Candidate Campaign Committee

An account used directly by a political candidate (“Candidate Guide” p.5). When a candidate receives a contribution, it is deposited into a bank account controlled by the candidate’s campaign committee. The campaign pays for expenses with funds from the candidate campaign committee. Typically, these include staff salaries, consulting fees, media purchases, office space, and incidental expenses. A campaign committee for an elected legislator may be used to fund campaign related travel and other expenses that cannot be paid for with official Congressional funds.

All contributions to candidate committees are disclosed to the FEC. The FEC itemizes all contributors who give over $200 to a candidate committee each cycle, publicizing the contributors name, address, employer, and occupation (“Candidate Guide” p.63). All disbursements made by the candidate committee are disclosed to the FEC and itemized in quarterly reports, including a description of the expenditure.

A principal campaign committee is the entity used by a political candidate to facilitate run for Federal office. It is the committee authorized by a candidate to collect and disburse funds to promote that candidate’s election.

A candidate committee must contain the name of the candidate it supports within its name. Typically these committees have a name such as “Smith for Congress” or “Friends of Smith” (“Candidate Guide” p. 9)

A candidate campaign committee is controlled by its registered Treasurer[1]. The Treasurer is responsible for all interaction between the committee and the FEC, and the committee may not undertake financial transactions without a treasurer. Under federal law, the Treasurer is not personally liable for any debts incurred by the committee.

Candidate campaign committees register and file disclosure reports with the FEC. Contributions to these committees are limited and donors are disclosed. The limit for the 2012 election cycle is $2500 per election from an individual and $5000 per election from a PAC[2]. These committees may not accept contributions from corporations, labor unions, or national banks.

A candidate must register a principal campaign committee within 15 days of becoming a candidate, under the definition determined by the FEC. Within ten days of being designated as a candidate’s principal campaign committee, the committee must file a statement of organization (“Candidate Guide” p.5).

Money raised by a principal campaign committee for political purposes is exempt from income taxes. Income from sources not related to the committee’s primary purpose are not, such as investment income[3].

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[1] "Committee Treasurers Brochure." Federal Election Commission. Jan. 2011. Web. 11 Dec. 2011. <http://www.fec.gov/pages/brochures/treas.shtml>.

[2] "Contribution Limits Chart 2011-12." Federal Election Commission. Web. 11 Dec. 2011. <http://www.fec.gov/pages/brochures/contriblimits.shtml>.

[3] "Taxable Income - Political Organizations." Internal Revenue Service. 20 July 2011. Web. 11 Dec. 2011. <http://www.irs.gov/charities/political/article/0,,id=96351,00.html>.