What Is the Difference Between a PAC and a Super PAC?

A traditional PAC can contribute directly to candidates and political committees, but it must follow federal contribution limits under the Federal Election Campaign Act (FECA). A Super PAC can raise and spend unlimited amounts from individuals, corporations, unions, and other sources, but it cannot contribute directly to candidates or coordinate its spending with their campaigns.

To learn more about PACs and Super PACs and how they can influence legislation and government affairs,  contact a local legislative and governmental affairs lawyer.

What Is a PAC?

A Political Action Committee (PAC) is an organization that pools contributions to support or oppose political candidates, ballot measures, or legislation.

PACs can make contributions directly to political candidates and political committees. They collect donations from individuals or affiliated members and direct those funds toward campaign contributions, political advocacy, and other permitted activities.

Who Can Form a PAC?

Under federal election law, PACs may be formed by the following:

• Corporations
• Labor unions
• Trade associations
• Groups of individuals with shared interests

By understanding how PACs and Super PACs work, voters and organizations alike can better understand the role money plays in shaping political campaigns.

How Are Contributions To PACs Limited?

The Federal Election Campaign Act (FECA) sets contribution limits on certain political contributions under federal law. For traditional PACs, these limits apply both to:

• How much individuals and other committees may contribute to the PAC, and
• How much the PAC may contribute to candidates and other political committees.

Federal law sets the contribution limits on what they can give and receive. Candidate contributions from a candidate’s own personal funds are generally not subject to contribution limits.

What Is the Registration Process for PACs?

To register as a PAC under federal law, the organization must file a Statement of Organization with the Federal Election Commission after it crosses certain contribution or expenditure thresholds. The registration process depends on the type of PAC being formed.

An individual or group can set up a “nonconnected committee” when they want to set up a political action committee (PAC). That PAC is not one of the following:

• A political party committee
• A candidate’s authorized committee
• A separate segregated fund (SSF) established by a corporation or labor organization

Members of Congress and other political leaders often establish nonconnected committees (often called leadership PACs). Leadership PACs usually support candidates for various federal or nonfederal offices.

For information about registering as a PAC, visit the Federal Election Commission website. It provides helpful information about requirements and steps that you can take to register a PAC successfully.

What Is a Super PAC?

A Super PAC is officially known as an “independent expenditure-only committee.” A Super PAC’s distinguishing feature is its ability to raise and spend unlimited contributions under campaign finance laws, so long as its spending remains independent.

Super PACs work as follows. They make independent expenditures, such as advertising and messaging for or against candidates. However, they cannot contribute directly to federal candidates or engage in coordinated communications with federal candidates or campaign committees.

Who Can Form a Super PAC?

Super PACs may be formed by any of the following, including:

• Individuals
• Corporations
• Unions
• Associations
• Political action committees

These individuals and entities can form a Super PAC if they operate solely as an independent expenditure-only political committee. They must understand legislative and governmental affairs.

Are There Any Funding Limitations for Super PACs?

For those individuals and groups with substantial resources to devote to funding political activity, Super PACs place no cap on how much a donor can give or how much the Super PAC can spend.

What Is the Registration Process for Super PACs?

A Super PAC becomes a political committee once its contributions or expenditures exceed $1,000 in a calendar year. At that point, it must register with the Federal Election Commission and follow federal registration, reporting, and disclosure requirements.

The Federal Election Commission provides information on how to register as a Super PAC.

PACs vs. Super PACs: Key Differences

• Contribution limits. Traditional PACs have contribution limits on funds coming in and funds going out under federal law. Super PACs, by contrast, can do unlimited fundraising but cannot make direct donations to candidates.
• Coordination rules. Traditional PACs may coordinate with and give directly to campaigns, subject to applicable limits and rules. Super PACs are strictly independent, and coordination is prohibited.
• Spending types. Traditional PACs make direct contributions and also engage in limited independent spending. Super PACs can make only independent expenditures.
• Donors. Traditional PACs can accept contributions from individuals and other PACs, within limits. Super PACs may accept unlimited contributions from individuals, corporations, unions, and other permitted entities.

Because PACs and Super PACs differ, the right choice depends on the organization’s goals. A traditional PAC may suit entities that want to contribute directly to candidates. A Super PAC may be a better fit for those seeking to raise and spend unlimited funds on independent political advocacy.

These rules apply to federal elections. State elections often have a different set of rules about how much you can give to campaigns in your state.

Court Decisions That Led to the Rise of Super PACs

Before 2010, Super PACs did not exist in their current form. Two key decisions led to their emergence. Together, these decisions gave rise to Super PACs.

Citizens United v. FEC (2010)

In Citizens United v. Federal Election Commission, the U.S. Supreme Court held that the government cannot restrict independent political spending by corporations and unions. It allowed corporations and unions to make unlimited independent expenditures from their general treasury funds.

The Court treated the issue as protected free speech under the First Amendment. The Citizens United case was groundbreaking because it paved the way for unlimited independent expenditures in political races.

Speechnow.org v. FEC (2010)

In SpeechNow.org v. FEC, the United States Court of Appeals for the District of Columbia applied Citizens United’s logic to campaign contributions. It ruled that limits on contributions to independent-expenditure groups were unconstitutional.

The SpeechNow.org decision also led directly to the creation of Super PACs as entities permitted to raise unlimited funds for independent political advocacy.

FEC Reporting and Disclosure Requirement

Once a PAC or Super PAC passes the threshold spending or contribution limit, the FEC requires registration, and the organization must generally file a Statement of Organization and begin complying with ongoing federal reporting requirements. These disclosures include:

• Money raised
• Money spent
• Certain donor information

Donors who meet certain donation thresholds must generally be reported. Together, these requirements promote transparency in campaign finance, similar to the goals of lobbying law.

These rules help distinguish regulated political committees from so-called “dark money” groups. Dark money refers to funds routed through groups that are not required to disclose donors.

Compliance and reporting requirements are ongoing responsibilities for a PAC or a Super PAC.

Do You Need an Attorney?

Federal campaign law can be complicated, especially for individuals or organizations considering political advocacy. To learn more about how PACs and Super PACs influence legislation and government affairs, or how to form or comply with federal campaign finance laws, contact a local legislative and governmental affairs lawyer.