The sole purpose of a Political Action Committee - or as commonly referred to as PAC - is to support the election or defeat of a particular candidate. This is generally done through raising monies and spending those monies to accomplish the goals of an interest group. Although PACs may not accept funding from corporations and labor unions directly, they may however receive voluntary contributions from business corporations, professional associations, labor unions, and employee interest groups which organize an individually contributed affiliated PAC.
PACs were first introduced to the political system circa 1944. That year the Congress of Industrial Organizations (CIO) was formed to raise monies supporting the re-election of Franklin D. Roosevelt. The funds came from the union members contributions rather than the union accounts thus bypassing the Smith Connally Act of 1943. This act clearly forbids unions from directly contributing to the election of a federal candidate. .
They are two types of PACs, the connected and non-connected PAC. The non-connected PAC must pay all of their operation costs from personal contributions. These contributions must be from a U.S. citizen or a legal U.S. resident. Connecting PACs may have their operating expenses - staff salaries, lawyers" fess, fundraising costs - paid by their parent corporation. They can contribute monies to candidates from which they are solicited. And the funds must be contributed by individuals of a sponsoring organization affiliated with the corporation. In essence, the money a connected PAC contributes to a candidate must be donated solely from voluntary, personal donations.
Our candidates rely heavily on the contributions of PACs. And, of course the laws are often bent to accommodate the candidates ability to accept such funding. When you acknowledge the fact that a PAC can give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC.
