[Lnc-business] Prohibition on raising soft money

[Tim Hagan]

The Federal Election Campaign Act and FEC regulations in Title 11 has a
restriction that LNC members, as officers of a national political party
committee, need to be aware of. We cannot solicit nonfederal funds, such
as contributions to state or local candidates or to affiliates that
don't file with the FEC, when acting on behalf of the LNC.  

>From the FEC Campaign Guide: "National parties may not solicit, raise,
direct or spend funds, or anything of value, that are not subject to the
prohibitions, limitations and reporting requirements of the [FECA] Act.
This prohibition of nonfederal and Levin funds also applies to any agent
or officer acting on behalf of the national party committee or any
entity that is directly or indirectly established, financed, maintained
or controlled by a national party committee."

What does this mean for us? It does not mean that LNC members can never
solicit nonfederal funds, such as for Riverside County Supervisor or
Phoenix mayor. However, do not use your LNC title when soliciting for
nonfederal funds, because then you can be perceived as acting on behalf
of the LNC. Do not use LNC resources to ask people to donate to
nonfederal funds. There are some gray areas, and for those you can ask
me and I will check with Paula Edwards, our FEC consultant.

Thanks,
Tim Hagan

This is the regulation in Title 11, for your reference:

§300.10   General prohibitions on raising and spending non-Federal funds
(52 U.S.C. 30125(a) and (c)).

(a) Prohibitions. A national committee of a political party, including a
national congressional campaign committee, must not:

  (1) Solicit, receive, or direct to another person a contribution,
donation, or transfer of funds, or any other thing of value that is not
subject to the prohibitions, limitations and reporting requirements of
the Act;

  (2) Spend any funds that are not subject to the prohibitions,
limitations, and reporting requirements of the Act; or

  (3) Solicit, receive, direct, or transfer to another person, or spend,
Levin funds.

(b) Fundraising costs. A national committee of a political party,
including a national congressional campaign committee, must use only
Federal funds to raise funds that are used, in whole or in part, for
expenditures and disbursements for Federal election activity.

(c) Application. This section also applies to:

  (1) An officer or agent acting on behalf of a national party committee
or a national congressional campaign committee; and

  (2) An entity that is directly or indirectly established, financed,
maintained, or controlled by a national party committee or a national
congressional campaign committee.

-- 
Tim Hagan
Treasurer, Libertarian National Committee
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   The Federal Election Campaign Act and FEC regulations in Title 11 has a
   restriction that LNC members, as officers of a national political party
   committee, need to be aware of. We cannot solicit nonfederal funds,
   such as contributions to state or local candidates or to affiliates
   that don't file with the FEC, when acting on behalf of the LNC.
   From the FEC Campaign Guide: "National parties may not solicit, raise,
   direct or spend funds, or anything of value, that are not subject to
   the prohibitions, limitations and reporting requirements of the [FECA]
   Act. This prohibition of nonfederal and Levin funds also applies to any
   agent or officer acting on behalf of the national party committee or
   any entity that is directly or indirectly established, financed,
   maintained or controlled by a national party committee."
   What does this mean for us? It does not mean that LNC members can never
   solicit nonfederal funds, such as for Riverside County Supervisor or
   Phoenix mayor. However, do not use your LNC title when soliciting for
   nonfederal funds, because then you can be perceived as acting on behalf
   of the LNC. Do not use LNC resources to ask people to donate to
   nonfederal funds. There are some gray areas, and for those you can ask
   me and I will check with Paula Edwards, our FEC consultant.
   Thanks,
   Tim Hagan
   This is the regulation in Title 11, for your reference:
   §300.10   General prohibitions on raising and spending non-Federal
   funds (52 U.S.C. 30125(a) and (c)).
   (a) Prohibitions. A national committee of a political party, including
   a national congressional campaign committee, must not:
     (1) Solicit, receive, or direct to another person a contribution,
   donation, or transfer of funds, or any other thing of value that is not
   subject to the prohibitions, limitations and reporting requirements of
   the Act;
     (2) Spend any funds that are not subject to the prohibitions,
   limitations, and reporting requirements of the Act; or
     (3) Solicit, receive, direct, or transfer to another person, or
   spend, Levin funds.
   (b) Fundraising costs. A national committee of a political party,
   including a national congressional campaign committee, must use only
   Federal funds to raise funds that are used, in whole or in part, for
   expenditures and disbursements for Federal election activity.
   (c) Application. This section also applies to:
     (1) An officer or agent acting on behalf of a national party
   committee or a national congressional campaign committee; and
     (2) An entity that is directly or indirectly established, financed,
   maintained, or controlled by a national party committee or a national
   congressional campaign committee.

   --
   Tim Hagan
   Treasurer, Libertarian National Committee