North Carolina State Board of Elections Campaign Finance Basics 2016

What is a contribution? A contribution is money or anything of value given to a committee.

$5,100 limit per election Is there a limit to the amount of money someone can give my committee? An election is considered to be the Primary Election, Second Primary, Run-off or General Election. For candidates running in an odd numbered election year as well as Municipal PACs, the Primary Election period is from the day after the previous General Election through the day of the Primary Election. The General Election period is from the day after the Primary Election through the day of the General Election. For candidates running in an even numbered election year as well as other State/County committees (Party Committees, PACs, etc.), the Primary Election period is from January 1 (of the odd numbered year) through the day of the Primary Election. The General Election period is the day after the Primary Election through December 31 (of the even numbered year).

Candidate committee exceptions (candidate and spouse exempt from limit) Party executive committee exception Are there any exceptions to the $5,100 limitation? Referendum committee exception

Are certain types of contributions prohibited? No contributions from prohibited sources (corporations, business entities, labor unions, professional associations or insurance companies) Contribution from a Business Account Statement (CRO-6300) Administrative Support Party Committee Building Fund Referendum Committee Nothing of value from prohibited sources (Golf Tournaments, Purchase of Advertising, Space for Fundraiser, Discounts, Donation of Food or Supplies, Donation of Items for Auction)

No pass the hat, collection plate, etc. Connect all contributions to an individual donor (hot dogs, buttons and t-shirts included!) No anonymous contributions Political Party Executive Committee exception (Exempt Purchase Price Sales)

No cash contributions over $50 (per contributor/ per day) No contributions given in the name of another What about cash contributions? What if I receive a contribution from two people together ‘joint contribution’ (husband and wife)?

The contributor must specifically designate the intended contributee for contributions (§ (b)) Name, address and occupation/ employment information for individual contributors giving cumulatively more than $50 in an election must be disclosed on the disclosure report. best efforts policy applies What information am I required to obtain from a contributor?

Date contribution received Amount of contribution Method of Payment (Cash, Check, Debit…etc) Election sum to date amounts

If someone gives me something of value but not a monetary contribution, how is that considered? It would be considered an in-kind contribution and the Treasurer should obtain receipts or a statement from the contributor to show fair market value of the contribution. If contribution is from a PAC or other political committee, check registration with State or County Board of Elections

No loan can exceed normal contribution limitations All aspects of the loan transaction must be disclosed Loans from financial institutions are allowed Is someone allowed to make a loan to my committee?

Interest income Refunds & Reimbursements Sales of Raffle tickets

What is an expenditure? What information is required for an expenditure?

Must disclose accurate and detailed purpose of expenditure Amount of expenditure Name and address of payee

Committee funds do not become part of the personal estate of a candidate Designation of Committee Funds Form to be filed with the State Board of Elections to designate how remaining funds will be distributed Expenditures can only be made for campaign purposes

1.Campaign related expenditures 2.Office holding related expenditures 3.Contributions to a nonprofit properly registered with the IRS that does not employ direct family members of the candidate 4.Contributions to a Political Party Committee 5.Contributions to another candidate 6.To return contributions to the contributor 7.Payment of penalties against the candidate or the committee 8.Payment to the Escheat Fund of North Carolina 9.Donations to legal expense funds Use of contributions for Candidate Committees

Date & method of payment Sum to date totals Keep receipts

All media expenses and all other expenses over $50 must be paid with verifiable form of payment Any amount of postage can be paid with cash If a vendor is paid for multiple expenses, each expense must be disclosed

Additional reporting required for State Committees that make contributions in County/Municipal elections What am I required to file? A Disclosure Report covers all committee transactions during a given time period 48 Hour Reports How am I required to file?

What happens if I file a report late? Civil Penalties for late filing Penalty Assessment Non-statewide $50 per day not to exceed $500 Statewide candidates (and committees that give contributions to statewide candidates) $250 per day not to exceed $10,000