Independent expenditure

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An independent expenditure is money spent on political advertising in support of or against a particular candidate. An independent expenditure comes from outside a candidate's own election organization and is not coordinated with a particular candidate's campaign, authorized candidate committee or political party committee.[1] Generally, there is no limit placed on independent expenditures.[2]

Individuals, political committees, Super PACs, qualified nonprofit corporations (such as 501(c)(4)'s) and, since Citizens United v. Federal Election Commission, corporations and labor unions are permitted to make independent expenditures. Corporations, labor organizations and individuals or businesses with federal government contracts, however, may not make independent expenditures.

Generally, independent expenditures must identify the person paying for the advertisement. Political action committees and other persons have specific reporting requirements associated with independent expenditures. There are no limits on the amount an individual or group may spend on independent expenditures.[2][3]

Coordinated communication

Any communication that is paid for by an individual or political committee and that is "coordinated" with a specific candidate or party committee is not an independent expenditure. Rather, it is a contribution and subject to limits, prohibitions and reporting requirements of the federal campaign finance law. Only permissible sources, such as individuals or political committees may make coordinated communications. Corporations, labor organizations, Qualified Nonprofit Corporations or individuals and businesses with federal government contracts may not make coordinated communications to federal elections. Generally, a group making a coordinated communication must provide a disclaimer identifying the person paying for the advertisement.

Generally, a payment is coordinated if it is made in cooperation with or at the request or suggestion of a candidate, a candidate's authorized committee or a political party.

Three prong test for coordination

The Federal Election Commission developed a three prong test to determine whether a communication is coordinated. The three prongs are payment, content and conduct. Each prong must be met for a communication to be considered coordinated.

Payment

The payment prong is met if the advertisement was paid for anyone other than the candidate, the candidate's authorized committee or a political party.

Content

The content prong is met if one of the following three actions occurred:

  • The advertisement promotes or opposes a specific candidate;
  • The advertisement mentions a specific type of candidate and is distributed to the electorate within a specific time frame prior to the election;
  • The communicated distributes campaign materials prepared by a candidate or the communication refers to a candidate or political party and is distributed within a certain time frame prior to the election.

Conduct

The conduct prong is satisfied if one of following five actions occurred:

  • The communication was created at the request of suggestion of the candidate, the candidate's authorized committee or a political party;
  • The candidate, candidate's authorized committee or a political party was materially involved in decisions about the content, media outlet, audience, timing or prominence of the communication;
  • The communication was created after substantial discussions between the party paying for it and the candidate, the candidate's authorized committee or a political party or the opposing candidate and political party;
  • The party paying for the communication employs a common vendor of the candidate, the candidate's authorized committee or a political party to create the communication within a certain time frame; or
  • The communication is created after a person previously employed with the candidate, the candidate's authorized committee or a political party convey's the candidate's needs to the party paying for the communication within 120 days of employment.[2]

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See also

Ballotpedia:Index of Terms

External links

Footnotes