News Items

June 23, 2010

Under the auspices of the National Association of Political Action Committees, Dunn Associates has recently issued the results of a survey of organizations that employ “PAC Match” as part of their PAC solicitation initiatives.

What is “PAC Match”?  Under federal campaign law, sponsoring organizations are permitted to pay for or reimburse their political action committees for expenses associated with administration and operations.  As an incentive to encourage PAC participation, the Federal Election Commission has approved programs that permit the sponsoring organization to make charitable contributions on behalf of PAC contributors up to an amount equal to the PAC contribution. PAC Match programs have uniformly proved successful in increasing both the number of participants as well as PAC revenues.

The FEC requirements are straightforward; the charity must be on the IRS’ list of qualified Section 501(c)(3) tax exempt organizations.   However, some PAC-sponsors feel they aren’t in a position to conduct the necessary research needed for such determinations.  While there are services that will conduct such research, the cost can be significant.  And there’s the added PAC program expenses for monitoring  PAC  contributions and the PAC participants’ directions with respect to their decisions as to which charity(ies) they want their matching funds directed.  It can get complicated, but there is a solution.

In the NABPAC survey respondents were asked if they used a vendor to help administer their PAC-match program, and PAC Outsourcing was identified as a firm that is providing such assistance.  We have developed procedures and processes for our PAC-match clients tailored to their specific requirements. Working with our technology partner, Vocus, we can offer a cost-effective solution for this successful PAC-building incentive including on-line access to PAC participants to sign up and designate their favorite charities, store historical information about past matches, vet charities for IRS qualification, provide useful statistics to the PAC sponsors, and maintain accountability with respect to the financial transactions.

If you’ve considered PAC-Match but felt it was too complicated or cost-prohibitive, it may be appropriate to take another look.  If your PAC leaders are unfamiliar with this approved incentive, we are available to discuss the process, procedures and advantages of such programs.  PAC Match is not a panacea for an under-performing PAC.   Strong management support for the PAC and a well constructed PAC development program are still the essential ingredients. A PAC Match program can supplement a solid PAC program, not supplant it. 

We are available to discuss your particular concerns or interest in a PAC Match program.  There is no obligation.  You are likely to be pleased to learn how such a program can be implemented without straining your financial resources.