PACs: The Importance of Association Political Involvement

Connected by issues, beliefs or employment Like-minded individuals What is a PAC? Combine resources to support candidates who support the company’s interests and issues Connected by issues, beliefs or employment Like-minded individuals

A PAC is power in numbers. Why Have PACs? Corporations and associations are prohibited from directly contributing to federal candidates – but they may operate a PAC. A PAC is strictly regulated by the FEC and only allows for voluntary, individual contributions under stringent guidelines for participation. A PAC is a legal, transparent and federally monitored means of expressing united interests with one powerful voice. It costs a lot to run for office - $11M for Senate, $3.5M for House A PAC is power in numbers. NAIFA is 30,000 strong.

Thank you to the more than 8,000 members that contribute!! Why PACs? PACs and supporting candidates are the only things an association cannot do for itself and for which it relies on its members and employees for support. Thank you to the more than 8,000 members that contribute!!

Why Have PACs? Benefit of PACs Build relationships with candidates Increase audience’s understanding of political process Connect donors with candidates to educate them on issues, org Provide election/political information to further good government Advance organizational/ government relations priorities

NAIFAPAC contributed over $2.3 million PACs in 2017 There are more than 4,000 connected PACs in the United States (connected to an association, labor organization or corporation). More than half are corporate PACs. It costs a lot to run for office - $11M for Senate, $3.5M for House PACs contributed $473.3 million to federal candidates in the 2016 election cycle ($466.3 million in the 2014 cycle). NAIFAPAC contributed over $2.3 million

Super PACs and Association PACs An association’s PAC is not a super PAC. Super PACs are: Individual and corporate money spent on uncoordinated ads and communications Super PAC money is not contributed directly to candidates The only entities that can give to candidates are individuals and PACs connected to organizations. In 2010, the Supreme Court allowed super PACs to be created. These are issue or candidate-based. Super PACs can raise unlimited amounts of money, but they cannot contribute directly to candidates. Only individuals, and individuals through PACs like BoAPAC, can give directly to candidates. And even though companies can give to super PACs (and very few do) PACs remain the only way that companies can get directly involved in the political process and support candidates directly. Only 5 % of companies have given to super PACs. With the presidential election contest heating up, you’ll be hearing more about super PACs. The media coverage is biased, and talks about things like dark money and super PACs, but not how Americans give money transparently to support the democratic process. FACT

The Truth About PACs Facts About PACs PAC Myths PACs are an offensive measure in government affairs efforts PACs help elect the right people to office PACs are a tool to build relationships with candidates PACs get more Americans engaged in the political process PACs enable your company to be a visible player PAC Myths PACs buy elections/votes: Every PAC has the same $5,000 contribution limit PACs are dirty: PACs are not only legal, but highly regulated PACs are a slush fund: PACs go through a well-defined budgeting process to allocate funds PACs are the only offensive measure in your toolkit. They are a tool to help elect the right people to office. Once they are elected, your other advocacy tools – lobbying, grassroots outreach, PR, etc. come into play. PACs also show that your association is a visible player in the political arena and about the issues you care about the most. A PAC is one tool to build strong relationships with candidates for office, who may be future legislators. Addressing the big misperceptions: Every PAC is capped at giving $5,000 per candidate per election. So the playing field is level. What the PAC offers is a way for members to meet candidates, share their story and express their top concerns and issues. This does not mean that any legislator will support legislation based on a conversation. It is merely a way to have additional interactions about important issues. As I mentioned before, PACs are not only legal, but highly regulated. Everything your government relations team does with the PAC is monitored by the FEC. In fact, PACs are a great way for millions of Americans to get engaged in the political process. Most PACs – including IFAPAC – go through a very thoughtful process to determine how best to spend money, looking at issues, footprint, key committees and likelihood of reelection.

Benefits of the PAC Individual Association Access to process Information source Gifts/recognition Special events Political involvement Election resources Association Proactive measure Supplements government relations efforts Helps elect the right people Assists association to be a visible player in DC Promotes good government and civic engagement Only way to play offense…elect the right folks. Everything thing else is defense because out of your control.

The PAC supports the re-election of legislators Where Does the PAC Fit? Lobbying team monitors top legislative priorities & opportunities and informs grassroots and PAC teams of issue champions in Congress Lawmakers and agencies are lobbied on organization’s legislative priorities & educated on impact of legislation Grassroots team educates membership on priority issues; asks for action alert, grasstops response The PAC supports the re-election of legislators Post-election, stakeholders provide input on legislative priorities to help develop legislative agenda

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