Campaign Finance FAQs
Overview
The Pennsylvania Department of State provides these Frequently Asked Questions to clarify campaign finance laws. These guidelines are based on the Pennsylvania Election Code (25 P. S. §§ 3241 - 3260b) and are not a replacement for the actual law.
Candidate Status
A person becomes a candidate if they or their political committee:
- Receives a contribution.
- Makes an expenditure.
- Gives consent for another person or committee to receive a contribution or make an expenditure to influence their nomination or election.
This status applies regardless of whether the individual has publicly announced their intention to seek office. Filing nomination petitions also triggers candidacy.
Defining Contributions
A contribution is broadly defined as any payment, donation, gift, loan, or valuable thing made to influence an election. Specific examples include:
- Paying debts incurred by a candidate or committee.
- Purchasing tickets for fundraising events (dinners, rallies).
- Granting discounts or rebates not available to the general public.
- Payments for services provided by a third party on behalf of a candidate.
- Receipts or use of anything of value from another political committee.
Defining Expenditures
An expenditure is the payment, distribution, loan, or advancement of money or valuable things for the purpose of influencing the outcome of an election. This includes efforts to influence future elections, not just a specific upcoming one.
Valuable Things (In-Kind Contributions)
Donating items like a laptop computer is considered an in-kind contribution. Reporting requirements depend on who is donating:
- Individuals: The candidate must report the item as an in-kind contribution valued at fair market price. The individual donor does not need to report it.
- Political Committees: The committee must report the donation as an expenditure, and the candidate must report it as a contribution.
- Corporations and Labor Unions: These entities are prohibited from making in-kind contributions. They must charge the candidate fair market value for any goods or services provided.
Rent Discounts
If a landlord provides a discount on office space to a candidate:
- Individuals: The discount is an in-kind contribution. The candidate reports the discount amount as a contribution and the actual rent paid (80% of fair market value) as an expenditure.
- Political Committees: The committee reports the discount as an expenditure, and the candidate reports it as a contribution.
- Corporations/Labor Unions: They cannot provide discounts; they must charge fair market value.
Anonymous Contributions
Candidates or treasurers receiving anonymous contributions must turn them over to the State Treasurer within 20 days of receipt.
Contribution Limits
There is no limit to the amount of money an individual can contribute, provided the aggregate amount does not exceed $100 in cash.
Residual Funds
After an election or when retiring from office, candidates may handle residual funds in two ways:
- Use them for any expenditure to influence the outcome of an election (including future elections).
- Return them, pro rata, to the original contributors.
Note: Judicial candidates should contact the Judicial Ethics Committee of the Pennsylvania Conference of State Trial Judges for specific guidance.