Campaign Finance
527s, PACs, and Super PACs
Purpose of Today’s lesson:
• Define the appropriate vocabulary/politicalspeak that accompanies Campaign Finance.
• Identify the Supreme Court Cases that defined
campaign finance contributions.
• Compare/Contrast the groups that contribute
to election campaigns.
How are we going to get there?
1. Notes on reading vocabulary, PACs, 527s and
Super PACs.
2. Venn Diagram
3. Campaign Finance Reform group discussion
4. EXIT SLIP to check for understanding.
Vocabulary:
Hard Money
Soft Money
• money given directly to a
candidate in an election to
assist his or her campaign
• money that can be spent by a
political party on grass-roots
organization, recruitment,
advertising, etc.; it must be
deposited in a party's nonfederal (state-level) bank
accounts, and must not be
used in connection with
presidential or congressional
elections
Vocabulary
Federal Election Commission
• (or FEC) is an independent
regulatory agency that was
founded in 1970’s by
the United States Congress to
regulate the campaign
finance legislation in the
United States.
2002 Bipartisan Campaign
Reform Act
• AKA: McCain-Feingold Act
regulates the financing of
political campaigns.
• Eliminated “soft money” in
campaign financing
• Eliminated broadcast ads that
name a federal candidate
within 30 days of a primary or
caucus or 60 days of a general
election.
• Overturned***2010
Supreme Court Cases:
• Buckley v. Valeo (1976)
▫ upheld a federal law
▫ set limits on campaign contributions,
▫ ruled that spending money to influence elections
is a form of constitutionally protected free speech.
▫ ruled candidates can give unlimited amounts of
money to their own campaigns.
Supreme Court Cases
• Citizens United v. FEC (2010)
▫ holding that corporate funding of independent
political broadcasts in candidate elections cannot
be limited—because of the First Amendment.
Political Action Committees
• Started in 1974
• Allows corporations, unions and trade
associations to raise campaign funds
• $ from at least 50 contributors
• $5,000 cap to individuals/$15,000 cap to Party
▫ Hard $$$
• Types of PACs
▫ Interest Group PACs
▫ Leadership PACs (legislators)
527s
• Named after tax exemption code
• Allowed to promote a political agenda
• Can NOT expressly advocate for or against a
specific candidate
▫ Ex: Progress for America (2001) to support
George W. Bush's "agenda for America.”
• Not regulated by the FEC
• Not subject to donation limits
▫ Soft $$$
Super PACs
• Post 2010 – Citizens United v. FEC
• Can raise unlimited sums from corporations,
unions and other groups.
▫ Ex: Rick Perry’s "Make America Great Again"
•
•
•
•
Accepts individual donations.
Mount direct attack ads
Not allowed to coordinate directly w/ candidate
Not required to disclose donors.
Stephen Colbert’s SuperPAC
• http://www.colbertsuperpac.com/episodeivanewhope/
• Disclaimer @ bottom of Website:
Contributions to Americans for a Better Tomorrow, Tomorrow
("ABTT") are not deductible as charitable contributions for federal
income tax purposes. ABTT may accept unlimited corporate
contributions, unlimited individual contributions, unlimited laborunion contributions, and unlimited PAC contributions.
Contributions from foreign nationals and federal-government
contractors will not be accepted. *Federal law requires ABTT's best
efforts to obtain and report the name, address, occupation, and
employer of any individual who contributes more than $200 in a
calendar year.
Campaign Finance Reform
• Divide in to a group of 4
▫ Get desks in to pods
• Read Introduction
• Follow directions on handout
• Discuss and Write out answers
▫ Everyone must write their own
Exit Slip
• Before you leave, fill out the exit slip given to you
• Return to Ms. McTigue/ Mrs. Fuhrer on your
way out!
▫ HAVE A GREAT DAY! 