Paying for fundraising for nonconnected PAC

No connected organization

A nonconnected committee does not have a “connected organization”—that is, no corporation or labor organization establishes, administers or raises money for a nonconnected committee. (An SSF, by definition, always has a sponsoring corporation or labor organization.)

However, a nonconnected committee may nonetheless receive limited financial and administrative support from a sponsoring organization that is not a corporation or a labor organization, such as a partnership or an unincorporated association. Regardless of whether the committee uses the sponsoring organization’s contributions to pay for its operating expenses or to support candidates, monetary and in-kind contributions from the sponsoring organization are subject to an aggregate limit of $5,000 per calendar year.

Contributions to pay administrative expenses

All forms of support including money and other things of value received by a nonconnected committee from a sponsoring organization are considered contributions, which are subject to annual limits, prohibitions and disclosure requirements under the Federal Election Campaign Act (the Act).

Reporting fundraising expenses paid for by PAC

Report all operating expenditures other than shared operating expenditures on Line 21(b).

Itemize them on a Schedule B for Line 21(b) once payments to any payee exceed $200 in a calendar year.

Fundraising for both traditional PAC and nonfederal PAC

Direct costs of a fundraising program or event are allocable if the committee raises funds for both its federal and nonfederal accounts through a shared event or activity.