Candidate Committees: Organization and Fundraising Rules

Campaign Operations, Part 1:Campaign FundraisingFebruary 22, 2012

Tab #3

2012 FEC Information Division2012 FEC Information Division1Objectives Part 1Review How Contributions WorkEvaluate Methods for Curing Excessive Contributions Identify Sources of Support Individuals/Persons, PACs, Parties, Unregistered OrganizationsCoordinated v. Independent ExpendituresDiscuss Contributions with Tricky Reporting 48-Hour NoticesPartnerships/LLCsJoint Fundraising2012 FEC Information Division2Contributions The BasicsPer Election Limits$2,500 (indexed) from individuals, persons, non-multicandidate committees$5,000 from multicandidate committeesOnly for election in which candidate participatesIncludes in-kind contributionsAccounting MethodIf candidate loses primary, must return general election $$ within 60 days During primary: cash on hand general election $$2012 FEC Information DivisionContributions The BasicsDebt Retirement Contributions:Debt is assigned to an electionFundraising to retire debt is allowedMust be designated for that electionCannot exceed limit for that electionCampaign must have net debts outstanding Net debts outstanding calculation:unpaid debts cash on hand on election day2012 FEC Information DivisionObjectives Part 1Review How Contributions WorkEvaluate Methods for Curing Excessive Contributions Identify Sources of Support Individuals/Persons, PACs, PartiesUnregistered OrganizationsCoordinated v. Independent ExpendituresDiscuss Contributions with Tricky Reporting 48-Hour NoticesPartnerships/LLCsJoint Fundraising2012 FEC Information Division5Curing ExcessivesRefund excessive portionRedesignate for another electionReattribute to another donor2012 FEC Information Division

Practical Application

Cosmo Kramer for Congress CommitteeFive thousand and xx/100 -----June 4 125,000.00Lisa SmithUNDESIGNATED2012 FEC Information DivisionGenerally, campaigns may presumptively redesignate undesignated contributions received from an individual or non-multicandidate committee to another election within the same election cycle.

Presumptive Redesignation2012 FEC Information DivisionProcedure:

Designate permissible amount to election;Redesignate excessive amount to another election within cycle;Notify donoroption of refund.

Must not cause contributor to exceed limitsDate undesignated contribution is made determines applicable election limit. Use postmark date for mailed contributionsPresumptive Redesignation2012 FEC Information Division

Cosmo Kramer for Congress CommitteeFive thousand and xx/100 -----June 4 12Practical Application5,000.00Lisa Smith!

2012 FEC Information DivisionProcedure available for joint contributions:

Attribute permissible amount to the signer;Reattribute excessive amount to the other account holder;Notify both donorsoption of refund.

Must not cause contributors to exceed limitsPresumptive Reattribution2012 FEC Information DivisionAvoid Excessive ContributionsDesignate all contributions made to candidatesObtain signatures for joint contributions receivedDesignation Required:If donor wants contribution to count toward a future election, beyond the upcoming election.If donor wants contribution to retire candidates debt from a past election.2012 FEC Information Division

Reattributions & RedesignationsScenario #12012 FEC Information Division13Reporting ReceiptsHow to Itemize ReceiptsItemize regardless of amount:Contributions from party committees and organizationsContributions from other political committeesTransfersLoansAll other receipts:Itemize once they exceed $200 when aggregated with other receipts from that same source during an election cycle2012 FEC Information Division

Cosmo Kramer for CongressFive hundred and xx/100 ---------------------------------500March 17, 2012Morty SeinfeldMorty SeinfeldHelen SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista, FL 33433Cosmo Kramer for CongressFive thousand and xx/100 ---------------------------------5,000March 29, 2012Helen SeinfeldMorty SeinfeldHelen SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista, FL 33433Reattribution / Redesignation10281027Primary 20122012 FEC Information Division

Cosmo Kramer for Congress CommitteexMorty SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista FL 33433x03 17 2012500.00500.00SelfRetiredReceipt Schedule A, Line 11(a)Reattribution / Redesignation2012 FEC Information Division

Cosmo Kramer for CongressFive hundred and xx/100 ---------------------------------500March 17, 2012Morty SeinfeldMorty SeinfeldHelen SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista, FL 33433Cosmo Kramer for CongressFive thousand and xx/100 ---------------------------------5,000March 29, 2012Helen SeinfeldMorty SeinfeldHelen SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista, FL 33433Reattribution / Redesignation10281027Primary 20122012 FEC Information Division

2,000.00HomemakerSelfHelen Seinfeld04 03 2012Phase 2 Pines of Mar Gables Del Boca Vista FL 334335,000.005,000.00XHelen SeinfeldMorty SeinfeldPhase 2 Pines of Mar Gables Phase 2 Pines of Mar GablesDel Boca Vista FL 33433Del Boca Vista FL 33433XX2,500.002,500.00SelfSelfRetired Homemaker04 03 201204 03 2012- 2,500.00See reattribution and redesignation belowMEMOReattribution andRedesignation belowReattributionMEMOReattribution / RedesignationXCosmo Kramer for Congress Committee

HomemakerHelen SeinfeldPhase 2 Pines of Mar GablesDel Boca Vista FL 334333,000.0004 03 2012500.00RedesignationMEMOSelfX2012 FEC Information DivisionObjectives Part 1Review How Contributions WorkEvaluate Methods for Curing Excessive Contributions Identify Sources of Support Individuals/Persons, PACs, PartiesUnregistered OrganizationsCoordinated v. Independent ExpendituresDiscuss Contributions with Tricky Reporting 48-Hour NoticesPartnerships/LLCsJoint Fundraising2012 FEC Information Division19Limits to Candidates

For 2011-12Elections2012 FEC Information DivisionPartnerships/LLCs$2,500/election limit on contributions from firm to candidatesCounts as contribution from both the individual and partnership/LLC (attribution based on partner/member losses/profits)No corporate partners/membersLLC treated as corporation - prohibited2012 FEC Information DivisionLimits to Candidates

For 2011-12Elections2012 FEC Information DivisionPermissible SourcesUnregistered OrganizationsMust use federally permissible fundsCounts toward federal registrations thresholdIf nonfederal PAC is sponsored by corp./union: registration with first dollar spend on federal elections or upon formation.Other nonfederal committees: registration after raises or spends in excess of $1,000 registration threshold.2012 FEC Information DivisionPermissible SourcesCoordinated SpendingCoordination: made in cooperation, consultation or concert with, or at the request or suggestion of, a candidate, candidates authorized committee, or a political party committee.Results in an in-kind contribution (or coordinatedparty expenditure).Specific rules apply to determine whether a communication is coordinated.2012 FEC Information DivisionCoordinated CommunicationsIf communication is coordinated, it is considered an in-kind, subject to limits.Coordination three-part test:Source of payment;Content standard re: timing and subject matter of communication; ANDConduct standardre: interaction between campaign and payee.Permissible Sources2012 FEC Information Division

Permissible SourcesConduct Standard Safe HarborsAgreement or formal collaboration nor express advocacy necessary for a communication to be coordinatedSafe Harbors include:Inquiry re: policy or legislative issuesEndorsements and solicitations120-day temporal limit for common vendor/former employee conduct standardsCertain commercial transactions

2012 FEC Information DivisionPermissible SourcesIndependent Expenditure

A communicationContaining Express AdvocacyThat is not coordinated

EXPRESS ADVOCACYNo Coordination2012 FEC Information DivisionIndependent ExpendituresExample

Paid for by the XYZ Organization (www.xyz.org) and not authorized by any candidate or committee.

XYZ Organization SaysVote for Joe2012 FEC Information DivisionObjectives Part 1Review How Contributions WorkEvaluate Methods for Curing Excessive Contributions Identify Sources of Support Individuals/Persons, PACs, PartiesUnregistered OrganizationsCoordinated v. Independent ExpendituresDiscuss Contributions with Tricky Reporting 48-Hour NoticesPartnerships/LLCsJoint Fundraising2012 FEC Information Division2948-Hour NoticesContributions of $1,000 or more received< 20 days up to 48-hours before an electionFEC Form 6Applies to all types of contributions including:Contributions from individuals, entities and committees;Contributions from the candidate;Loans from the candidate and other non-bank sources; andEndorsements or guarantees of loans from banks.

2012 FEC Information DivisionJoint FundraisingElection-related fundraising held jointly by campaign + one or more other committeesJoint Fundraising Representative (JFR)Collects/deposits joint fundraising contributionsPays expenses and transfers proceeds to participantsParticipants amend Form 1 to designate JFR as an authorized committeeWritten AgreementOutlines allocation formula for proceeds and expenses among all participants2012 FEC Information Division

Joint Fundraising Transfer In & 48-Hour Notices Scenario #22012 FEC Information Division32

Joint Fundraising: Transfer InKramer/Costanza Victory Fund48 West 77th Street 2,000.00 1,250.00 1,250.0009 01 201209 05 201209 01 2012MEMO New York NY 1002400558741 X X X 2,000.00Lloyd Braun340 Amsterdam AvenueNew York NY 10024NYC Mayors OfficeChief of Staff 1,250.00David Puddy375 West End AvenueNew York NY 10024West End Auto BodyMechanic 1,250.00XCosmo Kramer for Congress CommitteeKramer/Costanza Victory Fund - Joint FundraiserMEMOKramer/Costanza Victory Fund - Joint FundraiserJoint Fundraising Committee2012 FEC Information Division

48-Hour Notices

Cosmo Kramer for Congress Committee129 West 81st Street Apt. 5BNew York, NY 10024Cosmo KramerC00320000NY / 08Lloyd Braun340 Amsterdam AvenueNew York, NY 10024NYC Mayors Office9/01/12$1,250.00Mr. Newman9/03/12FEC Form 6David Puddy375 West End AvenueNew York, NY 10024Chief of StaffWest End Auto BodyMechanic9/01/12$1,250.002012 FEC Information Division

Workshop EvaluationHelp Us Help You!Please complete an evaluation of this workshop.2012 FEC Information DivisionBreak For LunchNext Workshop:Campaign Operations, Part 22:00 - 3:30 PM

Lunch in Concerto Ballroom B2012 FEC Information DivisionCampaign Operations, Part 2:Campaign FundraisingFebruary 22, 2012

Tab #3

2012 FEC Information Division2012 FEC Information Division37Objectives Part 2Discuss Contributions with Tricky Reporting Earmarked Lobbyist BundlingExamine Volunteer Exemptions Identify Ways the Candidate May Support the CampaignPersonal FundsContributions v. LoansTransfers2012 FEC Information Division38Earmarked ContributionsContributions to a candidate directed by the contributor through an intermediary, or conduitContribution must be forwarded to campaign within 10 days of conduits receipt.Conduit must provide campaign with contributor information for FEC report.2012 FEC Information DivisionEarmarked Contributions

Scenario #32012 FEC Information Division40

Earmarked ContributionsCosmo Kramer for Congress CommitteeMickey Abbott440 Columbus AvenueNew York NY 10024XX04 13 20121,000.001,000.00Kramerica Industries PAC129 West 81st Street Apt. 5BNew York NY 10024X1,150.00Executive AssistantKramerica Industries1,150.0004 15 201200342972Both entries relate to a single receipt.MEMOEarmarked through Kramerica PACTotal earmarked through conduitPAC limit not affected2012 FEC Information DivisionLobbyist BundlingGenerally, to be a bundled contribution, the intermediary between the contributor and recipient campaign must be a lobbyist, registrant or lobbyist registrant PAC Two Types of Bundled ContributionsForwarded ContributionsReceived AND Credited ContributionsException for Lobbyist/Registrant/PACs own contributions2012 FEC Information DivisionDisclosure RuleIf a lobbyist/registrant or lobbyist/registrant PAC forwards or is credited with raising two or more bundled contributions that total more than $16,700 during a covered period, the recipient campaign must report that on FEC Form 3L.Lobbyist Bundling2012 FEC Information DivisionCovered Periods Semi-annual Periods:January 1 - June 30July 1 - December 31 Quarterly Reporting Periods:Election Year (2012):calendar quarters ending 3/31, 6/30, 9/30 and 12/31 + applicable pre- and post-election reporting periodsNon-Election Year (2013):calendar quarters ending 3/31, 6/30, 9/30 and 12/31 + applicable special election reporting periodsLobbyist Bundling AND2012 FEC Information DivisionDoes the reporting committee accept bundled contributions?No obligation to file Form 3LIs the bundler a lobbyist/registrant or lobbyist/registrant PAC?Does the aggregate amount of bundled contributions exceed $16,700 for a covered period?The committee must file Form 3LNONONOYESYESYESLobbyist Bundling DisclosureFlow Chart2012 FEC Information Division2012 FEC Information DivisionObjectives Part 2Discuss Contributions with Tricky Reporting Earmarked Lobbyist BundlingExamine Volunteer Exemptions Identify Ways the Candidate May Support the CampaignPersonal FundsContributions v. LoansTransfers2012 FEC Information Division46Volunteer ExemptionsVolunteer ServicesUse of Personal PropertyHome/Church/Community Room EventFood/Beverage Vendor Discount Computer ServicesFree Legal and Accounting 2012 FEC Information DivisionHome Exemption In-Kind Contributions & 48-Hour Notices

Scenario #42012 FEC Information Division48

In-Kind ContributionReceipt: Schedule A, Line 11(a)Disbursement: Schedule B, Line 17XXXCosmo Kramer for Congress CommitteeCosmo Kramer for Congress CommitteeTim WhatelyDentistSelf09 03 20121,300.00300.00715 West 79th StreetNew York NY 10024Tim Whatley715 West 79th StreetNew York NY 10024In-kind: invite for fundraiser w/D. Puddy1,300.0009 03 2012In-Kind Contribution from an IndividualIn-kindOctober Quarterly Report2012 FEC Information Division

48-Hour Notices

Cosmo Kramer for Congress Committee129 West 81st Street Apt. 5BNew York, NY 10024Cosmo KramerIncludes Monetary and In-Kind ContributionsC00320000NY / 08Tim Whatley715 West 79th StreetNew York, NY 10024SelfDentist9/03/12$1,300.00(in-kind; fundraiser invitations)Mr. Newman9/05/10FEC Form 62012 FEC Information DivisionVolunteer ExemptionsVolunteer ServicesUse of Personal PropertyHome/Church/Community Room EventFood/Beverage Vendor Discount Computer ServicesFree Legal and Accounting 2012 FEC Information DivisionVolunteer ExemptionsComputer Services

Volunteers may do the following without making a contribution to a candidate:Spend unlimited amount of their own time e-mailing and doing web activities (work time is limited)Use personal computer on an unlimited basis(use of work computer is limited)Pay Internet service provider feesPay domain name registration fees2012 FEC Information DivisionVolunteer ExemptionsLegal & Accounting ServicesExemption allowing any entity to provide free legal & accounting services to a campaign as long as comply with the limitations.Includes corporations, committees, unions, and partnerships.An individual personally volunteering legal or accounting services without compensation does not fit into this exemption.2012 FEC Information DivisionObjectives Part 2Discuss Contributions with Tricky Reporting Earmarked Lobbyist BundlingExamine Volunteer Exemptions Identify Ways the Candidate May Support the CampaignPersonal FundsContributions v. LoansTransfers2012 FEC Information Division54Candidate SupportUnlimited Personal Funds of Jointly Held AssetsContributions vs. LoansBoth unlimited from candidates personal funds; butAmounts disclosed as loans can be repaid; amounts disclosed as contributions cannot.2012 FEC Information DivisionRepayment of Candidate Loans

Using contributions made before election:May repay entire amount

Using contributions made after the election:May repay no more than $250,000Balance = contributionCandidate Support2012 FEC Information DivisionCandidate Support: TransfersNonfederal Campaign to PCC prohibitedFrom Prior Federal Campaign in Different CycleUnlimitedNo aggregation of contributor limits From Candidates Campaign for Different OfficeIn the Same/Overlapping Election CycleMust set up separate committeeNo transfers while actively seeking more than one officeAggregation of contributor limitsIn different cycles unlimited; no aggregation2012 FEC Information DivisionCandidate Loan of Personal Funds

Scenario #52012 FEC Information Division58

Candidate Loan of Personal FundsCosmo Kramer for CongressxCosmo Kramer129 West 81st Street Apt. 5BNew York NY 10024x01 23 201210,000.00personal funds10,000.00Kramerica IndustriesFounderReceipt Schedule A, Line 13(a)Part 1 of 2: Report as Contribution2012 FEC Information Division

xxCosmo Kramer for Congress CommitteeCosmo Kramer personal funds129 West 81st Street Apt. 5BNew York NY 100240.0010,000.0010,000.00 None01 23 2012 NonexLoan Reporting Schedule C, Line 13aPart 2 of 2: Report as LoanCandidate Loan of Personal Funds2012 FEC Information Division

Candidate Loan from BankCosmo Kramer for Congress CommitteeCosmo KramerKramerica IndustriesFounderx60,000.0006 01 201250,000.00

Loan from BankxReceipt - Schedule A, Line 13(a)Part 1 of 3: Report as Contribution129 West 81st Street Apt. 5BNew York NY 100242012 FEC Information Division

50,000.000.0050,000.0006 01 201201 31 20149.5xxxLoan Reporting Schedule C, Line 13(a)Part 2 of 3: Report as Loan Cosmo Kramer for Congress CommitteeCosmo Kramer (Loan from Bank)129 West 81st Street Apt. 5BNew York NY 10024Candidate Loan from Bank2012 FEC Information Division

Chemical Bank120 West 81st StreetNew York NY 10024xxxxx50,000.00Real estate12.5250,000.000.0006 01 201201 31 201400320000Mr. NewmanMr. Newman06 01 2012Part 3 of 3: Schedule C-1 Loan Agreement - Bank & CandidateCosmo Kramer for Congress CommitteeCandidate Loan from Bank2012 FEC Information Division

50,000.003,650.0046,350.0006 01 201201 31 20149.5xxxLoan Reporting Schedule C, Line 13(a)Part 1 of 2: Report Payment on Schedule CCosmo Kramer for Congress CommitteeCosmo Kramer (Loan from Bank)129 West 81st Street Apt. 5BNew York NY 10024Candidate Loan from Bank2012 FEC Information Division

Candidate Loan from BankCosmo Kramer for Congress CommitteeCosmo KramerCosmo KramerxNY8 08 10 20123,650.00xPrincipal Payment Schedule B, line 19(a)Cosmo Kramer for Congress CommitteeCosmo Kramer129 West 81st Street Apt. 5BCosmo KramerxxxNY808 10 2012350.00New York NY 10024Interest Payment Schedule B, line 17xLoan Payment - Candidate Loan from BankInterest Payment on Bank Loan129 West 81st Street Apt. 5B

New York NY 10024Part 2 of 2: Report Payment on Schedule BPrincipalv. Interest Payments2012 FEC Information Division

Workshop EvaluationHelp Us Help You!Please complete an evaluation of this workshop.2012 FEC Information DivisionTomorrow MorningBreakfast with the IRS andCampaign Operations,Part 38:00 AM

2012 FEC Information Division Candidate

per electionNational Party per year State, District & Local Party per yearAny PAC

per yearSpecial Limits

Individual$2,500$30,800 $10,000 (combined)$5,000$117,000 biennial limit

National Party$5,000No LimitNo Limit$5,000$43,100 per Senate campaign

State, District & Local Party$5,000 (combined)No LimitNo Limit$5,000 (combined)None

PAC:multicandidate$5,000$15,000 $5,000 (combined)$5,000None

PAC: notmulticandidate$2,500$30,800 $10,000 (combined)$5,000None

Candidate

per electionNational Party per year State, District & Local Party per yearAny PAC

per yearSpecial Limits

Individual$2,500$30,800 $10,000 (combined)$5,000$117,000 biennial limit

National Party$5,000No LimitNo Limit$5,000$43,100 per Senate campaign

State, District & Local Party$5,000 (combined)No LimitNo Limit$5,000 (combined)None

PAC:multicandidate$5,000$15,000 $5,000 (combined)$5,000None

PAC: notmulticandidate$2,500$30,800 $10,000 (combined)$5,000None