AO 2006-20: “Unity 08” political committee status

Unity 08, a Section 527 political organization whose self-avowed purpose is electing federal candidates, must register as a political committee once it receives more than $1,000 in contributions or makes more than $1,000 in expenditures. As such, Unity 08 will be subject to the limitations, prohibitions and reporting requirements of the Federal Election Campaign Act (the Act) and may incorporate for liability purposes.

Background

Unity 08 is a political organization organized under Section 527 of the Internal Revenue Code that describes itself as a “nascent political party.” Unity 08 seeks to nominate and support a “Unity Ticket” for president and vice-president of the United States in the 2008 presidential election. Unity 08 has stated that they may either choose to support one of the two major party tickets, or may nominate one candidate from each party to form the Unity Ticket. Alternatively, they may select nominees through an “online nominating convention” sometime in the summer of 2008.

Unity 08 plans to fund its activities through sales of t-shirts and other items and through direct Internet solicitations. Unity 08 states that no funds collected will be used to support or oppose any federal candidates, but will instead be used to fund Unity 08’s organization building efforts. They also state that they will seek to qualify for the ballot in a number of states, and that they do not intend to support or oppose candidates for any other office than for the presidency and vice-presidency.

Analysis

Under the Act and Commission regulations, political committees are subject to certain registration and reporting requirements, as well as limitations and prohibitions on contributions received and made, and on expenditures made. The Act defines a political committee as “any committee, club, association, or other group of persons” which receives contributions or makes expenditures aggregating in excess of $1,000 in a calendar year. 11 CFR 100.5(a).

The Act defines “expenditure” as a “purchase, payment, distribution, loan, advance, deposit, or gift of money or anything of value, made by any person for the purpose of influencing any election for federal office.” 2 U.S.C. 431a(9)(A)(i). The Commission has previously determined that expenses incurred in gathering signatures to qualify for a ballot for federal office are expenditures. Although Unity 08 plans to qualify for ballot access for itself as an organization, but not yet for any named candidates, the Commission found that Unity 08 is, in effect, using its name as a placeholder for its candidates’ names on the ballot. Thus, in promoting itself through petition drives to obtain ballot access, the Commission concluded that Unity 08 is promoting its presidential and vice-presidential candidates and any expenses incurred by Unity 08 for this purpose constitute expenditures.

Additionally, because Unity 08 has publicly stated that its main goal is the nomination and election of a presidential and vice-presidential candidate in 2008, the Commission concluded that Unity 08 satisfies the “major purpose” requirement of Buckley v. Valeo, and must register as a political committee once it receives contributions or makes expenditures in excess of $1,000.

The Commission also determined that, as a political committee, Unity 08 may incorporate for liability purposes only, without violating the Act’s prohibition on corporate contributions or expenditures. 11 CFR 114.12.

Date Issued: October 10, 2006; Length: 6 pages.