Legal limits on groups cooperating, and how to work effectively under the circumstances
by sabl@andrew.cmu.edu Last updated 2004-07-01

"Campaign activity" includes participation or intervention in any political campaign on behalf of, or in opposition to, any candidate for public office. A candidate is any contestant for elective office.

"Political campaign activities" relate to individual candidates, whereas "lobbying activities" relate to social issues and laws.

"Participation in a campaign" includes publishing or distributing statements made either by a candidate or by someone else directed at a candidate.

WHAT KINDS OF GROUPS ARE THERE, WHAT CAN THEY DO, AND WHY? Largely adapted from

SECTION 527 ORGANIZATIONS ("SOFT PACS") By not expressly advocating election or defeat of candidates and instead running "issues ads," 527 groups largely skirt legal requirements on reporting expenditures and sources. Details of their regulation, requirements and overall legality are still being fought over. At present, they do issues advocacy, potentially coupled with, for example, non-partisan electoral activity (voter registration). Their "advocacy" can skewer the record of an administration, so long as it does not explicitly advocate defeat or election of any candidate, or coordinate strategy, materials and scheduling with an electoral campaign. 527's can work together, recruit for each other, etc. The current best example may be ACT, a 527 which is itself supported by many other 527's. For an updated list of major 527's, see www.opensecrets.org/527s/527cmtes.asp (opensecrets link at bottom)

PARTISAN ELECTORAL ACTIVITY BY 501(c)(3) CHARITIES and 501(c)(4) SOCIAL WELFARE ORGANIZATIONS Federal law prohibits 501(c)(3) groups ("charities") including religious groups registered as charities (as most are) from any activity that supports or opposes candidates for office. There's a struggle of definitions and limits ongoing here (extra forms may allow up to 20% effort devoted to lobbying, for example)--but clearly, neither the degree nor the cost of politically-tinged advocacy carried out by 527's is allowed for 501c3's. If the two work together, the risk is to the 501c3 (loss of tax deductible charity tax) not to mention a painful audit. 501c3's can work together, pass out each others' information, etc.

Federal law allows 501c4's ("Social Welfare Organizations") to do focused issues outreach (like some 501c3s) and also use up to 49% of their efforts or expenditures on a combination of "electioneering" and lobbying (based on legal language that they can be involved in "nomination or election of public officials without adversely affecting [their] exempt status, provided such activities are insubstantial in relation to its overall activities.") Incidental profit-making is also allowed. Working as--or with--a c4 can be tough because "the amounts expended for [political] activities may be treated as political organization taxable income, in some cases. I assume involvement with c4's is a "risk" to 527's because c4's do direct candidate advocacy, and that cooperation with 527's is a risk to the book-keeping of c4's, and thus are directly or indirectly a threat to the tax status of c4's. 501c4's clearly cannot work directly with 501c3's. I believe that c4's can call on their membership to participate with 527's; at least, this appear to happen in practice. c4's can communicate with each other and, I assume, they can work together, though the more onerous reporting requirements discourage this in practice.

"REGULAR" PAC's: PAC's can be Single Candidate Committees or Multi Candidate PAC's. For large ones, see www.opensecrets.org/pacs/index.asp (opensecrets link at bottom). From the link, I quote: "PACs can give $5,000 to a candidate committee per election (primary, general or special). They can also give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC. PACs may receive up to $5,000 from any one individual, PAC or party committee per calendar year. A PAC must register with the FEC within 10 days of its formation, providing name and address for the PAC, its treasurer and any connected organizations. Affiliated PACs are treated as one donor for the purpose of contribution limits." No equivalent limits exist for 527's though this is hotly litigated (thus their current appeal). If you are associated with the PAC arm of a group (e.g. a union or issues lobbying group) you almost certainly have someone on hand who knows much better than I do what your "cooperation" limits are; in brief, the candidate(s) you are pushing should not design or approve your materials. (BTW, "regular" pacs also happen to be covered under section 527 of the tax code, but they are not what people talk about when they refer to "527's").

CANDIDATE CAMPAIGNS: Federal level campaigns are subject to funding limits. $2000 (primary) and $2000 (general election) per candidate, per individual donor. Depending on your state, state level campaigns may have lower limits, higher limits, or no limits (as in PA). In a few states (e.g. Oregon) there may be a state tax deduction for the first $50 donated to a candidate (a novel form of public financing). Candidates deal directly with PACs, other candidates, and 501c4's (who can, for example, endorse candidates). Candiates and their campaign operatives are highly circumscribed when they are at a 527 and 501c3 event, where "electioneering" by or for candidates is unacceptable, nor should the two groups "coordinate" on schedules, campaign materials, ads, etc. Note that many people "volunteer on a campaign" without being officially linked to the campaign in any way. Meetup hosts etc. are not campaign staff, and should not be shy about volunteering with any group (and keeping their mouths shut about their candidate affiliation(s) while doing outreach, as necessary).

POLITICAL PARTIES (at any level) commonly function as set of PAC's, as well as having organizational and administrative duties relating to elections.

VOLUNTEERS vs PAID STAFF volunteers for any group should be at least briefly instructed on the rules of the organization / campaign. If they are presenting themselves as representatives of the organization, they can save their group a lot of irate calls and tedious inquiry by sticking to the rules. That said, volunteers are very close to being free agents under the law. Most important is that they not implicate staff in any personal mistakes. When paid staff makes a mistake, the repercussions can be serious for the staffer and the organization.

What's in a NAME? Many organizations (MoveOn, The Sierra Club, etc.) are actually a cluster of groups. That is, each may encompass one or more PACs, soft PAC's, charities, and social welfare organizations--all with separate governance and financing and fundraising, despite the overlap in their mission. All or any of the branchs may be active at a time. (Now you know why you get so much junk mail from the "same" group.) Different branches "within" an organization can sometimes buy lists from each other, but they can't trade lists, information or staff freely. (Now you also know why it's so frustrating when you try to get your name off "the" list!)

UNINCORPORATED GROUPS AND INDIVIDUALS This section is based on phone calls to the FEC. (Currently, the FEC seems not so politically neutral as one might wish, so feel free to call and see if you get different answers.) The number for the FEC is 1-800-424-9530. Ask to be connected to a specialist, or hit them with almost any question and they'll hand you off to a specialist.

Making expenditures in support of a campaign as a group or from pooled funds: any group of people who act together (whether they are an official organization or not) are limited to joint, cumulative expenditures of $1000 per calendar year, unless they form a so called "non-connected committee," which (if it is for a single candidate) is also known as a "single-candidate committee." This is a sort of PAC. Plain and simple, if you go over the limit, you've got to turn into a PAC or you are in violation. (Warning-- incorporation is not trivial.) Individual expenditures: If an individual expends (pays out) more than $250 in a calendar year on behalf of any single candidate (not including costs of a house party in your own house, which are exempted up to $2000), an expenditure form should be filed. ("Calendar year" means, for example, 2003 or 2004, not an election cycle.)

Under $250 in a year, if your individual expenditures and your take are equal, you do not have to report anything (I read this phrase to the FEC over the phone three times, and they confirmed it each time). If your expenditures are never matched by getting $ back, it probably counts as a donation to the candidate (and counts against your $2000 donation limit). If your take is modestly higher than your expenditure, you are in a gray area, somewhat addressed by two "advisory opinions" on their website under "finance law resources" (opinions 1999-17 and 1980-126). Rule of thumb: don't just pass the hat for larger expenditures (e.g. billboards).

Earmarking: if someone gives someone else money explicitly to pass along to a campaign (or PAC) via an individual, group or other PAC, that's called "earmarking" and it's illegal. There's no rule against giving a gift to an individual (or group) that happens to share your political goals. But to be safe, the money should be a) mingled with their own money and b) theirs to spend as they see fit (whether or not you make general suggestions on expenditures). Rule of thumb: you should have no leg to stand on, legally, if someone spends "your" money on something you don't like.

WHAT ABOUT ME? (Q&A covering scenarios plus do's and don't's)

Q: while we were at a meetup for [a 501c3], a friend and I started to talk electoral politics. Was that bad?

A: Unless you are asked to promise otherwise, volunteers / attendees can chat with other volunteers, privately. If your sponsoring 501 or 527 is anxious about this, go take a bathroom break or catch a breath of air to talk candidate-specific info. What counts, above all, is outreach -- what's said from the podium to the assembled volunteers, or by volunteers to the public.

Q: Help! [local volunteers for a political candidate] are encouraging their people to doorbell for [my 527 or 501c3] and they keep agreeing when people in the houses talk about needing to elect Kerry!

A: You shouldn't do pro-Kerry talking while you are presenting yourself as a representative for a 527 or 501c3. (Furthermore, if you are volunteering with a 501c3, you can't talk about "needing to get Bush out of office" though you can lambaste "the record of the Bush administration.") See the "volunteers" paragraph for wiggle room--but if someone complains, just try proving that a staff member didn't break the law while training them! Go over the rules with them again--and don't let them out until they understand. BTW, you didn't ask, but it's OK for members of that freelance "candidate" group to join you as volunteers. Please don't, however, acknowledge the candidate (why look for trouble).

Q: how can we coordinate with other groups?

A: As far as coordination, each kind of group can talk directly to other groups within the same tax designation--that includes cosponsoring, coordinating, all that jazz. Different kinds of groups can all be present at 3rd party events (the local arts fair, etc--assuming it's OK with the arts fair). See above for more details.

Q: Can you give some examples of problematic interactions?

A: Sure.

The Kerry campaign should not be introduced at an Earth Day event hosted by a 501c3.

A Sierra Club PAC or Planned Parenthood PAC (i.e. the PAC wing of a group that is largely known as a 501c3 organization) should not use signs at a candidate rally that don't say "PAC"--one person takes a picture, people make assumptions, and all heck breaks loose.

Don't send e-mail from your staff account with a 501c3 to a Democratic candidate, inviting them to a PAC-sponsored event. (You CAN mention / encourage participation with a 527 or 501c3 or PAC at a political meeting, but do remind people to show up as "volunteers" not self-declared "Kerry People" or "democratic committee people" in case that's a problem for the more restricted group.)

If you are paid staff with one type of group, you shouldn't also be paid staff with an incompatible type of group. (Strictly speaking, you can be paid staff for one type of group and volunteer with another, but in some cases this could be risky. For example, our local ACT coordinator won't show up at candidate-related events--it's hard to prove, if someone takes a photograph, that he was not there in an official capacity, and that no substantive communication happened.)

Some groups may have in-house rules--"if you work for us, please do not volunteer for other groups to avoid the appearance of cooperation, and to avoid conflicts of interest." While hard to enforce, it's counterproductive to push your own people on these issues.

If you plan to cross boundaries repeatedly, outsider status can be a boon. It's not so easy to switch hats quickly once you have official status with an organization.

Q: Is this like church-state separation? Don't candidates speak at churches all the time?

A. Yes. And, sure! But the candidates are well-trained. They must make sure not to say the magic words "please vote for me." In a less-combative political climate, and will fully-trained staff, the situation for various groups, PAC's and campaigns would probably be handled similarly, with everyone will know what words not to say and what signs not to carry and what sort of sign-ups they shouldn't bring. In fact, that's some of what goes on at the top levels, and it's why the top levels do on occasion appear to coordinate far more than they let their field operatives "coordinate."

Q: How do we find out what's going on in town if we can't call each other?!?!

A: Once information is public, any group can plan around it. You can't force other groups to make things easy, but you can work on your own. Plan your activities several weeks in advance (or as far as practical). Research long-standing local non-political events, and check for publicity from other groups. Adjust plans as needed. Then PUBLICIZE PUBLICIZE PUBLICIZE!

How? Free listings / free papers in a city; posting boards in a small town; any publicly-accessible web site that is hosted either for free or for commercial purposes (so anyone from any organization can post there); telephone poles; feedback from volunteers that they are already booked for other events--if it's circulating as public knowledge, it's fair game.

It's great if volunteers or 3rd parties do this (instead of waiting for someone from above to OK the process). If you organize early, you get first dibs on time slots and eager volunteers, plus you get to be a good citizen of the activist universe. (Unless, of course, you take dibs on "9-5, every Saturday, from now until November" then don't deliver.) If you are a volunteer, passing along information--correct information--is a lovely and valuable thing. Don't be shy. If someone isn't allowed to discuss what you are saying, they will tell you; but that doesn't mean you've done something unhelpful by mentioning it.