In The Know

Political action committees (PACs) have become a foundational part of America’s political process. Though there are several different types of PACs, the most talked about is the Super PAC.

If you are involved in the political process at any level or are simply a curious constituent, it’s important to understand the nuances between PACs vs. Super PACs. Here’s everything you need to know. 

What’s a PAC?

Political action committees are organizations created to raise and spend money to support or oppose political candidates. PACs can represent a range of interests, including business groups, labor unions, and ideological causes. The committees pool contributions to support candidates who align with their goals. 

PACs are limited in how much money they can raise from a single donor. Traditional political action committees can receive up to $5,000 per year from each contributor. They can then use the money to support candidates by contributing directly to their campaigns or by funding ads and mailers. 

The most notable feature of a standard political action committee is its ability to contribute directly to a candidate’s campaign. However, these donations are subject to strict limits. 

A PAC can donate up to $5,000 to a candidate committee per election. It can only give up to $15,000 annually to a national party committee and $5,000 to another PAC.  

Types of Political Action Committees

There are three main types of PACs:

• Connected PACs: Have a direct link to a trade association, union, or corporation and can only ask organization members for donations
• Nonconnected PACs: Not connected to a corporation or entity and can solicit funds from anyone
• Leadership PACs: Used by politicians to raise funds to assist allies or advance their own influence

All three types of packs are subject to the aforementioned contribution limits.

What’s a Super PAC?

A Super PAC raises and spends money to influence elections. That’s about where the similarities with traditional political action committees end. 

Super PACs can raise unlimited amounts from just about anyone, and donors can give as much as they like. On the same note, the committee can spend as much money as it wants on advertisements and nonconnected activities.

There’s just one major catch. The super PAC cannot give money directly to a candidate. They can’t even coordinate with the candidate’s campaign. The committee must operate independently. 

The Role of Super PACs in Elections

Super PACs have become increasingly influential in elections. They have the ability to raise and spend vast sums of money. This is evident during election season when phone and television screens are filled with political ads. 

Many of the ads run by super PACs are negative or attack advertisements. By opposing candidates who are going up against the politicians it supports, Super PACs can sway public opinion and help influence elections. 

Critics argue that these committees have too much political influence. Proponents often cite the First Amendment and maintain that donating to super PACs falls under the umbrella of free speech. 

Key Differences You Need to Know About

There are four main variations between PACs vs. Super PACs, which include the following:

Contribution Limits

The most notable difference between standard and super PACs is the contribution limits. If you start a political action committee, you will only be able to raise a limited amount of funds from individual donors. People will be able to contribute a maximum of $5,000 per year.

In contrast, a super PAC can raise unlimited amounts of money from just about any entity, including wealthy individuals, corporations, and unions. While the committee cannot donate directly to a campaign, all of those funds can make a significant impact on public opinion when used to create and run strategic ads.  

Spending

PACs are limited in how much they can spend as well. A political action committee can only give a candidate $5,000 per election. It can also donate up to $15,000 to national committees. Super PACs don’t encounter any such spending limits. They can allocate millions of dollars to independent expenditures like advertising and voter outreach. 

Coordination

If you run a PAC, you are allowed to work directly with candidates. You can talk about making direct contributions, team up for fundraisers, and collaborate to magnify your impact on the political landscape. While there are some rules and limitations, you have much more freedom to work together and plan.

Super PACs are prohibited from giving to candidates or coordinating with their campaigns. You can’t even discuss the tone of your ads or plan outreach strategies. All committee activists must be independent of the person’s campaign. 

Transparency

Both types of PACs are required to file detailed reports about donations and expenditures. Political action committees must list donors in their reports to the Federal Election Committee.

The same rules apply to super PACs, with a few exceptions. For example, if you receive a large donation from a nonprofit organization, you are required to list that entity as the contributor. However, you don’t have to share details about the funding source beyond the nonprofit. This means that the true source of the money may be somewhat obscure. 

How Aristotle Promotes PAC Compliance and Impact

Aristotle provides political action committees with robust technology solutions that simplify critical tasks like reporting, compliance, and performance monitoring. Our technology suite also includes customizable fundraising apps that allow you to seamlessly process contributions via credit card or payroll deductions. 

Aristotle is committed to helping PACs and other political entities connect with and serve constituents. Schedule a demo to learn more.