CAMPAIGN FINANCE* *Number 3 on hardest things to teach in Government

Is money the same as free speech?

How things work All federal election contributions and expenditures are reported to the F.E.C. All contributions over $100 must be disclosed No cash contributions over $100 or foreign contributions – Why? No limit on how much a candidate may spend of their own money

Should Corporations be restricted on what they may donate to a campaign?

Does money buy votes?

Soft Money "Soft" money is contributed to the political party as a whole.

Hard money "Hard" money is contributed directly to a candidate of a political party. It is regulated by law

Independent expenditure No restrictions on a candidate’s own money Restrictions are a violation of free speech Buckley v. Valeo (1976)

McCain Feingold: Confusing and Controversial

PROVISIONS Banned soft money to candidates “Stand by your ads” 527 loophole – Unregulated and unreported

POLITICAL ACTION COMMITTEES committee formed by a special-interest group to raise money for their favorite political candidates

How much can you give to a campaign?

A Donor Taxonomy Candidate CommitteeFriends of John McCain DescriptionCommittee formed by the candidate, who can direct the use of funds Limits on ContributionsIndividuals: $2,400 Corporations: Cannot contribute* Limits on how the group can use the money A candidate committee can’t contribute more than an individual can to other committees (e.g. $2,400 to a candidate) Are donors disclosed?Yes, to the Federal Election Commission *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy PAC (Political Action Committee) International Assn. of Firefighters DescriptionPACs are formed by the parties to funnel money to candidates or use it for other purposes Limits on ContributionsIndividuals: $30,400 per year to a national party committee Corporations: Cannot contribute* Limits on how the group can use the money A Political party PAC can give no more than $5,000 per year to a candidate (Senate candidates can get $42,600 per campaign), or$5,000 per year to another PAC Are donors disclosed?Yes, to the Federal Election Commission *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy Federal PAC Goldman Sachs PAC, National Beer Wholesalers PAC DescriptionPACs organized by interest groups to pool contributions from members or employees to give to candidates or parties Limits on ContributionsIndividuals: $5,000 per year Corporations: Cannot contribute* Limits on how the group can use the money A federal PAC can give $5,000 per election to a candidate, $5,000 per year to another PAC, $15,000 to a partly PAC Are donors disclosed?Yes, to the Federal Election Commission *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

“527s” 1. tax-exempt organization named after a section of the United States tax code, 26 U.S.C. § Unregulated by the Federal Election Commission 2.Such organizations can legally engage in political activity, but funds from "soft money" contributions may not be spent on ads promoting the election or defeat of a specific candidate.

A Donor Taxonomy 527 Patriot Majority, Swift Boat Veterans for Truth DescriptionA tax-exempt group that raises money for political activities including voter mobilization and issue advocacy. These groups haven’t typically advocated for or against a candidate by name Limits on ContributionsUnlimited Limits on how the group can use the money These groups cannot give to a candidate or PAC, and may not coordinate with parties or candidates Are donors disclosed?527s disclose donors to the I.R.S., although sometimes less frequently than groups that report to the F.E.C.

Title Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Vivamus et magna. Fusce sed sem sed magna suscipit egestas.

Title Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Vivamus et magna. Fusce sed sem sed magna suscipit egestas.

A Donor Taxonomy Candidate Committee Description Limits on Contributions Limits on how the group can use the money Are donors disclosed? *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy PAC (Political Action Committee) Description Limits on Contributions Limits on how the group can use the money Are donors disclosed? *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy Federal PAC Description Limits on Contributions Limits on how the group can use the money Are donors disclosed? *Corporations can direct limited contributions through their own political action committees (ATT Inc.), which use employee donations.

A Donor Taxonomy 527 Description Limits on Contributions Limits on how the group can use the money Are donors disclosed?

Campaign Finance Explained: Warm-up: What is going on in the cartoon? 527s: How things work: Political Action Committees (PACs): Soft money:McCain-Feingold: Hard money: XXXXXXX