POLITICAL GIVING

Three main buckets:

• non-partisan (c3) entities
• soft side or independent side - advocacy & partisan entities (c4, 527, PAC, SuperPAC)
• hard side - candidate and party committees

Psychologically different to donors

POLITICAL GIVING: 501c3

Examples include University of Chicago, Food Bank of the Rockies

• Can conduct leadership development and non-partisan training but CANNOT name, support, or oppose any candidate
• Can conduct non-partisan organizing including voter registration, voting mechanics, and get out the vote activities and non-partisan voter education on issues
• Can take issue positions including favor/oppose ballot initiatives
• May also have affiliated 501c4, PAC, SuperPAC, etc
• No limits on giving; can anonymize via DAFs, etc
• Tax deductible

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POLITICAL GIVING: 501c4

Examples include AFL-CIO, Indivisible, Planned Parenthood Action Fund

• Issue advocacy
• Direct and grassroots lobbying
• Can support or oppose candidates including endorsements, candidate training, and support; can create voter guides
• Issues only, up to 49% of budget for c4; “primary purpose”
• Can create “independent expenditures” on behalf of candidates
• Not disclosed (so-called “dark money”)
• Not tax deductible

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POLITICAL GIVING: 527

Examples include Act Blue Non-Federal, Democratic Governors Association

• Cannot name or support or oppose federal candidates
• Largely replaced by SuperPACs after Citizens United; may serve as vehicle for independent state-based entities
• Unlimited; must disclose donors over $10,000
• Not tax deductible

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POLITICAL GIVING: PAC & SUPERPAC

PAC Examples include Planned Parenthood Federal PAC, LCV PAC, EMILY’s List

• $5,000 federal limit; state PAC limits vary
• Giving vehicle for organizations to donate to federal candidates including Leadership PACs
• Donations disclosed

Examples include Planned Parenthood Votes, WomenVote (EMILY’s List), Senate Majority PAC

• If affiliated with federal PAC, first $5,000 may be designated to PAC
• Unlimited but must disclose donors
• Not tax deductible

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POLITICAL GIVING: PARTY COMMITTEES

Examples include DNC, NRCC, Colorado Democratic Party

• Can support or oppose candidates including endorsements, candidate training & support
• Can coordinate directly with candidates and/or can create “independent expenditures” on behalf of candidates
• Subject to federal and state contribution limits
• No aggregate federal maximum but $10,000 per state (Victory Funds vs. state parties)
• Donations disclosed
• Not tax deductible

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POLITICAL GIVING: PROS & CONS

501c3s: PRO tax deductible, largely anonymous; CON limited to non-partisan activities

501c4s: PRO unlimited and anonymous; CON limited in activities, lobbying/primary purpose

527s are state-focused only

Federal PAC: PRO vehicle to further support orgs and candidates you care about; CON $5,000 limit

SuperPAC: PRO unlimited and flexible; CON disclosed

Candidates: PRO access, most flexible money; CON disclosed, federal and some state limits

Party Committees: access, coordinated money; CON disclosed, federal and some state limits

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BEST PRACTICES

Finance/development teams are your conduits to donors

They need to understand and explain program

Manage expectations for both candidates/team and donors

Think of donors as investors – you need to be good stewards of their money

Raising for organizations is VERY different than candidates

Donor skepticism around tactics as usual – TV, mail

TRENDS

First six months post-presidential is the hardest time to fundraise

501c4 is always hard

Donor Advised Funds (DAFs) and for c3

Stock transfers and crypto

Funding intermediaries

Attacks on the sector and specific individual and institutional donors

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