Types of contributions to party committees

Money

Cash contributions are limited to $100 per contributor. Contributions of more than $100 must be made by check, credit card or other written instrument.

Loans

A loan is considered a contribution to the extent of the outstanding balance of the loan. (Bank loans, however, are not considered contributions if made in the ordinary course of business and on a basis that assures repayment.)

Repayments made on a loan reduce the amount charged against the lender’s contribution limit. However, a loan that exceeds the lender’s limit is unlawful even if repaid in full.

Sale of fundraising items and tickets

The full purchase price of a fundraising item or ticket to a fundraising event is considered a contribution. For example, when a person buys a $50 ticket to a fundraising dinner, the amount of the contribution is $50, regardless of how much the meal costs the committee. A person who buys several tickets to a fundraiser makes a contribution in the amount of the total purchase unless the contribution is intended as a joint contribution

Sale of committee assets

When a committee sells or leases an asset (such as a mailing list), the full amount received from the purchaser is generally considered a contribution to the committee unless:

• The committee had purchased or developed the asset for the committee’s own use rather than as a fundraising item;
• The asset has an ascertainable market value;
• Rental of the asset comprises only a small percentage of the committee’s overall use; and
• The purchaser pays the usual and normal charge. (Any payment in excess of that amount is considered a contribution.)

For more information on leasing a party mailing list, review AOs 2014-06 and 2002-14.

Under certain conditions, the Commission has also concluded that a contribution does not result from a sale that is an isolated disposal or sale of unwanted and depreciated committee assets (such as office furniture). For more information, review AOs 2003-19 and 1986-14.

In-kind contributions include:

• Goods and services offered free of charge;
• Goods and services offered at less than the usual and normal charge (unless the discount is offered in the ordinary course of business);
• Payments, by a third party, of committee bills; and
• Advances of personal funds.

Value

The dollar value of an in-kind contribution is subject to limits. The value is determined as follows:

• Goods (such as equipment, supplies, facilities and mailing lists) are valued at their normal purchase or rental price at the time of the contribution.
• Services (such as advertising, printing and consulting) are valued at the prevailing commercial rate at the time the services are rendered.
• Discounts are valued at the difference between the usual and normal charge and the amount paid by the committee.

Reporting in-kind contributions

Itemize in-kind contributions of any amount from political committees. Itemize an in-kind contribution from any other source if it exceeds $200 per calendar year either by itself or when aggregated with other receipts from the same source. Review the "Value" section for information on how to determine the dollar value of an in-kind contribution.

In addition, add the value of the in-kind contribution to the operating expenditures total on Line 21b (in order to avoid inflating the cash on hand amount).

If the in-kind contribution must be itemized on Schedule A, then it must also be itemized on a Schedule B for operating expenditures.

Advances of personal funds

When an individual uses his or her personal funds (or personal credit card) to pay for a committee expense, that payment is generally considered a contribution from that individual if the payment is not reimbursed by the committee within certain time limits: 30 days after payment by cash or personal check; or 60 days after the closing date of the billing statement on which the charges first appear, if the amount was charged to a personal credit card.

The Commission has determined that contributions of bitcoins are “money or anything of value” within the meaning of the Act.

Value

The value of bitcoin contributions is based on the market value of bitcoins at the time the contribution is received. To determine the market value, the committee should first rely on any contemporaneous determination provided by the entity that processes the bitcoin contribution. If the processor provides an exchange rate for the transaction in question, then the committee should use this rate to value the contribution. If, however, the contribution is made through an entity that does not provide an exchange rate for that contribution (or if no processor is involved in the transaction), then the recipient committee may value the contribution using another reasonable exchange rate of bitcoins for dollars.

A joint contribution is a contribution that is made by more than one person using a single check or other written instrument. A joint contribution represents the personal funds of each donor, so each donor must sign either the check or an accompanying statement.

For the purposes of the contribution limits, a joint contribution is attributed equally to each donor, unless an accompanying statement indicates that the funds should be divided differently.

Exception: partnership and LLCs

Contributions from partnerships and certain LLCs are not considered joint contributions, but do trigger special attribution requirements.

Joint fundraising is election-related fundraising conducted jointly by a political committee and one or more other political committees or unregistered organizations.

All participants in a joint fundraising effort, including unregistered organizations, must:

• Create or select a federal political committee to act as the joint fundraising representative;
• Agree to a formula for allocating proceeds and expenses;
• Sign a written agreement naming the joint fundraising representative and stating the allocation formula;
• Establish a separate account for joint fundraising receipts and disbursements; Notify the public of the allocation formula and certain other information when soliciting contributions;
• Screen contributions to make sure they comply with the limits and prohibitions of the Federal Election Campaign Act; and
• Report allocated proceeds and expenses (applies to political committees only).
• The committee named as the fundraising representative has additional responsibilities.