Political activity is regulated at the federal, state, and local levels. Clubs that spend funds on campaign efforts, including financial contributions, must do their due diligence to ensure compliance with all applicable laws. Clubs are responsible for filing any required financial reports.
Under California law, any organization that receives contributions totaling $1,000 or more in a calendar year to spend in connection with state or local elections must file as a “general purpose recipient committee” with Secretary of State. This includes monetary or in-kind contributions to state or local candidates or ballot measures, public communications supporting or opposing campaigns, or any other expenditures made for political purposes, including voter registration. A club must file a Statement of Organization (FPPC Form 410) with the Secretary of State within ten days of reaching $1,000 in political fundraising or spending in a calendar year.
For most clubs that spend their funds on organizational expenses (room rentals, refreshments, postage, technology, etc.) rather than political expenses (campaign mailers, candidate contributions, voter registration), it is easy to avoid reaching that threshold.
For those that do file with the state, a Recipient Committee Campaign Statement (FPPC Form 460) must be filed periodically listing contributions, expenditures, and cash on hand for each reporting period. A Late Contribution Report (FPPC Form 497) must be made within 24 hours of an aggregate $1,000 contribution to a state/local candidate or a party committee within 90 days of a state election. A fine may be imposed for each day a report is late past the deadline.
Here are some additional state campaign-finance requirements:
For more information, go to www.fppc.ca.gov or call (866) 275-3772.
Any organization that receives or spends $1,000 in a calendar year to influence federal elections must register as a federal committee through the Federal Election Commission (FEC). This includes expenditures that support or oppose the election of any candidate for federal office. (Federal campaigns can accept direct contributions only from individuals and other federal committees.)
Within 10 days of reaching the $1,000 federal threshold, a committee must file a Statement of Organization (FEC Form 1); an FEC ID number will be issued. A bank account must be set up to hold the federally qualified funds. Quarterly or monthly reports on receipts and disbursements (FEC Form 3) must be filed electronically or by mail, and fines may be imposed for reports filed late.
Federal election regulations are exceedingly stringent and complex. For example, within 90 days of a federal election, federal committees must pay certain generic voter registration and GOTV expenses with federal funds. Federal and non-federal funds must be strictly segregated. For more information, go to www.fec.gov or call (800) 424-9530.
Some local jurisdictions (cities, school districts, the County of San Diego) have additional regulations on contributions and or political communications. Contribution limits may apply to amounts and/or sources. For example candidates in the City of San Diego cannot accept a contribution from a club (or any entity other than an individual). Clubs should consult the appropriate authorities whenever considering activities that may fall under local political laws.