refund
      G. COMMITTEE TREASURER
                              Gottlob Frege
                                                                                                                     DATE
                                                                                                                                                                               on a Schedule B for the appropri-
      H.
         Typed Name
         Signature
                                  Gottlob Frege
           Attach a signed copy of the loan agreement.
                                                                                                                      M

                                                                                                                       03
                                                                                                                            M       /   D

                                                                                                                                         15
                                                                                                                                             D       /    Y

                                                                                                                                                              2012
                                                                                                                                                               Y   Y   Y



                                                                                                                                                                               ate category of refund. 104.8(d)
                                                                                                                                                                               (4). (See example on page 108.)
                                                                                                                                                                             Alternatively, a committee may
                                                                                                                                                                             return a contribution to the
                                                                                                                                                              donor without depositing it, although the return
                                                                                                                                                              must be made within 10 days of the treasurer’s
                                                                                                                                                              receipt of the contribution. 103.3(a). In this case,
                                                                                                                                                              the committee does not have to report either
                                                                                                                                                              the receipt or the return of the contribution.

                                                                                                                                                              Checks Returned Due to
                                                                                                                                                              Insufficient Funds
                                                                                                                                                              If a committee reports the receipt of a check
                                                                                                                                                              and later finds it cannot be negotiated because
                                                                                                                                                              of insufficient funds in the donor’s account,
                                                                                                                                                              the committee should deduct the amount
                                                                                                                                                              of the check in its next report as follows:
                                                                                                                                                                   •	If the committee did not itemize the receipt
                                                                                                                                                                     on a previous report, it subtracts the amount
                                                                                                                                                                     of the check from the total for the appropri-
                                                                                                                                                                     ate category of receipts. The reduced total
                                                                                                                                                                     is entered on the Detailed Summary Page.
                                                                                                                                                                   •	If the committee previously itemized the
                                                                                                                                                                     receipt, it itemizes the return of the check as


                                                                                                                                                                                                                        107
                                                                                                                                Chapter 13


                                                                                                                                                                                         a negative entry on the appropriate
      REFUNDED CONTRIBUTIONS (SCHEDULE A)                                                                                                                                                Schedule A. (See example on left.)

                                                                                                            FOR LINE NUMBER:                              PAGE                OF
                                                                                                                                                                                         Checks received and returned by
        SCHEDULE A (FEC Form 3)
        ITEMIZED RECEIPTS
                                                                              Use separate schedule(s)
                                                                              for each category of the
                                                                              Detailed Summary Page
                                                                                                            (check only one)
                                                                                                                11a                 11b         X 11c                11d
                                                                                                                                                                                         the bank in the same reporting
                                                                                                                                                                                         period do not need to be reported.
                                                                                                                12                  13a               13b            14            15
         Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
         or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

             NAME OF COMMITTEE (In Full)
              Doe for Congress Committee
             Full Name (Last, First, Middle Initial)
             Very Controversial PAC
                                                                                                                                                                                         20.       reporting
        A.                                                                                                     Date of Receipt
             Mailing Address
             879 Peabody Street                                                                                  03                      19                     2012
                                                                                                                M     M         /       D   D         /     Y    Y        Y    Y



             City                                               State          Zip Code
             Washington
             FEC ID number of contributing
             federal political committee.
                                                                DC
                                                                C
                                                                               00000
                                                                                                               Amount of Each Receipt this Period
                                                                                                                                                                                                   Transfers
             Name of Employer                                Occupation

                                                                                                                    Refunded 3/30/12
                                                                                                                                    ,
                                                                                                                                    ▲                     5,000.00
                                                                                                                                                          ,
                                                                                                                                                          ▲    .
                                                                                                                                                               ▲
                                                                                                                                                                                                   Between
                                                                                                                                                                                                   Authorized
             Receipt For:
                                                                                                                     See Schedule B,
                                                              Election Cycle-to-Date
               X  Primary           General
                                                                                       ▼

                  Other (specify) ▼                                       ,
                                                                          ▲            5,000.00
                                                                                       ,
                                                                                       ▲    .
                                                                                            ▲                           Line 20(c)

                                                                                                                                                                                                   Committees
                                                                                                                                                                                         As explained in Chapter 9, autho-
                                                                                                                                                                                         rized committees may make and
      REFUNDED CONTRIBUTIONS (SCHEDULE B)                                                                                                                                                receive transfers to and from
                                                                                                                                                                                         other federal authorized com-
        SCHEDULE B (FEC Form 3)                                           Use separate schedule(s)
                                                                                                           FOR LINE NUMBER:
                                                                                                           (check only one)
                                                                                                                                                          PAGE                OF
                                                                                                                                                                                         mittees of the same candidate.
        ITEMIZED DISBURSEMENTS                                            for each category of the
                                                                                                                      17                    18                   19a               19b
                                                                          Detailed Summary Page
                                                                                                                      20a                   20b
        Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                                                                                                                               X 20c               21
                                                                                                                                                                                         The following sections explain the
        or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.
             NAME OF COMMITTEE (In Full)
                                                                                                                                                                                         rules for reporting the permissible
              Doe for Congress Committee
             Full Name (Last, First, Middle Initial)
                                                                                                                                                                                         transfers discussed in Chapter 9.
             Very Controversial PAC
        A.                                                                                                     Date of Disbursement


                                                                                                                03                      30                      2012
                                                                                                                M    M      /           D   D     /         Y    Y     Y       Y




                                                                                                                                                                                         Transfers Between
             Mailing Address
             879 Peabody Street
             City                                               State          Zip Code                       Amount of Each Disbursement this Period
             Washington                                         DC             00000
             Purpose of Disbursement
             Refund of 3/19/12 contribution                                                      001
                                                                                                                                    ,
                                                                                                                                    ▲                     5,000.00
                                                                                                                                                          ,
                                                                                                                                                          ▲    .
                                                                                                                                                               ▲
                                                                                                                                                                                         Candidate’s Committees
                                                                                                                                                                                         for the Same Office
             Candidate Name
             Jane Doe
                                                                                               Category/

                                                       Disbursement For:
                                                                                                 Type
                                                                                                               See Schedule A,
             Office Sought:              House
                                        Senate              X   Primary          General                       Line 11(c)
                                        President               Other (specify) ▼


                                                                                                                                                                                         In the Same Election Cycle
             State:               District:




                                                                                                                                                                                         Transfers between a candidate’s
                                                                                                                                                                                         authorized committees for the
                                                                                                                                                                                         same election are reported by the
      CHECKS RETURNED DUE TO INSUFFICIENT FUNDS
                                                                                                                                                                                         transferring committee on Line 18
                                                                                                            FOR LINE NUMBER:                          PAGE                OF
                                                                                                                                                                                         of the Form 3 Detailed Summary
        SCHEDULE A (FEC Form 3)
        ITEMIZED RECEIPTS
                                                                            Use separate schedule(s)
                                                                            for each category of the
                                                                            Detailed Summary Page
                                                                                                            (check only one)
                                                                                                             X 11a                  11b          11c                 11d
                                                                                                                                                                                         Page, and by the committee receiv-
                                                                                                                                                                                         ing the transfer on Line 12 of the
                                                                                                                12                  13a           13b                14            15
         Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
         or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

             NAME OF COMMITTEE (In Full)                                                                                                                                                 Form 3 Detailed Summary Page.
              Doe for Congress Committee
             Full Name (Last, First, Middle Initial)                                                                                                                                     104.3(a)(3)(vi) and (b)(2)(ii). The
        A.   Light, Jack
                                                                                                                                                                                         receiving committee does not need
                                                                                                              Date of Receipt
             Mailing Address
             421 Overdraw Street                                                                                03                      01                      2012
                                                                                                                M    M      /        D      D     /        Y     Y    Y        Y



             City
             Falls Church
                                                                State
                                                                VA
                                                                               Zip Code
                                                                               00000                                                                                                     to reitemize the sources of the
             FEC ID number of contributing
             federal political committee.                       C                                             Amount of Each Receipt this Period
                                                                                                                                                                                         funds transferred (e.g., contributions
                                                                                                                                ,                     ▲ -300.00
                                                                                                                                                      ,     .
             Name of Employer
             None
                                                             Occupation
                                                                Graduate Student
                                                                                                                                ▲                           ▲
                                                                                                                                                                                         that comprise the transfer) because
                                                                                                                                                                                         the transferring committee has
             Receipt For:
                                                                                                                         Bounced check
                                                             Election Cycle-to-Date
               X  Primary                 General
                                                                                       ▼

                      Other (specify) ▼
                                                                        ,
                                                                        ▲             ,
                                                                                      ▲        0.00
                                                                                                .
                                                                                                ▲
                                                                                                                                                                                         already itemized them in its report
                                                                                                                                                                                         to the principal campaign commit-
                                                                                                                                                                                         tee, which is attached to the prin-




108
                                                                                                Completing FEC Reports



  TRANSFERS BETWEEN CANDIDATE’S COMMITTEES, SAME OFFICE                                                                                                          transfer on Schedule A, regardless
                                                                                                                                                                 of amount. 104.3(a)(4)(iii)(A). (See
      SCHEDULE A (FEC Form 3)
                                                                                                   FOR LINE NUMBER:                 PAGE            OF           Chapter 9 for information on when
                                                                     Use separate schedule(s)      (check only one)
      ITEMIZED RECEIPTS                                              for each category of the
                                                                     Detailed Summary Page
                                                                                                        11a
                                                                                                     X 12
                                                                                                                      11b
                                                                                                                      13a
                                                                                                                                11c
                                                                                                                                13b
                                                                                                                                               11d
                                                                                                                                               14        15
                                                                                                                                                                 such transfers are permissible.) In
      Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
      or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.                 addition, as discussed in Chapter
           NAME OF COMMITTEE (In Full)
            Doe for Congress Committee                                                                                                                           9, the receiving committee must
      A.
           Full Name (Last, First, Middle Initial)
           Friends of Jane Doe                                                                        Date of Receipt
                                                                                                                                                                 aggregate the contributions that
           Mailing Address
           147 Felicity Circle
           City                                          State        Zip Code
                                                                                                        M     M   /    D    D   /     Y    Y    Y    Y
                                                                                                                                                                 make up the transfer with any other
           Fairfax                                       VA           00000                                                                                      contributions it receives from the
           FEC ID number of contributing
                                                        C             00000002
                                                                                                                                                                 same contributor. 110.3(c)(5).
                                                                                                      Amount of Each Receipt this Period
           federal political committee.

           Name of Employer                            Occupation                                                     ,
                                                                                                                      ▲             3,000.00
                                                                                                                                    ,
                                                                                                                                    ▲    .
                                                                                                                                         ▲

           Receipt For:
            X   Primary               General
                                                       Election Cycle-to-Date
                                                                                ▼
                                                                                                                                                                If the aggregate contributions
                  Other (specify) ▼                              ,
                                                                 ▲              3,000.00
                                                                                ,
                                                                                ▲    .
                                                                                     ▲                                                                          from one contributor exceed
                                                                                                                                                                $200 in the election cycle, the
                                                                                                                                                                receiving committee must item-
cipal campaign committee’s consolidated report                                                                                                                  ize the contributions as memo
(Form 3Z). 110.3(c). (See example opposite.)                                                                                                     entries on a Schedule A. The recipient committee
                                                                                                                                                 must also report the total transfer on Line 12
In Different Election Cycles                                                                                                                     of the Form 3 Detailed Summary Page and must
The receiving committee also does not have to                                                                                                    itemize the source of the transfer on Schedule
itemize contributions transferred between commit-                                                                                                A, regardless of amount. See AO 1984-38.
tees authorized by one candidate for two different                                                                                               The committee making the transfer must report
election cycles as long as the original contributions                                                                                            the transfer on Line 18 of the Form 3 Detailed
count against the limits for the election for which                                                                                              Summary Page and must itemize the disbursement
the contributions were intended. 110.3(c)(4).                                                                                                    on Schedule B, regardless of amount. 104.3(b)(4)(ii).
Example: A 2010 House candidate has a surplus
from that campaign. The candidate may roll over                                                                                                  Transfers of Joint Fundraising Receipts
that amount to his or her committee for reelection                                                                                               For information on reporting trans-
in 2012 without again itemizing the contribu-                                                                                                    fers of joint fundraising receipts, see
tions that make up the transfer, provided that:                                                                                                  Appendix C, “Joint Fundraising.”
  •	He or she did not become a candi-
    date for the 2012 election before
    the 2010 general election; and                                                                                                               21. reporting Investments
  •	The surplus transferred from the 2010
    committee consists of contributions that                                                                                                     A committee that has invested its funds—for
    count against the 2010 limits rather than                                                                                                    example, in a savings account, money market fund
    the 2012 limits (i.e., were designated for or                                                                                                or certificate of deposit—must include the total
    made prior to the 2010 general election).                                                                                                    amount invested in its cash on hand (Line 27 of
                                                                                                                                                 the Form 3 Detailed Summary Page). It should
Transfers Between Candidate’s                                                                                                                    not report any investment as a disbursement,
                                                                                                                                                 since the money has not actually been spent, but,
Committees for Multiple Offices                                                                                                                  instead, is still a committee asset. 104.3(a)(1).
A candidate’s authorized committee for one
office (e.g., a Senate campaign) receiving a transfer
from that candidate’s authorized committee for
another office (e.g., a House campaign) must
report the total transfer on Line 12 of the Form
3 Detailed Summary Page and must itemize the


                                                                                                                                                                                                         109
                                                        Chapter 13



      Reporting Additional Depository                          22. Completing the report
      Funds Invested with Banks                                As noted previously, paper filers should complete
      If a committee invests the funds in a bank that          the itemization schedules first so that they may
      was not previously identified as a campaign              accurately complete the Summary Page and the
      depository on the Statement of Organiza-                 Detailed Summary Page. After completing the
      tion (FEC Form 1), the committee must file an            schedules, transfer their totals, plus other relevant
      amended Statement of Organization disclosing             totals derived from the committee’s records, to
      the name and address of the new deposi-                  the Detailed Summary Page. Calculations from the
      tory. The amendment must be filed within 10              Detailed Summary Page and from Schedules C
      days of making the investment. 102.2(a)(2).              and D are then transferred to the Summary Page.
                                                               Paper filers should refer to the next two sections
      Funds Invested with Other Establishments                 for detailed information. Note that electronic filing
      If committee funds are invested in a fund that is        software completes these tasks automatically.
      not operated by a bank (such as a money market
      fund operated by a brokerage firm), no amend-
      ment to the Statement of Organization is required.       23. The Detailed
      Before using the funds (principal or interest) to
      make expenditures, the committee must first                  Summary Page
      transfer them to a designated campaign checking
      account. 103.3(a). See, for example, AO 1986-18.         The Detailed Summary Page lists the totals for
                                                               various categories of receipts and disbursements.
      Note, however, that interest or other income             Some of the figures are taken from the totals
      earned on these investment accounts need not             listed on the attached Schedules A and B, some
      be placed in the campaign depository account             are totals of figures that are not itemized on
      before they are reinvested. As noted above,              these schedules and some are combined totals
      investments are not expenditures; they are               of itemized figures from the schedules plus some
      simply a conversion of assets from one form              unitemized figures. (See example of Detailed
      to another. The committee must report the                Summary Page opposite and on page 111.)
      reinvested income from investments follow-
      ing the rules explained below. AO 1997-06.
                                                               Column A and Column B
      Reporting Investment Income and Loss                     Note that Column A is for the figures relating
                                                               to amounts received and disbursed during the
      Report investment income received or lost dur-           reporting period covered by the report. Column
      ing the reporting period in the “Other Receipts”         B lists totals for the election cycle to date.
      category (Line 15) of the Detailed Summary Page.
      If investment income from one source aggregates
      over $200 during a calendar year, itemize the            Line 11. Contributions
      interest on a Schedule A for Line 15. 104.3(a)(4)        Line 11(a). Contributions from Individuals/Persons
      (vi). Losses are indicated by negative entries.          Other Than Political Committees (i.e. Individuals and
      Reporting Income Tax                                     Other Groups That Are Not Political Committees)
      A committee must report, as an operating                 Use Line 11 to report contributions from
      expenditure, income tax paid on investment               individuals and groups other than political com-
      income. Income tax payments must be item-                mittees (such as partnerships, sole proprietor-
      ized on a Schedule B for Line 17 (Operating              ships and certain LLC’s and Indian tribes).
      Expenditures) only if the payments aggregate               •	Enter the total of itemized contributions
      over $200 during an election cycle to the same               from individuals and other groups (not
      payee (the local, state or federal government).              political committees) on Line 11(a)(i).


110
                                            Completing FEC Reports


  •	On Line 11(a)(ii), enter the
    total amount of unitem-                  DETAILED SUMMARY PAGE
    ized contributions.
  •	On Line 11(a)(iii), enter
    the total of itemized and                                                                                              DETAILED SUMMARY PAGE
                                                                                                                                        of Receipts
                                                                FEC Form 3 (Revised 12/2003)                                                                                                                     Page 3
    unitemized contributions                          Write or Type Committee Name

                                                       Doe for Congress Committee
    from individuals/others.
                                                                                                                       01           01               2012                      03               31                     2012
                                                                                                                       M    M   /   D   D    /   Y    Y   Y   Y                M    M       /   D    D       /     Y   Y   Y   Y




Line 11(b). Contributions from
                                                      Report Covering the Period:                   From:                                                                To:




Political Party Committees                                                I. RECEIPTS
                                                                                                                                               COLUMN A
                                                                                                                                            Total This Period
                                                                                                                                                                                         COLUMN B
                                                                                                                                                                                   Election Cycle-to-Date


On Line 11(b), enter the total                      11. CONTRIBUTIONS (other than loans) FROM:



amount of contributions from
                                                          (a)   Individuals/Persons Other Than
                                                                Political Committees
                                                                (i) Itemized (use Schedule A) ...........                               ,
                                                                                                                                        ▲            ,
                                                                                                                                                     ▲
                                                                                                                                                      5,385.00
                                                                                                                                                           .
                                                                                                                                                           ▲                            ,
                                                                                                                                                                                        ▲            15,385.00
                                                                                                                                                                                                      ,
                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                           ▲
party committees including any                                  (ii) Unitemized ....................................                    ,
                                                                                                                                        ▲            2,307.00
                                                                                                                                                     ,
                                                                                                                                                     ▲    .
                                                                                                                                                          ▲                             ,
                                                                                                                                                                                        ▲            12,307.00
                                                                                                                                                                                                      ,
                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                           ▲
party organizations not registered                              (iii) TOTAL of contributions
                                                                                                                                        ,            7,692.00
                                                                                                                                                     ,    .                             ,            27,692.00
                                                                                                                                                                                                      ,    .




                                                                                                                  ▼
                                                                      from individuals .......................                          ▲            ▲    ▲                             ▲             ▲    ▲

with the FEC. As noted earlier in                         (b)
                                                          (c)
                                                                Political Party Committees .................
                                                                Other Political Committees
                                                                                                                                        ,
                                                                                                                                        ▲            ,
                                                                                                                                                     ▲            0.00
                                                                                                                                                                   .
                                                                                                                                                                   ▲                    ,
                                                                                                                                                                                        ▲                ,
                                                                                                                                                                                                         ▲             0.00
                                                                                                                                                                                                                        .
                                                                                                                                                                                                                        ▲
                                                                                                                                        ,            6,260.00
                                                                                                                                                     ,    .                             ,            14,260.00
                                                                                                                                                                                                      ,    .
the chapter, these contributions                                (such as PACs) ...................................                      ▲            ▲    ▲                             ▲             ▲    ▲
                                                                                                                                        ,            1,200.00
                                                                                                                                                     ,    .                             ,                4,000.00
                                                                                                                                                                                                         ,    .
must be itemized on a Sched-
                                                          (d)   The Candidate ....................................                      ▲            ▲    ▲                             ▲                ▲    ▲
                                                          (e)   TOTAL CONTRIBUTIONS
                                                                (other than loans)

ule A for this Line, regardless                                 (add Lines 11(a)(iii), (b), (c), and (d)) ..                            ,
                                                                                                                                        ▲            22,844.00
                                                                                                                                                      ,
                                                                                                                                                      ▲    .
                                                                                                                                                           ▲                            ,
                                                                                                                                                                                        ▲            45,952.00
                                                                                                                                                                                                      ,
                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                           ▲

of amount. 104.3(a)(3)(iii).                        12. TRANSFERS FROM OTHER
                                                        AUTHORIZED COMMITTEES ....................                                      ,
                                                                                                                                        ▲            ,
                                                                                                                                                     ▲
                                                                                                                                                      4,900.00
                                                                                                                                                           .
                                                                                                                                                           ▲                            ,
                                                                                                                                                                                        ▲                6,000.00
                                                                                                                                                                                                         ,
                                                                                                                                                                                                         ▲    .
                                                                                                                                                                                                              ▲
                                                    13. LOANS:

Line 11(c). Contributions from                          (a) Made or Guaranteed by the
                                                            Candidate ............................................                      ,
                                                                                                                                        ▲
                                                                                                                                                     71,000.00
                                                                                                                                                      ,
                                                                                                                                                      ▲    .
                                                                                                                                                           ▲                            ,
                                                                                                                                                                                        ▲            76,000.00
                                                                                                                                                                                                      ,
                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                           ▲

Other Political Committees                                (b)
                                                          (c)
                                                                All Other Loans...................................
                                                                TOTAL LOANS
                                                                                                                                        ,
                                                                                                                                        ▲            ,
                                                                                                                                                     ▲            0.00
                                                                                                                                                                   .
                                                                                                                                                                   ▲                    ,
                                                                                                                                                                                        ▲                ,
                                                                                                                                                                                                         ▲
                                                                                                                                                                                                                       0.00
                                                                                                                                                                                                                        .
                                                                                                                                                                                                                        ▲
                                                                (add Lines 13(a) and (b)) ....................                          ,
                                                                                                                                        ▲            71,000.00
                                                                                                                                                      ,
                                                                                                                                                      ▲    .
                                                                                                                                                           ▲                            ,
                                                                                                                                                                                        ▲
                                                                                                                                                                                                     76,000.00
                                                                                                                                                                                                      ,
                                                                                                                                                                                                      ▲    .
                                                                                                                                                                                                           ▲
On Line 11(c), enter the total                      14. OFFSETS TO OPERATING

amount of contributions from                            EXPENDITURES
                                                        (Refunds, Rebates, etc.) ............................                           ,
                                                                                                                                        ▲            ,
                                                                                                                                                     ▲            0.00
                                                                                                                                                                   .
                                                                                                                                                                   ▲                    ,
                                                                                                                                                                                        ▲                ,
                                                                                                                                                                                                         ▲
                                                                                                                                                                                                                       0.00
                                                                                                                                                                                                                        .
                                                                                                                                                                                                                        ▲

other political committees (such                    15. OTHER RECEIPTS
                                                        (Dividends, Interest, etc.) ...........................                         ,            ,    750.00
                                                                                                                                                             .                          ,                1,400.00
                                                                                                                                                                                                         ,    .
                                                                                                                                        ▲            ▲       ▲                          ▲                ▲    ▲
as PACs or other candidates’ com-                   16. TOTAL RECEIPTS (add Lines
                                                        11(e), 12, 13(c), 14, and 15)
                                                                                                                                                     99,494.00                                      129,352.00
                                                                                                                  ▼




                                                                                                                                        ,             ,    .                            ,             ,    .
mittees) and other such groups not
                                                        (Carry Total to Line 24, page 4) ............                                   ▲             ▲    ▲                            ▲             ▲    ▲


registered with the FEC, which, as
noted earlier in the chapter, must
be itemized on a Schedule A for                                                         Line 12. Transfers from Other
this Line, regardless of amount. 104.3(a)(3)(iv).
                                                                                        Authorized Committees
Line 11(d). Contributions from Candidate                                                On Line 12, enter the total amount of transfers
On Line 11(d), enter the total contributions                                            from the candidate’s other authorized commit-
from the candidate. This includes any contribu-                                         tees (if there are any such committees) which, as
tions from the candidate that were itemized                                             noted earlier in the chapter, must be itemized on
on Schedule A for this Line, as well as any con-                                        a Schedule A for this Line, regardless of amount.
tributions that did not have to be itemized. If
the contribution is derived from an underlying                                          Line 13. Loans
loan to the candidate from a lending institu-
tion, or from an advance from the candidate’s                                           Line 13(a). Loans Made or Guaranteed by the Candidate
brokerage account, credit card or line of credit,                                       On Line 13(a), enter the total amount of loans
report the underlying loan on Schedule C-1.                                             made or guaranteed by the candidate which, as
                                                                                        noted earlier in the chapter, must be itemized on
                                                                                        a Schedule A for this Line, regardless of amount.




                                                                                                                                                                                                                                   111
                                                                                                                                                 Chapter 13



        DETAILED SUMMARY PAGE (CONTINUED)                                                                                                                                        Line 15. Other Receipts
                                                                                                                                                                                 On Line 15, enter the total amount
                                                                               DETAILED SUMMARY PAGE
                                                                                                                                                                                 of any other receipts—both item-
                        FEC Form 3 (Revised 02/2003)                                          of Disbursements                                                  Page 4
                                                                                                                                                                                 ized and unitemized—included
                        II. DISBURSEMENTS                                                              COLUMN A
                                                                                                    Total This Period
                                                                                                                                                      COLUMN B
                                                                                                                                                Election Cycle-to-Date           for the reporting period. Note
                                                                                                                 6,010.00                                  14,054.00
                                                                                                                                                                                 that the type of receipts included
            17. OPERATING EXPENDITURES .....................                                     ,
                                                                                                 ▲              ,
                                                                                                                ▲     .
                                                                                                                      ▲                           ,
                                                                                                                                                  ▲         ,
                                                                                                                                                            ▲    .
                                                                                                                                                                 ▲
            18. TRANSFERS TO OTHER
                                                                                                                                                                                 here may vary widely (e.g., from
                                                                                                 ,              ,            0.00
                                                                                                                              .                   ,         ,       0.00
                                                                                                                                                                     .
                AUTHORIZED COMMITTEES .....................                                      ▲              ▲             ▲                   ▲         ▲        ▲
                                                                                                                                                                                 dividends to certain sales of
            19. LOAN REPAYMENTS:
                (a) Of Loans Made or Guaranteed
                    by the Candidate .................................                           ,              ,5,271.18
                                                                                                                      .                           ,         6,271.18
                                                                                                                                                            ,    .
                                                                                                                                                                                 campaign assets). Remember that
                                                                                                 ▲              ▲     ▲                           ▲         ▲    ▲
                  (b)   Of All Other Loans ..............................                        ,
                                                                                                 ▲              ,
                                                                                                                ▲            0.00
                                                                                                                              .
                                                                                                                              ▲                   ,
                                                                                                                                                  ▲         ,
                                                                                                                                                            ▲       0.00
                                                                                                                                                                     .
                                                                                                                                                                     ▲
                                                                                                                                                                                 those receipts aggregating over
                  (c)   TOTAL LOAN REPAYMENTS
                        (add Lines 19(a) and (b)) .....................                          ,
                                                                                                 ▲              5,271.18
                                                                                                                ,
                                                                                                                ▲    .
                                                                                                                     ▲                            ,
                                                                                                                                                  ▲
                                                                                                                                                            6,271.18
                                                                                                                                                            ,
                                                                                                                                                            ▲    .
                                                                                                                                                                 ▲               $200 from any source during the
            20. REFUNDS OF CONTRIBUTIONS TO:
                (a) Individuals/Persons Other
                                                                                                                                                                                 election cycle must be itemized
                                                                                                 ,              ,            0.00
                                                                                                                              .                   ,         ,       0.00
                                                                                                                                                                     .
                    Than Political Committees ..................                                 ▲              ▲             ▲
                                                                                                                             0.00
                                                                                                                                                  ▲         ▲        ▲
                                                                                                                                                                                 on a Schedule A for this Line.
                  (b)   Political Party Committees ..................                            ,
                                                                                                 ▲              ,
                                                                                                                ▲             .
                                                                                                                              ▲                   ,
                                                                                                                                                  ▲         ,
                                                                                                                                                            ▲       0.00
                                                                                                                                                                     .
                                                                                                                                                                     ▲
                  (c)   Other Political Committees
                        (such as PACs) ....................................                      ,              5,000.00
                                                                                                                ,    .                            ,        10,000.00
                                                                                                                                                            ,    .
                                                                                                                                                                                 Line 17. Operating
                                                                                                 ▲              ▲    ▲                            ▲         ▲    ▲
                  (d)   TOTAL CONTRIBUTION REFUNDS
                        (add Lines 20(a), (b), and (c))..............                            ,
                                                                                                 ▲              5,000.00
                                                                                                                ,
                                                                                                                ▲    .
                                                                                                                     ▲                            ,
                                                                                                                                                  ▲        10,000.00
                                                                                                                                                            ,
                                                                                                                                                            ▲    .
                                                                                                                                                                 ▲

            21. OTHER DISBURSEMENTS .........................                                    ,
                                                                                                 ▲              ,
                                                                                                                ▲
                                                                                                                 2,000.00
                                                                                                                      .
                                                                                                                      ▲                           ,
                                                                                                                                                  ▲         4,000.00
                                                                                                                                                            ,
                                                                                                                                                            ▲    .
                                                                                                                                                                 ▲
                                                                                                                                                                                 Expenditures
            22. TOTAL DISBURSEMENTS
                                                                                                 ,            12,281.18
                                                                                                               ,    .                             ,        34,325.18
                                                                                                                                                            ,    .            On Line 17, enter the total amount
                                                                          ▼




                (add Lines 17, 18, 19(c), 20(d), and 21)                                         ▲             ▲    ▲                             ▲         ▲    ▲

                                                                                                                                                                              of disbursements for operating
                                                          III. CASH SUMMARY
                                                                                                                                                                              expenditures—both itemized
                                                                                                                                                  ,       5,3676.31
                                                                                                                                                           ,     .
            23. CASH ON HAND AT BEGINNING OF REPORTING PERIOD ...............................................                                     ▲        ▲    ▲
                                                                                                                                                                              and unitemized—made during
                                                                                                                                                          99,494.00
            24    TOTAL RECEIPTS THIS PERIOD (from Line 16, page 3) .....................................................                         ,
                                                                                                                                                  ▲        ,
                                                                                                                                                           ▲    ▲.            the reporting period. Remember
            25. SUBTOTAL (add Line 23 and Line 24) ..................................................................................             ,
                                                                                                                                                  ▲
                                                                                                                                                         104,861.81
                                                                                                                                                           ,
                                                                                                                                                           ▲    ▲.            that these disbursements must
            26. TOTAL DISBURSEMENTS THIS PERIOD (from Line 22) ......................................................                             ,       18,281.18
                                                                                                                                                           ,     .
                                                                                                                                                                              be itemized when they aggregate
                                                                                                                                                  ▲        ▲    ▲
                                                                                                                                                                              over $200 to any one source dur-
                                                                                                                                                          86,580.13
            27. CASH ON HAND AT CLOSE OF REPORTING PERIOD
                                                                                                                                                  ,        ,     .
                (subtract Line 26 from Line 25)..............................................................................................     ▲        ▲    ▲
                                                                                                                                                                              ing the election cycle. Therefore,
                                                                                                                                                                              the amount entered on this Line
                                                                                                                                                                              will not match the amount totaled
                                                                                                                                                                              on Schedule B for Line 17, which
                                                                                                                                                                              includes only itemized expendi-
      Line 13(b). All Other Loans                                                                                                                              tures (unless the committee chooses to itemize
      On Line 13(b), enter the total of all other                                                                                                              expenditures that it is not required to itemize).
      loans (i.e., those not made or guaranteed by
      the candidate) the committee received during                                                                                                                 Line 18. Transfers to Other
      the reporting period which, as noted earlier                                                                                                                 Authorized Committees
      in the chapter, must be itemized on a Sched-
      ule A for this Line, regardless of amount.                                                                                                                   On Line 18, enter the total amount of transfers
                                                                                                                                                                   made to the candidate’s other authorized commit-
                                                                                                                                                                   tees (if any such committees exist). As noted ear-
      Line 14. Offsets to Operating                                                                                                                                lier in the chapter, such transfers must be itemized
      Expenditures                                                                                                                                                 on a Schedule B for this Line, regardless of amount.
      On Line 14, enter the total amount of offsets
      to operating expenditures (such as refunds or
      rebates) received during the reporting period.
      The figure might include unitemized offsets as
      well as itemized offsets, which, as noted ear-
      lier, are listed on a Schedule A for this Line.




112
                                             Completing FEC Reports



Line 19. Loan Repayments                                  must be itemized regardless of amount, the
                                                          refunds will have to be itemized as well.
Line 19(a). Repayments on Loans Made
or Guaranteed by the Candidate                            Line 21. Other Disbursements
On Line 19(a), enter the total of repayments              On Line 21 enter the total of all other disburse-
of principal of loans made or guaranteed by               ments—itemized and unitemized—made during
the candidate. Such payments of principal must            the reporting period. Note that this Line may
be itemized on a Schedule B for this Line,                contain a wide array of disbursements. Remember
regardless of amount. As noted earlier in the             that disbursements aggregating over $200 to
chapter, payments of interest are considered              the same payee during the election cycle must
operating expenditures, not repayments on                 be itemized on a Schedule B for this Line.
loans (see Section 17, “Reporting Loans”).

Line 19(b). Repayments on All Other Loans                 Line 23. Beginning Cash on Hand
On Line 19(b), enter the total of repayments of           A committee must report the cash on hand
principal of all loans not made or guaranteed             it possessed at both the beginning of the
by the candidate. Such payments of principal              reporting period and the close of the report-
must be itemized on a Schedule B for this Line,           ing period. Note that the closing cash balance
regardless of amount. As noted earlier in the             for the current reporting period appears on
chapter, payments of interest are considered              the next report as the beginning cash on hand.
operating expenditures, not repayments on                 Cash on hand includes petty cash, funds held
loans (see Section 17, “Reporting Loans”).                in checking and savings accounts, traveler’s
                                                          checks, certificates of deposit, treasury bills and
Line 20. Refunds of Contributions                         other investments valued at cost. 104.3(a)(1).

Line 20(a). Refunds of Contributions to                   First Report
Individuals/Persons Other Than Political                  Beginning cash on hand—i.e., money that the
Committees (i.e., Individuals and Other                   committee had in its possession at the time
Groups That Are Not Political Committees)                 of registration—is subject to the contribution
On Line 20(a), enter the total amount of contribu-        limit, prohibitions and disclosure requirements
tions refunded to individuals or groups (other than       of federal law. (The committee must exclude
political committees). Remember that contribution         any contributions that are not permissible
refunds need only be itemized (on a Schedule              under federal law.) If the beginning cash-on-
B) if the original contributions were itemized            hand balance is not $0, then the committee
(on a Schedule A). (See Section 19, “Report-              must itemize, as memo entries on Schedule A,
ing Refunds, Returns and Bounced Checks”.)                contributions and other receipts included in the
                                                          beginning cash-on-hand balance. (See Section 5
Line 20(b). Refunds to Political Party Committees         of this chapter, “When to Itemize Receipts.”)
On Line 20(b), enter the total amount of
contributions refunded to political party com-            Line 24. Total Receipts This Period
mittees. Remember that, since these contribu-             Enter the total receipts figure from Line
tions must be itemized regardless of amount,              16 of the Detailed Summary Page.
the refunds will have to be itemized as well.

Line 20(c). Refunds to Other Political Committees         Line 26. Total Disbursements
On Line 20(c), enter the total amount of contri-          This Period
butions refunded to other political committees            Enter the amount of total disbursements from
(i.e., other than political party committees).            Line 22 of the Detailed Summary Page.
Remember that, since these contributions


                                                                                                                113
                                                                                                                                   Chapter 13



      Line 27. Cash On Hand at                                                                                                                                                    24. Post-Election Detailed
      Close of Reporting Period                                                                                                                                                       Summary Page
      Subtract the total disbursements for the period
      (Line 26) from the subtotal (entered on Line 25)                                                                                                                            In election years, the reporting period for the
      of beginning cash on hand for the reporting period                                                                                                                          Post-General (or, in cases where the candidate
      (Line 23) and the total receipts for the reporting                                                                                                                          was not a candidate in the general election, the
      period (Line 24) to derive the closing cash-on-hand                                                                                                                         Year-End) report will span two election cycles.
      balance. (In other words, (Beginning Cash on Hand                                                                                                                           For this report only, committees must not use
      + Total Receipts for Reporting Period) – (Total                                                                                                                             the normal Detailed Summary Page; instead,
      Disbursements for Reporting Period = Closing                                                                                                                                they must use the Post-Election Detailed Sum-
      Cash on Hand.) Note that for the next report,                                                                                                                               mary Page. This form divides the post-election
      this amount must be entered on Line 23 (Cash                                                                                                                                reporting period into two time frames:
      On Hand At Beginning Of Reporting Period).                                                                                                                                              •	From the beginning of the reporting period
                                                                                                                                                                                                through the date of the election; and
                                                                                                                                                                                              •	From the day after the election to the end
                                                                                                                                                                                                of the reporting period. (See example.)
                                                                                                                                                                                                          The campaign must divide its
                                                                                                                                                                                                          records into those two time peri-
                                                                                                                                                                                                          ods in order to fill out the form.
        POST ELECTION DETAILED SUMMARY PAGE                                                                                                                                                               Campaigns that do not participate
                                                                                                                                                                                                          in the general election must file the
                                                                                                                                                                                                          Post-Election Detailed Summary
                                                POST-ELECTION DETAILED SUMMARY PAGE
                                                           Report of Receipts and Disbursements
                                                                                                                                                                                                          Page with their election-year year-
                   FEC Form 3 (Revised 07/05)

            • If the candidate participated in the general election, use this form for the 30-day Post-General report.
                                                                                                                                                                          Page 5
                                                                                                                                                                                                          end report. Committees involved
            • If the candidate did NOT participate in the general election, use this form for the Year-end report covering through December 31 of
            the election year (due on January 31).
                                                                                                                                                                                                          in a special general election must
            This form is used in lieu of filling out Line Numbers 6 through 7 on Page 2 (Summary Page) and Pages 3 and 4 (the Detailed Sum-
            mary Page) for the last report filed by a candidate during the current election cycle.                                                                                                         also file the Post-Election Detailed
            Write or Type Committee Name
             Doe for Congress Committee
                                                                                                                                                                                                          Summary Page with any Special
                                                                                                                                                                                                          Post-General report required.
                                                           10              18                2012                             11                      26                          2012
                                                            M      M   /   D    D    /   Y    Y   Y   Y                       M       M       /       D       D       /       Y       Y       Y       Y

            Report Covering the Period:         From:                                                               To:

                                                                                                                                                                                                          Electronic filers must file this
                I. RECEIPTS                                                                                                                                                                               form electronically, and thus must
                               COLUMN A
                             Total this Period
                                                                                  COLUMN B
                                                                           Election Cycle Total as of
                                                                                                                                              COLUMN C
                                                                                                                                               Total for                                                  ensure that their filing software is
                                                                       11            06               2012                11                      07                          2012                        able to generate this form, or use
                                                                       M   M     /   D   D    /   Y   Y     Y   Y         M       M       /       D       D       /       Y       Y       Y       Y



                                                                               (date of general election)                         (date after general election)


           11. CONTRIBUTIONS                                                                                                                      through
                                                                                                                                                                                                          FECFile. Paper filers may download
               (other than loans) FROM:
               (a) Individuals/Persons Other than                                                                         11
                                                                                                                          M       M       /

                                                                                                                                                  26
                                                                                                                                                  D       D       /       Y

                                                                                                                                                                              2012
                                                                                                                                                                                  Y       Y       Y
                                                                                                                                                                                                          this form from http://www.fec.
                                                                                                                                                                                                          gov/info/forms.shtml#candidates.
                    Political Committees                                                                                      (last day of reporting period)
                    (i) Itemized (use Schedule A)



                           ,
                           ▲       10,385.00
                                    ,
                                    ▲    .
                                         ▲                                      ,
                                                                                ▲        108,680.00
                                                                                           ,
                                                                                           ▲    .
                                                                                                ▲                                         ,
                                                                                                                                          ▲                       4,600.00
                                                                                                                                                                  ,
                                                                                                                                                                  ▲    .
                                                                                                                                                                       ▲
                   (ii)   Unitemized



                           ,
                           ▲           2,500.00
                                       ,
                                       ▲    .
                                            ▲
                   (iii) Total of contributions from individuals
                                                                                ,
                                                                                ▲            12,005.00
                                                                                              ,
                                                                                              ▲    .
                                                                                                   ▲                                      ,
                                                                                                                                          ▲                       ,
                                                                                                                                                                  ▲        275.00
                                                                                                                                                                              .
                                                                                                                                                                              ▲
                                                                                                                                                                                                          25.      The Summary
                           ,
                           ▲       12,885.00
                                    ,
                                    ▲    .
                                         ▲                                      ,
                                                                                ▲        120,685.00
                                                                                           ,
                                                                                           ▲    .
                                                                                                ▲                                         ,
                                                                                                                                          ▲                       4,875.00
                                                                                                                                                                  ,
                                                                                                                                                                  ▲    .
                                                                                                                                                                       ▲                                           Page
               (b) Political Party Committees



                           ,
                           ▲           ,
                                       ▲     50.00
                                               .
                                               ▲                                ,
                                                                                ▲            5,050.00
                                                                                             ,
                                                                                             ▲    .
                                                                                                  ▲                                       ,
                                                                                                                                          ▲                       ,
                                                                                                                                                                  ▲                   0.00
                                                                                                                                                                                       .
                                                                                                                                                                                       ▲
                                                                                                                                                                                                          After completing the Detailed Sum-
               (c) Other Political Committees                                                                                                                                                             mary Page, totals from that page
                           ,
                           ▲       16,000.00
                                    ,
                                    ▲    .
                                         ▲                                      ,
                                                                                ▲            65,000.00
                                                                                              ,
                                                                                              ▲    .
                                                                                                   ▲                                      ,
                                                                                                                                          ▲                       1,000.00
                                                                                                                                                                  ,
                                                                                                                                                                  ▲    .
                                                                                                                                                                       ▲
                                                                                                                                                                                                          and from Schedules C and D are
                                                                                                                                                                                                          used to complete the Summary
                                                                                                                                                                                                          Page (see example opposite and
                                                                                                                                                                                                          on page 116), as indicated below:


114
                                            Completing FEC Reports



Line 1. Name and Address                      SUMMARY PAGE
Fill in the committee’s full
name and mailing address. If the
address has changed, be sure to                        FEC
                                                                                     REPORT OF RECEIPTS
                                                                                     AND DISBURSEMENTS
check the appropriate box.                           FORM 3                                   For An Authorized Committee                                                                Office Use Only

                                                1.   NAME OF                          TYPE OR PRINT ▼                           Example: If typing, type            12FE4M5
                                                     COMMITTEE (in full)                                                        over the lines.


Line 2. ID Number                                Doe for Congress Committee

Enter the committee’s FEC iden-                                                          319 Main Street
                                                ADDRESS (number and street)
tification number on Line 2. If the              ▼

                                                           Check if different
committee is filing its first report,                      than previously
                                                           reported. (ACC)
                                                                                         Springfield                                                                 VA                    00000

it may not yet have received an ID
                                                                                                                            ▼                                                ▼                                  ▼
                                                2.   FEC IDENTIFICATION NUMBER ▼                                     CITY                                         STATE                            ZIP CODE
                                                                                                                                                                                                     STATE ▼ DISTRICT
number; in that case the commit-                      C 00033000                                             3. IS THIS              X       NEW                             AMENDED
                                                                                                                REPORT                       (N)     OR                      (A)                       VA           12
tee should leave this space blank.
                                                4. TYPE OF REPORT (Choose One)
                                                                                                           (b)   12-Day PRE-Election Report for the:
A committee should include its                       (a)   Quarterly Reports:
                                                                                                                                   Primary (12P)                         General (12G)                      Runoff (12R)
                                                           X
ID number in all reports, state-                                  April 15 Quarterly Report (Q1)
                                                                                                                                   Convention (12C)                      Special (12S)
                                                                  July 15 Quarterly Report (Q2)
ments, notices and other written                                  October 15 Quarterly Report (Q3)
                                                                                                                                         M   M   /   D    D   /     Y    Y       Y   Y              in the
                                                                                                                  Election on                                                                       State of
communications with the FEC.                                      January 31 Year-End Report (YE)          (c)   30-Day POST-Election Report for the:

                                                                                                                                   General (30G)                         Runoff (30R)                       Special (30S)



Line 3. Original or                                               Termination Report (TER)
                                                                                                                  Election on
                                                                                                                                         M   M   /   D    D   /     Y    Y       Y   Y              in the
                                                                                                                                                                                                    State of




Amended Report                                  5.   Covering Period
                                                                                 M
                                                                                  01
                                                                                     M    /
                                                                                               01
                                                                                               D   D   /    Y
                                                                                                                 2012
                                                                                                                 Y   Y   Y
                                                                                                                                       through           03
                                                                                                                                                          M   M     /
                                                                                                                                                                         31
                                                                                                                                                                         D       D   /    Y
                                                                                                                                                                                              2012
                                                                                                                                                                                               Y   Y   Y




Check “amended” only when                       I certify that I have examined this Report and to the best of my knowledge and belief it is true, correct and complete.

amending a report that has                      Type or Print Name of Treasurer               Gottlob Frege

already been filed with the FEC;                Signature of Treasurer                   Gottlob Frege                                                            Date
                                                                                                                                                                                 04
                                                                                                                                                                                 M   M    /
                                                                                                                                                                                               10
                                                                                                                                                                                               D   D    /   Y
                                                                                                                                                                                                                2012
                                                                                                                                                                                                                Y   Y   Y




otherwise, check “new.”                         NOTE: Submission of false, erroneous, or incomplete information may subject the person signing this Report to the penalties of 2 U.S.C. §437g.
                                                               Office
                                                                Use                                                                                                                           FEC FORM 3
                                                               Only                                                                                                                           (Revised 02/2003)


Line 4. Type of Report
Check the appropriate box and,
if necessary, fill in the appropri-
ate information (for 12-day                                                     On Line 6(b), enter the amount of refunds from
pre-election, 30-day post-election, special                                     Line 20(d) of the Detailed Summary Page.
election reports and termination reports).
                                                                                Line 7. Net Operating Expenditures
Line 5. Coverage Dates                                                          On Line 7(a), enter the amount of total
The period covered by the report begins on the                                  operating expenditures from Line 17
day after the close of books of the last report filed                           of the Detailed Summary Page.
by the committee. If the report is the first one filed                          On Line 7(b), enter the amount of total
by the committee, then the reporting period begins                              offsets to operating expenditures from
with the date of the committee’s first activity.                                Line 14 of the Detailed Summary Page.

Line 6. Net Contributions                                                       Line 8. Cash on Hand at Close
(Other Than Loans)                                                              of Reporting Period
On Line 6(a), enter the amount of total                                         On Line 8, enter the amount of cash on hand
contributions other than loans from Line                                        at the close of the reporting period from
11(e) of the Detailed Summary Page.                                             Line 27 of the Detailed Summary Page.

                                                                                                                                                                                                                            115
                                                                                                                                                   Chapter 13


                                                                                                                                                                                            “signature.” See Chapters 2, 11
        SUMMARY PAGE (CONTINUED)                                                                                                                                                            and 12 for more information on
                                                                                                                                                                                            the treasurer’s responsibilities.

                                                                                                SUMMARY PAGE
                                                                                      of Receipts and Disbursements

                                                                                                                                                                                            26.       Filing
                         FEC Form 3 (Revised 02/2003)                                                                                                                Page 2

                 Write or Type Committee Name
                  Doe for Congress Committee

                 Report Covering the Period:                 From:               01
                                                                                 M    M     /
                                                                                                  01
                                                                                                  D   D   /     Y
                                                                                                                    2012
                                                                                                                     Y   Y   Y
                                                                                                                                        To:   03
                                                                                                                                              M    M    /
                                                                                                                                                            31
                                                                                                                                                            D   D    /   Y
                                                                                                                                                                             2012
                                                                                                                                                                              Y   Y   Y
                                                                                                                                                                                                      Amendments
                                                                                                              COLUMN A
                                                                                                              This Period
                                                                                                                                                        COLUMN B
                                                                                                                                                  Election Cycle-to-Date                    The committee must file
            6.     Net Contributions (other than loans)
                                                                                                                                                                                            an amended report if it:
                   (a)   Total Contributions
                         (other than loans) (from Line 11(e)) ....                                    ,             22.844.00
                                                                                                                     ,    .                         ,           45,952.00
                                                                                                                                                                 ,    .
                                                                                                                                                                                            •	Discovers that an earlier report
                                                                                                      ▲              ▲    ▲                         ▲            ▲    ▲
                   (b)   Total Contribution Refunds
                                                                                                      ,             5,000.00
                                                                                                                    ,    .                          ,           10,000.00
                                                                                                                                                                 ,    .
                         (from Line 20(d)) ..................................                         ▲             ▲    ▲                          ▲            ▲    ▲                     contained erroneous information; or
                                                                                                                    17,844.00                                   35,952.00
                   (c)   Net Contributions (other than loans)
                                                                                                      ,              ,    .                         ,            ,    .
                         (subtract Line 6(b) from Line 6(a)) ......                                   ▲              ▲    ▲                         ▲            ▲    ▲
                                                                                                                                                                                            •	Does not obtain all the required
            7.     Net Operating Expenditures

                   (a)   Total Operating Expenditures
                                                                                                                                                                                            information about a particular
                                                                                                      ,             6,010.00
                                                                                                                    ,    .                          ,           14,054.50
                                                                                                                                                                 ,    .
                         (from Line 17) ......................................                        ▲             ▲    ▲                          ▲            ▲    ▲                     itemized receipt or disburse-
                                                                                                                                                                                            ment in time to include it in
                   (b)   Total Offsets to Operating
                         Expenditures (from Line 14) ................                                 ,
                                                                                                      ▲             ,
                                                                                                                    ▲            0.00
                                                                                                                                  .
                                                                                                                                  ▲                 ,
                                                                                                                                                    ▲            ,
                                                                                                                                                                 ▲           0.00
                                                                                                                                                                              .
                                                                                                                                                                              ▲
                   (c)   Net Operating Expenditures
                         (subtract Line 7(b) from Line 7(a)) ......                                   ,
                                                                                                      ▲             6,010.00
                                                                                                                    ,
                                                                                                                    ▲    .
                                                                                                                         ▲                          ,
                                                                                                                                                    ▲           14,054.50
                                                                                                                                                                 ,
                                                                                                                                                                 ▲    .
                                                                                                                                                                      ▲
                                                                                                                                                                                            the appropriate report.
            8.     Cash on Hand at Close of
                                                                                                      ,             86,580.13
                                                                                                                     ,    .
                                                                                                                                                                                            Paper Filers
                   Reporting Period (from Line 27) .................                                  ▲              ▲    ▲
            9.     Debts and Obligations Owed TO

                                                                                                                                 0.00
                   the Committee (Itemize all on
                   Schedule C and/or Schedule D) ................                                     ,
                                                                                                      ▲             ,
                                                                                                                    ▲             .
                                                                                                                                  ▲
            10. Debts and Obligations Owed BY
                                                                                                                                                                                            When filing an amended Form 3,
                the Committee (Itemize all on
                Schedule C and/or Schedule D) ................                                        ,
                                                                                                      ▲
                                                                                                                    70,678.82
                                                                                                                    ▲,    .      ▲
                                                                                                                                                                                            the committee should complete
                                                                                                                                                                                            the Summary Page (including the
                                                                                     For further information contact:
                                                                                                                                                                                            treasurer’s signature), indicat-
                                                                                          Federal Election Commission
                                                                                               999 E Street, NW                                                                             ing on Line 3 that the docu-
                                                                                            Washington, DC 20463

                                                                                                Toll Free 800-424-9530
                                                                                                                                                                                            ment is an amended report.
                                                                                                 Local 202-694-1100
                                                                                                                                                                                              In addition to the Summary Page
                                                                                                                                                                                              (Pages 1 and 2 of Form 3), the
                                                                                                                                                                                              committee should file a cor-
      Line 9. Debts Owed to Committee                                                                                                                                        rected version of the schedule that contained
      On Line 9, transfer the total amount                                                                                                                                   the incomplete or incorrect itemized informa-
      owed to the committee from the appro-                                                                                                                                  tion in the earlier report, along with a revised
      priate Schedule C and/or D.                                                                                                                                            Detailed Summary Page (Pages 3 and 4 of Form
                                                                                                                                                                             3), if appropriate. Transactions originally reported
      Line 10. Debts Owed by Committee                                                                                                                                       correctly do not need to be itemized again. The
                                                                                                                                                                             Commission recommends that the treasurer
      On Line 10, transfer the total amount                                                                                                                                  attach a cover letter explaining the change.
      owed by the committee from the appro-
      priate Schedule C and/or D.
                                                                                                                                                                             Electronic Filers
      Treasurer’s Name and Signature                                                                                                                                         Electronic filers must electronically resubmit
                                                                                                                                                                             the entire report, not just the amended por-
      The treasurer must sign and date Form 3                                                                                                                                tions. The committee must check the amend-
      at the bottom of the Summary Page. Only a                                                                                                                              ment box on the new report before filing. The
      treasurer or assistant treasurer designated on                                                                                                                         amendments must be formatted to comply with
      Form 1 (Statement of Organization) may sign                                                                                                                            the Electronic Filing Specifications Require-
      the report. 104.14(a). In the case of electronic                                                                                                                       ments mentioned in Chapter 12. 104.18(f).
      filers, the treasurer’s password serves as the



116
                                                Winding Down the Campaign



                                                         ChAPTEr 14
                             Winding Down the Campaign
This chapter explains the requirements for an                      of debt retirement (See “Retiring Debts”
authorized committee that wishes to close                          and “Settling Debts” below); and
down its operations at the end of a campaign.1                   •	The purposes for which any remaining commit-
                                                                   tee funds or assets will be used. (See Chapter
                                                                   8, “Expenditures and Other Uses of Campaign
1. Terminating the Committee                                       Funds;” see also “Winding Down Costs” and
                                                                   “Sale of Campaign Assets,” below.) 102.3(a).

Eligibility                                                    Committee No Longer Required
A committee may file a termination
report at any time, provided that:
                                                               to Report Once Notified
                                                               The committee’s reporting obligation ends only
    •	The committee no longer intends to receive
                                                               when the Commission notifies the committee
      contributions, make expenditures or make
                                                               in writing that the termination report has been
      any disbursements that would otherwise                   accepted. Until the committee receives this
      qualify it as a political committee; and                 notification, it must continue to file reports.
    •	Neither the committee seeking to ter-
      minate nor any other authorized com-                     Administrative Termination
      mittee of the same candidate has any
      outstanding debts or obligations.                        The FEC, upon its own initiative or at the
                                                               request of a political committee, may admin-
102.3 and 116.1. Campaigns with debts                          istratively terminate a committee’s reporting
or obligations should see “Retiring                            status. For details on administrative termina-
Debts” and “Settling Debts,” below.                            tion, consult section 102.4 of the regulations.
A committee involved in an FEC enforcement
action, an FEC audit or litigation with the FEC,
however, must continue to file regularly sched-                2. Conversion to Multicandidate
uled reports until the matter is resolved.
                                                                  Committee
Termination Report                                             In past advisory opinions, the Commission has
When filing the committee’s termination report,                explicitly permitted a principal campaign com-
the treasurer must check the “Termination                      mittee to become a multicandidate committee
Report” box on Line 4 of the Summary Page of                   as an alternative to the committee’s termination.
Form 3. The termination report must disclose:                  In meeting the requirements for multicandidate
                                                               status, a former principal campaign committee
    •	All receipts and disbursements not previ-
                                                               may avail itself of the length of time of its prior
      ously reported, including an accounting
                                                               registration, the number of contributions it has
1     If a candidate wishes to use the committee for           made in the past and the number of contribu-
       a subsequent federal campaign, he or she may            tions it has received. Note that the prohibition on
       redesignate it as an authorized committee using
       FEC Form 2. See Chapter 2, “Candidate and               converting campaign funds to personal use still
       Committee Registration,” for more information.          applies to such a committee. See AOs 2004-03,


                                                                                                                     117
                                                          Chapter 14


      1988-41 and 1985-30 and the Campaign Guide for                 •	Any other lawful purpose, unless such
      Nonconnected Committees for more information.                    use is personal use under 113.1(g).
                                                                       (See Chapter 8, Section 2, “Personal
                                                                       Use of Campaign Funds.”) 113.2(e).
      3. Winding Down Costs
      Campaign funds may be used to pay ordinary and             4. Sale of Campaign Assets
      necessary expenses incurred in connection with
      one’s duties as a federal officeholder. Such expenses
      include the costs of winding down the office of            Purchaser Makes Contribution
      a former federal officeholder for a period of six          Generally, when a campaign sells its property,
      months after he or she leaves office. 113.2(a)(2).         the purchase is considered a contribution to the
      Winding down costs include:                                campaign by the purchaser. The payment, there-
        •	Moving Expenses. A retiring federal office-            fore, must not come from prohibited sources
          holder may use campaign funds to pay for               and must not exceed the contribution limits.
          the expenses of moving office and personal             Sale of Campaign Materials
          furnishings from the Congressional office in
          Washington, D.C., back to the officeholder’s           The sale of fundraising items or materials devel-
          home state. While the costs of transporting            oped uniquely for the committee (such as artwork,
          an officeholder’s personal household effects           publications and opinion polls2) results in contribu-
          and furnishings from Washington, D.C., to the          tions from the purchasers. 100.53. See also, for
          officeholder’s home state are not “winding             example, AOs 1982-24 and 1980-19. (However,
          down costs,” such costs are “ordinary and              note the exception for mailing lists, below.)
          necessary expenses” incurred in connection             Commercial Ventures
          with ending his or her duties as a federal
          officeholder. AO 1996-14. See also AO 1996-44.         The Commission has determined that when a
          All such moving expenses should be reported            committee asset is sold or used for an ongoing
          as “other disbursements” by the officeholder’s         commercial venture to produce revenue for a com-
          committee, with specific payee(s) and pur-             mittee, the proceeds are considered contributions
          pose noted. 104.3(b)(2)(vi) and (b)(4)(vi).            to the committee. See AOs 1991-34 and 1983-02.

        •	Payments to Committee Staff. See
          AOs 1976-90 and 1978-43.                               Purchaser Does Not Make Contribution
        •	Gifts. Campaign funds may be used to pur-              Under limited circumstances, however, the sale of
          chase gifts or make donations of nominal               a campaign asset does not result in a contribution.
          value to persons other than the members                Mailing Lists
          of the candidate’s family. 113.1(g)(4).
                                                                 Mailing lists developed by a campaign for its own
      See also AO 2008-04.                                       use may be sold at the “usual and normal” charge
        •	Other permissible uses of excess                       without the purchaser making a contribution. See,
          campaign funds include:                                for example, AOs 2002-14, 1982-41 and 1981-53.
        •	Donations to charitable organizations                  Liquidation of Equipment and Supplies
          defined in 26 U.S.C. §170(c). 113.2(b);
                                                                 The Commission has said that the sale of
        •	Unlimited transfers to any national, state or          campaign equipment and supplies does
          local political party committee. 113.2(c);             not result in a contribution under certain
        •	Donations to state and local candidates,               conditions. AOs 2003-19 and 1986-14.
          pursuant to state law. 113.2(d); and
                                                                 2     For more information on opinion polls, see
                                                                       Commission regulations at 106.4.



118
                                               Winding Down the Campaign


                                                              tee has no outstanding debts. 116.2(c)(2). See
5. retiring Debts                                             Chapter 9, “Transfers.” See also AO 1997-10.


Through Contributions                                         Salary Owed to Campaign Staff
When raising contributions to retire                          Unpaid salary or wages owed to campaign employ-
debts after the election is over, a campaign                  ees are not considered contributions from those
must remember three general rules:3                           employees. Uncompensated services rendered by
                                                              an employee may be converted to volunteer work,
    •	First, the contributions are still subject to           or the amount owed may be treated as a debt, as
      the limits and prohibitions of the Federal              explained below. 116.6(a). Note, however, that FEC
      Election Campaign Act (the Act), even if the            rules do not require an employee to accept less
      candidate lost the election and does not                than full payment for his or her services. 116.6(b).
      plan to run for future federal office.
    •	Second, contributions made after an elec-               Treatment as Volunteer Service
      tion to retire debts must, in most cases, be            Uncompensated employee service may be
      specifically designated for that election by the        considered volunteer service if the employee
      contributor. See “Designated and Undesig-               signs a statement agreeing to the arrange-
      nated Contributions,” Chapter 4, Section 4.             ment. 116.6(a). (Services performed by
    •	Finally, contributions designated for, but              volunteers are exempt from limits and
      made after, a particular election may not               reporting requirements. See Chapter 7.)
      exceed the campaign’s net debts out-                    Treatment as Debt
      standing, as explained in Chapter 4.
                                                              Alternatively, the committee may treat the unpaid
110.1(b)(3)(i).4                                              amount of salary as a debt to the employee (see
                                                              Chapter 13 for reporting information). The com-
Through Sale of Assets                                        mittee and the employee may settle the debt
A campaign may sell its assets to raise                       for less than the amount owed, using the proce-
funds to retire debts. Please note that the                   dures described in the next section. 116.6(b).
sale or use of assets to retire debts may
result in contributions from the purchas-
ers, as explained in Section 4, above.                        6. Settling Debts
Through Transfers
                                                              Eligibility for Debt Settlement
A campaign may receive funds to retire debts
through transfers of excess funds from the                    Only a terminating committee may settle a
same candidate’s federal campaign for a different             debt for less than the full amount owed to
election cycle, as long as the transferor commit-             the creditor. A “terminating committee” is one
                                                              that does not intend to raise contributions or
3     A campaign may raise funds to retire debts              make expenditures—except for the purposes
      through joint fundraising. See Appendix C.              of paying winding-down costs and retiring its
4     The Commission has ruled that a federal officeholder    debts. 116.1(a) and 116.2(a). An authorized com-
      may solicit, receive and expend both federally          mittee may not settle any debts if any other
      permissible funds, as well as funds that do not         authorized committee of the same candidate
      comply with the Act, in order to retire existing
      debt incurred by a previous nonfederal campaign,
                                                              has enough permissible cash on hand to pay
      so long as the fundraising is solely in connection      all or part of the debt. 116.2(c)(1) and (2).
      with the nonfederal campaign, refers only to
      the candidate or to other candidates for that
      same nonfederal office and is permitted under
      state law. AO 2007-01. See also AO 2009-06.



                                                                                                                     119
                                                           Chapter 14



      Debts Subject to Settlement                                       may be considered a contribution subject to
                                                                        limits and source prohibitions (i.e., prohibited
      The types of debts that are subject to                            if the vendor is incorporated). 114.2(b).
      debt settlement requirements include:
        •	Amounts owed to commercial vendors;                     Debt Settlement Plans
        •	Debts arising from advances by indi-                    After a terminating committee has reached agree-
          viduals (e.g., staff using personal funds               ments with its creditors, the treasurer must file
          or credit to purchase goods and ser-                    a debt settlement plan on FEC Form 8. Once the
          vices on behalf of the committee);                      plan has been submitted to the Commission for
        •	Salary owed to committee employees; and                 review, the committee must postpone payment on
        •	Debts arising from loans from politi-                   the debt until the Commission has completed the
          cal committees or individuals, includ-                  review. 116.7(a). Payments to creditors must be
          ing candidates. 116.7(b).                               disclosed in the committee’s termination report.

      The debt settlement rules do not apply                      Completing Form 8
      to disputed debts, which are covered by                     Step-by-step instructions for completing Form
      other rules (see below). 116.7(c)(2).                       8 are included with the form. The Commission
      They also do not apply to bank loans, though the            recommends that the committee include as
      Commission recognizes that under extraordinary              many debts as possible in the plan and submit a
      circumstances, such as the death or bankruptcy              separate Part II (second page) for each creditor
      of the candidate, settlement of bank loans may              along with Part I (cover page). The treasurer must
      be appropriate. (The Commission will consider               also submit Part III (third page) to indicate how
      specific requests on a case-by-case basis.)                 the committee intends to address other debts
                                                                  not included in the submission. The treasurer
      Debt Settlement Rules                                       must sign and date the first page. The creditor
                                                                  must also sign the form to indicate his or her
      A commercial vendor (incorporated or unincor-               acceptance of the settlement. As an alternative,
      porated) may forgive or settle a debt owed by a             the treasurer may attach a signed statement from
      committee without incurring a contribution if:              the creditor containing the same information.
        •	Credit was initially extended in the ven-
          dor’s ordinary course of business, and the              Reporting Debts Undergoing Settlement
          terms of the credit were similar to those               Debts undergoing settlement must be continuously
          observed by the vendor when extending a                 reported until the Commission has completed its
          similar amount of credit to a nonpolitical              review of the committee’s debt settlement plan.
          client of similar risk. 116.3 and 116.4(d)(1);          The committee may file a termination report once
        •	The committee undertook all reasonable                  all debts have been paid, settled, forgiven or other-
          efforts to satisfy the outstanding debt, such           wise extinguished. 116.4(f), 116.5(e) and 116.6(c).
          as fundraising, reducing overhead costs                 Disputed Debts
          and liquidating assets. 116.4(d)(2); and
                                                                  A disputed debt is a bona fide disagreement
        •	The vendor made the same efforts to col-                between the creditor and the committee as to
          lect the debt as those made to collect                  the existence of a debt or the amount owed by
          debts from a nonpolitical debtor in similar             the committee. When filing a debt settlement
          circumstances. Remedies might include, for              plan, a terminating committee must describe any
          example, late fee charges, referral to a debt           disputed debts and the committee’s efforts to
          collection agency or litigation. 116.4(d)(3).           resolve them on Part III of Form 8. 116.10(b).
          If the committee or the creditor fails to
          take these steps, the difference between the
          amount owed and the amount actually paid


120
                                         Winding Down the Campaign


Creditor’s Rights                                       Notification to Commission
No commercial vendor or other credi-                    A creditor who intends to forgive a debt owed
tor is required to forgive or settle debts              by an ongoing committee must notify the
owed by committees. 116.4(e).                           Commission of its intent in writing. The let-
                                                        ter must provide the following information:
Assigning Debts to Another Committee                      •	The terms of the initial extension of
To expedite termination, an authorized com-                 credit and a description of the terms
mittee that qualifies as a terminating committee            under which the creditor has extended
and has no remaining cash on hand may assign                credit to similar nonpolitical debtors;
its debts to another authorized commit-                   •	A description of the campaign’s
tee of the same candidate, provided that:                   efforts to satisfy the debt;
  •	The committee transferring the                        •	A description of the steps taken by the credi-
    debts was organized for an elec-                        tor to obtain payment, along with a comparison
    tion that has already been held;                        of those remedies with others pursued by the
  •	Within 30 days before the assignment takes              creditor under similar circumstances; and
    effect, the transferor committee notifies each        •	An indication that the creditor has
    creditor in writing of the name and address             forgiven other debts involving nonpoliti-
    of the committee assuming the debts; and                cal debtors in similar circumstances.
  •	The committee assuming the debts                    116.8(b).
    notifies the FEC in writing that it has
    assumed the obligation to pay the debts.            Commission Review
    That committee must continue to report              The Commission will review each pro-
    the debts until they are retired.                   posal to forgive a debt to ensure that the
116.2(c)(3).                                            creditor, the ongoing committee and the
                                                        candidate have complied with the Act’s con-
                                                        tribution limits and prohibitions. 116.8(c).
Forgiveness of Debts Owed
by Ongoing Committees
Forgiveness Rules
A creditor may forgive a debt owed by an
ongoing committee (that is, one that does not
qualify as a terminating committee) if the debt
has been outstanding at least 24 months and:
  •	The ongoing committee (1) has insufficient
    cash on hand to pay the debt, (2) has had
    receipts of less than $1,000 and disbursements
    of less than $1,000 during the previous 24
    months and (3) owes debts to other creditors
    of such magnitude that the creditor could
    reasonably conclude that the ongoing com-
    mittee will not pay its particular debt; or
  •	The creditor is unable, after reasonable
    diligence, to locate the ongoing committee.
116.8(a).




                                                                                                             121
122
                                           Earmarked Contributions




Appendix A                                                   •	An employee or full-time volunteer
                                                               working for a candidate committee;

  Earmarked                                                  •	An individual who occupies a significant
                                                               position in a candidate’s campaign and

  Contributions                                                who is expressly authorized to raise
                                                               money on behalf of the candidate;
                                                             •	A committee affiliated with the
An earmarked contribution is one which the                     candidate committee; and
contributor directs (either orally or in writing) to
a clearly identified candidate or the candidate’s            •	A commercial fundraising firm retained by
authorized committee through an intermediary                   the candidate committee. 110.6(b)(2)(i).
or conduit. Earmarking may take the form of a
designation, instruction or encumbrance and may          Prohibitions Apply
be direct or indirect, express or implied, written or    No corporation, labor organization or other
oral. 110.6(b)(1). Earmarked contributions require       entity prohibited from making contributions
additional disclosure, as summarized below.              in connection with federal elections may act
In addition, under the provisions of the Honest          as a conduit for an earmarked contribution.
Leadership and Open Government Act of 2007               A nonconnected committee or a separate
(HLOGA), Pub. Law No. 110-81, 121 Stat. 735,             segregated fund (SSF), however, may act as a
signed into law September 14, 2007, certain              conduit. 110.6(b)(2)(ii) and 114.2(f)(3)(ii).
“bundled” contributions may trigger additional           Furthermore, no individual may receive a con-
disclosure of the identity of the person who raised      tribution on behalf of a candidate (as a conduit
the bundled contribution as summarized in section        or otherwise) while acting as the representa-
6 of this Appendix. See also Appendix F, “Lobbyist       tive of a corporation, labor organization or
Bundled Contributions” for further information.          other entity prohibited from making contribu-
                                                         tions. 110.6(b)(2)(i)(A) and (E) and 114.2(f).

1. Earmarked Contributions
                                                         2. Effect on Contribution Limits
Conduit/Intermediary
Anyone who receives and forwards an earmarked            Contributor’s Limit
contribution to a candidate or candidate’s               An earmarked contribution counts against
authorized committee is considered a conduit or          the contributor’s contribution limit for
intermediary. 110.6(b)(2). (The terms “conduit”          the recipient candidate. 110.6(a).1
and “intermediary” are interchangeable; “conduit”
will be used in the remainder of this appendix.)
Individuals, political committees, unregis-
tered committees and partnerships may act                1     In AO 2008-08, the Commission ruled that an
as conduits for earmarked contributions.                        earmarked contribution sent by an individual through
                                                                a nonconnected political action committee (PAC)
                                                                is considered “made” when the contributor gives
Persons Not Considered Conduits                                 the money to the nonconnected PAC, not when the
                                                                committee eventually forwards the contribution to
For the purposes of the earmarking rules,                       the final recipient. Thus, a contribution earmarked
certain individuals and organizations are                       through a nonconnected PAC in 2011 will be subject
                                                                to the 2011 calendar-year contribution limit and
not considered conduits even though they
                                                                count against the contributor’s 2011-2012 biennial
may participate in activities to raise money                    limit, even if the contribution is not forwarded to
for a candidate. These persons include:                         the intended recipient until a later election cycle.



                                                                                                                       123
                                                            Appendix A



      Conduit’s Limit                                              the SSF exercised direction or control over the
                                                                   choice of recipient. 114.2(f)(2)(iii) and (f)(4)(iii).
      Direction or Control
      The conduit’s limit is affected when the conduit
      exercises direction or control over the contribu-            3. Forwarding Earmarked
      tor’s choice of recipient candidate (see “Contribu-             Contributions
      tions Earmarked Through SSF,” below). In that
      case, the full amount of the contribution counts
      against the limits of both the original contribu-            10-Day Limit
      tor and the conduit, even though the candidate
      receives only one check. 110.6(d). For examples              The conduit must forward an earmarked
      of how the Commission has viewed the “direc-                 contribution, along with a report (see
      tion or control” rule in specific situations, see            below) to the recipient candidate commit-
      AOs 2003-23, 1986-04, 1981-57 and 1980-46.                   tee within 10 days of receiving the contribu-
                                                                   tion. 102.8(a) and (c) and 110.6(c)(1)(iii).
      Effect on Unregistered Organization
      An unregistered organization acting as a conduit
      should be aware that conduit activity could result           4. Transmittal to Campaign
      in a contribution by the organization, under the
      circumstances described above. In such a case,               Along with the funds, the conduit must for-
      the activity may trigger registration require-               ward to the recipient candidate committee a
      ments for the unregistered organization.                     transmittal report containing information that
                                                                   the candidate’s campaign committee will need
      Contributions Earmarked Through SSF                          for its own records and reports. 110.6(c)(1).

      Unsolicited                                                  Contributions Exceeding $50
      As discussed in Section 1, a corporation or                  When an earmarked contribution exceeds $50, the
      labor organization may never act as a conduit                accompanying transmittal report must contain the
      for earmarked contributions. A corporation                   name and mailing address of the original contribu-
      or labor organization’s SSF, however, may col-               tor, the date the contribution was received by the
      lect and forward earmarked contributions. An                 conduit and the amount. 102.8(a) and 110.6(c)(1)
      unsolicited earmarked contribution, transmitted              (iv)(A). The report should also state the election
      to a candidate through the SSF, counts against               designated by the contributor, if any. 110.1(b)(2).
      the original contributor’s contribution limits, but
      it does not count against the limits on the SSF’s
      own contributions to the candidate. 110.6(d)(1).             Contributions Exceeding $200
                                                                   When an earmarked contribution exceeds $200,
      Solicited                                                    the accompanying report must contain the
      If, however, the earmarked contribution was                  name and mailing address of the contributor, the
      solicited from the restricted class by a com-                contributor’s occupation and name of employer,
      munication from the SSF’s connected organiza-                the date the contribution was received by the
      tion, under 114.3, and was collected by the SSF,             conduit and the amount. 102.8(a) and 110.6(c)
      it is considered a contribution to both the SSF              (1)(iv). The report should also state the election
      and the candidate, and from both the individual              designated by the contributor, if any. 110.1(b)(2)(i).
      contributor and the SSF. As such, the earmarked
      contribution counts against several contribution
      limits. Note that, under these circumstances, the
      contribution automatically counts against the
      SSF’s contribution limits regardless of whether


124
                                            Earmarked Contributions



                                                          of the Senate) and must, when the contribution is
5. reporting Earmarked                                    forwarded, file a transmittal report by letter with
   Contributions                                          the recipient authorized committee. 110.6(c)(1)(ii).

An earmarked contribution must be reported                Contents of Reports by Conduit
by both the conduit (political committee or               The above reports filed by a conduit must
unregistered entity) and the recipient autho-             contain the following information:
rized committee. The conduit must comply with
special reporting rules, which vary depending               •	The name and mailing address of the
on whether the contribution was deposited                     original contributor and, if the contribution
in the conduit’s bank account or was passed                   is from an individual and exceeds $200, the
on directly to the campaign in the form of the                contributor’s occupation and employer;
original contributor’s check. 110.6(c)(1)(v).               •	The amount of the earmarked contribution;
                                                            •	The date the contribution was
Reports by Political Committee Conduit                        received by the conduit;
A political committee that serves as a conduit              •	The recipient of the contribution, as
of an earmarked contribution must disclose the                designated by the contributor;
earmarked contribution, regardless of amount,               •	The date the contribution was for-
on two separate reports: the committee’s next                 warded to the recipient; and
regularly scheduled FEC report, and a special
transmittal report (mentioned above) sent to the            •	Whether the contribution was passed on
recipient authorized committee. 110.6(c)(1).                  in cash, by the contributor’s check or by
                                                              the conduit’s check. Note that if the con-
                                                              duit is an individual, he or she may deposit
Next Regular FEC Report                                       earmarked contributions into a personal
The conduit’s next regularly scheduled report must            bank account. See 110.6(c)(1)(iv). However,
indicate whether the earmarked contribution was:              contributions may not be commingled with
  •	Transmitted through the conduit’s                         the personal funds of any individual. 102.15.
    account, in which case each contribu-
    tion must be reported on the report-                  Report by Recipient Committee
    ing schedules for itemized receipts and               The recipient of an earmarked contribution
    disbursements (Schedules A and B); or                 also has a reporting obligation if the earmarked
  •	Transmitted in the form of the original               contributions received from a single conduit
    contributor’s check, in which case each               exceed $200 in an election cycle. In that case, on
    earmarked contribution must be reported               Schedule A, the authorized committee must:
    as a memo entry on Schedules A and B.                   •	Identify the conduit by name and
110.6(c)(1)(iv) and (v). For more information, see            address (and occupation and employer
Appendix D of the Campaign Guide for Noncon-                  if the conduit is an individual);
nected Committees and Appendix D of the Campaign            •	Report the date of receipt and total
Guide for Corporations and Labor Organizations.               amount of earmarked contributions
                                                              received from that conduit; and
Reports by Unregistered Conduit                             •	Itemize the original contributions from each
A conduit that is not a registered political commit-          individual whose total contributions to the
tee (that is, the conduit is an individual, a partner-        committee aggregate over $200 per election
ship or a group) must, within 30 days of forwarding           cycle (including the full name, mailing address,
the contribution, file a report by letter with the            occupation and employer of the contribu-
Federal Election Commission (not the Secretary                tor, the amount earmarked and the date the


                                                                                                                 125
                                                                Appendix A



          conduit received the con-
          tribution). 110.6(c)(2). (See         EARMARKED CONTRIBUTION
          example at right.) If appropri-
          ate, the campaign must report             SCHEDULE A (FEC Form 3)                                        Use separate schedule(s)
                                                                                                                                                 FOR LINE NUMBER:
                                                                                                                                                 (check only one)
                                                                                                                                                                                   PAGE            OF

                                                                                                                   for each category of the
                                                                                                                                                   X
          whether the conduit’s limit               ITEMIZED RECEIPTS                                              Detailed Summary Page
                                                                                                                                                       11a
                                                                                                                                                       12
                                                                                                                                                                     11b
                                                                                                                                                                     13a
                                                                                                                                                                               11c
                                                                                                                                                                               13b
                                                                                                                                                                                              11d
                                                                                                                                                                                              14        15
                                                    Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
          was affected. See 110.6(d)(2).            or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.

                                                         NAME OF COMMITTEE (In Full)
                                                          Doe for Congress Committee
                                                         Full Name (Last, First, Middle Initial)

                                                    A.   Levi-Strauss, Claude                                                                       Date of Receipt
                                                         Mailing Address


      6. Contributions                                   5739 Totem St.                                                                                03                13              2012
                                                                                                                                                       M     M   /    D    D   /     Y    Y    Y    Y



                                                         City                                          State        Zip Code
                                                         Alexandria                                    VA           00000
         Bundled by                                      FEC ID number of contributing
                                                         federal political committee.                 C                                             Amount of Each Receipt this Period

                                                                                                                                                                                   1,000.00
                                                                                                                                                                     ,             ,    .
         Lobbyists/                                      Name of Employer
                                                         Alexandria University
                                                         Receipt For:
                                                                                                     Occupation
                                                                                                       Anthropologist
                                                                                                     Election Cycle-to-Date
                                                                                                                                                                     ▲

                                                                                                                                                       Earmarked through
                                                                                                                                                                                   ▲    ▲


                                                          X
         registrants and
                                                                                                                              ▼
                                                                                                                                                           AnthroPAC
                                                              Primary           General
                                                              Other (specify) ▼                                ,
                                                                                                               ▲              1,000.00
                                                                                                                              ,
                                                                                                                              ▲    .
                                                                                                                                   ▲


         Lobbyist PACs
                                                         Full Name (Last, First, Middle Initial)

                                                    B.
                                                         Anthropologists Association PAC (AnthroPAC)                                                Date of Receipt
                                                         Mailing Address
                                                         2321 Origin St.                                                                               03
                                                                                                                                                       02                15
                                                                                                                                                                         10              2012
                                                                                                                                                       M     M   /    D    D   /     Y    Y    Y    Y



                                                         City                                          State        Zip Code
                                                         Alexandria                                    VA           00000
      Under the provisions of HLOGA,                     FEC ID number of contributing
                                                                                                      C              00000002                       Amount of Each Receipt this Period
                                                         federal political committee.
      additional disclosure is required                  Name of Employer                            Occupation                                                     ▲ 1000.00
                                                                                                                                                                     ,
                                                                                                                                                                     ,
                                                                                                                                                                     ▲    ▲.       1,150.00
                                                                                                                                                                  MEMO
      for certain “bundled contribu-                     Receipt For:                                Election Cycle-to-Date                                 Total earmarked
                                                         X
                                                                                                                              ▼
                                                              Primary           General
                                                                                                                                                           through conduit.
      tions.” Bundled contributions                           Other (specify) ▼                                ,
                                                                                                               ▲
                                                                                                                              1,150.00
                                                                                                                              ▲ 2200.00
                                                                                                                              ,     .
                                                                                                                                    ▲                  PAC limit not affected.

      include contributions collected
      and forwarded by a lobbyist/
      registrant or lobbyist PAC either
      physically or electronically, as well as contribu-
      tions for which the lobbyist/registrant or lobbyist
      PAC receives credit from the recipient authorized
      committee, through record, designation or other
      form of recognition. See Appendix F, “Lobbyist
      Bundled Contributions” for further information.




126
                                               Contributions from Partnerships




Appendix B                                                           •	It has chosen to file, under IRS
                                                                       rules, as a partnership; or

  Contributions from                                                 •	It has made no choice, under IRS rules,
                                                                       as to whether it is a corporation or

  Partnerships1                                                        a partnership. 110.1(g)(2) and (3).
                                                                 Under these conditions, an LLC may
                                                                 make contributions to candidates, sub-
Outlined below are special rules concerning con-                 ject to the rules described in this appen-
tributions received from partnerships and from                   dix. See also Chapter 4, Section 10.
limited liability companies taxed as partnerships.


                                                                 2. Attribution Among Partners
1. Contribution Limits
                                                                 Formula
Contributions Made by Partnerships
                                                                 A portion of the partnership contribution must be
Contributions received by a candidate’s authorized               attributed to each contributing partner.2 If all part-
committees from a partnership may not exceed                     ners within the organization are contributing, the
$2,500 per election. In addition, a contribution                 partnership may attribute the contribution accord-
from a partnership also counts proportionately                   ing to each partner’s share of the firm’s profits.
against each participating partner’s own limit with
respect to the same candidate. 110.1(b)(1) and (e).              However, if the partnership attributes a con-
                                                                 tribution on another basis agreed to by the
                                                                 partners, the following rules must be observed:
Contributions Made by
                                                                     •	The profits of only the partners to
Individual Partners                                                    whom the contribution is attributed are
Each partner may make contributions of $2,500                          reduced (or their losses increased); and
per election, per candidate. 110.1(b)(1). Although                   •	The profits (or losses) of those partners are
contributions made by the partnership as a whole                       reduced (or losses increased) in the amount
count proportionately against each participating                       of the contribution attributed to them.
partner’s $2,500 limit, contributions made by
individual partners from their own funds do not                  The portion attributed to each partner must not,
count against the partnership’s limit. 110.1(e).                 when aggregated with other contributions from
                                                                 that person, exceed his or her individual contribu-
Note, however, that certain partnerships and                     tion limit. 110.1(e). See also “Partnerships or LLCs
partners may be prohibited from contributing. See                with Corporate Partners or Members” in the
“Prohibited Partnership Contributions,” below.                   next section, below and AO 2009-02 regarding
                                                                 independent expenditures by single member LLCs.
Limited Liability Companies
In some cases, limited liability companies                       Notice to Recipient Committee
(LLCs) are treated as partnerships. For the                      Because a contribution from a partnership is a
purposes of contribution limitations and prohibi-                joint contribution, the partnership must pro-
tions, an LLC is treated as a partnership if:                    vide to the recipient committee, along with the
    •	It does not have publicly traded shares                    contribution, a written notice listing the names
and
                                                                 2     A portion of a contribution drawn on a
                                                                       partnership account may not be attributed to
1     For information on contributions from limited                    the spouse of a partner, unless the spouse is also
      liability companies, see Chapter 4, Section 10.                  a member of the partnership. AO 1980-67.



                                                                                                                            127
                                                         Appendix B



      of the contributing partners and the amount               Partnerships or LLCs with Federal
      to be attributed to each. However, unlike other
      joint contributions, the signature of each con-           Government Contracts
      tributing partner is not required. 110.1(k)(1).           A partnership or LLC that is negotiating a contract
                                                                with the federal government or that has not com-
                                                                pleted performance of such a contract is prohibited
      3. Prohibited Partnership                                 from making contributions. However, an individual
                                                                partner in such a firm may make contributions
         Contributions                                          from personal funds (rather than from funds drawn
                                                                on the partnership’s account). 115.4. See also AOs
                                                                2005-20 and 1991-01 and Chapter 5, Section 1.
      Professional Corporations
                                                                Also, an individual, who is, in his or her own right
      Although law firms, doctors’ practices and                or as a sole proprietor, a federal government
      similar businesses are often organized as partner-        contractor or negotiating a contract with the
      ships, some of these businesses may instead be            federal government may not make contributions
      professional corporations. Unlike a partnership,          using any funds (business or personal) under his
      a professional corporation is prohibited from             or her control. 115.5. Note that the spouse of
      making any contributions because contribu-                such an individual is not prohibited from making
      tions from corporations are unlawful. 114.2.              a personal contribution in his or her own name
                                                                unless he or she is also a federal contractor.
      Partnerships or LLCs with
      Corporate Partners or Members
      Because contributions from corporations are               4. reporting Partnership/
      prohibited, a partnership or LLC with corporate              LLC Contributions
      partners or members may not attribute any por-
      tion of a contribution to the corporate partners
      or members. 110.1(e) and 114.2(b). See also               Included in Total Figure
      “Contributions from Limited Liability Compa-              Partnership or LLC contributions are included
      nies” in Chapter 4, Section 10 of this Guide.             in the total figure reported for “Contribu-
      A partnership or LLC composed solely of cor-              tions From Individuals/Persons Other Than
      porate partners or members may not make any               Political Committees” on the Detailed
      contributions. AOs 2001-07 and 1981–56; see               Summary Page of Form 3 (Line 11a).
      also AOs 2009-14, 2003-28, 2001-18 and 1992-
      17 for a limited exception pertaining to exempt           Itemization
      costs for an affiliated corporate partner’s SSF.
                                                                If a contribution from a partnership or LLC
                                                                exceeds $200 or aggregates over $200 during
      Partnerships or LLCs with                                 an election cycle, the committee must item-
      Foreign National Members                                  ize the contribution on a Schedule A used for
      Similarly, because contributions from foreign             “Contributions from Individuals/Persons Other
      nationals are prohibited, a partnership or LLC            Than Political Committees” (Line 11(a)).
      may not attribute any portion of a contribution           Additionally, if an individual partner’s share of
      to a partner who is a foreign national. 110.20.           the contribution exceeds $200 when combined
      See Chapter 5, Section 1, for further informa-            with other contributions received from that
      tion on the foreign national prohibition.                 partner in the same election cycle, the commit-
                                                                tee must disclose, as a memo entry, itemized
                                                                information on the partner (name, address,
                                                                occupation, date contribution received, partner’s


128
                                       Contributions from Partnerships



share of contribution and aggregate
cycle-to-date total of contributions
                                              PARTNERSHIP CONTRIBUTIONS
made by that partner). 104.8 and
110.1(e). (See example at right.)
                                                                                                                                               FOR LINE NUMBER:                   PAGE             OF
                                                  SCHEDULE A (FEC Form 3)                                        Use separate schedule(s)      (check only one)
                                                  ITEMIZED RECEIPTS                                              for each category of the
                                                                                                                 Detailed Summary Page
                                                                                                                                                 X   11a           11b        11c             11d
                                                                                                                                                     12            13a        13b             14        15
                                                  Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
                                                  or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.



In-Kind Contributions                                  NAME OF COMMITTEE (In Full)
                                                        Doe for Congress Committee
                                                       Full Name (Last, First, Middle Initial)
                                                       Hobbes, Locke & Rousseau
A committee reports the value of an               A.
                                                       Mailing Address
                                                       101 Modernity Ave.
                                                                                                                                                  Date of Receipt

                                                                                                                                                     03
                                                                                                                                                     M     M   /    D

                                                                                                                                                                       04
                                                                                                                                                                         D    /       Y

                                                                                                                                                                                          2012
                                                                                                                                                                                          Y    Y    Y




in-kind contribution from a partnership                City
                                                       Fairfax
                                                                                                     State
                                                                                                     VA
                                                                                                                  Zip Code
                                                                                                                  00000

or LLC in the same way it reports a                    FEC ID number of contributing
                                                       federal political committee.                 C                                             Amount of Each Receipt this Period

                                                                                                                                                                                          750.00
                                                                                                                                                                   ,
                                                                                                                                                                   ▲              ,
                                                                                                                                                                                  ▲          .
                                                                                                                                                                                             ▲
monetary contribution. In addition,
                                                       Name of Employer                            Occupation
                                                       Partnership
                                                       Receipt For:                                Election Cycle-to-Date
                                                        X                                                                                            See attribution below.
as with all in-kind contributions, the
                                                                                                                            ▼
                                                            Primary               General
                                                              Other (specify) ▼                              ,
                                                                                                             ▲              ,
                                                                                                                            ▲   750.00
                                                                                                                                   .
                                                                                                                                   ▲

committee must report the value of                B.
                                                       Full Name (Last, First, Middle Initial)
                                                       Hobbes, Thomas                                                                             Date of Receipt

the in-kind contribution as an operat-
                                                       Mailing Address
                                                       201 Sovereign Ave.                                                                            03
                                                                                                                                                     02                04
                                                                                                                                                                       10                 2012
                                                                                                                                                     M     M   /    D    D    /       Y   Y    Y    Y



                                                       City                                          State        Zip Code
                                                       Bellum                                        VA           00000
ing expenditure. Moreover, an in-kind                  FEC ID number of contributing
                                                                                                    C                                             Amount of Each Receipt this Period

contribution itemized on Schedule A
                                                       federal political committee.

                                                       Name of Employer                            Occupation                                                      ,
                                                                                                                                                                   ▲              , 250.00
                                                                                                                                                                                  ▲ 1000.00
                                                                                                                                                                                        .
                                                                                                                                                                                        ▲
                                                       Hobbes, Locke & Rousseau                      Accountant
must also be itemized on a Schedule                    Receipt For:
                                                        X   Primary           General
                                                                                                   Election Cycle-to-Date
                                                                                                                            ▼                                                MEMO
                                                                                                                                                     partnership attribution
B for operating expenditures. 104.13                                                                         ,              ▲ 2200.00
                                                                                                                            , 250.00
                                                                                                                                  .
                                                            Other (specify) ▼
                                                                                                             ▲                    ▲
                                                       Full Name (Last, First, Middle Initial)

and 110.1(e). However, any informa-               C.   Locke, John
                                                       Mailing Address
                                                                                                                                                  Date of Receipt

                                                       180 Prosperity Street                                                                         03
                                                                                                                                                     02                04
                                                                                                                                                                       10                 2012
                                                                                                                                                     M     M   /    D    D    /       Y   Y    Y    Y



tion about a partner itemized as a                     City
                                                       Luckets
                                                                                                     State
                                                                                                     VA
                                                                                                                  Zip Code
                                                                                                                  00000
memo entry on Schedule A does not                      FEC ID number of contributing
                                                       federal political committee.                 C                                             Amount of Each Receipt this Period


                                                                                                                                                                                  , 250.00
                                                                                                                                                                                  ▲ 1000.00
have to be reported on Schedule B.                     Name of Employer
                                                       Hobbes, Locke & Rousseau
                                                                                                   Occupation
                                                                                                     Accountant
                                                                                                                                                                   ,
                                                                                                                                                                   ▲                    .
                                                                                                                                                                                        ▲

                                                       Receipt For:                                Election Cycle-to-Date                                                    MEMO
                                                        X
                                                                                                                            ▼
                                                            Primary           General
                                                                                                                                                     partnership attribution
                                                                                                             ,              ▲ 2200.00
                                                                                                                            , 250.00
                                                                                                                                  .
                                                            Other (specify) ▼



More Information on
                                                                                                             ▲                    ▲

                                                       Full Name (Last, First, Middle Initial)

                                                  A.   Rousseau, Jean Jacques                                                                     Date of Receipt


Partnership Contributions
                                                       Mailing Address
                                                       101 General Will Road                                                                         02
                                                                                                                                                     03                10
                                                                                                                                                                       04                 2012
                                                                                                                                                     M     M   /    D    D    /       Y   Y    Y    Y



                                                       City                                          State        Zip Code
                                                       Front Royal                                   VA           00000

For more information on partner-                       FEC ID number of contributing
                                                       federal political committee.                 C                                             Amount of Each Receipt this Period


                                                                                                                                                                   ,
                                                                                                                                                                   ▲              ▲ 1000.00
                                                                                                                                                                                  , 250.00
                                                                                                                                                                                        .
                                                                                                                                                                                        ▲
ship sponsored PACs and partnership
                                                       Name of Employer                            Occupation
                                                       Hobbes, Locke & Rousseau                      Accountant
                                                       Receipt For:                                Election Cycle-to-Date                                                    MEMO
                                                        X
contribution plans, see the Campaign
                                                                                                                            ▼
                                                              Primary           General
                                                                                                                                                     partnership attribution
                                                                                                             ,              ▲ 2200.00
                                                                                                                            , 250.00
                                                                                                                                  .
                                                              Other (specify) ▼
                                                                                                             ▲                    ▲

Guide for Nonconnected Committees.




                                                                                                                                                                                                             129
      Appendix B




130
                                                  Joint Fundraising




Appendix C                                                   Overview of Rules
                                                             All participants in a joint fundraising effort,
  Joint Fundraising                                          including unregistered organizations, must:
                                                                •	Create or select a federal political committee
                                                                  to act as the joint fundraising representative;
                                                                •	Agree to a formula for allocat-
1. Introduction                                                   ing proceeds and expenses;
                                                                •	Sign a written agreement naming the
                                                                  joint fundraising representative and
What Is Joint Fundraising                                         stating the allocation formula;
Joint fundraising is election-related fundrais-                 •	Establish a separate account for joint fun-
ing conducted jointly by a political commit-                      draising receipts and disbursements;
tee and one or more other political com-
mittees or unregistered organizations.                          •	Notify the public of the allocation formula
                                                                  and certain other information (detailed
                                                                  below) when soliciting contributions;
Who Must Observe Joint
                                                                •	Screen contributions to make sure they
Fundraising Rules                                                 comply with the limits and prohibitions of the
The rules described in this appendix apply                        Federal Election Campaign Act (the Act); and
to political committees and unregistered                        •	Report allocated proceeds and expenses
organizations engaged in joint fundraising.                       (applies to political committees only). 102.17.
Please note that nothing in these rules supersedes           The committee named as the fundrais-
the fundraising restrictions of 11 CFR Part 300.             ing representative has additional respon-
Participants in joint fundraisers should consult             sibilities, as explained below.
those regulations in addition to the provisions
described below. See Appendix E, “Fundraising
by Federal Candidates and Officeholders.”
                                                             2. Fundraising representative
The participants in joint fundrais-
ing activity may include;                                    Joint fundraising participants must either establish
Party committees,                                            a new political committee (using a Statement of
  •	Party organizations not regis-                           Organization(FEC Form 1)) or select a participat-
    tered as political committees,                           ing political committee to act as the joint fundrais-
                                                             ing representative. 102.17(a)(1)(i); see also AO
  •	Federal and nonfederal candidate committees,             2007-24. (It is strongly recommended for ease of
  •	Nonparty political committees (except                    compliance with the law that participants establish
    separate segregated funds — SSFs) and                    a new political committee.) This committee is
  •	Unregistered nonparty organiza-                          responsible for collecting and depositing joint fun-
    tions. 102.17(a)(1)(i) and (2).                          draising contributions; paying expenses; allocating
                                                             proceeds and expenses to each participant; keeping
The rules in this appendix do not apply to                   records; and reporting overall joint fundraising
fundraising by collecting agents and separate                activity. 102.17(b)(1) and (b)(2). A new political
segregated funds. 102.17(a)(3). Such organiza-               committee established for the joint fundraiser must
tions may only jointly raise funds with another              register with the FEC using FEC Form 1(Statement
affiliated organization; for more information,               of Organization), and must include the name of
see Chapter 3, Section 9 of the Campaign Guide               each participating federal candidate in the new
for Corporations and Labor Organizations.                    committee’s name. 102.14. (An existing commit-
                                                             tee would be required to amend its Statement of


                                                                                                                     131
                                                          Appendix C



      Organization.) Thus, for example, a joint fundrais-        4. Separate Depository
      ing committee established to raise funds for a
      candidate and a party could not be called “Victory
      ’12,” but might be called the “John Doe Victory            Establishing the Account
      ’12” committee. Any federal candidate participating
      in the fundraiser must designate the fundraising           The joint fundraising participants or the joint
      representative as an authorized committee (by              fundraising representative must establish a separate
      amending the Statement of Candidacy, (FEC Form             account solely for the receipt and disbursement
      2)). 102.17(a)(1)(i), (b)(1) and (b)(2); AO 2007-24.       of all joint fundraising proceeds. Each participating
                                                                 political committee must amend its Statement of
                                                                 Organization (FEC Form 1) to show the account
      Joint Fundraising Representative                           as an additional depository.1 102.17(c)(3)(i).
      If a new committee is established, it collects all
      the contributions. 102.17(b)(1). Note that such            Depositing Contributions
      a committee may not itself be a participant
      in any other joint fundraising effort, though it           The joint fundraising representative must deposit
      may conduct more than one event or activity                contributions into the account within 10 days after
      on behalf of its own participants. 102.17(a)(1)            receiving them. Only contributions permissible
      (i). Alternatively, if a committee participating in        under the Act may be deposited in the joint fund-
      the fundraiser serves as the joint fundraising             raising account. If any participant is an unregistered
      representative, it and any other participating com-        organization which may, under state law, accept
      mittees may collect contributions; however, all            prohibited contributions, the participants may
      contributions received by the other participants           either establish a second account for such contri-
      must be forwarded to the joint fundraising rep-            butions or forward them directly to the partici-
      resentative within 10 days of receipt. 102.17(b)           pants that may accept them. 102.17(c)(3)(i) and (ii).
      (2). Under either option, the procedures outlined
      in the sections below for joint fundraising apply.
                                                                 5. Statements of Organization
      Use of Commercial Firm
      Although participants may hire a commercial                Joint Fundraising Representatives
      fundraising firm or other type of agent to assist
      with organizing and holding the joint fundraiser,          As noted above, the joint fundraising commit-
      they are still required to establish or select             tee must file a Statement of Organization (FEC
      a new political committee to serve as the                  Form 1). The Statement of Organization must:
      fundraising representative. 102.17(a)(1)(ii).                  •	Identify the committee as the joint
                                                                       fundraising representative;
                                                                     •	List the names and addresses of all
      3. Written Agreement                                             federal committees participating in
                                                                       the joint fundraising effort; and
      Before conducting a joint fundraiser, all partici-             •	Name the depository institution being
      pants must enter into a written agreement that                   used by the joint fundraising committee.
      identifies the joint fundraising representative
      and states the allocation formula—the amount               (See example opposite.)102.2.
      or percentage that the participants agree to use
      for allocating proceeds and expenses. The joint
      fundraising representative must retain a copy of
                                                                 1     Note that when paper filers amend the
      the written agreement for three years and make                   Statement of Organization (FEC Form 1), only
      it available to the FEC upon request. 102.17(c)(1).              the committee’s name, address and the new
                                                                       or changed information need be included.



132
                                                                                                                 Joint Fundraising




FORM 1 FILED BY JOINT FUNDRAISING REPRESENTATIVE                                                                                                          Other Joint Fundraising
                                                                                                                                                          Participants
           JOINT FUNDRAISING REPRESENTATIVE–
                                                                                                                                                          Each participant in the joint fundraiser
                 X
                      This committee collects contributions, pays fundraising expenses and disburses net proceeds for two or more political
           (G)

                                                                                                                                                          (other than the joint fundraising
                      committees/organizations, at least one of which is an authorized committee of a federal candidate.

                      This committee collects contributions, pays fundraising expenses and disburses net proceeds for two or more political
           (f)

                                                                                                                                                          representative) must amend its FEC
                      committees/organizations, none of which is an authorized committee of a federal candidate.

                 Committees Participating In Joint Fundraiser

                 1.   Doe for Congress Committee                                        FEC ID number       C             00033000                        Form 1 (Statement of Organization)
                      Johnson for Congress Committee                                                        C             00044000
                 2.                                                                     FEC ID number

                                                                                        FEC ID number       C
                                                                                                                                                          to provide the name and address
                 3.

                 4.                                                                     FEC ID number       C                                             of the joint fundraising representa-
                 5.                                                                     FEC ID number       C                                             tive—identified as the “JFR”—and
                                                                                                                                                          to state the name and address of
                                                                                                                                                          the depository institution hold-
                                                                                                                                                          ing the joint fundraising account, if
                                                                                                                                                          that account is different from the
FORM 1 FILED BY PCC SHOWING AFFILIATION                                                                                                                   depository named on its current FEC
                                                                                                                                                          Form 1. (See example.) In addition,
             FEC Form 1 (Revised 12/2007)                                                                                                     Page 3      each federal candidate participating
      Write or Type Committee Name
                                                                                                                                                          in the fundraiser must amend FEC
      Doe for Congress
 6.     Name of Any Connected Organization, Affiliated Committee, Leadership PAC Sponsor or Joint Fundraising Representative
                                                                                                                                                          Form 2 (Statement of Candidacy)
      Doe / Johnson Golf Outing
                                                                                                                                                          to designate the joint fundraising
                                                                                                                                                          representative as an authorized
                                          201 King Street                                                                                                 candidate committee. 102.2(a)(2),
        Mailing Address
                                                                                                                                                          102.17(a)(1)(i), (b)(1), (b)(2) and (c)(3).
                                           Alexandria                                                           VA            00000

                                                                    CITY                                      STATE                   ZIP CODE
        Relationship:

             Connected Organization              Affiliated Committee            Leadership PAC Sponsor          X    Joint Fundraising Representative    6.Start-Up Costs
 7.     Custodian of Records: Identify by name, address (phone number -- optional) and position of the person in possession of committee
        books and records.
                                                                                                                                                          Participants may advance funds to
                                Herman Lotze
        Full Name
                                                                                                                                                          the joint fundraising representative
                                             319 Main Street
        Mailing Address
                                                                                                                                                          for start-up costs of the fundraiser.
                                                                                                                                                          (Note, however, that individuals may
                                                                   CITY                                     STATE                     ZIP CODE
                                                                                                                                                          not advance such costs or pay for
        Title or Position
                                                                                                                                                          expenses out of pocket to be reim-
        Bookkeeper                                                                                                     703          000           0000
                                                                                           Telephone number
                                                                                                                                                          bursed later. See AO 2007-24.) The
 8.    Treasurer: List the name and address (phone number -- optional) of the treasurer of the committee; and the name and address of
       any designated agent (e.g., assistant treasurer).
                                                                                                                                                          amount advanced by a participant
       Full Name
                                                                                                                                                          should be in proportion to the agreed
                               Gottlob Frege
       of Treasurer

                                             319 Main Street
                                                                                                                                                          upon allocation formula. Any amount
       Mailing Address
                                                                                                                                                          advanced in excess of a participant’s
                                                                                                                                                          proportionate share is considered a
       Title or Position
                                                                   CITY                                     STATE                     ZIP CODE            contribution and must not exceed
        Treasurer
                                                                                          Telephone number
                                                                                                                       703           000           0000
                                                                                                                                                          the amount the participant may
 FE3AN042.PDF
                                                                                                                                                          contribute to the other participants.
                                                                                                                                                          102.17(b)(3)(i) and (ii). (However, an
                                                                                                                                                          exception is made for funds trans-
                                                                                                                                                          ferred between party committees
                                                                                                                                                          under 102.6(a)(1)(ii) and 110.3(c)
                                                                                                                                                          (1). See also Section 14 below.)




                                                                                                                                                                                                        133
                                                         Appendix C



      Example                                                   Special Situations
      Committees A, B and C determine they need                 In two situations, participants must include addi-
      $2,000 in start-up costs. According to their              tional information in the joint fundraising notice:
      allocation formula (Committees A and B, 25                  •	If a participant is engaging in the joint fund-
      percent each; Committee C, 50 percent), Com-                  raiser to pay off outstanding debts, the notice
      mittees A and B each advance $500 to the joint                must state that the allocation formula may
      fundraising representative, and Committee C,                  change if the participant receives enough
      $1,000. If, however, Committee C advances                     funds to pay its debts. See Chapter 4, Sec-
      the entire $2,000, it has made a $500 contri-                 tion 8, “Contributions to Retire Debts.”
      bution to each of the other committees.
                                                                  •	If, under state law, any unregistered participant
                                                                    is permitted to receive contributions prohib-
      Unregistered Organizations                                    ited under the Act, the notice must say that
      An unregistered organization (such as a party                 such contributions will be given only to partici-
      organization that has not yet qualified as a                  pants that may legally accept them.
      political committee) must use permissible                     102.17(c)(2)(ii).
      funds when advancing money for start-up costs.
      102.17(c)(3)(i). If an unregistered participant
      advances more than its share of start-up costs            8. Screening Contributions
      and thus makes a contribution, the contributed
      amount may trigger registration and report-               The fundraising representative and participants
      ing requirements under the Act. 100.5.                    must screen all contributions to make sure they
                                                                are neither prohibited by the Act nor in excess of
                                                                the Act’s contribution limits. (Prohibited contribu-
      7. Joint Fundraising Notice                               tions received by unregistered organizations do
                                                                not have to be screened.) The maximum amount
                                                                a contributor may give to a joint fundraiser is
      General Rule                                              the total amount he or she may contribute to
      In addition to any fundraising or disclaimer              all participants without exceeding any limits.
      notices required (see Chapter 10, Sections 1              To facilitate screening, participants must provide
      and 2), a joint fundraising notice must appear            the joint fundraising representative with records
      with every solicitation for contributions. The            of past contributions so that the representative
      notice must contain the following information:            may determine whether a donor has exceeded
        •	The names of all participants, regardless of          the contribution limits. 102.17(c)(4)(i) and (c)(5).
          whether they are registered political com-
          mittees or unregistered organizations;
        •	The allocation formula (the amount or                 9. recordkeeping
          percentage of each contribution that
          will be allocated to each participant);
                                                                Receipts
        •	A statement informing contributors that they
          may designate contributions for a particular          With regard to gross proceeds, the joint fund-
          participant (notwithstanding the formula); and        raising representative must collect the follow-
                                                                ing contributor information and later forward
        •	A statement that the allocation formula may           it to the participating political committees:
          change if any contributor makes a contribution
          which would exceed the amount he or she                 •	For contributions exceeding $50, the
          may lawfully give to any participant.                     amount, date of receipt, and the con-
          102.17(c)(2)(i).                                          tributor’s name and address.



134
                                                 Joint Fundraising



  •	For contributions exceeding $200, the                      •	A surplus for a participant raising money
    amount, date of receipt, and the contributor’s               solely to pay off campaign debts.
    name, address, occupation and employer.                 Reallocation under these circumstances must be
100.12, 102.8(b) and 102.17(c)(4)(ii).                      based on the other participants’ proportionate
The date of receipt is the date the joint                   shares under the allocation formula. If reallocation
fundraising representative receives the                     results in a contributor exceeding the contribu-
contribution. 102.17(c)(3)(iii).                            tion limits for the remaining participants, the
                                                            joint fundraising representative must return the
                                                            excess amount to the contributor. 102.17(c)(6)(i).
Prohibited Contributions
The joint fundraising representative must also              Example
keep a record of the total amount of prohibited
contributions received, if any, and of any transfers        Using the same example mentioned above (alloca-
containing prohibited funds made to partici-                tion formula: Committees A and B, 25 percent
pants that may accept them. 102.17(c)(4)(ii).               each; Committee C, 50 percent), the participants
                                                            receive a $2,000 contribution from a donor who
                                                            had previously contributed up to his limit to Com-
Disbursements                                               mittee C. If the fundraising representative were to
The joint fundraising representative must retain,           divide the contribution according to the allocation
for three years, records on all disbursements               formula, Committee C would receive an excessive
made for the joint fundraiser. 102.17(c)(4)(iii)            contribution of $1,000. Instead, the excess $1,000
and 102.9. The required recordkeeping informa-              is divided equally between Committees A and B,
tion is described under Chapter 11, Section 3,              since their proportionate shares under the alloca-
“Recording Disbursements.” If a commercial                  tion formula are equal. Each receives an extra $500,
fundraising firm or agent is used, it must forward          bringing their total allocation to $1,000 apiece.
required records on disbursements to the joint              If, however, Committee A can accept only
fundraising representative. 102.17(c)(4)(iii).              $800 from the contributor without exceed-
                                                            ing the limit, the excess $200 is allocated to
                                                            Committee B. If Committee B cannot accept
10. Paying Expenses: Step 1 —                               the money for the same reason, the $200
    Allocating Gross Proceeds                               must be returned to the contributor.

In general, expenses must be paid before proceeds           Designated Contributions
may be transferred to the participants. Thus,               Designated or earmarked contributions that
the joint fundraising representative may make               exceed the contributor’s limit for a participant
payments for fundraising expenses from gross                may not be reallocated without the prior writ-
proceeds collected at the fundraiser (and from              ten consent of the contributor. 102.17(c)(6)(ii).
funds advanced by the participants). 102.17(c)
(7)(iii). Nevertheless, it must allocate (but not
transfer) gross proceeds among the participants.            Prohibited Contributions
Generally, the joint fundraising representa-                Prohibited contributions must be distributed only
tive must allocate gross proceeds accord-                   to the unregistered participants that may lawfully
ing to the allocation formula. However, as                  accept them; they do not have to be distributed
stated in the fundraising notice, the formula               according to the allocation formula. 102.17(c)(6)(iii).
may change if the allocation results in:
  •	An excessive contribution from a contributor
    to one of the participating committees; or



                                                                                                                      135
                                                                                                                                                      Appendix C



      11. Paying Expenses: Step                                                                                                                                                      Example
          2 — Allocating Expenses                                                                                                                                                    At the start of the fundraiser, Committees A, B and
                                                                                                                                                                                     C agree to allocate 25 percent of proceeds and
      After gross proceeds are allocated, the joint                                                                                                                                  expenses to Committee A, 25 percent to Commit-
      fundraising representative must calculate each                                                                                                                                 tee B and 50 percent to Committee C. However,
      participant’s share of expenses based on its actual                                                                                                                            because the joint fundraising representative must
      share of gross proceeds. This allocation may                                                                                                                                   reallocate some contributions, Committee A is
      differ from the original formula—see example                                                                                                                                   actually allocated 20 percent of gross proceeds;
      below. (Prohibited contributions may be excluded                                                                                                                               Committee B, 35 percent; and Committee C,
      from the gross proceeds when determining                                                                                                                                       45 percent. The fundraising representative must
      the ratio.) 102.17(c)(7)(i)(A). Expenses for a                                                                                                                                 allocate the joint fundraising expenses, $10,000,
      series of fundraising events must be allocated                                                                                                                                 on the same basis: $2,000 to Committee A, $3,500
      on a per-event basis. 102.17(c)(7)(i)(C).                                                                                                                                      to Committee B and $4,500 to Committee C.

                                                                                                                                                                                                    Excess Payment
                                                                                                                                                                                                    If a participant pays for more than
                                                                                                                                                                                                    its allocated share of expenses,
                                                                                                                                                                                                    the excess payment is considered
        JOINT FUNDRAISING (SCHEDULE A)                                                                                                                                                              a contribution, subject to the Act’s
                                                                                                                                                                                                    limits (see “Start-Up Costs,” Sec-
           SCHEDULE A (FEC Form 3)                                                             Use separate schedule(s)
                                                                                                                                         FOR LINE NUMBER:
                                                                                                                                         (check only one)
                                                                                                                                                                        PAGE             OF         tion 6 of this chapter). 102.17(c)
                                                                                                                                                                                                    (7)(i)(B). (Party committees are
                                                                                               for each category of the
           ITEMIZED RECEIPTS                                                                                                                11a           11b       11c             11d
                                                                                               Detailed Summary Page
                                                                                                                                          X 12            13a       13b             14        15


                                                                                                                                                                                                    exempt from this rule when paying
            Any information copied from such Reports and Statements may not be sold or used by any person for the purpose of soliciting contributions
            or for commercial purposes, other than using the name and address of any political committee to solicit contributions from such committee.


                                                                                                                                                                                                    for other party committee partici-
                NAME OF COMMITTEE (In Full)
                 Doe for Congress Committee

           A.
                Full Name (Last, First, Middle Initial)
                Doe/Johnson Golf Outing 2012                                                                                               Date of Receipt
                                                                                                                                                                                                    pants because, as explained below,
                Mailing Address
                201 King St.                                                                                                                 03               28                2012                they may make unlimited transfers
                                                                                                                                            M     M   /    D    D   /       Y   Y    Y    Y



                City                                                           State             Zip Code
                Alexandria                                                      VA                00000
                                                                                                                                                                                                    to other party committees.)
                FEC ID number of contributing
                federal political committee.                                  C                  00000000                                  Amount of Each Receipt this Period


                Name of Employer                                            Occupation                                                                    ,
                                                                                                                                                          ▲
                                                                                                                                                                        1,900.00
                                                                                                                                                                        ,
                                                                                                                                                                        ▲    .
                                                                                                                                                                             ▲                      Remember, if an unregistered par-
                Receipt For:
                  X    Primary           General
                                                                             Election Cycle-to-Date
                                                                                                            ▼
                                                                                                                                                  Joint Fundraiser
                                                                                                                                                                                                    ticipant makes such a contribution,
                                                                                                            2,000.00
                       Other (specify) ▼                                                   ,
                                                                                           ▲              ,
                                                                                                          ▲      .
                                                                                                                 ▲                                                                                  the payment may trigger registra-
                                                                                                                                                                                                    tion and reporting requirements
                Full Name (Last, First, Middle Initial)

           B.   Rosity, Jenny                                                                                                              Date of Receipt
                Mailing Address
                1324 Seven Chimney Ln.                                                                                                       02               25                2012                for that organization. 100.5.
                                                                                                                                            M     M   /    D    D   /     Y     Y    Y    Y



                City                                                           State             Zip Code
                Centreville                                                     VA                00000
                FEC ID number of contributing
                federal political committee.                                  C                                                            Amount of Each Receipt this Period


                Name of Employer                                            Occupation                                                                    ,
                                                                                                                                                          ▲
                                                                                                                                                                        1,000.00
                                                                                                                                                                        ,
                                                                                                                                                                        ▲    .
                                                                                                                                                                             ▲
                Centreville College                                             Professor
                Receipt For:
                  X  Primary           General
                                                                             Election Cycle-to-Date
                                                                                                            ▼
                                                                                                                                                     MEMO
                                                                                                                                              Joint Fundraiser
                                                                                                                                                                                                    12.      Paying Expenses:
                                                                                                          ,1,000.00
                                                                                           ,                    .                           Doe/Johnson Golf 2012
                                                                                                                                                                                                             Step 3 —
                     Other (specify) ▼
                                                                                           ▲              ▲     ▲
                Full Name (Last, First, Middle Initial)
                Magnanimous, Joseph
                                                                                                                                                                                                             Calculating Net
                                                                                                                                           Date of Receipt
           C.
                Mailing Address
                490 Main St.                                                                                                                 02               25                2012
                                                                                                                                            M     M   /    D    D   /       Y   Y    Y    Y


                City                                                           State             Zip Code
                Fredericksburg
                FEC ID number of contributing
                federal political committee.                                  C
                                                                                VA                00000
                                                                                                                                           Amount of Each Receipt this Period
                                                                                                                                                                                                             Proceeds
                Name of Employer                                            Occupation                                                                    ,
                                                                                                                                                          ▲
                                                                                                                                                                        1,000.00
                                                                                                                                                                        ,
                                                                                                                                                                        ▲    .
                                                                                                                                                                             ▲
                Wittgenstein & Russell                                          Attorney
                Receipt For:                                                 Election Cycle-to-Date
                                                                                                                                                     MEMO                                           The joint fundraising representa-
                  X                                                                                                                           Joint Fundraiser
                                                                                                            ▼
                     Primary           General
                     Other (specify) ▼
                                                                                           ,
                                                                                           ▲              ,1,000.00
                                                                                                          ▲     .
                                                                                                                ▲                           Doe/Johnson Golf 2012                                   tive may delay transferring net
            SUBTOTAL of Receipts This Page (optional) ............................................................................                        ,
                                                                                                                                                          ▲             1,900.00
                                                                                                                                                                        ,
                                                                                                                                                                        ▲    .
                                                                                                                                                                             ▲
                                                                                                                                                                                                    proceeds to participants until after
                                                                                                                                     ▼




            TOTAL This Period (last page this line number only) ...............................................................                           ,
                                                                                                                                                          ▲
                                                                                                                                                                    10,060.00
                                                                                                                                                                     ,
                                                                                                                                                                     ▲    .
                                                                                                                                                                          ▲                         it receives all contributions and
                                                                                                                                     ▼




                                                                                                                                                  FEC Schedule A (Form 3) (Revised 02/2009)
                                                                                                                                                                                                    pays all expenses for the fundraiser.
                                                                                                                                                                                                    To determine net proceeds, the
                                                                                                                                                                                                    fundraising representative subtracts



136
                                                 Joint Fundraising



the participant’s share of expenses from its share          Participants
of gross proceeds. 102.17(c)(3)(ii) and (c)(7)(i)(A).
                                                            After the joint fundraising representative distrib-
                                                            utes the net proceeds, each participating political
Example                                                     committee reports its share as a transfer-in from
Committees A, B and C raise $50,000 in gross                the joint fundraising representative on Line 12
                                                            (Transfers from Other Authorized Committees)
proceeds and spend $10,000 in expenses,
                                                            and itemizes the transfer on a separate schedule A
leaving $40,000 in net proceeds. The joint                  for that Line. Using the records received from the
fundraising representative allocates $10,000                joint fundraising representative, a participating com-
(20 percent) in gross proceeds to Commit-                   mittee also must itemize its share of gross receipts
tee A and $2,000 (20 percent) in expenses;                  as contributions from the original donors on a
Committee A’s net proceeds equal $8,000.                    memo entry Schedule A (to the extent required
                                                            by the rules on itemization—see Chapter 13, Sec-
                                                            tion 4). When itemizing gross contributions, the
                                                            participant must report the date of receipt as the
13. reporting                                               day the joint fundraising representative received
                                                            the contribution. 102.17(c)(3)(iii) and (c)(8)(i)(B).

By Joint Fundraising Representative
The joint fundraising representative reports all joint      14. Exception for Party
fundraising proceeds in the reporting period in
                                                                Committees2
which they are received. If any prohibited contribu-
tions are received for a participating unregistered         Payments made by a party committee (that is a
organization, the joint fundraising representative          registered federal political committee) on behalf of
must report them as a memo entry. Any Schedule A            another party committee are considered transfers
used to itemize contributions must clearly indicate         of funds rather than contributions. Because there
on the schedule that the receipts are joint fundrais-       is no limit on transfers between party committees
                                                            of the same political party, a party committee may
ing proceeds. 102.17(c)(3) (iii) and (c)(8)(i)(A).
                                                            pay any amount of another party committee’s
The joint fundraising representative must also              allocated start-up costs and fundraising expenses.
report all disbursements made for the joint fun-            Moreover, if all the participants in the fundraiser
draiser in the reporting period in which they are           are party committees, start-up costs and fundrais-
made. 102.17(c)(8)(ii). Transfers of net proceeds           ing expenses need not be allocated at all. 102.6(a)
to the joint fundraising participants are reported          (1)(i) and (ii); 102.17(b)(3)(iii) and (c)(7)(ii).
as transfers to affiliated committees and item-
ized on a separate Schedule B for that category.            Payments by Unregistered
                                                            Party Organizations
Electronic Filing                                           The same exception also applies to unregistered
                                                            party organizations. They must, use funds permis-
If the joint fundraising participants include a
                                                            sible under the Act when making payments for
House campaign or a party committee (regardless             start-up costs and fundraising expenses. Further-
of whether a Senate campaign is participating),             more, such payments by a party organization on
then the joint fundraising representative must file         behalf of a registered party committee count
electronically if its total yearly contributions or         against the $1,000 contribution/expenditure
total yearly expenditures exceed, or are expected
                                                            2    This section also applies to nonconnected committees
to exceed, $50,000. 104.18. For more information                 and unregistered political organizations that are affiliated.
on electronic filing, see Chapter 12, Section 5.                 See Chapter 4, Section 1 for the definition of “affiliated.”



                                                                                                                                 137
                                                          Appendix C



      threshold for registration as a political commit-
      tee. 100.5, 102.6(a)(2) and 102.17(c)(7)(ii).




138
                                               Communications




Appendix D                                                  •	Any other form of general public political
                                                              advertising.1 100.26, 100.27 and 100.28.

  Communications
                                                        2. Coordinated Communications
NOTE: This section discusses communications
that are not made by the campaign, but that are         When a committee, group or individual pays for a
made by others in support of, or opposition to,         communication that is coordinated with a campaign
a candidate. Candidates and their campaigns may         or a candidate, the communication is either an in-
reproduce and distribute this appendix to anyone        kind contribution or, in some limited cases, a coor-
who requests FEC guidelines on such communica-          dinated party expenditure by a party committee.
tions. Citations refer to Federal Election Com-
mission regulations, contained in Title 11 of the       Coordination Defined
Code of Federal Regulations (11 CFR). Advisory
opinions (AOs) issued by the Commission are             Coordinated means made in cooperation, con-
cited as well. If you have any questions after read-    sultation or concert with, or at the request or
ing this appendix, please call the Commission:          suggestion of, a candidate, a candidate’s autho-
1-800/424-9530 (toll free) or 202/694-1100.             rized committee, or their agents, or a political
                                                        party committee or its agents.2 109.20.


1. Public Communications                                Determining Coordination
                                                        FEC regulations provide for a three-pronged
It is important to understand how the Act and           test to determine whether a communication
FEC regulations define “public communication”           is coordinated. A communication must satisfy
because many of the rules regarding political           all three prongs of the test to be considered
communications depend upon whether the com-             a coordinated communication (and as a result,
munication in question is a public communication.       count against contribution limits). 109.21(a).
                                                        The three prongs of the test consider:
Definition                                                  •	The source of payment (payment prong);
A public communication is a communication                   •	The subject matter of the com-
to the general public made by means of:                       munication (content prong); and
  •	Any broadcast, cable or satel-                          •	The interaction between the person paying
    lite communication;                                       for the communication and the candidate or
  •	Newspaper;                                                political party committee (conduct prong).
  •	Magazine;                                           When the payment prong, the content prong
  •	Outdoor advertising facility;                       and the conduct prong are all satisfied, then
                                                        the communication is a coordinated commu-
  •	Mass mailing (more than 500 pieces of substan-      nication and results in an in-kind contribution.
    tially similar mail within any 30-day period);      (See Chapter 13, Section 10 for instructions
  •	Telephone bank (more than 500                       on how to report such a contribution.)
    substantially similar telephone calls
    within any 30-day period);
  •	An advertisement placed for a fee                   1     The term general public political advertising
                                                              does not include any Internet communication
    on another person’s website; or                           except for a communication placed for a
                                                              fee on another person’s website.
                                                        2     For the purposes of 11 CFR Part 109
                                                              only, “agent” is defined at 109.3.



                                                                                                               139
                                                          Appendix D



      Payment Prong                                                    −Refers to a political party, is coordinated
      The payment prong is satisfied when a                             with a Presidential candidate and is
      coordinated communication is paid for, in                         publicly distributed during the period
      whole or in part, by a person other than the                      starting 120 days before the primary
      candidate, an authorized committee or a                           until the date of the general election.3
      political party committee with whom the com-               For communications that refer to both a party
      munication is coordinated. 109.21(a)(1).                   and a clearly identified federal candidate, see
                                                                 109.21(c)(4)(iv); or 109.21(c)(4)(i)-(iv).
      Content Prong
                                                                 A public communication that is the functional
      A communication that meets any one of these                equivalent of express advocacy.4 109.21(c)(5).
      five standards meets the content prong:
        •	A communication that is an electioneering              Conduct Prong
          communication (see Section 6 of this appendix);        The purpose of the conduct prong is to deter-
        •	A public communication that republishes,               mine when interaction between the campaign
          disseminates or distributes candidate cam-             and the person paying for the communication
          paign materials, unless the activity meets             might constitute coordination. A communication
          one of the exceptions at 109.23(b);                    that satisfies any one of the conduct standards
                                                                 described below satisfies the conduct prong.
        •	A public communication that expressly
          advocates the election or defeat of a clearly          1) request or Suggestion. This conduct standard
          identified candidate for federal office;               has two parts, and satisfying either satisfies the
                                                                 standard. The first part is satisfied if the person
        •	A public communication that:                           creating, producing or distributing the communica-
           −Refers to a clearly identified House                 tion does so at the request or suggestion of a
            or Senate candidate and is publicly                  candidate, authorized committee, political party
            distributed in the identified candidate’s            committee or agent of any of these. A communica-
            jurisdiction within 90 days of the can-              tion satisfies the second part of the “request or
            didate’s primary or general election;                suggestion” conduct standard if the person paying
           −Refers to a clearly identified Presidential          for the communication suggests the creation,
            candidate and is publicly distributed                production or distribution of the communica-
            during the period starting 120 days                  tion to the candidate, authorized committee,
            before the primary election and ending               political party committee or agent of any of the
            on the date of the general election;                 above, and the candidate or political party com-
                                                                 mittee assents to the suggestion. 109.21(d)(1).
           −Refers to a political party in a midterm
            election cycle, is coordinated with a party
            committee and is publicly distributed within
            90 days of a primary or general election;            3     The rules at 109.21(c)(4) regarding the public
                                                                       communication content standard time frames are
           −Refers to a political party in a Presi-                    the subject of a litigation challenge in Shays et al. v.
            dential election cycle, is coordinated                     FEC, _ F. Supp. 2d __, 2007 WL 2616689 (D.D.C. Sept.
                                                                       12, 2007) (Shays III). On 9/12/07, the District Court
            with a party committee and is publicly                     remanded this regulation to FEC for reconsideration.
            distributed during the period starting
                                                                 4     A communication is the functional equivalent of
            120 days before the primary and ending                     express advocacy if it is “susceptible of no reasonable
            on the date of the general election;                       interpretation other than as an appeal to vote for
                                                                       or against a clearly identified federal candidate.” This
           −Refers to a political party, is coordinated                content standard applies without regard to the timing
            with a House or Senate candidate and                       of the communication or the targeted audience.
            is publicly distributed in that candi-                     See the Commission’s Final Rules on Coordinated
            date’s jurisdiction within 90 days of                      Communications published in the September 15, 2010,
                                                                       Federal Register (75 FR 55947), available at http://www.
            the primary or general election; or                        fec.gov/law/cfr/ej_compilation/2010/notice2010-17.pdf.



140
                                                       Communications



2) Material Involvement. This conduct standard                       party committee. This previous relationship
is satisfied if a candidate, candidate committee,                    is defined in terms of nine specific services
political party committee or an agent of any                         related to campaigning and campaign com-
of these was “materially involved in decisions”                      munications. (See 109.21(d)(4)(2).) Note that
regarding any of the following aspects of a public                   these services would have to have been ren-
communication paid for by someone else:                              dered within 120 days before the purchase or
                                                                     public distribution of the communication; and
    •	Content of the communication;
                                                                    •	The commercial vendor uses or conveys
    •	Intended audience;                                              information about the campaign plans, proj-
    •	Means or mode of the communication;                             ects, activities or needs of the candidate or
    •	Specific media outlet used;                                     political party committee, or information
                                                                      previously used by the commercial vendor
    •	Timing or frequency of the communication; or                    in serving the candidate or political party
    •	Size or prominence of a printed communica-                      committee, to the person paying for the com-
      tion or duration of a communication by means                    munication, and that information is material
      of broadcast, cable or satellite. 109.21(d)(2).                 to the creation, production or distribution of
3) Substantial Discussion. A communication                            the communication. 109.21(d)(4). See “Safe
meets this conduct standard if it is created, pro-                    Harbor for Publicly Available Information and
duced or distributed after one or more substantial                    “Safe Harbor for Use of a Firewall,” below.
discussions between the person paying for the                   5) Former Employee/Independent Contractor.