Political action committees
CLEP American Government, Chapter 32
Political action committees
A direct monetary contribution transfers funds to a candidate, party, or political committee that controls their use. Federal law limits many direct contributions, prohibits some sources, and requires records and reports. Dollar limits are indexed or changed over time, so the durable distinction begins with the path and control of the money. When a voter gives a candidate committee $200, the committee can use those funds for lawful campaign purposes. When the voter independently buys $200 of advertising without coordinating, the voter retains operational control and the transaction belongs to a different category.
The broader legal category also includes in-kind contributions. Paying a campaign's vendor, supplying equipment below market value, or producing material at the campaign's request may provide reportable value even when no check enters the committee's account. A third party that pays for a communication coordinated with a campaign can therefore make an in-kind contribution without transferring cash to the committee. Ordinary uncompensated personal volunteer activity receives different treatment.
A traditional political action committee, or PAC, pools funds for regulated political activity. Depending on its status, it may make limited direct contributions to candidate committees and may also finance permitted expenditures. A corporation or labor organization may sponsor a separate segregated fund that raises voluntary contributions from a restricted class; a nonconnected PAC operates without that sponsoring relationship.
Video lesson: Campaign finance | Political participation | US government and civics | Khan Academy
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