Federal Election Purpose

Solicitations must inform solicitees that their contributions will be used in connection with federal elections or that they are subject to the limits and prohibitions of the Federal Election Campaign Act. 102.5(a)(2)(ii) and (iii).

Disclaimer Notice

Solicitations for the party committee must include a disclaimer stating who has paid for the communication and must contain the following information:

If the communication is authorized by a candidate, candidate's committee or agent of either entity, but paid for by any other person: The disclaimer must state the communication is paid for by the third party and is authorized by the candidate, authorized committee, or agent. Example: “Paid for by XYZ State Party Committee and authorized by Joe Smith for Congress.” 110.11(b)(2).

If the communication is not authorized by a candidate, authorized committee, or agent of either, the disclaimer must include who paid for the communication, the permanent street address, telephone number or web site address of the person paying for the communication and whether the communication was authorized by any candidate. 110.11(b). Example: “Paid for by the XYZ State Party Committee (www.XYS.org) and not authorized by any federal candidate.” 110.11(b)(3).

For additional information concerning disclaimers, see "Disclaimer Notices" or consult the FEC’s brochure “Special Notices on Political Ads and Solicitations.”

“Best Efforts” Notice

Party committees and their treasurers must make “best efforts” to obtain, maintain and report the name, address, occupation and employer of each contributor who gives more than $200 in a calendar year. 102.9(d). In order to show that the committee has made “best efforts,” solicitations must specifically request that information and inform contributors that the committee is required by law to undertake best efforts to report it. 104.7(b)(1). For details, see “Treasurer’s Best Efforts."

IRS Notice

Section 6113 of the Internal Revenue Code requires political committees whose gross annual receipts normally exceed $100,000 to include a special notice on solicitations informing solicitees that their contributions are not tax deductible. There are substantial penalties for failure to comply with this provision. Contact the IRS for more information (see Appendix F).

FCC Notice

Check with the Federal Communications Commission for information on required notices for political ads aired on radio or television (see Appendix F).

Time Limits

Any person who receives contributions for a party committee must forward the contributions, together with certain information about the contributors, to the committee treasurer within the following time periods:

• Contributions of $50 or less—within 30 days after receiving the funds.

• Contributions of more than $50—within 10 days after receiving the funds. 102.8(b).  [1]

No Commingling with Personal Funds

Contributions and other committee receipts must not be deposited in a personal account or otherwise commingled with personal funds. 102.15.

Deposit or Return Contributions Within
10 Days

Within 10 days of receipt by the treasurer, a contribution or other receipt must be deposited in the committee’s campaign depository or returned to the source (see footnote 1 above). 103.3(a).

Determining Legality

All contributions must be examined to make sure they are neither prohibited nor excessive. (This is the treasurer’s responsibility.) In order to determine whether a contribution exceeds the contributor’s limit, the contribution must be aggregated with any others made by the contributor to the committee or its affiliates during the calendar year. 103.3(b).

Contributions of questionable legality must be handled as described below.

501(c) and 527 Organizations

Party committees may not solicit funds for - or make or direct any contributions or donations to - the following organizations:

• 501(c) tax-exempt organizations that make expenditures or disbursements in connection with a federal election or for federal election activity. This prohibition applies even if the organization has only applied for tax-exempt status. 300.11(a)(1) and (2); 300.50(a)(1) and (2); and 300.51(a)(1) and (2); or

• 527 organizations that are not 1) political committees, 2) state or local party committees, 3) authorized campaign committees of a state or local candidate or 4) political committees organized under state law that support only state and local candidates, and do not make any expenditures or disbursements in connection with a federal election, including federal election activity (FEA). See chapter 8. 300.11(a)(3); 300.37(a)(3); 300.50(a)(3); and 300.51(a)(3).

Certification of 501(c) and 527 Organizations

When determining whether a 501(c) or 527 organization participates in FEA, the party committee may rely on a certification by the organization. 300.11(c) and (d); 300.37(c) and (d); 300.50(c) and (d); and 300.51(c) and (d). For more on the certification requirements, see Chapter 5.

Federal Candidates and Nonfederal Fundraising

Federal candidates and officeholders may not raise funds for federal elections, including funds for FEA, outside the limits, prohibitions and reporting requirements of federal law. In addition, federal candidates/officeholders may raise funds in connection with nonfederal elections only in amounts and from sources that are consistent with state law and with the limits and prohibitions of the Act. Therefore, candidates may not help to raise nonfederal funds for state, district and local party committees. 300.61 and 300.62.

Exception for Fundraising Appearances

A federal candidate or officeholder may attend, speak at or be the featured guest at a state, district or local party committee fundraiser. Under these circumstances, the candidate may speak at the event without restriction or regulation, even if nonfederal funds are being raised. 300.64.

Depositing Questionable Contributions

Within 10 days of receiving a contribution that appears to be excessive or prohibited, the committee treasurer must either return the contribution or deposit it. 103.3(a).

If it is deposited, the treasurer must:

• Keep enough money in the committee’s account to cover the potential refund or establish a separate account for such contributions.

• Keep a record explaining why the contribution may be illegal and include this explanation on Schedule A if the contribution has to be itemized before its legality is established.

• In the case of an excessive contribution, obtain a redesignation or reattribution of the excessive portion or refund it to the contributor (see below).

• In the case of a possibly prohibited contribution, confirm its legality or refund it (see below). 103.3(b)(1), (3), (4) and (5).

Excessive Contributions: Reattributions

In order to correct an excessive contribution, a treasurer may reattribute the excessive portion to another contributor, according to the steps described below. 110.1(k)(3).

When an excessive contribution is made via a written instrument with more than one individual’s name imprinted on it, but only has one signature, the permissible portion is attributed to the signer and the excessive portion may be reattributed among the individuals whose names are imprinted on the written instrument, without obtaining a second signature, so long as the reattribution does not cause any contributor to exceed any other contribution limit (“presumptive attribution”). 11 CFR 110.1(k)(3)(ii)(B)(1).

Political committees making a “presumptive reattribution” must notify all contributors in writing or via e-mail within 60 days of the committee treasurer’s receipt of the check.  At the time of notification, the committee must offer the contributor who signed the check a refund of the excessive portion. 11 CFR 110.1(k)(3)(ii)(B)(2) and (3).

Example of Presumptive Attribution

A committee receives a $11,000 check that is drawn on a joint account but signed by only one account holder. The treasurer deposits the check and attributes $10,000 to the signer and $1,000 to the other account holder. Within 60 days of receiving the original contribution, the treasurer sends a letter informing the contributors of the reattribution and of their right to a refund. Assuming neither contributor objects, the committee may now keep the full $11,000.

If the written instrument does not have more than one name imprinted on it, the treasurer may ask the contributor whether the contribution was intended to be a joint contribution from more than one person. The treasurer must inform the contributor that he or she may instead request a refund of the excessive portion. 110.1(k)(3)(ii)(A). The treasurer should also inform donors that a reattribution must be signed by each participating contributor.

Receive Reattribution or Make Refund

Within 60 days of receiving the original contribution, the treasurer must receive a proper attribution or refund the excessive portion. 103.3(b)(3) and 110.1(k)(3)(ii)(A)(2).

Prohibited Contributions

Questionable Source

If a committee treasurer deposits a contribution that appears to come from a prohibited source, he or she has 30 days from the date of the contribution’s receipt to:

• Confirm the legality of the contribution; or

• Refund the contribution. 103.3(b)(1).

As evidence of legality, the treasurer should obtain a written statement from the contributor explaining why the contribution is legal. Alternatively, the treasurer may obtain an oral explanation by telephone and keep a record of the conversation. 103.3(b)(1).

Late Discovery Of Prohibited Contribution

If a treasurer discovers that a previously deposited contribution came from a prohibited source, he or she must refund the contribution within 30 days of making the discovery. This situation might arise, for example, if the treasurer learned that a past contribution was made by a foreign national.

If the committee does not have sufficient funds to refund the contribution when the illegality is discovered, the treasurer must use the next funds the committee receives. 103.3(b)(2).

Party committees may engage in joint fundraising with other political committees and organizations. See Appendix B.