5 Things You Should Know About Campaign Finance

People are only allowed to donate 2,400 dollars per election to a candidate.  So how is it that candidates end up with millions and millions of dollars for their campaigns?  The answer is several varieties of organizations that are allowed to give money to a candidate or campaign on their behalf, but technically not be connected to the campaign.  For example, Barack Obama needs to raise more money for his campaign.  So a Super-PAC is created in his name and that committee creates commercials on his behalf, lobbies on his behalf, and even puts out content that is disparaging of his opponents. By the way, donations to a Super-PAC are unlimited. 

Know these 5 terms and you'll be better able to navigate the tricky world of campaign finance. 

PAC (Political Action Committee) - A political committee organized for the purpose of raising and spending money to elect and defeat candidates. Most PACs represent business, labor or ideological interests. PACs can give $5,000 to a candidate committee per election (primary, general or special). They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC. PACs may receive up to $5,000 from any one individual, PAC or party committee per calendar year.

SUPER PAC - Super PACs may raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to overtly advocate for or against political candidates. Super PACs must, however, report their donors to the Federal Election Commission on a monthly or quarterly basis -- the Super PAC's choice -- as a traditional PAC would. Unlike traditional PACs, Super PACs are prohibited from donating money directly to political candidates.

Bundlers - People who have friends with a lot of money.  After bumping against personal contribution limits, they turn to those friends, associates, and, well, anyone who's willing to give, and deliver the checks to the candidate in one big "bundle."

501 (c) (4) - "Social welfare" groups that can raise unlimited money, and unlike campaigns and super-PACs, they don't have to reveal their donors.  No more than half their activities can be political but they can give freely to super-PACs.

Citizens United vs FEC - The 2010 Supreme Court case that allowed corporations and labor unions to directly spend on political campaigns, removing limits previously established by the McCain-Feingold Bill.  By a vote of 5-4 the high court ruled that it is a violation of a corporation's (who is technically a person) free speech rights to keep them from participating in campaigns.  80 percent of Americans were opposed to the ruling. 

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