When a PAC (including separate segregated funds (SSFs)) sells goods and services the PAC will report the receipt for the proceeds from the sale. The reporting requirement depends on the good or service that is sold.
Proceeds from sale
The full purchase price of a fundraising item or ticket to a fundraising event is considered a contribution. The PAC reports receiving the contribution on Form 3X, Schedule A. The specific line number will depend on who made the purchase:
- Line 11(a): individuals
- Line 11(b): party committees
- Line 11(c): other political committees
If the contribution requires itemization, it will disclose:
- Name of the contributor
- Address of the contributor
- Full amount of the sale
- Aggregate year-to-date total
- Employer (if an individual)
- Occupation (if an individual)
Note: a contribution from an individual is itemized on Schedule A, supporting Line 11(a)(i), when it:
- Exceeds $200 or
- Aggregates over $200 when added to other contributions received from the same source during the calendar year.
Sale of assets
PACs report receipts from the sale or lease of committee assets for their usual and normal charge (such as a mailing list, rented office space, etc.) on Form 3X, Line 17 (Other Federal Receipts). The itemized receipt will itemize:
- Name of the purchaser
- Address of the purchaser
- Date of receipt
- Amount of the sale
- The committee may wish to add on its report a brief explanation that it represents the purchase price paid for the sale of the good or services.
Note: if the PAC sells the good or service for more than the usual and normal charge, the difference between the two is considered an in-kind contribution to the PAC. Alternatively, if the committee sells the good or service for less than the usual and normal charge, the difference between the two is considering an in-kind contribution made by the PAC.
Reporting with FECFile
To enter a contribution for the proceeds from a sale, go to the Summary Page tab, right click on the line number that corresponds to the contributor type, and select “new.”
To enter a receipt for a sale of assets, go to the Summary Page tab, right click on the "Line 17 Other Federal Receipts," and select "new."