Campaign Finance

Question 1

What is a PAC?

Answer 1

Committees which are allowed to donate a max of $5000 per candidate whilst disclosing donors who donate more than $200.

Overtly political - can openly campaign “for” or “against” a candidate.

Question 2

Who are PACs primarily designed for?

Answer 2

Individuals to donate and engage politically - not companies or unions.

Question 3

What is the issue of “soft money”

Answer 3

It’s a means of circumventing FEC’s regulations on PACs.

• Money focusing on issue ads rather than directly supporting/opposing a candidate.

Question 4

What are Super PACs?

Answer 4

Super PAC exist due to Citizens United vs FEC 2010 when the SC declared that companies (not just individuals) have the first amendment right to free speech.

These groups have unlimited spending and fundraising but they cannot make contributions to candidate campaigns or parties and instead must spend independently.

Like PACS, they must disclose donors of over $200

Question 5

Name some Super PACs of presidential candidates.

Answer 5

Obama: “Priorities USA”
Romney: “Restore Our Future”

Question 6

Why are super PACs significant?

Answer 6

They are one of the main reasons elections have become so expensive in the USA.

In 2012 National Convention, 797 superPACS had raised $349 million - 60% had come from 100 donors

Question 7

What are 501(c)4 groups?

Answer 7

“Social welfare” organisations - not political ones.

Do not have to disclose information on donors unless the donor has given money for the “expressed purpose” of political advocacy.

Question 8

Examples of 501(c)4 groups

Answer 8

1. NAACP
2. Planned Parenthood
3. NRA

Question 9

Examples of 501(c)4 activity

Answer 9

1. CrossRoads GPS - (technically offshoot of superPAC American Crossroads) spent $122 million in 2012.
   - Described as the “3rd most influential party in the USA”

Question 10

Influence of 501(c)4 groups vs super PACS

Answer 10

2 biggest 501(c)4 groups - CrossRoads GPS and Americans for Prosperity (both conservative) spent more many than all 797 super PACS combined.

On top of this, their expenditure is not covered in the official election costs!!

Question 11

What are 527 groups?

Answer 11

Groups not regulated by the F.E.C - Unlimited funding/spending but have to publicly disclose donors

They focus on issues, not candidates or parties.

Cannot “expressly advocate” for/against a political candidate.

Result of Buckley vs Valeo 1976

Question 12

Examples of 527 groups

Answer 12

Swift Boat Veteran for Truth - John Kerry attack ad.