Public Funding of Presidential Elections
Federal Election Commission (http://www.fec.gov/pages/brochures/pubfund.shtml)
lic Funding of Presidential Elections
Published in August 1996 (updated February 2016)
On April 3, 2014, President Obama signed legislation that will end public funding of national nominating conventions. This brochure
should be read in tandem with the new law. (Public Law No: 113-94)
Introduction
This brochure gives a brief history of Presidential election public funding and an overview of
how the process works. The brochure also explains the ways individuals may support publicly
funded Presidential candidates and the various materials on Presidential campaign finance
available from the Federal Election Commission.
The brochure was written to help students, reporters and other members of the general
public understand the basics of public funding. It was not written for Presidential candidates
and committees that wish to apply for public funds. They should consult the federal public
funding laws and Commission regulations.
What is Public Funding?
Public funding of Presidential elections means that qualified Presidential candidates receive federal
government funds to pay for the valid expenses of their political campaigns in both the primary and general
elections. National political parties also receive federal money for their national nominating conventions.
When and How Did it Begin?
The Federal Election Commission administered the first public funding program in 1976. Eligible Presidential
candidates used federal funds in their primary and general election campaigns, and the major parties used
public funds to pay for their nominating conventions. Legislation for public financing of Presidential
candidates was first proposed, however, in 1907. In his State of the Union message that year, President
Theodore Roosevelt recommended public financing of federal elections and a ban on private contributions.
In 1966, Congress enacted the first public funding legislation, but suspended it a year later. That law would
have made U.S. Treasury funds available to eligible nominees in the Presidential general election through
payments to their political parties. Funds would have come from a Presidential Election Campaign Fund in
the U.S. Treasury consisting of dollars voluntarily checked off by taxpayers on their federal income tax
returns. A subsidy formula would have determined the amount of public funds available to eligible
candidates.
In 1971, Congress adopted similar provisions, which formed the basis of the public funding system in effect
today. Under the 1971 Revenue Act,1 the nominee, rather than the party, receives the public funds
accumulated through the dollar checkoff. The Revenue Act also placed limits on campaign spending by
Presidential nominees who receive public money and a ban on all private contributions to them.
In a parallel development, Congress passed the 1971 Federal Election Campaign Act,2 which required full,
detailed reporting of campaign contributions and expenditures by all federal candidates, including
Presidential candidates. The 1974 Amendments3 to the Federal Election Campaign Act completed the system
we now have for public financing of Presidential elections. Those Amendments extended the public funding
provisions of the Revenue Act to Presidential primary elections4 and the Presidential nominating conventions
of national parties. Court challenges to the expenditure limits followed soon after Congress passed the 1974
Amendments. However, the Supreme Court, in two separate suits, first implied and later affirmed that
expenditure limits for publicly funded Presidential candidates are constitutional. (See Buckley v. Valeo (1976)
and Republican National Committee v. FEC (1980).) In 1976, Congress made minor changes to the public funding
provisions and in 1979 and 1984 increased the public funding entitlement and spending limit for national
nominating conventions.5
How Does Public Funding Work?
To qualify for public funding, Presidential candidates and party convention
committees must first meet various eligibility requirements, such as agreeing to
limit campaign spending to a specified amount. Once the Federal Election
Commission determines that eligibility requirements have been met, it certifies the
amount of public funds to which the candidate or convention committee is entitled.
The U.S. Treasury then makes the actual payments from the Presidential Election
Campaign Fund. This fund consists of dollars voluntarily checked off by taxpayers on their federal income
tax returns. (In 1993, the taxpayer checkoff was increased from $1 to $3. Public Law 103-66) The
checkoff neither increases the amount of taxes owed nor decreases any refund due for the tax
year in which the checkoff is made.
Primary Matching Funds
Partial public funding is available to Presidential primary candidates in the form of matching payments. The
federal government will match up to $250 of an individual's total contributions to an eligible candidate.
Only candidates seeking nomination by a political party to the office of President are eligible to receive
primary matching funds. In addition, a candidate must establish eligibility by showing broad-based public
support. He or she must raise in excess of $5,000 in each of at least 20 states (i.e., over $100,000).
Although an individual may contribute up to $2,700 to a primary candidate, only a maximum of $250 per
individual applies toward the $5,000 threshold in each state.
Candidates also must agree to:
 Limit campaign spending for all primary elections to $10 million plus a
cost-of-living adjustment (COLA).6 This is called the national spending
limit.
 Limit campaign spending in each state to $200,000 plus COLA, or to a
specified amount based on the number of voting age individuals in the
state (plus COLA), whichever is greater.
 Limit spending from personal funds to $50,000.
The campaign finance law exempts the payment of some expenses from the spending limits. Certain
fundraising expenses (up to 20 percent of the expenditure limit) and legal and accounting expenses incurred
solely to ensure the campaign's compliance with the law do not count against the expenditure limits.
Once they have established eligibility for matching payments, Presidential
candidates may receive public funds to match contributions from individual
contributors, up to $250 per individual. The contributions must be in the form of
a check or money order. (Purchases of tickets to fundraisers and contributions
collected through joint fundraising are matchable contributions, but loans, cash
contributions, goods or services, contributions from political committees and
contributions which are illegal under the campaign finance law
are notmatchable.)
Even if they no longer campaign actively in primary elections, candidates may continue to request public
funds to pay off campaign debts until late February or early March of the year following an election.
(However, to qualify for matching funds, contributions must be deposited in the campaign account by
December 31 of the election year.) Eligible candidates may receive public funds equaling up to half of the
national spending limit for the primary campaign. Because candidates receive many nonmatchable
contributions, such as those from political committees, they generally raise more money than they receive in
matching funds.
General Election Funding
The Presidential nominee of each major party may become eligible for a public grant of $20 million (plus a
cost-of-living adjustment) for campaigning in the general election.7 To be eligible to receive the public
funds, the candidate must limit spending to the amount of the grant and may not accept private
contributions for the campaign. Private contributions may, however, be accepted for a special account
maintained exclusively to pay for legal and accounting expenses associated with complying with the
campaign finance law. These legal and accounting expenses are not subject to the expenditure limit.
In addition, candidates may spend up to $50,000 from their own personal funds. Such spending does not
count against the expenditure limit.
Minor party candidates and new party candidates may become eligible for partial public funding of their
general election campaigns. (A minor party candidate is the nominee of a party whose candidate received
between 5 and 25 percent of the total popular vote in the preceding Presidential election. A new party
candidate is the nominee of a party that is neither a major party nor a minor party.) The amount of public
funding to which a minor party candidate is entitled is based on the ratio of the party's popular vote in
the preceding Presidential election to the average popular vote of the two major party candidates in that
election. A new party candidate receives partial public funding after the election if he/she receives 5
percent or more of the vote. The entitlement is based on the ratio of the new party candidate's popular vote
in the current election to the average popular vote of the two major party candidates in the election.
Although minor and new party candidates may supplement public funds with private contributions and may
exempt some fundraising costs from their expenditure limit, they are otherwise subject to the same
spending limit and other requirements that apply to major party candidates.
Expenditure Limits for Publicly Funded Candidates*
Primary
Candidates
General Election
Major Party
Nominees
Minor/New
Party
Nominees
National Spending Limit
$10 mil. +
COLA**
$20 mil. +
COLA
$20 mil. + COLA
State Spending Limit
The greater of
$200,000 +
COLA or $0.16
x state VAP***
None None
Exempt Fundraising Limit
20% of
national limit
Not applicable
20% of national
limit
Maximum Public Funds
Candidate May Receive
50% of national
limit
Same as
national limit
Percentage of
national limit
based on
candidate's
popular vote.
National Party Spending
Limit for Candidate**** Not applicable
$0.02 x VAP
of U.S. +
COLA
$0.02 x VAP of
U.S. + COLA
Limit on Spending from
Candidate's Personal
Funds
$50,000 $50,000 $50,000
To see Presidential primary matching fund submission dates for 2016, click here.
---------------
To see the Presidential spending limits for 2016, click here.
To see the Presidential spending limits for 2012, click here.
To see the Presidential spending limits for 2008, click here.
To see the Presidential spending limits for 2004, click here.
*Legal and accounting expenses incurred solely to ensure the campaign's compliance with the law are
exempt from all expenditure limits.
**Spending limits are increased by the cost-of-living adjustment (COLA), which the Department of Labor
calculates annually using 1974 as the base year.
***VAP is the Voting Age Population, which the Department of Commerce calculates annually.
****The national committee of a political party may make special, limited expenditures, called coordinated
party expenditures or 441a(d) expenditures, on behalf of its Presidential nominee, even if the nominee does
not accept public funds. Coordinated party expenditures are not considered contributions and do not count
against a publicly funded campaign's candidate expenditure limit.
Convention Funding
(NOTE: On April 3, 2014, President Obama signed legislation that will end public funding of national nominating conventions.)
Each major political party is entitled to $4 million (plus cost-of-living adjustments)8 to finance its national
Presidential nominating convention. A qualified minor party may become eligible for partial convention
funding based on its Presidential candidate's share of the popular vote in the preceding Presidential election.
A party convention committee may not spend more than the amount to which the major party is entitled.
Contributions may be accepted, however, for a special account maintained exclusively to pay for legal and
accounting expenses associated with complying with the campaign finance law. Contributions to this account
count against the donor's annual limit for the Party. Certain supplemental services may also be provided by
the host state and city governments and by local groups such as businesses and labor unions. The host city
may, for example, provide additional public transportation to and from the convention site. Or a business
may sell or rent chairs, podiums, tables or other equipment to the convention committee at discount rates.
What is the FEC's Role?
The Federal Election Commission ensures that candidates and convention committees requesting public
funds have satisfied the eligibility requirements. The FEC then certifies payments of federal funds, which are
actually made by the U.S. Treasury. Before certifying matching payments to primary candidates, the FEC
first reviews submitted contributions to make sure they meet the requirements for matchability.
Additionally, the FEC audits all public funding recipients to ensure that the funds were spent in compliance
with the law. Under certain circumstances, the FEC may require the repayment of public funds.
Eligibility for Public Funds
To be eligible for public funds, a Presidential candidate or a party convention committee must first submit a
letter of agreement and a written certification in which the candidate or committee agrees to:
 Spend public funds only for campaign-related expenses or, in the case
of a party convention, for convention-related expenses;
 Limit spending to amounts specified by the campaign finance law;
 Keep records and, if requested, supply evidence of qualified expenses;
 Cooperate with an audit of campaign or convention expenses;
 Repay public funds, if necessary; and
 Pay any civil penalties imposed by the FEC.
Primary candidates must additionally certify that they have met the "threshold requirement" for eligibility by
raising in excess of $5,000 in each of 20 states (see"Primary Matching Funds," above). A candidate may satisfy
eligibility requirements and submit private contributions for matching payments any time after January 1 of
the year before a Presidential general election. Actual payments are not made, however, until after January
1 of the Presidential election year.
Repayments of Public Funds
The Commission requires candidates and convention committees to repay public funds to the U.S. Treasury
when the FEC audit determines that:
 The amount of public funds received exceeds the amount to which the
candidate or convention committee is entitled;
 Spending limits are exceeded;
 Public funds are used for purposes other than qualified campaign
expenses;
 Surplus funds remain after debts and obligations have been paid;
 Interest is earned on invested public funds; or
 The spending of public funds is not sufficiently documented.
Presidential candidates and convention committees may challenge any FEC repayment determination by
following the procedures spelled out in FEC regulations.
How Can I Support My Candidate?
The following paragraphs have been written exclusively for individuals, to explain how they may support
Presidential candidates. (Political committees and other organizations should call the Commission in
Washington, D.C., toll free 800/424-9530 or 202/694-1100.)
Contributions to Primary Candidates 9
You may contribute up to $2,700 to a Presidential candidate in the primary election campaign, whether or
not the candidate accepts matching funds. (The $2,700 limit applies to the entire primary process, rather
than to a single primary held in a particular state.)
Contributions to Major Party Nominees in the General Election
A major party nominee who has accepted public funding for the general election may not accept any
contributions to further his election. You may, however, help a publicly funded nominee by contributing to
the candidate's compliance fund. A compliance fund is a special account maintained by publicly funded
nominees solely for paying legal and accounting expenses incurred in complying with the campaign finance
law. You may contribute up to $2,700 to the compliance fund of a major party nominee.
In the case of a major party nominee who is not publicly funded, you may contribute up to $2,700 to his/her
general election campaign.
Contributions to Minor and New Party Nominees in the General Election
You may contribute up to $2,700 to the general election campaign of a minor or new party candidate,
whether or not the candidate accepts public funds.
Independent Expenditures
In both the primary and general elections, you may make your own "independent expenditures" to support
or oppose a Presidential candidate, whether or not the candidate receives public funds. An independent
expenditure is an expenditure for a communication that expressly advocates the election or defeat of a
clearly identified candidate. An independent expenditure is not considered a contribution and therefore does
not count against contribution limits as long as the expenditure is completely independent of the candidate's
campaign. This means you may not make the expenditure at the request or suggestion of the candidate or
his/her aides or with their consent. Nor may you consult or cooperate in any way with the candidate or
campaign aides. Additionally, you may not use any material prepared by the candidate or campaign in the
communication.
Within these restrictions, you may, for example, place an ad on a billboard or in a newspaper urging the
public to vote for your candidate. However, you must place a notice on the communication stating that you
have paid for it and that it has not been authorized by any candidate (e.g., "Paid for by John Doe and not
authorized by any candidate").
You must file a report with the Commission when the total amount of your independent expenditures
aggregates over $250 during the calendar year. For more information, consult the Commission's Independent
Expenditures brochure.
Volunteer Services
You may volunteer your services to a Presidential candidate's primary and
general election campaigns (whether or not the candidate receives public
funding) and to the candidate's political party. However, you must volunteer the
services on your own time, not on your employer's time.
You may also pay for certain expenses as a volunteer. As long as you do not
exceed certain limits, the money does not count as a contribution to the
candidate. However, if you exceed the limits placed on these expenses, the
amount over the limit counts as a contribution. Therefore, when spending
money on volunteer activity for major party nominees receiving public funds,
you must not exceed the limits.
You may travel on behalf of the candidate, spending up to $1,000 both in the primary and general election
campaigns. In addition, you may spend up to $2,000 annually for travel on behalf of the candidate's party.
You may spend any amount in normal living expenses incurred while traveling or engaging in other
volunteer activity.
You may hold a reception in your home or in a church or community room for the candidate or the
candidate's party. You may spend up to $1,000, both in the primary and general elections, for food,
beverage and invitations associated with the candidate's reception. For a reception held to benefit the
candidate's party, you may spend up to $2,000 annually for the same items.
Contributions to Party Committees
You may contribute up to $30,800 a year to a national party committee and up to $10,000 a year to a state
or local party committee. (A state party committee and the local party committees within that state usually
share one $10,000 annual limit on contributions from a person.) Although major party committees are not
permitted to contribute to their nominee in the general election if he or she accepts public funds, the
national committee of a political party may support the nominee by making special, limited expenditures on
his or her behalf, as indicated in the Chart on Expenditure Limits. The party's national committee may designate
a state or local party committee to make these expenditures. In addition, state and local party committees
may conduct voter drives on behalf of the Presidential nominee and distribute pins, bumper stickers and
other campaign materials benefiting the nominee.
How Can I Obtain Copies of Reports?
All campaign finance reports filed by Presidential committees and political committees supporting
Presidential candidates are available for review and copying at the FEC's Public Records Office.10 The office
puts reports on the public record within 48 hours after their receipt. They contain detailed campaign finance
information, including itemized accounts of contributions and expenditures in excess of $200 and debts and
obligations owed to or by the candidate or committee. Additionally, the Public Records Office makes available
computer indexes, statistical studies summarizing data taken from reports and lists of individuals whose
contributions enabled Presidential candidates to qualify for matching funds.
The office also receives and makes public the reports on personal finances filed by Presidential and Vice
Presidential candidates (except incumbent officeholders, who file with the Office of Government Ethics).
These reports are required under the Ethics in Government Act of 1978, over which the FEC has no
enforcement jurisdiction.
Those outside the Washington area may request documents by phone or mail. When identifying the
documents you want, please try to include as much information as possible, such as the full name of the
political committee reporting, the date or type of report or document desired, and your address and
telephone number. The FEC charges 5 cents per photocopied page, and 15 cents per page for paper copies
made from microfilm, payable in advance.
Sometimes a preliminary phone call can help you pinpoint your request and thereby expedite the FEC's
response. Call toll free 800/424-9530 and ask for the Public Records Office or call 202/694-1120.
How Can I Get More Information?
This brochure is not exhaustive in its descriptions. Should you have any questions or wish to order other FEC
publications, contact the Federal Election Commission, 999 E Street, N.W., Washington, D.C. 20463. Call toll
free 800/424-9530 or 202/694-1100.
FOOTNOTES:
1. See the Presidential Election Campaign Fund Act, 26 U.S.C. §9001 et seq. (Public Law 92-178).
2. See 2 U.S.C. §431 et seq. (Public Law 92-225).
3. Public Law 93-443.
4. See the Presidential Primary Matching Payment Account Act, 2 U.S.C. §9031 et seq.
5. Public Laws 94-283 (1976 Amendments), 96-187 (1979 Amendments) and 98-355 (1984).
6. The cost-of-living adjustment (COLA) is calculated annually by the Labor Department, using 1974 as the
base year. In 2016, the COLA brought the national spending limit to $48.01 million.
7. In 2016, the cost-of-living adjustment (COLA) brought the public funding entitlement for a major party
nominee to $96.14 million.
8. In 2012, the cost-of-living adjustment (COLA) brought the convention committee entitlement to a total of
$18.2 million. (NOTE: On April 3, 2014, President Obama signed legislation that will end public funding of national nominating
conventions)
9. Contributions may not be made by foreign nationals or by individuals who are federal government
contractors. For more information, see the Foreign Nationalsbrochure.
10. Reports related to U.S. House and Senate candidates are also available. The Public Records Office
maintains a complete set of reports from 1972 to the present.
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, NW
Washington, DC 20463
(800) 424-9530; (202) 694-1100
info@fec.gov
www.fec.gov
Citizens’ Guide (http://www.fec.gov/pages/brochures/citizens.shtml)
Guide
Published in February 2004 (updated February 2017)
Contents
 Introduction
 How Much May Be Contributed
 Prohibited Contributions
 What Counts as a Contribution
 Volunteering
 Travel Expenses
 Business Services
 Independent Expenditures
 Acting as a Group
 Campaign Finance Information
 Filing a Complaint
 For More Information On ....
Introduction
The purpose of this guide is to encourage citizens, like yourself, to take an active part in the Federal election
process. There are several ways you may support Federal candidates and political committees involved in
Federal elections. These activities, however, are subject to the Federal campaign finance law. For example,
the law limits the amount of money you may contribute and prohibits certain people and organizations from
making contributions. This guide explains how to participate in Federal elections in compliance with federal
law.
It is important to note that the guide focuses on political activity in Federal elections--not State or local.
Federal elections are those for the President and Vice President, the U.S. Senate and the U.S. House of
Representatives.
How Much May Be Contributed
Your contributions1
to federal candidates and committees are limited under the law. You, the contributor,
and the committee to which you give are both legally responsible for making sure that your contribution
does not exceed your contribution limits. The paragraphs below list the contribution limits for individuals.
Contribution Limits
An individual may give a maximum of:
 $2,700 per election to a federal candidate or the candidate's campaign committee.2
Notice that the
limit applies separately to each election. Primaries, runoffs and general elections are considered separate
elections.
 $5,000 per calendar year to a PAC. This limit applies to a PAC (political action committee) that
supports federal candidates. (PACs are neither party committees nor candidate committees. Some PACs
are sponsored by corporations and unions--trade, industry and labor PACs. Other PACs, often ideological,
do not have a corporate or labor sponsor and are therefore called nonconnected PACs.) PACs use your
contributions to make their own contributions to federal candidates and to fund other election-related
activities.
 $10,000 per calendar year to a State or local party committee. A State party committee shares its
limits with local party committees in that state unless a local committee's independence can be
demonstrated.
 $33,900 per calendar year to a national party committee. This limit applies separately to a party's
national committee, House campaign committee and Senate campaign committee.
 $100 in currency (cash) to any political committee. (Anonymous cash contributions may not
exceed $50.) Contributions exceeding $100 must be made by check, money order or other written
instrument.
Presidential Campaigns
The contribution limits work a little differently for Presidential campaigns. In the case of a Presidential
candidate running in various State primaries, you may contribute up to $2,700 for the entire primary
campaign period--not $2,700 for each State primary in which the candidate runs.
Your contributions may be supplemented with Federal (U.S. Treasury) funds. If a Presidential primary
candidate has qualified for the Federal matching fund program, up to $250 of your total contributions to that
candidate may be matched with federal funds. To qualify for matching, contributions must be in the form of
a check or other written instrument. (Note that some contributions are not matchable, such as currency,
loans, goods and services, and any type of contribution from a political committee.)
In the general election, however, you may not make any contributions to the campaigns of Democratic or
Republican nominees who receive federal funds. (Federal funding in the general election takes the form of
direct government grants rather than matching payments.) You may nevertheless designate a contribution
of up to $2,700 to the candidate's compliance fund, a special account used to pay for certain legal and
accounting expenses. You may also contribute up to $2,700 to the general election campaign of any
Presidential candidate who is not a federally funded Democratic or Republican nominee.
Federal funds used in Presidential elections come from the dollars voluntarily checked off by taxpayers on
their federal income tax returns. (The checkoff does not affect the total amount of taxes paid or any refund
due.)
Designated Contributions
The Federal Election Commission (FEC) encourages you, when making a contribution to a candidate, to
designate which election the contribution is for. By doing this, you will avoid any confusion as to which
election limit applies to your contribution. To designate a contribution, write the name of the specific election
on your check (or other written instrument). Or attach a signed statement with the same information.
If you do not designate a contribution to a candidate, your contribution automatically applies to your $2,700
limit for the candidate's next election. In other words, if you make3 an undesignated contribution after the
candidate has won the primary but before the general election, your contribution counts against your $2,700
limit for the general. Similarly, if you make an undesignated contribution after the general election, it
automatically applies toward the limit for the next election in which the candidate runs for federal office.
If, however, you want a contribution to count against your limit for an election other than the candidate's
upcoming election, you must designate the contribution. For example, suppose you want your contribution
to count against the candidate's general election, even though the primary has not yet taken place. In this
case, you must designate the contribution for the general. Or, if you want to help a candidate retire
campaign debts for a past election, you must designate your contribution for that specific election.
Under certain circumstances, if you make an excessive contribution to a candidate committee, the
committee may redesignate your contribution. When this occurs, the committee must notify you within 60
days, and must offer you the opportunity to receive a refund instead.
Joint Contributions
If two or more individuals want to make a contribution using one check drawn on a joint account, all the
contributors must sign the check or an attached statement. The check or signed statement must show how
much should be attributed to each donor, unless the the contribution is to be equally divided among the
contributors.
Contributions from Family Members
A husband and wife each have separate contribution limits, even if only one spouse has an income. For
example, a couple may contribute a $5,400 check to a candidate's primary campaign as long as both sign
the check (or an attached statement), as explained above.
Prohibited Contributions
While most individuals are free to make political contributions, three categories of individuals are prohibited
by law from making contributions: foreign nationals and federal government contractors and, in some
instances, minors. These and other prohibitions on contributions are explained below.
Foreign Nationals
Foreign nationals may not make contributions in connection with any election--Federal, State or local. This
prohibition does not apply to foreign citizens who are lawfully admitted for permanent residence in the
United States (those who have "green cards").
Federal Government Contractors
Federal government contractors may not make contributions to influence federal elections. For example, if
you are a consultant under contract to a Federal agency, you may not contribute to federal candidates or
political committees. Or, if you are the sole proprietor of a business with a federal government contract, you
may not make contributions from personal or business funds. But, if you are merely employed by a company
(or partnership) with federal government contracts, you are permitted to make contributions from your
personal funds.
Corporations and Unions
The law also prohibits contributions from corporations and labor unions. This prohibition applies to any
incorporated organization, profit or nonprofit. For example, the owner of an incorporated "mom and pop"
grocery store is not permitted to use a business account to make contributions. Instead, the owner would
have to use a personal account. A corporate employee may make contributions through a nonrepayable
corporate drawing account, which allows the individual to draw personal funds against salary, profits or
other compensation.
Contributions in the Name of Another
Contributions made in the name ofanother are prohibited. For example, an individual who has already
contributed up to the limit for a candidate's election may not give money to another person to make a
contribution to the same candidate. Similarly, a corporation is prohibited from using bonuses or other
methods of reimbursing employees for their contributions.
Excessive Contributions
Finally, contributions that exceed the law's limits are prohibited.
What Counts as a Contribution
Most people think of contributions as donations of money in the form of checks or currency. While these are
common ways of making a contribution, anything of value given to influence a federal election is considered
a contribution. This section describes several forms of giving that are considered contributions under the
Federal campaign law. All the contributions you make--whatever their form--count against your per
committee limits.
Donated Items and Services
The donation of office machines, furniture, supplies--anything of value--is an in-kind contribution. The value
of the donated item (the usual and normal charge) counts against the contribution limits. A donation of
services is also considered an in-kind contribution. For example, if you pay a consultant's fee or a printing
bill for services provided to a campaign, you have made an in-kind contribution in the amount of the
payment.
If you sell an item or service to a committee and ask the committee to pay less than the usual and normal
charge, you have also made an in-kind contribution to the committee in the amount of the discount.
Under limited exceptions in the law, you may provide certain goods and services without making a
contribution to the committee. These exceptions are volunteering, travel expenses and business services.
Fundraising Tickets and Items
Yet another way of making a contribution is to purchase a fundraising item or a ticket to a fundraiser. The
full purchase price counts as a contribution. If you pay $100 for a ticket to a fundraising event like a dinner,
you have made a $100 contribution (even though your meal may have cost the committee $30). Or, if you
pay $15 for a T-shirt sold by a campaign, your contribution amounts to $15 (even though the T-shirt may
have cost the committee $5).
Loans and Loan Endorsements
If you loan money to a candidate or political committee, you have made a contribution, even if you charge
interest on the loan. The outstanding amount of the loan counts against the contribution limits. Loan
repayments, therefore, decrease the amount of your contribution. Nevertheless, if your loan exceeds the
limits, it is an illegal contribution, even if it is later repaid in full.
Endorsements and guarantees of bank loans are also considered contributions. Endorsers and guarantors
are liable for equal portions of a loan unless the agreement states otherwise. You alone, therefore, may not
endorse a $10,000 loan to a candidate committee. There must be four other individual endorsers so that
each one is liable only for $2,700, the per election limit. Repayments made on a loan reduce the amount of
your liability and thus reduce the amount of your contribution.
Support Given to "Test the Waters"
You may wish to support a prospective candidate who is "testing the waters"--exploring the feasibility of
becoming a candidate. Your total donations are limited to $2,700, just as if they were given to an actual
candidate. If the individual who is testing the waters later becomes a candidate, the candidate's committee
will report your donations as contributions.
Volunteering
Personal Services
An individual may help candidates and committees by volunteering personal services. For example, you may
want to take part in a voter drive or offer your skills to a political committee. Your services are not
considered contributions as long as you are not paid by anyone. (If your services are compensated by
someone other than the committee itself, the payment is considered a contribution by that person to the
committee.)
As a volunteer, you may spend unlimited money for normal living expenses.
Home Events
In volunteering your services, you may use your home for activities benefiting a candidate or political party
without making a contribution. If you live in an apartment complex, you may use the recreation room; any
small fee you pay is not considered a contribution. You may also use a church or community room, if the
room is regularly made available for noncommercial purposes, without regard to political affiliation. Any
nominal rental fee you pay is not considered a contribution.
You might want to hold a fundraising party or reception in your home, or in a church or community room.
Your costs for invitations and for food and beverages served at the event are not considered contributions if
they remain under certain limits. These expenses on behalf of a candidate are limited to $1,000 per
election; expenses on behalf of a political party are limited to $2,000 per year. (A husband and wife may
each spend up to the limit. Their combined limits would be: $2,000 per candidate, per election, and $4,000
per year for a political party.) Any amount spent in excess of the limits is a contribution to the candidate or
party committee.4
Corporate/Union Facilities
If you are an employee, stockholder or member of a corporation or labor union, you may use the
organization's facilities--for example, the phone--in connection with your volunteer activities, subject to the
rules and practices of the organization. The activity, however, cannot prevent an employee from completing
normal work; nor can it interfere with the organization's normal activity.
If your activity exceeds "incidental use" of the facilities--one hour a week or four hours a month--you must
reimburse the corporation or union the normal rental charge within a commercially reasonable time. If you
use the organization's equipment to produce campaign materials, you must reimburse the organization
regardless of how much time you spend. Any reimbursement for your use of facilities is considered a
contribution from you to the political committee that you are helping.
Travel Expenses
You may spend up to $1,000 per election for your travel on behalf of a candidate, and $2,000 per year for
party-related travel, with-out making a contribution. (If you are reimbursed for your travel expenses by
someone other than the committee, the payment is considered a contribution from that person to the
committee.)
Business Services
Discounts on Food and Drink
If you are in the business of selling food and beverages, your business may offer a discount to candidates
and party committees without making a contribution, even if your business is incorporated. The discount
price must at least equal the cost of the items. The value of the discount--the difference between the normal
charge and the amount paid by the committee--must, however, remain within certain limits. The limit for a
discount to a candidate is $1,000 per election; the limit for a political party is $2,000 per year. Once the
limits are exceeded, the excess amount is a contribution. An incorporated business may not exceed the
limits since contributions from corporations are prohibited.
Legal and Accounting Services
Businesses, including corporations, may support candidates in yet another way. If the business employs
individuals who perform legal or accounting services, the business may provide these services free to a
political committee as long as certain qualifications are met:
 First, the firm may provide services to a candidate committee or PAC only for the purpose of helping the
committee comply with the federal campaign finance law.
 Second, services on behalf of a party committee may be provided for any purpose that does not directly
further the election of a federal candidate.
 Third, the firm must use its own regular employees (not outside consultants) to perform the service. The
business may not hire additional personnel to free regular employees to provide the service.
 Fourth, the recipient committee must report the value of the service (the amount paid by the employer).
Of course, when an individual personally volunteers legal or accounting services to a committee, the above
restrictions do not apply.
Independent Expenditures
Independent expenditures provide yet another way to support federal candidates. An independent
expenditure is money spent for a communication that expressly advocates the election or defeat of a clearly
identified federal candidate. It is "independent" only if the individual making the expenditure does not
coordinate or consult in any way with the candidate or campaign (or agent of the candidate or campaign)
benefiting from the communication. Independent expenditures are not considered contributions and are
unlimited. You may spend any amount on each communication as long as the expenditure is truly
independent.
You may, for example, pay for an advertisement in a newspaper or on the radio urging the public to vote for
the candidate you want elected. Or you may produce and distribute posters or yard signs telling people not
to vote for a candidate you oppose.
When making an independent expenditure, you must include a notice stating that you have paid for the
communication and that it is not authorized by any candidate's committee. (For specific disclaimer
requirements, please consult the "Special Notices on Political Ads and Solicitations" brochure.) Additionally,
once you spend more than $250 during a calendar year on independent expenditures with respect to a given
election, you must file a report with the Federal Election Commission (either FEC Form 5 [PDF]
| Instructions), or a signed statement containing the same information).
Because this brief explanation does not cover all you need to know about independent expenditures, contact
the Commission for more information.
Acting as a Group
If you and other individuals act together as a group to conduct activities to influence a federal election, the
group may become a "political committee." In general, a group that raises or spends over $1,000 per year
to influence federal elections must register, keep records on financial transactions and file reports on the
committee's activities.
If you are interested in forming a group to participate in federal elections and anticipate raising or spending
more that $1,000 during a calendar year, you should write or phone the Commission and request materials
to register the group as a political committee.
Campaign Finance Information
The Federal campaign finance law requires many participants in the election process to submit reports on
their financial activity. These reports are then put on the public record. Generally, an individual is not
required to report. Political committees, however, must file detailed reports on the money they raise and
spend. You, as an individual contributor, will be asked to provide information to the recipient committee for
its reports.
Contributor Information
If you contribute more than $200 to a committee, the committee is required to use its best efforts to collect
and publicly disclose on a financial report your name, address, occupation and employer, as well as the date
and amount of your contribution. Committees sometimes request this information even for smaller
contributions, since the $200 reporting threshold applies to your total contributions to one committee during
a calendar year. For example, you may make several small contributions to a committee during a year.
Once these contributions add up to over $200, the committee must report the contributor information.
Note that if you collect and forward contributions to a committee, you must transmit them within a specified
period of time and must also provide the committee with certain information on the contributors.
Additionally, you may have reporting obligations. For more details, contact the FEC.
Information Available to the Public
As a voter, you may be interested in learning how a particular candidate finances his or her campaign. Who
is contributing? How much? Is the candidate using personal funds to finance the campaign? Does the
committee have debts? Or you may want to know which candidates a party committee or PAC is supporting,
and how much the committee is giving.
This information is available to the public in the campaign finance reports regularly filed by all political
committees supporting Federal candidates. You may access these reports and other FEC campaign finance
information on your home computer. The Commission's Public Records Office also keeps all reports on file
and will send you copies of specific reports, upon request. You can also order computer printouts focused on
the information you want. Call the toll-free number, 800-424-9530, or 202-694-1120.
Filing a Complaint
If you believe a violation of the Federal campaign finance law has taken place, you may file a complaint with
the Federal Election Commission. Send a letter to the Commission explaining why you (the complainant)
believe the law may have been violated, describe the specific facts and circumstances and name the
individuals or organizations responsible (the respondents). Your complaint should also indicate which
allegations are based on personal knowledge rather than on outside sources (for example, newspaper
articles). The letter must be sworn to, signed and notarized. Complaints of alleged violations receive case
numbers and are called MURs, Matters Under Review. (For more information on how to file a complaint,
contact the FEC.)
The Commission sends a copy of the complaint to the respondents, who have the opportunity to explain why
the Commission should not pursue the complaint (for example, because no violation occurred or because
there were mitigating factors). The agency considers the views of both sides and may conduct an
investigation to gather facts. Until the MUR is resolved, the Commission must keep all phases of the
proceedings confidential, as required by law. After it makes a decision, the agency notifies the complainant
and the respondents. The decision and supporting evidence regarding the MUR are then made public.
For More Information On...
The Federal Campaign Finance Law
The Commission's Information Division answers questions on the Federal campaign finance law. Call or write
the agency (see below); FEC staff are waiting to help you.
If you wish, you may formally request an advisory opinion concerning your own political activity. Advisory
opinions usually address questions that require clarification of the law. Mail your written request to the
Office of General Counsel at the street address below:
Federal Election Commission
1050 First Street, NE
Washington, D.C. 20463
Telephone: 202-694-1100
Toll Free: 800-424-9530
TDD (for the hearing impaired): 202-219-3336
Email: info@fec.gov
Federal Employees and the Hatch Act
Although the Hatch Act does not prohibit contributions, it does ban or restrict certain partisan political
activities conducted by Federal employees. Some Federal government agencies place additional limits on the
political activity of their employees. For more information, contact your agency's ethics officer. For
information on the Hatch Act, contact the:
Office of Special Counsel
U.S. Merit Systems Protection Board
1730 M Street, N.W.
Washington, D.C. 20036
Telephone: 202-653-7143
Toll Free: 800-854-2824
FOOTNOTES:
1 Click here for an explanation of what a contribution is.
2 This limit applies to a contribution made to any type of political committee if the contributor knows that a
substantial portion of the contribution will be used to support a particular candidate.
3 A contribution is "made" on the date when you relinquish control over it. If mailed, a contribution is
"made" on the date of the postmark.
4 The Commission has said in an advisory opinion (AO 1980-63) that if an individual co-hosts an event held
in someone else's home, any expenses paid by the nonresident co-host are considered contributions.
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 etseq.), 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, NW
Washington, DC 20463
(800) 424-9530; (202) 694-1100
info@fec.gov
www.fec.gov