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  • Tips for Treasurers

Contributions to retire debts

November 22, 2016

Campaigns with net debts outstanding after an election is over may accept contributions to retire the debt. A committee has net debts outstanding from the 2016 general election if its outstanding obligations from the general election exceed its available balance of 2016 general funds. Debt retirement contributions must be properly designated (e.g., "2016 general debt") and may not exceed the contributor's limit for the designated election. Undesignated contributions received by a campaign count towards the limit for the candidate's next election (e.g., the 2018 primary). While those funds could be used to retire debt, a campaign with net debts outstanding may choose to ask the contributor to redesignate the contribution for 2016 general debt retirement, provided that redesignation does not cause the donor to exceed his/her limit for that election. Consult the Campaign Guide and the Reports Analysis Division FAQ for your type of committee for examples of how to report redesignations for debt retirement.