The Language of Campaign
Finance
Buckley v. Valeo (1976)
In this case the Court 1) held that restrictions on
individual contributions to political campaigns and candidates did not violate
the First Amendment since the limitations of the FECA enhance the
"integrity of our system of representative democracy" by guarding
against unscrupulous practices, and 2) that
governmental restriction of independent expenditures in campaigns, the
limitation on expenditures by candidates from their own personal or family
resources, and the limitation on total campaign expenditures did violate the
First Amendment. Since these practices do not necessarily enhance the potential
for corruption that individual contributions to candidates do, the Court found
that restricting them did not serve a government interest great enough to
warrant a curtailment on free speech and association. (from http://oyez.org)
McCain-Feingold
Act (Bipartisan Campaign Reform Act) (2002)
This law prohibiting national political party
committees from raising or spending any funds not subject to federal limits and
banning proliferation of issue advocacy ads or broadcast ads that name a
federal candidate within 30 days of a primary or caucus or 60 days of a general
election, and prohibiting any such ad paid for by a corporation or paid for by
an unincorporated entity using any corporate or union general treasury funds.
Citizens
United v. FEC (2010)
In this case in which the United States
Supreme Court held that the First Amendment's Free Speech Clause prohibits the
government from restricting political independent expenditures by corporations,
associations, or labor unions.
McCutcheon
v. FEC (2013)
In this case the Supreme Court declared
unconstitutional that the "aggregate limits" that federal law imposes
on the combined campaign contributions that an individual can make directly to
(1) candidates for federal office and (2) political parties.
Corporate
Personhood
This is the legal concept that a corporation
may be recognized as an individual in the eyes of the law. This doctrine forms
the basis for legal recognition that corporations, as groups of people, may
hold and exercise certain rights under the common law and the U.S. Constitution.
Federal
Election Commission
A six-member bipartisan agency created by the
FEC of 1974. It administers the campaign finance laws and enforces compliance
with their requirements.
Hard
Money - This refers to donations that are regulated by law through the Federal
Election Commission which are directly used to help an individual win a
specific election campaign.
Soft
Money - This term refers to unregulated political contributions made in such a
way as to avoid Federal Election Commission rules governing federal election
campaigns (as by contributions to a political action committee for "party
building" activities).
Political
Action Committee (PAC)
Funding vehicles created by the 1974 campaign
finance reforms. A corporation, union, or some other interest group can create
one and register it with the FEC, which will meticulously monitor the PAC's expenditures.
Super
PAC
These entities are officially known as
"independent-expenditure only committees," they may not make
contributions to candidate campaigns or parties, but may engage in unlimited
political spending independently of the campaigns. They can raise funds from
individuals, corporations, unions and other groups, without any legal limit on
donation size.
527 Organizations
Entities organized under
section 527 of the tax code are considered "political organizations,"
defined generally as a party, committee or association that is organized and
operated primarily for the purpose of influencing the selection, nomination or
appointment of any individual to any federal, state or local public office, or
office in a political organization. All political committees that register and
file reports with the FEC are 527 organizations, but not all 527 organizations
are required to file with the FEC. Some file reports with the Internal Revenue
Service (IRS).
501(c)(3) Organizations
To be tax-exempt under section
501(c)(3) of the Internal Revenue Code, an organization must be organized and operated exclusively for exempt
purposes set forth in
section 501(c)(3), and none of its earnings may inure to any private shareholder or
individual. In addition, it may not be an action organization,
i.e., it may not
attempt to influence legislation as a substantial part of its activities and it
may not participate in any campaign activity for or against political
candidates.
Organizations described in section 501(c)(3) are commonly
referred to as charitable organizations. Organizations described in section
501(c)(3), other than testing for public safety organizations, are eligible to
receive tax-deductible contributions in accordance with Code section 170.
The organization
must not be organized or operated for the benefit of private
interests, and no part of a section 501(c)(3) organization's net
earnings may inure to the benefit of any private shareholder or individual. If
the organization engages in an excess
benefit transaction with
a person having substantial influence over the organization, an excise tax may be imposed on the person and any
organization managers agreeing to the transaction. Section 501(c)(3) organizations are
restricted in how much political and legislative (lobbying)
activities they may conduct.
Contribution Limits
The law places the
following limits on any type of contribution you make to influence federal
elections:
To Candidate Committee: $2,600 per candidate, per election
To National Party Committee: $32,400 per calendar year
State, Local, and District Party Committee: $10,000 per calendar year (combined
limit)
Political Action Committee: $5,000 per calendar year
(from the FEC)
Expenditure Limits
An individual or
group (such as a PAC) may make unlimited "independent expenditures"
in connection with federal elections. T 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.