Introduction
Campaign Finance Explained: money drives modern elections, but the rules, players, and limits can feel opaque. This guide explains how campaign finance works, who can give or spend, and what rules govern donations and disclosure. Read on for clear definitions, real-world examples like Super PACs and dark money, and practical steps voters and candidates can take to follow or comply with the law.
What Is Campaign Finance?
Campaign finance covers the rules and systems that regulate money used to influence elections. It includes contributions to candidates, spending by outside groups, and rules on reporting and enforcement.
Key goals
- Promote transparency in who funds campaigns
- Limit undue influence by large donors
- Require disclosure so voters can see funding sources
Main Players
Donors
Individuals, corporations, unions, and nonprofits can give money. Some give directly to candidates; others fund outside groups or political ads.
Candidates and Campaign Committees
Candidate committees raise and spend money to run campaigns. They must follow contribution limits and disclosure rules.
PACs and Super PACs
PACs pool contributions to support candidates or causes. Super PACs can raise unlimited funds for independent expenditures but cannot coordinate directly with candidates.
Parties
Political parties fund campaigns, run voter outreach, and pay for coordinated communications.
Regulators
The main federal regulator is the Federal Election Commission, which enforces rules, collects reports, and issues guidance.
Types of Money and Rules
Contributions
Direct donations to candidate committees are subject to federal limits and must be disclosed.
Independent Expenditures
Spending by groups or individuals to advocate for or against a candidate without coordinating with the campaign. Super PACs focus on these.
Dark Money
Dark money refers to political spending where the ultimate donor is not disclosed, often routed through nonprofits that are not required to reveal donors.
Donation Limits and Disclosure
Contribution limits set caps on how much one donor can give to a candidate, PAC, or party. Disclosure rules require periodic reporting of donors and amounts.
- Individual limits apply per election cycle.
- PAC contributions have different caps than individuals.
- Super PACs can accept unlimited donations but must report donors.
Comparison: PAC vs Super PAC vs Candidate Committee
| Type | Can accept corporate donations? | Limits on contributions? | Can coordinate with candidate? | Disclosure required? |
|---|---|---|---|---|
| PAC | Yes, depending on structure | Yes | No | Yes |
| Super PAC | Yes | No (unlimited) | No | Yes |
| Candidate Committee | No (direct corporate donations to candidate usually restricted) | Yes | Yes | Yes |
How Money Flows
Money typically moves from donors to one of these buckets:
- Direct to candidate committee
- To PACs or party committees
- To Super PACs or nonprofits for independent advertising
Each path has specific rules on limits, coordination, and reporting.
Real-World Examples
Citizens United and Super PAC Growth
The 2010 Citizens United decision led to a surge in independent expenditures and the rise of Super PACs. That changed how large donors influence elections through independent advertising.
Dark Money in Practice
Nonprofit groups can run ads without naming donors, making it hard for voters to trace the source of funding.
Enforcement and Penalties
Violations can trigger fines, audits, or investigations by the FEC. Penalties depend on the violation type and whether it was intentional.
How Voters and Candidates Can Use This Information
Voters
- Check campaign reports to see who funds candidates.
- Look for independent expenditures in your district.
- Use transparency to assess potential influence.
Candidates and Campaigns
- Track limits and file timely reports.
- Create clear internal compliance processes.
- Document communication to avoid coordination issues with outside groups.
Practical Steps to Stay Informed
- Visit the Federal Election Commission for official rules and filings.
- Search campaign filings for contribution histories.
- Follow news and nonpartisan watchdogs for analysis of spending trends.
Common Misconceptions
- Super PACs do not directly control candidates despite large spending.
- Dark money is legal but reduces transparency for voters.
- Not all political ads are coordinated with campaigns; many are independent expenditures.
Quick Glossary
- FEC: Federal Election Commission, the federal regulator.
- PAC: Political Action Committee with contribution limits and disclosure.
- Super PAC: Independent-expenditure-only committee with unlimited fundraising.
- Dark money: Undisclosed donors funding political activity.
Conclusion
Campaign finance shapes who has influence in elections. Knowing the difference between PACs, Super PACs, candidate committees, and dark money helps voters evaluate campaigns and helps candidates stay compliant. Take action by reviewing FEC filings, asking campaigns about their funding, and supporting transparency measures.