www.politicallawbriefing.com Open in urlscan Pro
2606:4700:3037::ac43:807e  Public Scan

Form analysis
3 forms found in the DOM

POST https://www.politicallawbriefing.com/setting-up-and-operating-a-federal-super-pac/#lxb_mct-form-1

<form class="lxb_mct_subscribe_widget_form  " action="https://www.politicallawbriefing.com/setting-up-and-operating-a-federal-super-pac/#lxb_mct-form-1" method="post">
  <input type="email" required="" class="" id="lxb_mct-form-1" name="mc_email" placeholder="Your Email Address">
  <label for="mc_website-lxb_mct-form-1" class="mc_website_label screen-reader-text ">Your website url</label>
  <input type="text" id="mc_website-lxb_mct-form-1" class="mc_website " tabindex="-1" aria-hidden="true" name="mc_website" value="Website">
  <input type="submit" class="" id="mc_submit-lxb_mct-form-1" name="mc_submit" value="GO">
  <input type="hidden" name="mc_input_id" value="lxb_mct-form-1">
  <input type="hidden" name="mc_list_id" value="5854b45944">
  <input type="hidden" name="mc_redirect_to" value="">
  <input type="hidden" id="mc_load_time-lxb_mct-form-1" name="mc_load_time" value="0">
  <input type="hidden" name="profile_link_classes" value="">
</form>

GET https://www.politicallawbriefing.com

<form action="https://www.politicallawbriefing.com" method="get"><label class="screen-reader-text" for="cat">Topics</label><select name="cat" id="cat" class="postform">
    <option value="-1">Select Category</option>
    <option class="level-0" value="2">501(c)(3)</option>
    <option class="level-0" value="3">501(c)(4)</option>
    <option class="level-0" value="431">Advertising and Social Media</option>
    <option class="level-0" value="463">Artificial Intelligence</option>
    <option class="level-0" value="4">Campaign Finance</option>
    <option class="level-0" value="5">Charities</option>
    <option class="level-0" value="6">Compliance</option>
    <option class="level-0" value="7">Contributions</option>
    <option class="level-0" value="424">Dark Money</option>
    <option class="level-0" value="8">Disclosure</option>
    <option class="level-0" value="443">DOJ</option>
    <option class="level-0" value="9">Electioneering Communications</option>
    <option class="level-0" value="420">Ethics</option>
    <option class="level-0" value="465">FCC</option>
    <option class="level-0" value="10">FEC</option>
    <option class="level-0" value="446">Foreign Agents Registration Act</option>
    <option class="level-0" value="11">Gift laws</option>
    <option class="level-0" value="12">Independent Expenditures</option>
    <option class="level-0" value="13">LDA</option>
    <option class="level-0" value="14">Lobbying</option>
    <option class="level-0" value="15">MSRB</option>
    <option class="level-0" value="16">Nonprofits</option>
    <option class="level-0" value="17">Other</option>
    <option class="level-0" value="423">PAC Compliance</option>
    <option class="level-0" value="18">Pay-to-Play</option>
    <option class="level-0" value="19">Rulemaking</option>
    <option class="level-0" value="20">SEC</option>
    <option class="level-0" value="21">State</option>
    <option class="level-0" value="22">Super PACs</option>
    <option class="level-0" value="430">Tax</option>
    <option class="level-0" value="23">Tax-Exempt Status</option>
    <option class="level-0" value="466">TCPA</option>
    <option class="level-0" value="24">Technology</option>
    <option class="level-0" value="25">Trade Associations</option>
    <option class="level-0" value="26">Trademarks and Copyrights</option>
    <option class="level-0" value="1">Uncategorized</option>
  </select>
</form>

GET https://www.politicallawbriefing.com

<form method="get" class="lxb_af-skinny_search overlay" data-controller="lxb_af-skinny_search-controller" data-closer="lxb_af-skinny_search-closer" action="https://www.politicallawbriefing.com" role="search" style="display: none;">
  <a href="#" class="lxb_af-skinny_search-closer"><span class="icon-close"></span> <span class="screen-reader-text">Close</span></a>
  <div class="lxb_af-skinny_search-inner inner">
    <div class="lxb_af-skinny_search-fieldset">
      <span class="icon-search"></span>
      <label class="screen-reader-text" for="lxb_af-s-805311">Enter Search Terms</label>
      <!--[if IE 9]>
				<input class='lxb_af-template_tags-get_search_form-search' type='search' id='lxb_af-s-805311' value='Enter Search Terms' name='s'>
			<![endif]-->
      <!--[if !(IE 9)]><!-->
      <input class="lxb_af-template_tags-get_search_form-search" type="search" placeholder="Enter Search Terms" id="lxb_af-s-805311" name="s">
      <!--<![endif]-->
    </div>
    <div class="lxb_af-skinny_search-fieldset">
      <button class="lxb_af-template_tags-get_search_form-submit lxb_af-button" value="Search">Search </button>
    </div>
  </div>
</form>

Text Content

Skip to content


MENU


HomeAboutContactResources
Search


POLITICAL LAW BRIEFING

Developments in Federal and State Campaign Finance, Lobbying, and Ethics Laws


SETTING UP AND OPERATING A FEDERAL SUPER PAC

This memorandum summarizes the rules of the road for setting up and operating
federal Super PACs, which are groups formed primarily to make “independent
expenditures” in connection with federal elections, and which register and file
reports with the Federal Election Commission (“FEC”). An “independent
expenditure” is an expenditure for a communication expressly advocating the
success or defeat of a clearly identified candidate for federal office. Unlike
traditional federal PACs, a Super PAC may accept unlimited contributions from
corporations and unions, and unlimited amounts from individual contributors so
long as they are U.S. citizens or green card holders.

A Super PAC may not be used, however, to make contributions to federal
candidates, political party committees, or to PACs that contribute to candidates
and party committees. A Super PAC’s activities must also not be coordinated with
a candidate, a candidate’s authorized committee, a political party committee, or
their respective agents.

Many states allow a federal Super PAC to make expenditures in connection with
non-federal elections, although some impose registration and/or reporting
requirements. Some states require a separate in-state Super PAC to be created. A
handful of states have continued to fight the use of Super PACs, but courts have
almost uniformly struck down those laws.

Super PACs can do virtually anything to independently support or oppose
candidates. Often they air advertisements on radio and television, but they may
also create websites, use social media, and can even develop a ground game to
identify voters and get-out-the vote.

Steps to Set Up a Super PAC

Select a name. The Super PAC’s name must appear in public filings and in most
public communications in the form of a “paid for by” statement. At a minimum,
some initial screening should be done to determine the likelihood of trademark
challenges to the PAC’s name, logo, and slogans.

Determine governance structure. While not required, we recommend that Super PACs
incorporate for liability purposes. Donors also often like to see the PAC run by
a board with fiduciary obligations responsible for determining how the money
will be spent, rather than a hired political consultant who may have a strong
incentive to spend money in a way that is beneficial to the consultant. As an
incorporated entity, the Super PAC will need articles of incorporation, bylaws,
and organizing resolutions. The Super PAC will also need to designate a
registered agent to accept service of process.

Open a bank account. The Super PAC must open a bank account in its own name
through which all receipts and disbursements should be made. To open the
account, the Super PAC will need an Employer Identification Number (EIN) from
the Internal Revenue Service.

Select a treasurer. The Super PAC must appoint a treasurer who is legally
responsible for safeguarding PAC funds and ensuring that the PAC files timely
and accurate reports. A PAC may not receive or disburse funds if there is a
treasurer vacancy. The FEC therefore encourages PACs to appoint an assistant
treasurer who may act in the treasurer’s absence.

Prepare and file initial registration with the FEC. The Super PAC must register
with the FEC by filing a Statement of Organization (FEC Form 1). The FEC Form 1
must be filed within 10 days of receiving contributions or making expenditures
in connection with a federal election. The registration form requires the PAC to
identify its name, address, committee type, custodian of records, treasurer and
any assistant treasurer, and the name and address of the PAC’s bank. The FEC
Form 1 must also be accompanied by a brief letter specifying the PAC’s intention
to act as an independent expenditure-only committee.

Fundraising

A federal Super PAC may accept contributions in unlimited sums from individuals
(U.S. citizens or green card holders), and other groups or business entities,
including corporations and unions. However, federal political committees,
including Super PACs, are prohibited from accepting contributions from foreign
nationals and federal government contractors.

Coordination  

Super PACs may not make expenditures at the request or suggestion of a
candidate, campaign or political party, or use non-public information obtained
from a candidate, campaign, or political party in connection with media
strategy, development, or production. Likewise, a Super PAC may not republish
campaign materials prepared by a candidate, campaign committee, or political
party, except for a brief quote to illustrate a candidate’s position or certain
other limited purposes. The coordination ban also applies to interactions with
agents of the candidate and campaign finance entity of a candidate, such as
common vendors and employees (present and former).

Coordination may cause the Super PAC’s disbursement to be considered an illegal,
in-kind contribution. Such activity can lead to intrusive investigations,
significant penalties, and even criminal prosecution. To minimize these risks,
every Super PAC should adopt and implement a coordination policy, provide
training regarding the policy to its employees and vendors, and exercise care in
its interactions with candidates, campaigns, and political parties.

Advertising Disclaimers

Public communications by Super PACs must include “paid for by” disclaimers in
compliance with FEC rules. The specific disclaimer requirements vary
considerably depending on the communication medium. Any automated phone calls
must also comply with sponsorship identification and other restrictions
promulgated by the Federal Communications Commission, and may also be subject to
state law requirements.

Reporting

Super PACs are subject to the same reporting obligations as traditional federal
PACs. During an election year, the Super PAC must file reports with the FEC
disclosing all receipts and disbursements on either a monthly or quarterly
schedule. Quarterly filers must also file pre-primary reports 12 days before
every primary in which the PAC is active. Super PACs must also file 24- or
48-hour reports disclosing certain expenditures made in close proximity to an
election. Given the short turnaround on these reports, it is important to have
good accounting systems in place to make certain that the reports are accurate
and filed on time.

Federally-registered Super PACs are automatically tax-exempt under Section 527
of the Internal Revenue Code, and generally have no filing obligations with the
Internal Revenue Service. A Super PAC must, however, file Form 1120-POL with the
IRS and pay any associated tax for any year in which the organization has
investment or similar taxable income over $100.


SUBSCRIBE BY EMAIL

Your website url


TOPICS

Topics Select Category 501(c)(3) 501(c)(4) Advertising and Social Media
Artificial Intelligence Campaign Finance Charities Compliance Contributions Dark
Money Disclosure DOJ Electioneering Communications Ethics FCC FEC Foreign Agents
Registration Act Gift laws Independent Expenditures LDA Lobbying MSRB Nonprofits
Other PAC Compliance Pay-to-Play Rulemaking SEC State Super PACs Tax Tax-Exempt
Status TCPA Technology Trade Associations Trademarks and Copyrights
Uncategorized


ARCHIVES

Archives Select Month May 2024 April 2024 March 2024 February 2024 August 2023
April 2023 February 2023 December 2022 November 2022 June 2022 May 2022 April
2022 March 2022 February 2022 December 2021 August 2021 July 2021 April 2021
March 2021 February 2021 January 2021 December 2020 November 2020 September 2020
July 2020 June 2020 May 2020 April 2020 March 2020 November 2019 October 2019
September 2019 August 2019 March 2019 February 2019 September 2018 July 2018
March 2018 December 2017 October 2017 September 2017 June 2017 May 2017 March
2017 January 2017 October 2016 September 2016 August 2016 July 2016 June 2016
May 2016 March 2016 January 2016 July 2015 June 2015 May 2015 April 2015 March
2015 February 2015 January 2015 November 2014 July 2014 June 2014 May 2014 April
2014 February 2014 January 2014 December 2013 November 2013 October 2013 August
2013 June 2013 May 2013 April 2013 March 2013 February 2013 January 2013
December 2012 November 2012 October 2012 September 2012 August 2012 July 2012
June 2012


EDITORS

Lawrence H. NortonPartner
Ronald M. JacobsPartner

Copyright © 2024, Venable LLP. All Rights Reserved.
Privacy PolicyDisclaimer
Law blog design & platform by LexBlog LexBlog Logo
Close
Enter Search Terms
Search