In the
United States, a
Political Action Committee, or
PAC, is the name commonly given to a private group, regardless of size, organized to elect political candidates. Legally, what constitutes a "PAC" for purposes of regulation is a matter of state and federal law. Under the
Federal Election Campaign Act, an organization becomes a "political committee" by receiving contributions or making expenditures in excess of $1,000 for the purpose of influencing a federal election.
When an interest group, union, or corporation wants to contribute to federal candidates or parties, it must do so through a PAC. These PACs receive and raise money from a "restricted class," generally consisting of managers and shareholders in the case of a corporation, and members in the case of a union or other interest group. The PAC may then make donations to political campaigns. PACs and individuals are the only entities allowed to contribute funds to candidates for federal office. Contributions from corporate or labor union treasuries are illegal, though they may sponsor a PAC and provide financial support for its administration and fundraising. Overall, PACs account for less than thirty percent of total contributions in U.S. Congressional races, and considerably less in presidential races.
Contributions by individuals to federal PACs are limited to $5,000 per year. Corporations and unions may not contribute directly to federal PACs, though they may pay for the administrative costs of a PAC affiliated with the specific corporation or union. Corporate-affiliated PACs may only solicit contributions from executives, shareholders, and their families, while union-affiliated PACs may only solicit contributions from members. "Independent" PACs not affiliated with a corporation, union, or trade or membership association may solicit contributions from the general public but must pay their operating costs from these regulated contributions.
Federal multi-candidate PACs are limited in the amount of money they can contribute to candidate campaigns or other organizations
