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Understanding Contribution and Expenditure [Federal Elections]: A Legal Overview
Definition & Meaning
The terms "contribution" and "expenditure" in the context of federal elections refer to any form of financial support or resource provided to candidates, political parties, or committees involved in elections. This includes direct payments, loans, gifts, or any valuable services offered to support a candidate's campaign. However, certain activities, such as communications within a corporation or labor organization, are excluded from these definitions.
Table of content
Legal Use & context
These terms are primarily used in the field of election law, which governs the financing of political campaigns. Understanding contributions and expenditures is essential for compliance with federal regulations set by the Federal Election Commission (FEC). Individuals and organizations can manage their political contributions and expenditures through various forms and templates available on platforms like US Legal Forms, ensuring they adhere to legal standards.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A corporation provides a $500 donation to a local candidate's campaign. This donation counts as a contribution under federal law.
Example 2: A labor organization organizes a get-out-the-vote campaign for its members, which does not count as an expenditure under the defined exclusions. (hypothetical example)
Relevant laws & statutes
Key regulations include:
11 CFR 114.1 - Definitions of contributions and expenditures.
11 CFR 100.82 - Exemptions related to loans from federally insured institutions.
11 CFR 114.3 - Exclusions for certain communications and activities.
Comparison with related terms
Term
Definition
Difference
Contribution
Any financial support given to a candidate or party.
Focuses on monetary or resource support.
Expenditure
Any spending made to support a candidate or party.
Refers specifically to costs incurred in support of campaigns.
Political Action Committee (PAC)
A group that raises and spends money to elect candidates.
PACs can make contributions and expenditures but are subject to specific regulations.
Common misunderstandings
What to do if this term applies to you
If you are involved in political contributions or expenditures, ensure you understand the relevant laws and regulations. Consider using US Legal Forms' templates to help you navigate compliance. If your situation is complex, consulting with a legal professional is advisable.
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