527 PACs, Super PACs, Hybrid 527 PACs and Nonprofit 501(c)4 Social Welfare Organizations
If you would like to start a 527 Political Action Committee, a local or state Political Action Committee, A Super PAC, a Hybrid Super PAC or a Nonprofit 501(c)4 PAC, Tax Free Charity will manage the process from the beginning to end. We'll establish the entity as required by your activities and prepare all Federal Election Commission and Internal Revenue Service filings and notices along with all state formation and agency requirements.
Political Action Committees
These are committees formed for the purpose of influencing elections on a local, state or federal level. These PACs may donate directly to a candidate’s campaign with limits on annual contributions to the PAC. Political Action Committees for federal elections are filed as 527 PACs with the FEC, while state level Political Action Committees use other nomenclature to for committees making expenditures in their jurisdictions.
Super PACs, or Independent Expenditure PACs
The FEC allows for 527 Independent Expenditure PACs, defined by the FEC as PACs who make no contributions directly to the campaigns of any candidates but instead make “independent expenditures” of their money supporting their causes. This means their money may be used towards the support of candidates or issues without contributing money directly to any candidate. Examples of Independent Expenditure Committee PACs are the Club for Growth PAC and the Service Employees International Union Federal Political Action Fund. These- most correctly identified as Super PACs- are not subject to the contribution limits of a 527 PAC offering direct assistance to candidates, but like all 527 PACs their contributions and contributors are disclosed publicly. States establish their own reporting requirements for Independent Expenditure PACs.
Hybrid PACs, Hybrid 527 PACs or Hybrid Super PACs
The Federal Election Commission also recognizes Hybrid 527 PACs (which are also often referred to in the media as Super PACs) who must segregate funds between their contribution accounts and “non-contribution” (or "independent expenditure") accounts. An independent expenditure account may accept donations without limits from individuals, corporations, labor unions and other Political Action Committees. Examples of 527 Hybrid PACs are the Conservative Action Fund, Priorities USA Action and the Gay and Lesbian Victory Fund. Donations to either the candidate advocacy or independent expenditure account of a Hybrid 527 are disclosed publicly.
The FEC regulates the federal 527 PACs above and they offer updated developments on campaign law regarding 527 PACs here:http://www.fec.gov/law/updates
Nonprofit 501(c)4 Social Welfare Organizations
Also often referred to as Super PACs, although not actually Political Action Committees at all, are instead IRS recognized 501(c)4 Tax Exempt Social Welfare Organizations formed for the purpose of improving the Social Welfare of society. There are also some limited cases where 501(c)5 (Union) or 501(c)6 (Business) Organizations are also formed for similar purposes. These organizations may use their funds for political advertising that supports their purpose as long as that political activity is not the primary purpose of the exempt organization. These types of organizations have no limits on the dollar amount of contributions. 501(c)4 Social Welfare Organizations also differ dramatically from Political Action Committees, Super PACs and 527 Hybrid Super PACs in their ability to accept contributions that are not disclosed publicly. Examples of 501(c)4 Super PACs are Patriot Majority USA and Crossroads GPS.
We offer Flat Rate Preparation Fees and the fastest path through the F.E.C. and I.R.S. processes. State fees will depend on the PAC model you are adopting and whether you are a PAC advocating for federal candidates, a PAC advocating for local or state candidates or ballot measures, a Super PAC or a Nonprofit 501(c)4 supporting social welfare causes. We will prepare all the required paperwork for your PAC, 527 PAC, Super PAC, Hybrid 527 PAC or 501(c)4 Social Welfare PAC and stay with your F.E.C. and I.R.S. applications all the way through until you're recognized and compliant.
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