Now that the decision to form a PAC has been made, what’s next?
Before a PAC can solicit funds or make contributions to candidates it must register with the Federal Election Commission (FEC).
Federal election law requires that a PAC must (1) Designate a Treasurer and (2) open a bank account. Naming a treasurer is typically the easier requirement to fulfill. Setting up a bank account can be a challenge since most bank services personnel are unfamiliar with “PACs” and are often stymied by their institution’s internal New Account procedures. And the PAC will also need its own tax ID (EIN) which must be obtained prior to opening the bank account.
Drafting by-laws for the new PAC, creating solicitation materials and selecting individuals to serve on the PAC Board are just a few more of the steps preceding the actual PAC launch.
When you engage PAC Outsourcing for setup services, all the requisite steps to establish your PAC will be fulfilled along with guidance and assistance leading up to a successful PAC launch. Your PAC will be legally registered with the FEC and able to receive and expend Funds raised for this purpose.
Additional details with respect to each aspect of this process can be viewed on the accompanying links:
A Federal or state PAC is a legal entity that requires its own tax identity-called an Employer Identification Number or “EIN”. EIN’s are assigned by the Internal Revenue Service. An EIN is required to open the PAC’s bank account. We will obtain an EIN for your PAC.
PACs are required to have one or more distinctive accounts for collecting contributions and making disbursements. We work with a number of banks and, of course, defer to a client the decision where the PAC account(s) will be maintained.
All federal PACs must register with the Federal Election Commission (FEC) within 10 days of approving the PAC’s formation. Most states have similar registration requirements. We will ensure the PAC is properly registered in the jurisdictions where activity is anticipated to occur.
We use software products offered by Cision, the leading provider of technical support tools to the PAC community. Cision offers its clientele the highest levels of data security and privacy protection available along with practically limitless customization to meet the needs of its users.
Although there are no stipulated requirements that a PAC have articles, sometimes referred to as by-laws, preparing and making them available to prospective PAC participants is considered a “good practice.” We also encourage clients to prepare an operations manual to assist the PAC Board and staff manage the PAC’s activities in a business-like manner.
We offer clients the use of a U.S. postal address for receipts to be efficiently delivered and posted to the PAC’s bank account. We check the post office box regularly, deposit receipts immediately, and enter the activity in the client’s software system.
In certain circumstances, especially those involving extensive receipt processing, we will suggest engaging a professional of processing service to ensure that the receipts are accounted for expeditiously and accurately.