Donation Limits

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We have received several inquiries concerning what the maximum donation amount is, and what limitations are placed on individual donors.  The following table and list of constraints is derived from the Federal Election Committees web site:  http://www.fec.gov/pages/brochures/contriblimits.shtml.

Contribution Limits 2009-10* These contribution limits are increased for inflation in odd-numbered years.

  1. A contribution earmarked for a candidate through a political committee counts against the original contributor’s limit for that candidate. In certain circumstances, the contribution may also count against the contributor’s limit to the PAC. 11 CFR 110.6. See also 11 CFR 110.1(h).
  2. No more than $45,600 of this amount may be contributed to state and local party committees and PACs.
  3. This limit is shared by the national committee and the Senate campaign committee.
  4. A multicandidate committee is a political committee with more than 50 contributors which has been registered for at least 6 months and, with the exception of state party committees, has made contributions to 5 or more candidates for federal office. 11 CFR 100.5(e)(3).
  5. 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).

Prohibited Contributions and Expenditures

The FECA places prohibitions on contributions and expenditures by certain individuals and organizations. The following are prohibited from making contributions or expenditures to influence federal elections:

  • Corporations;
  • Labor organizations;
  • Federal government contractors; and
  • Foreign nationals.

Furthermore, with respect to federal elections:

  • No one may make a contribution in another person’s name.
  • No one may make a contribution in cash of more than $100.

In addition to the above prohibitions on contributions and expenditures in federal election campaigns, the FECA also prohibits foreign nationals, national banks and other federally chartered corporations from making contributions or expenditures in connection with state and local elections.

Independent Expenditures

Under federal election law, an individual or group (such as a PAC) may make unlimited “independent expenditures” in connection with federal elections.

An independent expenditure is an expenditure for a communication which expressly advocates the election or defeat of a clearly identified candidate and which is made independently from the candidate’s campaign. To be considered independent, the communication may not be made with the cooperation, consultation or concert with, or at the request or suggestion of, any candidate or his/her authorized committees or a political party, or any of their agents.  While there is no limit on how much anyone may spend on an independent expenditure, the law does require persons making independent expenditures to report them and to disclose the sources of the funds they used. The public can review these reports at the FEC’s Public Records Office.

Corporate and Union Activity

Although corporations and labor organizations may not make contributions or expenditures in connection with federal elections, they may establish PACs. Corporate and labor PACs raise voluntary contributions from a restricted class of individuals and use those funds to support federal candidates and political committees. Click here to download the Campaign Guide for Corporations and Labor Organizations [PDF].

Apart from supporting PACs, corporations and labor organizations may conduct other activities related to federal elections, within certain guidelines. For more information, call the FEC or consult 11 CFR Part 114.

Political Party Activity

Political parties are active in federal elections at the local, state and national levels. Most party committees organized at the state and national levels as well as some committees organized at the local level are required to register with the FEC and file reports disclosing their federal campaign activities.

Party committees may contribute funds directly to federal candidates, subject to the contribution limits. National and state party committees may make additional “coordinated expenditures,” subject to limits, to help their nominees in general elections.  Party committees may also make unlimited “independent expenditures” to support or oppose federal candidates, as described in the section above.  National party committees, however, may not solicit, receive, direct, transfer, or spend nonfederal funds.  Finally, while state and local party committees may spend unlimited amounts on certain grassroots activities specified in the law without affecting their other contribution and expenditure limits (for example, voter drives by volunteers in support of the party’s Presidential nominees and the production of campaign materials for volunteer distribution), they must use only federal funds or “Levin funds” when they finance certain “Federal election activity.”

Party committees must register and file disclosure reports with the FEC once their federal election activities exceed certain dollar thresholds specified in the law.

This content is derived (Cut and Pasted) from the Federal Election Committee Web Site. Any errors originate with the FEC Web Site.  Report any errors to the parsonforsenate2010 campaign, and we will correspond with the FEC for clarification and correction as required. – Bill Parson