Individual contributions to federal candidates are capped at predetermined amounts.

According to federal finance laws, individual contributions to federal candidates are capped at predetermined amounts.

An example: you can contribute $2,700 to a Congressional candidate for each primary, runoff, and general election. (www.fec.gov) In contrast, an individual (you) can contribute unlimited amounts of funds towards a Political Action Committee (PAC). According to the Federal Election Commission (FEC), “The term \”political action committee\” (PAC) refers to two distinct types of political committees registered with the FEC: separate segregated funds (SSFs) and non-connected committees. Basically, SSFs are political committees established and administered by corporations, labor unions, membership organizations or trade associations. These committees can only solicit contributions from individuals associated with connected or sponsoring organization. By contrast, non-connected committees, as their name suggests, are not sponsored by or connected to any of the aforementioned entities and are free to solicit contributions from the general public.” (FEC, 2015)

Directions: Using at least one specific example, address the influence of political action committees on campaigns and elections.

Provide a brief summary of the political action committee.
Analyze the purpose of this political action committee.
Analyze the finances of this political action committee.
Overall, do political action committees help or hinder our democracy?
Defend your answer with specific rationales.
Reference

Federal Election Commission. Quick Answers to PAC Questions. Retrieved from http://www.fec.gov/ans/answers_pac.shtml

SAMPLE SOLUTION

Campaign Financing
In the U.S., a political action committee refers to a 527 organization that collects or pools campaign contributions from the committee members and donates the resources for or against particular candidates, legislation, and ballot initiatives. PAC is a legal term developed in pursuit of campaign financing reforms in the U.S. (FEC, n.d.).
In U.S. politics, PAC is an organization whose purpose is to raise funds and distribute them for campaigns to candidates in quest of political office. The purpose of PAC is also to use these finds as independent expenditures to advocate for the election or…