What's a PAC?

What are PACs? "Political Action Committees are groups of individuals with common interests who want to advance a specific political agenda by contributing to candidates who share their views. Their common interest may be ideological, as among the members of the National Rifle Association or the Sierra Club. It may be business-related, in that all the PAC's donors work for the same company, or belong to the same national trade or professional association, like the National Association of Realtors or the American Medical Association. The connection may also be through membership in a labor union. In total dollars, at least at the federal level (and likely at the state level as well), business PACs dominate all others." (From the Center for Responsive Politics' Follow the Money Handbook)

Who can give to PACs? Corporations are barred from donating to federal PACs, although corporation executives and/or employees may donate individually. Any individual may give up to $5,000 each year to any federal PAC.

Who regulates PACs? PACs that raise or spend money for federal elections must register with the Federal Election Commission (FEC) and report the names and specific dollar amounts of all contributors. This information becomes public record. PACs that raise money only for state and local candidates or causes are regulated by individual states. State oversight of PACs varies greatly. Florida and Kentucky, for example, have a $500 limit on PAC donations, while some states have no limits whatsoever. Many PACs have separate branches for administering contributions to federal and state races.

What are other types of political contributions? An individual can give directly to a federal candidate (up to $1,000 per election) or national party (up to $20,000 per year). Federal law caps the total amount that individuals can give in PAC, individual, and national party contributions at $25,000 per year.

Then, for those who just can't give enough, there's "soft money." This is money to a political party that is supposed to be used only for state and local activities such as voter registration, get-out-the-vote drives, and advertisements for the party platform. It's not meant to be used for donations to specific candidates. Because individuals may give an unlimited amount in soft money, it is widely considered a way of giving to your political team without being held back by contribution limits.

Has GOPAC circumvented PAC laws? GOPAC (run until recently by Newt Gingrich) claims that most of its money is used to help elect Republican candidates to state offices, which would free the organization from disclosing its finances or observing federal limits on the size and source of campaign contributions. The FEC disagrees and is suing GOPAC in federal court over the issue.

There's ample evidence that GOPAC is intentionally skirting federal elections rules to avoid revealing the names of its benefactors. GOPAC did not register as a federal PAC until 1991, and even then reported the source of only 10 percent of its money to the federal government. A recent investigation of GOPAC's state filings reveals them as incomplete at best, and deliberately misleading at worst (see recycled contributions). A full accounting of GOPAC's war chest hasn't been documented on either the federal or state level.