Campaign Finance & Ethics

The raising and spending of money by political campaigns, parties, and outside groups to influence elections. Campaign finance is governed by a complex web of federal and state laws designed to limit the influence of money in politics, require transparency through public disclosure, and prevent corruption. The landscape of campaign finance law has shifted significantly over the past two decades as court decisions, most notably Citizens United v. FEC, have struck down key restrictions on political spending and opened the door to unprecedented levels of outside spending in elections.

The independent federal agency responsible for enforcing campaign finance law in federal elections, administering the public financing system for presidential campaigns, and maintaining public records of campaign contributions and expenditures. The FEC is composed of six commissioners, no more than three of whom may be from the same political party, appointed by the president and confirmed by the Senate. The commission's evenly divided partisan structure has frequently led to deadlock on enforcement decisions, a situation that critics argue has weakened the agency's effectiveness as a watchdog.

The maximum amount a donor is legally permitted to give directly to a candidate's campaign committee in a single election cycle. Contribution limits are set by federal law for federal races and by state law for state and local races, and they vary significantly. Federal law currently limits individual contributions to federal candidates to a few thousand dollars per election, with separate limits for primary and general elections. Contribution limits do not apply to independent expenditures made by outside groups that do not coordinate with campaigns.

A private citizen who contributes money to a political campaign, party, or political organization. Individual donors are the most common source of campaign funds and range from small-dollar donors giving a few dollars online to major donors giving the maximum allowed under law. Federal law requires campaigns to disclose the name, address, employer, and occupation of individual donors who give above a specified threshold, making this information publicly available through the FEC's disclosure database.

An organization formed for the purpose of raising and spending money to elect or defeat political candidates. Traditional PACs can accept contributions from individuals, corporations, and unions up to specified limits and can contribute directly to candidate campaigns up to the legal maximum. PACs must register with the FEC and file regular disclosure reports. They were the primary vehicle for organized outside political spending for several decades before the emergence of super PACs following the Citizens United decision.

A type of political action committee that, following the Citizens United v. FEC and SpeechNow.org v. FEC decisions, can raise unlimited amounts of money from individuals, corporations, unions, and other organizations and spend it independently to support or oppose candidates. Super PACs cannot legally coordinate their spending with the campaigns they are supporting, though the line between permissible and impermissible coordination has been the subject of significant legal and ethical debate. Super PACs must disclose their donors to the FEC, though they often receive large contributions from nonprofit organizations that do not themselves disclose their donors, creating a dark money pipeline.

Political spending by nonprofit organizations, primarily 501(c)(4) social welfare organizations, that are not required to publicly disclose their donors. Because these organizations do not have to reveal where their money comes from, the original sources of dark money contributions can be effectively hidden from public view even when the spending itself is disclosed. Dark money has grown significantly since Citizens United and is used by organizations across the political spectrum, though the lack of transparency it creates is widely criticized as inconsistent with the democratic principle that voters should know who is trying to influence their vote.

A type of tax-exempt nonprofit organization designated under Section 501(c)(4) of the Internal Revenue Code as a social welfare organization. These organizations are permitted to engage in political activity as long as it is not their primary purpose. Because they are not required to disclose their donors publicly, 501(c)(4) organizations are the primary vehicle through which dark money flows into political campaigns. The IRS standard for what counts as the primary purpose of a 501(c)(4) has been inconsistently applied and is a source of ongoing controversy in campaign finance law.

A tax-exempt political organization named after Section 527 of the Internal Revenue Code, which covers organizations formed for the primary purpose of influencing elections. 527s must register with the IRS and disclose their donors and expenditures, though their relationship to campaign finance law has evolved over time through court decisions and regulatory changes. Some 527 organizations operate as political parties or PACs subject to full FEC oversight, while others operate in a more loosely regulated space that has been the subject of ongoing legal debate.

A campaign finance strategy focused on raising money through a large number of small contributions, typically online, from a broad base of individual supporters. Small dollar fundraising has been transformed by digital technology and is now a major source of campaign funds for candidates across the political spectrum. A campaign with a large small-dollar donor base can demonstrate broad grassroots support, raise funds quickly in response to news events, and return to the same donors multiple times throughout the campaign, since small donors rarely hit contribution limits.

A system in which government funds are made available to qualifying candidates to finance their campaigns, reducing their dependence on private donations. Public financing systems exist at both the federal level, for presidential campaigns, and in several states and cities. Qualifying criteria typically include demonstrating grassroots support by raising a minimum number of small donations and agreeing to spending limits. Proponents argue public financing reduces the influence of wealthy donors and special interests, while critics argue it forces taxpayers to fund political campaigns they may oppose.

A form of public campaign financing in which the government matches small private contributions to qualifying campaigns, typically at a ratio of one-to-one or higher. Matching fund programs are designed to amplify the impact of small donors relative to large ones and to incentivize campaigns to build a broad base of small-dollar support. New York City's campaign finance matching program, which matches small donations at a six-to-one or higher ratio, is often cited as a model for how matching funds can diversify the donor base and reduce the influence of large donations in local elections.

The practice of attempting to influence the decisions of government officials, particularly legislators, on behalf of a specific interest. Lobbying is a constitutionally protected form of political speech and is a legitimate part of the democratic process when conducted transparently. Professional lobbyists are paid to advocate for the interests of corporations, trade associations, labor unions, nonprofit organizations, and other clients before federal, state, and local government. Federal lobbyists are required to register with Congress and publicly disclose their clients and activities.

A person who is paid to advocate for the interests of a client before government officials, seeking to influence legislation, regulation, or other government decisions. Lobbyists use a range of tactics including providing information and research to legislators, organizing constituent meetings, coordinating public campaigns, and participating in regulatory proceedings. The term is sometimes used negatively to suggest undue influence, but lobbying also includes advocacy by nonprofit organizations, public interest groups, and other entities seeking to advance causes rather than private commercial interests.

A term used to describe the movement of individuals between positions in government and positions in the private sector, particularly in industries regulated by or seeking contracts from the government. The revolving door raises concerns about conflicts of interest because former government officials may use relationships and insider knowledge to benefit private employers, while private sector employees who move into government positions may favor their former employers. Federal law and many state laws impose cooling-off periods that restrict certain lobbying activities by former officials for a set period after leaving government.

The set of principles, rules, and laws that govern the conduct of public officials and employees to ensure that they act in the public interest rather than for personal gain. Government ethics rules cover areas including conflicts of interest, financial disclosure, gifts and hospitality, use of public resources for personal purposes, and post-employment restrictions. Strong ethics rules and effective enforcement are essential to maintaining public trust in government and ensuring that officials are accountable to the people they serve rather than to special interests.

The requirement that public officials and candidates publicly report information about their personal financial interests, including income sources, investments, debts, and business relationships. Financial disclosure requirements are designed to identify potential conflicts of interest and allow the public to evaluate whether an official's personal financial interests might influence their official decisions. Disclosure requirements vary by office and jurisdiction, and the level of detail required ranges from broad categories to specific dollar amounts.

A situation in which a public official's personal financial interests, family relationships, or other private interests could improperly influence their official decisions or actions. Conflicts of interest undermine public trust in government because they create at least the appearance that officials may be acting to benefit themselves or those close to them rather than the public they serve. Most government ethics rules require officials to disclose conflicts of interest and in many cases to recuse themselves from decisions in which they have a personal stake.

A provision of the U.S. Constitution that prohibits federal officeholders from accepting gifts, titles, or other benefits from foreign governments without the consent of Congress. The Constitution contains two emoluments clauses: the Foreign Emoluments Clause, which applies to all federal officeholders, and the Domestic Emoluments Clause, which specifically prohibits the president from receiving compensation from the federal government or any state beyond the official presidential salary. The emoluments clauses are intended to prevent foreign or domestic influence over federal officials through financial benefits.