Political Action Committees (PACs) are tax-exempt nonprofits, but they aren’t charities. There are more than two dozen different types of nonprofits under the IRS tax code, each with their own rules and regulations, so it is important for donors to understand the differences among them prior to making their donating decisions.
For example, PACs are nonprofit organizations formed for the purpose of raising and spending money to support candidates and influence elections, and may represent the interests of specific industries, labor unions, or individual companies. Common activities for PACs include conducting research on election issues, financing get-out-the-vote drives, and running ads on specific issues or in support of specific candidates.
Database of PAC Funders
Donations to PACs, also known as 527s (in reference to their tax designation) are not tax deductible. However, unlike public charities which are protected by a Supreme Court Ruling from being required to disclose the names of their donors, funders of PACs are a matter of public record.
Curious to know who is funding various Political Action Committees? Search ProPublica’s 527 database.
According to ProPublica:
“Every year, hundreds of millions of dollars flow through political organizations known as 527s. These organizations are not regulated by the Federal Election Commission and are not subject to FEC-style restrictions on who can contribute or how much they can give, though donations are not tax deductible. These groups are spending more and more, topping $1 billion in 2022. Use our database to explore who funds these organizations and how they’re spending the money.”
Different Types of PACs
According to the FEC:
· Super PACs “are committees that may receive unlimited contributions from individuals, corporations, labor unions, and other PACs for the purpose of financing independent expenditures and other independent political activity.”
· Hybrid PACs “solicit and accept unlimited contributions from individuals, corporations, labor organizations, and other political committees to a segregated bank account for the purpose of financing independent expenditures, other ads that refer to a federal candidate, and generic voter drives in federal elections while maintaining a separate bank account, subject to all the statutory amount limitations and source prohibitions, that is permitted to make contributions to federal candidates.
· Leadership PACs are political committees that are directly or indirectly established, financed, maintained, or controlled by a candidate or an individual holding federal office, but are not an authorized committee of the candidate or officeholder and are not affiliated with an authorized committee of a candidate or officeholder. “Members of Congress and other political leaders often establish Leadership PACs in order to support candidates for various federal and nonfederal offices. Like other multicandidate PACs, a Leadership PAC may contribute up to $5,000 per election to a federal candidate committee.
PACs Posing as Charities
When being solicited for donations be sure to ask the fundraiser if the organization is a PAC (527), a social welfare nonprofit (501(c)(4)), or a public charity (501(c)(3). As previously reported by CharityWatch, some unscrupulous fundraisers have started PACs with names that give the impression they are charities when they are actually PACs. This practice may encourage some people to donate who otherwise would not have had they known the political leanings of the organization or the lack of regulation over how efficiently their donations may be used.