Sept 8, 2014. Notes for an article:
The Mayday PAC is a 501(c)(4), or “Super PAC.”
Americans for Prosperity, a conservative 501(c)4
Quotes from Fed Election Comm: Answers
The rules differ significantly depending on whether the communication is coordinated with a candidate or party committee or is produced and distributed independently. In general, amounts spent for coordinated communications are limited, but independent expenditures are unlimited.
Persons prohibited from making contributions or expenditures in connection with federal elections (such as corporations, labor organizations and individuals or businesses with federal government contracts) are similarly prohibited from making independent expenditures. However, there is one exception to this rule. [⇐ ????]
Certain Nonprofit Corporations May Make Independent Expenditures
In Federal Election Commission v. Massachusetts Citizens for Life, Inc. (MCFL), the Supreme Court outlined a limited exception to the general prohibition on corporate expenditures. The Court said that MCFL, a nonprofit corporation, could make independent expenditures because it had certain essential features. These features are included in the Commission’s regulatory definition of Qualified Nonprofit Corporations (QNCs). 11 CFR 114.10. A QNC is a corporation that has all of the following five characteristics:
- It is a nonprofit, social welfare organization described in 26 U.S.C. § 501(c)(4);
- It was formed for the express purpose of promoting political ideas;
- It does not engage in business activities;
- It has no shareholders or other persons affiliated so as to have a claim on its assets or earnings; and
- It was not established by a business corporation or a labor union and does not accept contributions from such entities. 11 CFR 114.10.
FEC Recent Developments in Law
Non-connected committees that make only independent expenditures may solicit and accept unlimited contributions from individuals, corporations and labor organizations (Feb 2012). –Super PAC decision.
