ap gov campaign finance and super pacs

Leadership PAC

A PAC formed by an officeholder that collects contributions from individuals and other PACs and then makes contributions to other candidates and political parties.

BCRA

Bipartisan Campaign Reform Act

Difference between super PAC and traditional PAC

Candidates and traditional candidate committees can accept $2,500 from individuals per election. That means they can take in $5,000 a year - half in the primary, and half in the general election. Candidates and traditional candidate committees are prohibited from accepting money from corporations, unions and associations. Federal election code prohibits those entities from contributing directly to candidates or candidate committees. Super PACs, though, have no limitations on who contributes or how much they contribute. They can raise as much money from corporations, unions and associations as they please and spend unlimited amounts on advocating for the election or defeat of the candidates of their choice.

soft money

Contributions to a state or local party for party-building purposes.

Why are Super PACs so controversial?

Critics who believe money corrupts the political process say the court rulings and creation of super PACs opened the floodgates to widespread corruption. In 2012, U.S. Sen. John McCain warned: "I guarantee there will be a scandal, there is too much money washing around politics, and it's making the campaigns irrelevant." McCain and other critics said the rulings allowed wealthy corporations and union to have an unfair advantage in electing candidates to federal office.

hard money

Donations made to political candidates, party committees, or groups which, by law, are limited and must be declared.

FEC

Federal Election Commission

527 organizations

Interest groups organized under section 527 of the Internal Revenue Code may advertise for or against candidates. If their source of funding is corporations or unions, they have some restrictions on broadcast advertising. 527 organizations were important in recent elections.

when did super PACs come into existence/why

July 2010 following two key federal court decisions that found limitations on both corporate and individual contributions to be unconstitutional violations of the First Amendment right to free speech.

BCRA purpose/importance

Largely banned party soft money, restored a long standing prohibition on corporations and labor unions for general treasury funds for electoral purposes, and narrowed the definition of issue advocacy. AKA "McCain-Feingold"

independent expenditures

Money spent by individuals or groups not associated with candidates to elect or defeat candidates for office.

PAC

Political Action Committee

issue advocacy

Promoting a particular position or an issue paid for by interest groups or individuals but not candidates. Much issue advocacy is often electioneering for or against a candidate, and until 2004 had not been subject to any regulation.

examples of super PACs

Restore Our Future, a conservative super PAC that supported Republican presidential hopeful Mitt Romney; Winning Our Future, a conservative super PAC that supported Republican presidential hopeful and former House Speaker Newt Gingrich's run for the presidency; Make Us Great Again, a conservative super PAC that supported Republican presidential hopeful Rick Perry's unsuccessful run for the White House; Priorities USA Action, a liberal super PAC that supported President Barack Obama's re-election bid.

restrictions on super PACs

The most important restriction is that super PACs can't work in conjunction with the candidates they're supporting. According to the Federal Election Commission, super PACs cannot spend money "in concert or cooperation with, or at the request or suggestion of, a candidate, the candidate's campaign or a political party."

FEC purpose/importance

a commission created by the 1974 amendments to the FEC act to administer election reform laws. Consists of 6 commissioners appointed by the president and confirmed by the senate. Its duties include overseeing disclosure of campaign finance information and public funding of presidential elections, and enforcing contribution limits.

function of a super PAC

advocate for the election or defeat of candidates for federal office by purchasing television, radio and print advertisements and other media. There are conservative super PACs and liberal super PACs.

Super PAC

political-action committee that is allowed to raise and spend unlimited amounts of money from corporations, unions, individuals and associations. Some nonprofit groups are allowed to contribute to super PACs without disclosing where their money came from. The term "super PAC" is used to describe what is technically known in federal election code as an "independent expenditure-only committee." They are relatively easy to create under federal election laws.

PAC purpose/importance

the political arm of an interest group that is legally entitled to raise funds on a voluntary basis from members, stockholders, or employees to contribute funds to candidates or political parties.