Q.What is the authorization/prior approval form and why is it required by the FEC?
A. The FEC requires the federal PAC of a trade association with corporate members to receive permission from member organizations before their employees are asked for PAC contributions. A senior executive at the bank (who is a main contact between the company and the trade association) must sign the prior approval form on behalf of the company. A corporation may only sign one prior approval form per year, which prevents employees from being inundated with PAC contribution requests. Here is a copy of ABA BankPAC’s authorization form.
Q. Who may be solicited for BankPAC contributions?
A. Once a bank has signed an authorization form, the bank CEO or the state association’s federal PAC may solicit contributions to the PAC from exempt employees (salaried), the bank’s Board of Directors, and the spouses of both groups. Except under very particular circumstances, federal PACs are not allowed to raise money from hourly-wage employees.
Q. How much can individuals contribute to BankPAC?
A. The annual limit is $5,000.
Q. Can a bank make a corporate contribution to ABA BankPAC?
A. No. They can, however, participate in ABA BankPAC events as a sponsor.
Q. Can a bank holding company make a corporate contribution to ABA’s State BankPAC?
Q. Can a company or employer reimburse someone for a federal PAC contribution?
A. No. The reimbursement of a federal PAC contribution is illegal and is a violation of FEC rules and regulations.
Q. Are political contributions tax deductible?
A. No. Contributions to a federal PAC are not tax deductible for federal income tax purposes.
Q. How much can BankPAC contribute to a federal candidate?
A. BankPAC may contribute $5,000 per election per cycle to a federal candidate. For example, if Candidate A is running for Congress, BankPAC may contribute up to $5,000 to the Primary and $5,000 to the General election. If there is a run-off, BankPAC may contribute up to an additional $5,000.