Understanding Establishment, Administration, and Solicitation Costs [Federal Elections]

Definition & Meaning

The term "establishment, administration, and solicitation costs" refers to the expenses associated with setting up and running a separate segregated fund (SSF) by corporations, labor organizations, or other entities. These costs include various operational expenses such as:

  • Office space
  • Telephone services
  • Salaries for staff
  • Utilities
  • Office supplies
  • Legal and accounting fees
  • Fundraising expenses

Understanding these costs is crucial for organizations involved in political activities, as they must comply with federal regulations regarding campaign financing.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A corporation establishes a separate segregated fund to support local candidates. They incur costs for office space, staff salaries, and legal fees to comply with federal regulations.

Example 2: A labor organization sets up a fundraising event to solicit donations for their SSF, incurring expenses for venue rental, promotional materials, and utilities. (hypothetical example)

Comparison with related terms

Term Definition Difference
Separate Segregated Fund (SSF) A fund established by a corporation or labor organization to support political candidates. SSFs are a specific type of fund, while establishment, administration, and solicitation costs refer to the expenses related to managing such funds.
Political Action Committee (PAC) An organization that raises and spends money to elect political candidates. PACs can be funded by individuals and are distinct from SSFs, which are funded by corporations or labor organizations.

What to do if this term applies to you

If you are involved in establishing or managing a separate segregated fund, consider the following steps:

  • Identify and document all establishment, administration, and solicitation costs.
  • Ensure compliance with federal election laws and regulations.
  • Utilize legal templates from US Legal Forms to streamline your processes.
  • If your situation is complex, seek advice from a legal professional.

Quick facts

Attribute Details
Typical Costs Office space, salaries, utilities, legal fees
Jurisdiction Federal
Compliance Requirements Documentation and reporting to the Federal Election Commission

Key takeaways

Frequently asked questions

Establishment costs refer to the expenses incurred in setting up a separate segregated fund, including office space and initial legal fees.