With the 2022 elections underway, we wanted to highlight some important campaign finance rules. If you plan to contribute to candidates, ballot measure committees, political parties or political committees (PACs) this election cycle, you must comply with campaign finance laws.
Federal Law
Under federal law, you may contribute up to $2,900 per election to any candidate running for United States Congress, the Senate or president. Federal law treats the primary and general elections as separate elections. Therefore, you may contribute up to $5,800 to a federal candidate.
You may contribute up to $36,500 per year to each national party committee’s regular account (e.g., Democratic Congressional Campaign Committee (DCCC), Democratic National Committee (DNC), National Republican Congressional Committee (NRCC), Republican National Committee (RNC)). You may contribute unlimited amounts to independent-expenditure-only committees, known as super PACs. (Click here for additional information on federal contribution limits.)
Many business entities, including corporations and LLCs taxed as corporations, may not contribute directly to federal candidates. Corporations may contribute to super PACs.
California Law
Under California law, you may contribute up to $32,400 per election to gubernatorial candidates; up to $8,100 per election to any candidate running for statewide office besides governor (e.g., controller, attorney general); and up to $4,900 per election to assembly or state Senate candidates. California also treats the primary and general elections as separate elections. You may contribute unlimited amounts to most political committees engaging in independent expenditures. (Click here for additional information on California contribution limits.)
Corporations may contribute directly to California state candidates. Some local jurisdictions, like San Francisco, prohibit certain business entities from contributing directly to candidates for local office (e.g., supervisor, mayor).
Many counties, cities or special districts impose their own contribution limits (click applicable link for additional information on local contribution limits: Los Angeles, San Diego, Long Beach, San Jose and San Francisco). In cities and counties that have not passed their own campaign finance ordinance, California law imposes a default contribution limit of $4,900 per election to candidates seeking city or county office (e.g., county supervisor or councilmember). This default limit does not apply to special districts, such as school districts or water boards.
California imposes individual filing obligations on large contributors to California campaigns. An individual (or entity) contributing $10,000 or more in a calendar year (in the aggregate) to California state or local candidates or ballot measures is considered a major donor. Contributions to United States Congress or Senate candidates do not count toward this threshold. All major donors must file up to two campaign finance reports per year with the California Secretary of State. (Click here for the 2022 major donor filing schedule.) Failing to file a major donor report may result in administrative enforcement and fines by the California Fair Political Practices Commission or the Secretary of State. The media also periodically reports on these violations.
New York Law
New York imposes several limits on contributions depending on the type of election and the elected position.
Statewide Office. Under New York State law, individuals may contribute to state candidates seeking a party’s nomination in a primary based on the total number of voters in that party. In 2022, an individual may contribute up to $22,600 to candidates seeking the Democratic Party’s nomination for statewide office (governor, lieutenant governor, comptroller and attorney general) and up to $13,724 to candidates seeking the Republican Party’s nomination for statewide office. Individuals may contribute up to $47,100 to candidates for statewide office in the general election regardless of their political party
State Senate. Individuals may contribute up to $7,500 in the primary election to candidates for the state Senate and up to $11,800 in the general election to candidates for the state Senate, regardless of their political party.
State Assembly. Individuals may contribute up to $4,700 in the primary election to candidates for state assembly and up to $4,700 in the general election to candidates for state assembly, regardless of their political party.
Immediate family members of candidates are subject to different contribution limits from those above (click here for additional information on family member contribution limits). When New York State begins its public financing regime on Nov. 9, 2022, all limits will be reduced (click here for additional information on the upcoming reduction in contribution limits).
A corporation or LLC may contribute up to $5,000 in total to New York political committees (including candidates) in a calendar year. Business entities and individuals may contribute unlimited amounts to independent expenditure committees or ballot proposition committees.
For the 2023 New York City Council elections, individuals may contribute up to $1,600 per election cycle (four-year period) to candidates who reject public financing and up to $1,050 per election cycle (four-year period) to candidates who accept public financing (click here for additional information on New York City Council contribution limits). All New York City candidates are prohibited from accepting contributions from corporations, LLCs and partnerships.
New York does not impose independent filing obligations on individual donors who simply contribute to candidates or other political committees. However, if you work with others to promote a political party or the success or defeat of a candidate or ballot measure, you should contact counsel to ensure you do not need to register your group as a political committee.
Illinois Law
Under Illinois law, individuals may contribute up to $6,000 per candidate per election cycle to any statewide, legislative or municipal (including Chicago) candidate. Illinois treats the primary and general elections as separate election cycles. Therefore, individuals may contribute up to $12,000 to a candidate running in both the primary and general elections. These contribution limits may be lifted if the candidate self-finances above certain thresholds or if independent expenditure spending exceeds certain thresholds (click here to see additional information on the various thresholds). Individuals may contribute unlimited amounts to independent expenditure committees or ballot initiative committees.
Corporations may contribute up to $12,000 per candidate per election cycle. (Click here for additional information on Illinois contribution limits.)
Illinois does not impose independent filing obligations on individual donors who simply contribute to candidates or other political committees. However, if you receive contributions to donate to political committees or spend funds advocating for the support or defeat of a candidate or ballot measure, you should contact counsel to ensure you do not need to register as a political committee.
Washington, D.C.
Under Washington, D.C., law, individuals may contribute up to $2,000 per election to candidates for mayor; up to $1,500 per election to candidates for attorney general and council chairman; up to $1,000 per election to candidates for at-large councilmember; and up to $500 per election to candidates for ward councilmember. D.C. treats the primary and general elections as one election for contribution limit purposes. This means individuals may give up to $2,000 total to a mayoral candidate. All contribution limits are significantly lower if the recipient candidate accepts public financing. Corporations may contribute to candidates other than candidates participating in D.C.’s public financing program. (Click here for additional information on D.C. contribution limits (see pages 19–20 and 45–46 for limits affected by public financing)).
D.C. does not impose independent filing obligations on individual donors who simply contribute to candidates or other political committees. However, under some circumstances, donors may need to sign a digital receipt and attach an affidavit to their contribution, affirming that the contribution is being made with the donor’s own funds. If you receive contributions to donate to political committees or spend funds advocating for the support or defeat of a candidate or ballot measure, you should contact counsel to ensure you do not need to register as a political committee.
Other Jurisdictions
Most states and large cities have their own unique campaign finance laws. Some states may impose additional filing obligations on the contributor.
Rules Applicable Under Federal, State and D.C. Law
To contribute to a candidate or political committee at the federal, state or local level, you must be a citizen or a permanent resident (a green card holder) of the United States. If you contribute to a candidate or political committee, you must provide the committee with (1) your full name, (2) your address, (3) your employer’s name and your occupation (although some jurisdictions do not require this disclosure) and (4) the date you contribute. If you contribute over certain thresholds, this information will be publicly disclosed on the political committee’s campaign reports.
Donating goods or services to a candidate or political committee is likely to be considered an in-kind contribution subject to contribution limits. For example, if you donate food or beverages to a campaign, the value of the goods provided likely will constitute an in-kind campaign contribution. There are limited exceptions to this rule (click applicable link for federal exceptions; California exceptions). Note that many jurisdictions also will count the contribution of a business entity that you control against your individual contribution limit.
Additional restrictions may apply for public contractors or those attempting to become public contractors, lobbyists or certain other professionals in highly regulated industries with regular interaction with government agencies.
This summary is not a comprehensive overview of campaign finance law. We can assist you in complying with state and federal campaign finance laws, including California’s major donor filing requirements.
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Of Counsel
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Associate