ARE YOU READY TO ESTABLISH A PAC?
The decision to form a political action committee-a PAC- is a serious matter. Typically, there will be opposing viewpoints as to the value of getting involved in the process of raising money to support candidates for elective office. Our advice to prospective clients is to proceed cautiously and seek a realistic consensus before committing. Keep the dialogue open and give all affected the opportunity to make the case for or against, and only then proceed when there is consensus that establishing a PAC has the backing needed to produce a successful outcome. The worst possible scenario is one in which the decision to form a PAC is made in a vacuum and lacks the commitment of those individuals who will be tasked to “sell” the PAC to potential participants.
As this process advances, some specific questions need to be addressed:
Q: Have the PAC’s objectives been established and can they be clearly articulated?
Q: Will the PAC only be involved in federal campaign activity, or is consideration being given to state and or local elections?
Q: Have the cost considerations been addressed? In addition to administration and compliance, there are costs of solicitation (fundraising) and event planning. Are there employees skilled in these functions, or will it be necessary to hire and/or train individuals to perform these tasks? Should consideration be given to outsourcing some or all of these functions?
Once the decision to form a PAC is reached, there are a number of legal and practical action steps to take:
