In The Know

The primary function of a political action committee (PAC) is to solicit contributions from donors so that it can go on to support a specific candidate, party, or cause. Learning the basics of PAC fundraising will enable you to raise money lawfully and efficiently while simultaneously providing your candidate with valuable financial resources during election season. 

What Is a Political Action Committee?

As mentioned, a PAC is an organization created to raise and spend money to support or oppose political candidates, legislation, or ballot initiatives. PACs enable corporations, unions, and individuals to pool contributions to make a larger impact on elections. 

PACs are closely regulated by the Federal Election Commission (FEC). Most states also have rules governing the activities of PACs that participate in or support candidates running for state or municipal offices. It’s vital to understand what rule set your committee falls under so you can avoid fines or regulatory penalties. 

Types of PACs

There are three main types of PACs, which are as follows: 

Connected PACs

A connected PAC is affiliated with a trade organization, union, or corporation. These entities are only allowed to raise funds from employees or members of the organization to which the PAC is connected. Additionally, they cannot tie donations to membership fees. Any donations must be voluntary and not linked to membership.

Let’s say that a union forms a connected PAC. It couldn’t charge a combined $50 per month membership fee and allocate $10 per member per month to the PAC. Instead, it would have to charge a separate $40 per month membership fee and ask members if they wanted to opt in to pay a $10 monthly donation. 

Non-Connected PACs

Non-connected PACs are independent of specific organizations. They can accept contributions from the public, whether from businesses, individuals, or even other PACs. However, these committees are still subject to standard donor and recipient limits. 

Super PACs

Super PACs, officially known as independent expenditure-only PACs, can raise unlimited funds. Donors are not subject to donation limits and can give as much or as little as they would like. There is, however, one major caveat: Super PACs are not allowed to coordinate directly with candidates. 

These committees typically run events and advertisements in support of or opposing candidates. However, since they cannot coordinate with the candidates they support, super PACs could inadvertently create ad campaigns that conflict with the candidate’s values and beliefs. 

Unsurprisingly, many super PACs focus on negative ad campaigns that point out the flaws of opposing candidates. Such an approach can position the candidate the super PAC favors as the solution to ongoing societal or political issues. 

How PACs Raise Funds

PACs raise funds in a variety of ways. Some common strategies include the following:

Direct Mail and Email

When it comes to connecting directly with donors, direct mail and email marketing remain effective strategies. PACs can send mailers or target audience segments with email or text-based messages. These methods are most effective when used on a large scale, as the majority of people who donate will likely contribute relatively small amounts. Nevertheless, the cumulative results of thousands of micro-donations can be remarkably valuable for a campaign.

Events

Hosting fundraising events helps PACs raise funds while building support for a candidate or cause. High-profile events can be particularly effective for super PACs, as they need to wow loyal donors who can give thousands to the committee.

Connected and non-connected PACs can also benefit from events, but traditional PACs should focus on more accessible events that bring in as many prospective donors as possible. 

Online Campaigns

Online campaigns have quickly become a mainstream fundraising option for PACs, allowing them to connect with prospective donors through paid ads, social media posts, and targeted video content. Cumulatively, these outreach efforts can attract thousands of people and encourage widespread support for a cause or candidate. 

Be that as it may, online campaigns can be quite costly. PACs, therefore, must carefully weigh the pros and cons of running paid ads to ensure that this fundraising strategy will help the committee reach its donation goals. 

Legal Regulations for PAC Fundraising 

The FEC sets strict PAC contribution limits for federal elections. Connected and nonconnected PACs are subject to recipient and donor limits. Super PACs are not subject to either limitation, but they must follow reporting requirements and are prohibited from collaborating directly with a candidate or their campaign. 

How Political Action Committees Benefit Campaigns 

PACs provide valuable funding and work to raise awareness for specific issues. By pooling contributions from individuals and organizations, they create a powerful financial resource that can support campaign efforts through advertising, voter outreach, and grassroots events. 

PACs can also amplify specific causes, aligning campaigns with voter interests and boosting engagement. Furthermore, they can enable campaigns to maintain a consistent presence and build momentum, especially during critical moments in the election cycle. It is through each of these contributions that PACs play a crucial role in shaping public opinion and influencing the outcomes of elections.

Power Your PAC With Aristotle 

Aristotle provides comprehensive PAC solutions, including expert-designed technology platforms and consulting services, customized to fit your organization’s needs. Our Compliance Team will also give you peace of mind by knowing that your PAC is conducting itself in accordance with FEC regulations. If you’d like to learn more about how Aristotle can facilitate compliant and effective PAC fundraising, schedule a demo today.