With recounts and runoffs underway in multiple races, candidates and political party committees are actively soliciting contributions to fund the efforts.
Individuals or political action committees (PACs) looking to contribute to a recount fund or to a candidate in the Georgia runoff elections should be mindful of the contribution limits and seek legal advice if questions arise.
Contributions to Recount Accounts
In order to raise funds for a recount, a candidate has the option of establishing a separate bank account within their existing candidate committee or creating a new committee specific to the recount. An individual or a non-multicandidate PAC may contribute up to $2,800 to a federal candidate's recount account, and a multicandidate PAC may contribute up to $5,000 to a candidate's recount account. This limit is in addition to, and separate from, the contribution limits for the primary and general elections. As such, a contribution may be made to a recount account, even if the contributor had maxed out to the candidate for the 2020 election cycle.
Please note that it is common for a campaign to create a joint fundraising committee (JFC) to support recount efforts. The JFC will typically include the candidate's recount account and a party committee. Individuals who are subject to restrictions on political activity, such as investment advisors and broker dealers, should seek guidance to ensure that any contribution to support a recount does not violate various pay-to-play restrictions.
Runoff Elections
Federal contribution limits apply separately to each election and a runoff election is considered a separate election with separate contribution limits.
An individual or a non-multicandidate PAC may contribute up to $2,800 per candidate for the runoff election, and a multicandidate PAC may contribute up to $5,000 per candidate for the runoff election. Contributions must be made by the date of the election. For the two Georgia Senate runoffs, January 5, 2021, is the date of the election.
Both the National Republican Senatorial Committee (NRSC) and the Democratic Senatorial Campaign Committee (DSCC) have formed JFCs with their respective candidates and are actively soliciting contributions. Individuals subject to restrictions on political activity should consult with counsel before contributing to either the Georgia Battleground Fund, which includes the NRSC, or the Ossoff-Warnock Victory Fund, which includes the DSCC, to ensure compliance with pay-to-play restrictions.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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