Identifying independent expenditures

An independent expenditure is any expenditure made to influence the outcome of a covered election that is

  • made without the cooperation or consultation with any campaign and

  • not made in concert with or at the request or suggestion of any campaign.

Essentially, an independent expenditure is the opposite of a coordinated expenditure.

Example 1: Mayoral candidate Othello gives Shakespeare PAC a template for a door hanger. Shakespeare PAC spends $5,000 to print door hangers based on the template and spends $10,000 to distribute them a month before the Primary. Both the $5,000 printing expenditure and the $10,000 spent on distribution are coordinated expenditures and are therefore in-kind contributions to Othello subject to the contribution limits.

Example 2: Youse Can Fish (an independent expenditure committee supporting fishing piers) spends $50,000 on radio ads in support of Council candidate Nemo. The campaign does not have any communication with the committee prior to the expenditure. The $50,000 expenditure is an independent expenditure and is not subject to the contribution limits.

Reporting independent expenditures: Individuals & non-PAC entities

Reporting of an independent expenditure depends on

  • when it was made,

  • how much was spent, and

  • whether it was for electioneering communications.

State law requires that you report each independent expenditure of $100 or more. This requirement applies even if the expenditure is for electioneering communications.

If the independent expenditure was for $500 or more and was made during the 24 hour reporting period, you will also need to file a 24 hour independent expenditure report.

If the expenditure is for electioneering communications and is for $5,000 or more you will also need to file a full campaign finance report for that cycle.

Reporting independent expenditures: PACs

PAC refers to political committees other than the candidate committee of a current candidate for City elective office. PACs generally must file for any reporting period in which they spend any amount of money to influence a City election (including contributions to City candidates).

24 hour reporting

From the close of the pre-election report (Cycle 2 or 5) through election day, anyone other than a candidate must disclose any independent expenditures made of $500 or more. The report is due within 24 hours of making or incurring debt for the expenditure. The report should not include contributions received.

A PAC that files a 24 hour report disclosing expenditure must also disclose that independent expenditure in their post-election (Cycle 3 or 6) report.

Electioneering communications

An electioneering communication is any publicly distributed* broadcast, cable, radio, print, Internet, or satellite communication that

  • promotes, attacks, supports, or opposes a candidate, or

  • within 50 days of a covered election names, refers to, includes, or depicts a candidate in that election.

*A publicly distributed communication does not include a communication made solely to the members of a union, association, or corporation.

When do I have to report expenditures for electioneering communications?

A PAC must file a report for Cycles 1, 2, 3, 4, 5, 6, or 7 if it spends any amount on electioneering communications in that reporting cycle. A PAC must file for Cycles 101, 201, 202, 401, 501, or 502 if it spends $5,000 or more on electioneering communications. For each filing, a PAC must disclose all transactions during that reporting period.

An individual or non-PAC entity must file a report for any reporting cycle other than Cycle 7 in which they spend $5,000 or more on electioneering communications that are published within 50 days of a covered election.

Special disclosure rules for organizations

If an organization (other than a PAC) spends $5,000 or more on electioneering communications within 50 days of a covered election, it must file a full Campaign Finance Report with the Board of Ethics that discloses:

  • all expenditures for electioneering communications or any other campaign related spending;

  • any contributions as defined by the State Election Code; and

  • all donations of $5,000 or more received during the reporting period regardless of whether they are designated for a political purpose unless the organization uses a segregated account for political spending. If the organization uses a segregated account for amounts used for political purposes, it need only disclose contributions deposited into that account.

Example: Nonprofit Sanctuary for Seals receives two checks. One is a $2,000 contribution to support the Sanctuary's electioneering communications in support of a candidate for Controller. The other is a general $3,000 donation to the Sanctuary. Both checks are deposited into the Sanctuary's general account. The Sanctuary must file a Campaign Finance Report to disclose the $2,000 contribution. The Sanctuary need not disclose the $3,000 donation because it falls below the $5,000 threshold for non-political donations.

Special disclosure rules for individuals

An individual required to file a report regarding electioneering communications is only required to disclose contributions that they received or solicited in order to fund the expenditures disclosed in the report.