Managing a PAC can be a challenge even when everything is running smoothly. Legal complexity, resources, training, budget constraints, even the economy affect the goals and objectives of the PAC.
That’s why PAC Outsourcing was formed to assist PAC managers become more effective in their roles. By assuming the compliance function and providing support and guidance in related tasks such as solicitations and event planning, PAC managers are able to devote more time to “managing” the PAC and develop strategies to assure success.
For additional details on support services, click on the links below:
Federal and state campaign laws are very exacting with respect to receipts. It’s not only the amount but the source, including information about the contributor such as job title and employer that has to be reported. Our PAC managers are keenly aware of these recordkeeping requirements.
Clients have the option of contacting their assigned manager for updates and inquiries by phone or email, or, in some instances, directly through the Cision software about receipts and their status.
In addition to payroll deductions and personal checks, clients have the option of accepting online contributions through websites designed specifically to integrate with the Cision PAC software.
In these scenarios, your assigned PAC manager will ensure that all receipts are properly recorded for future compliance reporting purposes.
A PAC’s primary purpose is to identify and support candidates for elective office based on criteria determined to be in the interests of the PAC’s supporters.
Campaign laws dictate the amounts and timing of campaign contributions. As in the case of receipts, your assigned PAC manager will provide guidance and direction with respect to your PAC’s disbursement decision.
Disbursement checks are produced in the PAC software system and electronically delivered to client sites for printing and signature. These procedures eliminate costly delivery systems and potential recording errors.
All PACs, state or federal, are required to file periodic reports of activity. Accuracy and timelines are essential.
PAC managers prepare the required filings which are reviewed by a compliance director prior to delivering to the client for approval. Reports for the most part are filed electronically after receiving client approval.
In some instances, PAC Outsourcing personnel are designated to serve as Treasurer or Assistant Treasurer for filing purposes.
PAC Outsourcing guarantees timely filings, and we’ll pay the fine if it’s our fault.
Charitable matching of employee PAC contributions is a great way to encourage PAC participation, and PAC Outsourcing helps its clients to:
- Review charities for eligibility
- Track employee contributions and calculate charitable matching amounts
- Act as the bank account custodian and prepare monthly bank reconciliation packages
- Prepare, issue, and ship charity match checks
Federal and state tax laws do impact PACs. PACs are subject to taxation on any interest earned on receipts and invested income in certain circumstances.
Annually we review all clients’ potential tax liability and provide a statement to each explaining whether there is or is not any obligations, and, if so, we will offer our assistance in the preparation of state and federal returns.
We also assist clients with initial filings and updates to IRS Form 8871, which is required by certain state campaign law regulations.
A “must-have’ adjunct to our compliance service is unlimited consultation on PAC-related issues. Our administrators are well-versed in topics such as fundraising, event planning, and PAC management practices. Our goal is to ensure our clients have the correct practices and procedures available whenever the need arises.
All clients receive monthly reports of financial activity along with client-specific details tailored to their particular needs. These reports are customized to each client’s requirements. Certain standard information such as cash on hand, outstanding checks and contribution details are always included. However, clients can request additional details of PAC activity as part of the monthly management reports.
With a couple of exceptions, all PACs, state or federal, are required to have a PAC treasurer. The designated individual is typically the person the FEC or its state counterpart communicates with concerning any matter in question about the PAC.
Typically, the PAC Treasurer or the assistant PAC Treasurer approves all required periodic filings, registration statements or other correspondence concerning the PAC. Under federal campaign law, the PAC Treasurer is the person to whom the regulator directs all matters and is the person legally responsible for the PAC activities and its administration.
A PAC Treasurer does not necessarily have to be an employee or otherwise connected to the PAC or its sponsoring organization. PAC Outsourcing serves as PAC Treasurer or assistant PAC Treasurer for several clients.
PAC filings are legal documents and there are retention requirements for both federal and state PACs. We will, as part of our service agreement, maintain hard copies as well as electronic versions (cloud storage) of such documents.
For some of our clients we are listed on the registration documents as the official custodian of records.