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Season Three Research Files
Episode Nine
9:00pm-10:00pm
According to the current Federal Election Campaign laws, an individual is only allowed to contribute up to $2,000 per candidate per election. Yet big money contributors can make additional gifts to a candidate by donating up to $1,000 for both the primary and the general election, $1,000 toward personal travel and $1,000 for a hospitality fundraiser in their homes.
Individuals may also give up to $25,000 a year to a national political entity, such as the Republican National Committee or Democratic National Committee, and $10,000 a year to a state party committee. Before the 2002 Campaign Reform Act, the national parties were permitted to accept "soft money" in any amount. Soft money contributions were given by individuals, corporations, unions or others directly to designated non-federal accounts of the national political parties. The committees spent the money on activities such as voter registration drives or issue ad campaigns that benefit candidates in federal elections. Soft money is no longer permissible under law.
It is unlawful for any national bank, corporation or labor organization to make any contributions in connection with federal elections. Yet individual members of these groups might give funds, making the group appear to be decision-making as a whole entity.
Individuals are allowed to spend $95,000 per 2-year cycle on PACs. PACs are political committees with specific legislative agendas that make contributions to candidates and engage in other election-related activities but are not the official committees of particular candidates or political parties. Some PACs are affiliated with corporations, labor unions, or other sponsoring organizations which provide the PACs with administrative expenses. Employees or members of the sponsoring organizations may contribute to PACs, but the corporations and labor unions are prohibited from contributing their own treasury funds to their PAC.
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