CAMPAIGN FINANCE

CAMPAIGN FINANCE
Facts
Below are some of the most frequently misunderstood aspects of federal campaign finance laws:
Corporations, unions and special-interest groups are forbidden to give money, services or loans to federal candidates. They can organize political action committees (PACs) to raise money from individuals.
A company or union cannot reimburse someone for giving personal money.
An individual can give each PAC only $5,000 per year with an annual limit of $25,000 to all candidates and parties.
"Hard money" is money from PACs and individuals to specific candidates.
"Soft money" comes from corporations, unions and individuals. It may be used only by the political parties for activities such as education, issue advocacy and get-out-to-vote. There is no limit on the amount that can be given.
All political contributions of more than $100 must be by check and become a matter of public record.
You can check contributions over $250 on the Federal Election Commission's Web site at www.fec.gov.
All contributions to candidates must be used for legitimate campaign expenses such as direct mail, television advertisements, yard signs, etc. A candidate cannot use the money for noncampaign expenses.
Unused campaign funds may be given to other campaigns, returned to donors or given to charity. In the past, members of Congress were allowed to convert unused campaign funds to their personal accounts when they retired, but that is now illegal.
Source: Joel Blackwell of Reston, Va., a political strategist and consultant