In The Know

Starting your political action committee (PAC) is a powerful way to back the candidates you support and advocate for issues you believe in. However, before your committee can make a difference, you’ll need to register it with the Federal Election Commission (FEC). The process might sound daunting, but it’s relatively straightforward.

Understand the Basics

Before diving into the registration process, it’s essential to understand what a political action committee is and what it does. PACs collect and spend money to influence elections. They can support or oppose candidates, political causes, and ballot initiatives, but they are subject to specific regulations set forth by the FEC to ensure transparency and accountability. 

How to Register Your Political Action Committee

These five simple steps will help you register your PAC and start making a difference:

Determine the Type of PAC

First and foremost, you need to decide what type of PAC you want to create. The FEC recognizes several types of PACs, each of which has different rules and regulations:

• Connected PACs: Established by a labor union or other business entity 
• Non-Connected PACs: Operates independently of any parent organization 
• Super PACs: Can raise and spend unlimited amounts of money 

There are pros and cons associated with each type of committee. A connected PAC, for instance, can only accept contributions from members or employees of the entity it is affiliated with. Non-connected PACs can solicit funds from anyone, but they face the same spending limits as connected political action committees. And Super PACs, while they can raise and spend as much money as they want, cannot coordinate directly with a candidate or campaign.

Complete FEC Form 1

Next, you’ll need to file a Statement of Organization, also known as Form 1, with the FEC. The document is five pages long and asks for the following information:

• Name of the committee
• Email address
• Type of committee 
• Party affiliation
• Key members (i.e., treasurer, custodian of records)

After you file your Statement of Organization, the FEC will assign your committee an identification number, which you will have to include on future reports and filings so that the commission can maintain accurate records of your dealings and transactions. 

One important detail to keep in mind is that your FEC number does not replace your employer identification number (EIN) issued by the IRS. You will need both.

Designate a Bank Account

Once you submit Form 1, you must open a dedicated bank account for your PAC. The account should be separate from any personal or business actions to ensure transparency and proper record-keeping. You also want to avoid any co-mingling of funds.

The account should include your PAC’s name and the treasurer’s name. Provide the PAC’s EIN as well, but do not provide your FEC number.

Raise Funds and Make Contributions

Now, you are ready to start raising funds. Reach out to the group from which you are authorized to accept donations. If you created a non-connected or super PAC, you can solicit donations from any business or individual. Just make sure that you follow all FEC contribution limits when accepting funds. 

Maintain accurate records of all contributions and expenditures. You’ll need to record donor information, the amount they gave, and the date you received the funds. Promptly deposit all funds into your PAC bank account to create an auditable trail of the transaction.

Regularly review FEC regulations to ensure your PAC’s activities remain within legal bounds. Consider consulting with a legal professional with extensive experience in campaign finance law to stay updated. 

Fundraising and issuing donations represent the most important functions of a political action committee. As your PAC becomes more adept at obtaining and distributing funds, it will be able to maximize its reach and impact.

Understand Your Reporting Obligations 

After registering, your PAC must adhere to specific reporting requirements. The FEC mandates that PACs submit regular filings to maintain transparency in political financing. 

Here’s a brief overview of some of the obligations you must adhere to:

• Quarterly Reports: Traditional PACs must file quarterly reports detailing contributions and expenditures 
• Pre-Election Reports: PACs must file additional reports before primary, general, and runoff elections to disclose any contributions or expenditures 
• Independent Expenditure Reports: Super PACs must report independent expenditures made to support or oppose candidates

Manual reporting processes are inefficient and may increase the risk of late filings or missed deadlines. Consider an FEC reporting solution to simplify filing and compliance. Top software can save you countless hours while also helping you protect the reputation of your PAC.

You must also ensure you understand all deadlines and requirements, as a single missed filing deadline or accounting mistake can draw the ire of the FEC, resulting in penalties or fines. That’s something you don’t want. Stay compliant by making timely and accurate reporting a top priority. 

You’ll also want to ensure that your treasurer is diligent and detail-oriented. Ultimately, a skilled treasurer and great software will help your PAC maximize its impact. 

Simplify PAC Compliance With Aristotle 

Aristotle provides a comprehensive suite of services for political action committees. Our solutions include technology, consulting services, reporting software, and compliance outsourcing. 

By working with Aristotle, you’ll reduce the burden of managing your PAC, thereby enabling your organization to focus on delivering meaningful results for its candidate and cause. Schedule a demo of Aristotle today to learn more about our PAC solutions.