Posted by BRIAN PRZYSTUP & ASSOCIATES LLC

Federal Giving Laws and Regulations You Should Know

Federal Giving Laws and Regulations You Should Know

There are limits to all type of contributions, except giving/contribution made through the candidate personal funds. According to the Federal Election Campaign Act, there is a limitation to giving/contribution each taxpayer can give. 

It is very important to know that it is forbidden for a campaign to retain or hold back contributions that exceed the limits allowed by the law. If a campaign receives excess contributions, the act states that the campaign should follow due procedures in handling the excess funds.

Types of Contributions 

  • In-kind giving

The usual value of in-kind contribution is usually evaluated against the cash value. Also in-kind contributions are also effective on the limits of a contribution for the next election, unless they all are assigned.

  • $100 cash limits on giving

Some taxpayer may not be able to give cash that exceeds $100 towards a campaign, irrespective to any nomination into a federal government office and all type of federal elections.

  • $50 cash limits on giving

The highest value of cash you can give as an anonymous giver is $50. if an anonymous giver, gives above $50, the cash is then used any lawful cause, which must not be related to any candidate, federal elections or campaigns. 

How do I know the limits of my giving? 

The type of federal elections/ political office, determines the limits on giving towards the campaign. The elections could range from by elections, primary elections, special elections, general elections and lastly special elections. Note that special elections attract a different giving limits, because a special election can sometimes involve all the type of aforementioned types of election, with each election having a limit as regards what can be given. 

Primary or General elections

Most political campaign always uses an accounting system to determine contributions made for primary of general elections. Although the candidate running for the general election may spend any unused contributions during the general election for the general election. A candidate may decide to use all the contributions gotten for the general election to offset all the primary elections debt, although the contribution will be against the contributor’s general election limits. 

Convention or Party submit

All parties are obliged by the law to nominate a candidate that will hoist their party flag for all general elections. There is little or no different limits for a party submit or convention, because it is considered as a step in the primary election process. When the party holds a convention or submit, a report must be filed for the convention, just like it will be done for a primary.

Contributions to delegates 

Contributions made towards ensuring the selection of an individual as a delegate for any state or local conventions or submits, that was solely held to select nominees for the national nominating conventions are not subjected to any kind of contributions limitations.

What is a recount? 

A party may decide to open a recount fund account for the candidates authorized committee’s or even as a separate entity. Although all contributions gotten from a recount fund or accounts either through cash, wire transfer, checks, or spent in line with the recount are subjected to limitations, according to the prohibitions and reporting requirement of the Act. The committees are always advised to disclose all funds spent on a recount. 

Did you know that there are designated and undesignated contributions? 

The FEC strongly advises that campaigns contributors should always designate their contributions towards a specific election. Designated giving or contributions, makes it easy to identify the reason for the contribution and also makes sure the contributors intentions are made know to the candidate campaigns.

What are the effect of designating and not designating? 

The good part of designated giving is that the contributors limit for the election that is named.

Undesignated contributions always count against the contributors limits for the candidate’s next possible elections. 

How Contributions Are Designated 

Contributions are always designated through indicating the type of election which the intend can be used for. The contributors can also make this designation by writing it on the check or any other written statements concerning the contributions. You should also know that a designation can only occur when the contributor signs any form supplied by the candidate.

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