Commission adopts sample donor response form for contributions by LLCs
The Commission has adopted a sample donor response form that can be used as an example for committees that seek and accept contributions from limited liability companies (LLCs).
Background
For purposes of contribution limitations and prohibitions, an LLC is treated either as a corporation or a partnership, based on its tax filing status.
If an LLC is considered a corporation, it is generally prohibited from making contributions to political committees, but it can establish a separate segregated fund (SSF). It may also contribute to political committees established solely to finance independent expenditures (Super PACs) and to the non-contribution accounts of Hybrid PACs. If an LLC is considered a partnership, it is subject to the contribution limits for partnerships. A partnership may contribute up to the individual limits to a political committee and a portion of the partnership contribution must be attributed to each contributing partner.
If an LLC with a single natural person member has not chosen corporate tax treatment, it may make contributions; the contributions will be attributed to the single member, not the LLC.
Commission regulations require LLCs, at the time that a contribution is made, to provide accurate and complete attribution information to the recipient committee and to affirm to the recipient committee that the LLC is eligible to make the contribution.
Best efforts
Commission regulations require committees to report certain attribution information for contributions from LLCs. When a committee’s treasurer shows that the committee has used “best efforts” to obtain, maintain and submit the information required by the Federal Election Campaign Act (the Act), the committee’s reports will be considered in compliance with the Act. A committee satisfies its “best efforts” requirement by requesting completion of the sample form by the donor following the receipt of the contribution, if the requested information has not already been provided by the donor.