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Establishment, Administration, and Solicitation Costs [Federal Elections]
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
Legal Use & context
This term is primarily used in the context of federal elections and campaign finance law. It is relevant to organizations that wish to establish a separate segregated fund to support political candidates or causes. The legal framework governing these funds is outlined in federal regulations, particularly under Title 11 of the Code of Federal Regulations.
Organizations can use legal templates from US Legal Forms to ensure compliance with the necessary requirements and to manage their fundraising and expenditure activities effectively.
Key legal elements
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)
Relevant laws & statutes
The primary regulation governing establishment, administration, and solicitation costs is found in:
11 CFR 114.1(b) - Defines the term and outlines the allowable expenses for separate segregated funds.
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.
Common misunderstandings
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.
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