Financial Rules for a Senate or House
Campaign
(D.J., 3/7/07)
1. Since we are seeking a federal office, the financial aspects of the campaign are governed by the Federal Election Commission. Its rules for financial activity and reporting must be followed strictly in order for us to avoid major embarrassment, not to mention fines. Accordingly, all financial aspects of the campaign are under the direct control of the Treasurer and Assistant Treasurer.
2. Before the candidate officially becomes a candidate, she/he can “test the waters” and receive and expend up to $5000 for this purpose. However, when the $5000 threshold is exceeded, she/he must register with the FEC.
3. The contribution limit for individuals and PACs is $2300 “per election”. However, this limit applies separately for the primary election and the general election, for $4600 total. If the candidate isn’t running in a primary election, she/he can take the cutoff date as being that of the convention at which she/he is nominated, or even more arbitrarily.
4. A campaign may not receive more than $100 in cash from a particular source during the entire campaign period.
5. Any (truly) anonymous cash contribution may be no more than $50.
6. A check is considered to be from only the person signing it, even if it is drawn on a joint account. However, if both persons on a joint account sign it, the money is considered to come half from each person.
7. For each contribution of more than $50, the contributor’s name and address must be recorded. If the aggregate contribution from an individual is more than $200, the person’s occupation and employer are also needed.
8. All contributions must be deposited within ten days.
9. The campaign cannot accept any contributions from labor unions or corporations directly, or from foreign nationals or federally chartered banks. However, it can accept contributions from PACs associated with labor unions or corporations.
10. The campaign cannot accept any contributions from foreign nationals. However, immigrants holding “green cards” are eligible to contribute.
11. Campaign expenditures can be authorized only by the candidate, by the Treasurer, or by the Assistant Treasurer. (This is not an FEC rule, but rather one which is recommended for a specific campaign.)
12. If a volunteer pays a vendor out of her/his personal funds (cash, check, or credit card) for an authorized campaign expense, the campaign will reimburse her/him immediately. However, this amount still counts toward the $2300 contribution limit for each election period, so volunteers should be sure not to exceed their limit by paying large bills themselves. Rather, they should first get a check from the Treasurer, the Assistant Treasurer, or the candidate.
13. Campaign workers are allowed to use their employer’s facilities (such as an office phone) incidentally for campaign work, for an hour per week or four hours per month.
14. In-kind contributions count the same as monetary contributions, toward the $2300 limit. There are exceptions to this requirement for campaign volunteers, however: time which is not compensated by anyone; the use of your home, church, or community room; up to $1000 for food, beverage, and invitations for a home, church, or community room event; up to $1000 in transportation expenses; and the cost of meals and lodgings.
15. The candidate may receive a salary from her/his campaign committee. Its rate must be no more than (a.) what the candidate received as earned income in the previous year and (b.) the minimum annual salary for a U.S. Senator.
16. Various reports on the campaign’s financial activity must be filed with the FEC. There are quarterly reports, pre-election reports (for both primary and general elections), a post-general-election report, and “48-hour notices” regarding contributions of at least $1000 received less than 20 days and more than two days before an election.
17. A disclaimer notice is required for any public political advertising, through television or radio broadcasts, print media (newspapers, magazines, billboards, yard signs, handbills, etc.), the Internet (such as the campaign website), or direct mailings. This disclaimer should say something like “Paid for by the Doofus for Senate Committee”, and it must be clearly and conspicuously displayed. (There are additional requirements for television and radio advertising.) It is important to check with the Treasurer or Assistant Treasurer to make sure that any public political advertising satisfies this requirement, before distributing it.