AO 2010-15: Candidate may receive refund from his committee

A candidate who made undesignated contributions to his authorized campaign committee and is not a candidate in the general election may receive refunds, even though the contributions were reported as primary election contributions. 

Background 

Douglas Pike was a first-time Democratic candidate for the House of Representatives in the May 18, 2010, primary in Pennsylvania’s Sixth District. In December of 2009, Mr. Pike gave $340,000 in personal funds to Pike for Congress, his principal campaign committee (the Committee). In March he made another contribution of $100,000. Neither of these contributions was designated for a particular election, although the candidate maintained they were intended for the general election. 

In its year-end 2009 report and its April 2010 quarterly report, the Committee reported these two of Mr. Pike’s contributions as primary election contributions. Mr. Pike made other contributions to the Committee, totaling more than $600,000, which Mr. Pike maintains were meant for the primary election, and were reported as such. 

After losing the primary, Mr. Pike was no longer a candidate. Therefore, the committee refunded all the contributions it received for the general election from other contributors. After doing so, the Committee had no outstanding debts and almost $550,000 leftover in its account. The Committee asked if it could refund contributions totaling $440,000 to Mr. Pike. 

Analysis 

Despite the fact that the candidate’s undesignated contributions made on December 31, 2009, and March 31, 2010, were treated as primary election contributions and therefore are not required to be refunded as excessive contributions, they may be refunded to the candidate. 

The Federal Election Campaign Act (the Act) provides that candidates may contribute an unlimited amount of their personal funds to their campaign committees. 11 CFR 110.10; AOs 1985-33 and 1984-60. Contributions that are not specifically designated by the contributor for use in a particular election are considered to be for the next election for that federal office. 11 CFR 110.1(b)(2)(ii). In Mr. Pike’s case, his contributions were undesignated and made before the primary election. 

As the next election was the May 2010 primary election, the Committee correctly reported Mr. Pike’s contributions as having been made for the primary election. Under Commission regulations, a contributor, including a candidate, may request a refund for a primary election contribution, and the candidate committee is free to make such a refund. In its advisory opinion, the Commission noted that the Committee had no outstanding debts, had already refunded the contributions it received for the general election from other contributors and had enough cash on hand to make the refund. 

While the Act contains a restriction on converting campaign funds to personal use, the proposed refund would not violate this personal use ban. 11 CFR 113.2(e). The Committee may therefore refund Mr. Pike’s contributions and must report the refund in accordance with the Act and Commission regulations. 

AO 2010-15: Date issued: August 26, 2010; Length: 4 pages.