Joint fundraising is fundraising conducted jointly by a political committee and one or more other political committees or unregistered organizations. Joint fundraising rules apply to:
- Party committees;
- Party organizations not registered as political committees;
- Federal and/or nonfederal candidate committees;
- Nonparty, unauthorized political committees (nonconnected PACs); and
- Unregistered nonparty organizations. 11 CFR 102.17(a)(1)(i) and (2).
Joint fundraising rules do not apply to fundraising by separate segregated funds and their collecting agents 11 CFR 102.17(a)(3). Instead, such organizations may only jointly raise funds with another affiliated committee or organization (for example, a related state PAC of a federal SSF) under FEC regulations at 11 CFR 102.6. See Chapter 3, Section 9 of the Campaign Guide for Corporations and Labor Organizations.
Joint Fundraising Representative
Joint fundraising participants must either establish a new political committee (using a Statement of Organization, FEC Form 1) or select a participating political committee to act as the joint fundraising representative. 102.17(a)(1)(i).
If the joint fundraising committee is a new committee, it must file a Statement of Organization (FEC Form 1) and check box 5(g) or (h) for the type of committee. If, on the other hand, the representative is an existing committee, it must amend its Statement of Organization. In either instance, the Statement of Organization must:
- Identify the committee as the joint fundraising representative;
- List the names and addresses of all federal committees participating in the joint fundraising effort; and
- Name the depository institution being used by the joint fundraising committee. In the case of a representative that is an existing committee, the depository is named only if it is different from the depository named on the committee’s current Statement of Organization. 11 CFR 102.2 and 102.17(c)(3)(i); See also the instructions for FEC Form 1.
Establishing the Account
Joint fundraising participants or the joint fundraising representative must establish a separate account to be used solely for the receipt and disbursement of all joint fundraising proceeds. 11 CFR 102.17(c)(3)(i).
The joint fundraising representative must deposit contributions into the separate account within 10 days of receiving them. Only contributions permissible under the Act may be deposited in the joint fundraising account. If any participant is an unregistered organization which may, under state law, accept prohibited contributions, the participants may either establish a second account for such contributions or forward them directly to the participants that may accept them. 11 CFR 102.17(c)(3)(i) and (ii).
Before conducting a joint fundraiser, all participants must enter into a written agreement that identifies the joint fundraising representative and states the allocation formula—the amount or percentage that the participants agree to use for allocating proceeds and expenses. 11 CFR 102.17(c)(1).
Prior to a fundraising event, participants may advance funds to the joint fundraising representative for start-up costs of the fundraiser in proportion to the agreed upon allocation formula. 11 CFR 102.17(b)(3).
Following the event, participants divide the gross proceeds based on the agreed upon allocation formula. If, however, the allocation formula results in an excessive contribution to any of the participants, the excessive portion must be divided among the other participants. If the reallocation would exceed all of the remaining participants’ limits, the excessive portion must be returned to the contributor. The allocation formula must then be recalculated based on each participant’s actual share of proceeds. 11 CFR 102.17(c)(6).
If the final allocation formula differs from the original formula, the joint fundraising representative must recalculate expenses based on the formula used for proceeds. 11 CFR 102.17(c)(7).
Committees A, B, and C decide to form a joint fundraising committee for a fundraising event. Prior to the event, the committees decide upon an allocation formula for expenses: Committees A and B will each contribute 25 percent; Committee C will contribute 50 percent. Since the event will cost $10,000, Committees A and B advance $2,500 and Committee C advances $5,000.
Following the event, the joint fundraising representative determines that reallocation is necessary to avoid excessive contributions to Committee C. The new formula states that Committees A and B will each receive 30 percent each of the proceeds and Committee C will receive 40 percent of the proceeds.
Since the allocation formula changed, the committees must recalculate the allocation of expenses. Committees A and B are responsible for 30 percent of the cost of the event and Committee C is responsible 40 percent of the cost of the event.
Joint Fundraising Notice
In addition to disclaimer notices, every solicitation for the joint fundraiser must contain:
- The names of all participants, regardless of whether they are registered political commit-tees or unregistered organizations;
- The allocation formula to be used for distributing contributions;
- A statement informing contributors that they may designate contributions for a particular participant (notwithstanding the formula); and
- A statement that the allocation formula may change if any contributor makes a contribution which would exceed the amount he or she may lawfully give to any participant.
11 CFR 102.17(c)(2)(i).
Reporting: Joint Fundraising Representative
The fundraising representative reports all joint fundraising proceeds in the reporting period in which they are received. Any Schedules A used to itemize contributions must clearly indicate on the schedule that the receipts are joint fundraising proceeds. 11 CFR 102.17(c)(3)(iii) and (c)(8)(i)(A). The fundraising representative must also report all disbursements made for the joint fundraiser in the reporting period in which they are made. 11 CFR 102.17(c)(8)(ii). Transfers of net proceeds to the joint fund-raising participants are reported as transfers to affiliated committees and itemized on a separate Schedule B for that category.
Each participating political committee reports its share of net proceeds as a transfer-in from the fundraising representative. A participating committee itemizes (if itemization is required) its share of gross receipts as contributions from the original donors on a memo entry Schedule A. When itemizing gross contributions, the participant must report the date of receipt as the day the fund-raising representative received the contribution. 11 CFR 102.17(c)(3)(iii) and (c)(8)(i)(B).
For more information on Joint Fundraising, please consult the Campaign Guide for Congressional Candidates and Committees, the Campaign Guide for Political Party Committees, or the Campaign Guide for Nonconnected Committees.
(Posted 11/9/11; By: Stephanie Caccomo)
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