24 Apr How to Start a Political Action Committee in Illinois
A Political Action Committee (“PAC”) is an organization that is established to raise and spend money to influence elections or legislation.
PACs can be formed by individuals, organizations, corporations, unions or other groups of people with shared political beliefs or interests. These organizations typically operate independently of political parties or candidates, although they may sometimes support specific candidates or political parties.
This step-by-step guide breaks down the steps on how to start a political action committee in Illinois.
Is this your first PAC? Let’s begin! To form a political committee, you must:
1. Choose a name for your PAC.
The first step in creating your political organization is to choose a name. When choosing a name for your political action committee, there are a few things to consider:
- Make it unique: Choose a name that is unique and hasn’t already been taken by another PAC or organization. This will help avoid confusion and make your PAC more easily identifiable.
- Keep it simple: A simple and straightforward name is often more memorable and easier to remember. Avoid using long or complicated names that may be difficult to pronounce or spell.
- Reflect your purpose: Choose a name that reflects the purpose or values of your PAC. This can make it easier for potential donors or supporters to understand what your PAC stands for and what issues it supports.
- Check if the name is available: You can search the Illinois State Board of Elections website to see if the organization name is available or is already being used by a different group. Also, do yourself a favor and check if the preferred URL or domain name is taken or reserved so that it can later be synchronized with your website.
- Do a little opposition research: Before finalizing your PAC’s name, research to see if it’s already used in political contexts. For example, a PAC name similar to the name of another PAC with different political ideals might prompt some backlash.
- Check for appropriate use: Make sure that the name you choose doesn’t violate any copyright or trademark laws, and that it doesn’t contain any obscenities or offensive words.
By keeping these considerations in mind, you can choose a name that accurately reflects your PAC’s purpose and message while also making it easily identifiable and distinct from other political organizations.
2. Choose the officers of the PAC.
A political action committee in Illinois requires a chairman and treasurer to oversee the activities of the committee. The same person could fulfill both roles, or you can choose different people.
The chairman is responsible for managing all the activities of the PAC, setting up meetings, creating agendas, communicating with members and other stakeholders, and overseeing the operations of the PAC.
The treasurer is in charge of tracking donations and expenditures for the PAC as well as filing reports with the Illinois State Board of Elections. They will also be responsible for making sure funds are spent responsibly according to applicable state laws. The treasurer must be an Illinois resident and must file all necessary paperwork with the State.
When selecting people to fill these roles, it is important to ensure candidates have experience in finance or political management, understand election law, and possess strong organizational skills. It is also important to make sure that both positions are filled by individuals who share a common goal for what they want to achieve through their involvement with the PAC.
3. Apply for a tax EIN.
A political action committee in Illinois is required to apply for an Employer Identification Number (EIN) through the Internal Revenue Service (IRS). An EIN is used by federal and state agencies to identify and track organizations that are required to pay taxes.
How to Apply for an Employer Identification Number (EIN) Online:
- Make sure the person applying online has a valid Taxpayer Identification Number (SSN, ITIN, EIN).
- You are limited to one EIN per responsible party per day.
- You must complete this application in one session, as you will not be able to save and return at a later time. Your session will expire after 15 minutes of inactivity, and you will need to start over.
- Choose “political organization” as the type of structure.
- After all validations are done you will get your EIN immediately upon completion. You can then download, save, and print your EIN confirmation notice.
4. Open a bank account.
You will need to open a bank account for your PAC at a financial institution. All funds, expenditures, and political activity for the PAC should be deposited and tracked in this campaign account.
When I open a new bank account for a political action committee, I always use a client of mine, Ipava State Bank. I love that I can do everything through my mobile app, and that I have someone specific to call to handle anything I need.
If you need to open a bank account, feel free to reach out to Jessica Turgeon at jturgeon@ipavastatebank.com (and you can feel free to drop my name!).
5. File a D-1 Statement of Organization.
To register your PAC, you must complete a D-1 Statement of Organization with the Illinois State Board of Elections. This form requires detailed information about your PAC, including its name, address, and purpose.
Once you complete the Statement of Organization form, it must be filed with the Illinois State Board of Elections.
To file your D-1, you must email the completed form to: d1@elections.il.gov.
6. Keep records and file reports.
Once your PAC is registered, you must keep records of all contributions, expenditures, and other financial activities related to the PAC. Campaign records are incredibly important for all registered PACs.
You must also file regular reports with the Board of Elections detailing your PAC’s financial activities. These campaign reports will need to track in-kind contributions and any independent expenditures.
Lastly, you must be careful to follow campaign finance rules under state law. Illinois has set forth laws and rules governing how a PAC can raise and spend funds for the purpose of influencing elections. It is important to follow these rules to avoid penalties or fines. You must familiarize yourself and your team with the campaign finance laws of Illinois. Also, it never hurts to establish a good relationship with local election authorities!
Conclusion
We hope this guide helps you learn how to establish a political action committee in Illinois. At Elking Consulting, we believe advocacy is important and is how change is made.
Starting a political committee in Illinois gives everyday citizens the power to directly lobby for issues they find important. But like anything, successful political campaigning requires careful attention to finances, such as: filing timely disclosure reports, understanding the limitations on donations, and correctly calculating contributions and expenses.
Stay meticulous when following the state’s campaign disclosure laws!
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