There are many different types of political organizations, including political parties, a national party committee or state committee, non-governmental organizations (NGOs), labor unions, labor organizations, lobbying groups, membership organizations, professional associations, and think tanks. These organizations have different goals and use various strategies to influence public opinion and policymaking.

A PAC is a type of political organization and a specific type of political committee.

Political committees can take various forms, depending on their goals. Each has its own distinctive features and functions. 

Here are a few different types: 

1. Political Action Committees, or a Traditional PAC
2. Leadership PACs which are created by elected officials, typically to support other candidates or causes.
3. Super PACs, also known as Independent Expenditure PACs, can accept unlimited contributions from individuals and corporations. They engage in independent expenditures to advocate for or against candidates. They can not donate directly to candidates or coordinate spending with them. 
4. A Candidate committee is specifically mandated to support the election of a particular candidate.
5. Political Party Committees raise/spend money on behalf of their candidates and are generally associated with either the Republican or Democratic parties.
6. Ballot measure committees, whose sole purpose and focus are on a specific issue, such as environmental protection, data privacy or tax increases.
7. Joint fundraising committees, which allow multiple candidates and groups to pool funds and share resources.

On the state level in Illinois, there are traditional PACs and independent expenditure committees.

But keep in mind there are different rules for PACs under federal law than state law. 

Here are a few different types of federal PACs:

• “Connected PACs”, which is also knownn as a “corporate PAC”, are established by businesses, non-profits, labor unions, trade groups, or health organizations. These PACs raise money from a “restricted class” generally consisting of their organization members or shareholders.
• “Non-Connected PACs” are groups with an ideological mission, single-issue groups, and members of Congress or other political leaders. The connected organization may accept funds from any individual, connected PAC, or organization.
• Super PACs, AKA an independent expenditure PAC.
• Hybrid PACs which can give limited amounts of money directly to campaigns and committees, while still making independent expenditures in unlimited amounts.

A PAC can give focus to a specific issue because you and other members can pool resources, efforts, and advocacies together. By doing so, you can bring attention to a critical issue and help shape the conversation.

Examples of a Political Action Committee’s (PAC) agenda in Illinois could include:

1. Support of a candidate for public office who shares the PAC’s political ideology
2. Defeat of political leaders who do not share the PAC’s values
3. Promote ballot measures that align with the PAC’s mission
4. Advocate for specific issues such as biometric data privacy, health care reform, or cannabis ownership equity
5. Finance grassroots campaigns for a membership organization to increase voter turnout and civic engagement in their local community

No, individual contributions to a PAC in Illinois are not tax deductible. Donations to a PAC are considered political contributions and therefore are not subject to the same tax laws as charitable contributions. This is the same as if you contributed directly to the individual candidates and their political campaigns.

Yes, a Political Action Committee (PAC) 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.

Yes, a PAC needs to set up a bank account. All of your political donations should be kept and recorded in one place.

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.

There are administrative and legal steps involved in starting a PAC, but it is not necessarily difficult. It is something that needs to be taken seriously.

You will need to register on the Illinois State Board of Elections website and comply with campaign finance regulations. All political contributions will need to be tracked (and reported!) meticulously.  Here is a step-by-step guide on how to start a PAC in Illinois.

You should consult with legal + campaign experts to navigate this process correctly. It is not just about starting the PAC, but maintaining the records and submitting timely reports throughout the election year. 

Here is the list of the 2023 Campaign Contributions limits.

For the current election cycle, a PAC can accept:

• $13,700 from an individual
• $27,400 from a corporation, labor organization, association or Political Party Committee
• $68,500 from a Political Action Committee or Candidate Political Committee

The purpose of contribution limits is to prevent individuals, corporations, and other groups from having too much influence on the electoral process. By limiting the amount of money that an individual can give to a political campaign or committee, it helps ensure that no single person or entity has the potential to sway election results. 

Honestly, not really.

Dark money refers to funds spent on political purposes where the donors’ identities are hidden. When running a PAC, all donations will need to be reported and itemized if over $150. This documentation is available for public review on the Illinois State Board of Election’s website here.

That being said, although PACs are required to publicly reveal their backers, their contributors can remain anonymous by using a shell company — a company without active business operations and that exists only on paper. However, not all PACs use these tactics. Most PACs are established by individuals and organizations genuinely committed to promoting their political causes and candidates.

PACs must adhere to specific disclosure rules in Illinois. Here is the 2023 Campaign Disclosure Guide.

PACs are required to file a statement of organization, quarterly reports detailing their financial activities, and other political disclosures. These documents are available online for public inspection so that the general public can examine the sources of PAC funding and how these funds are spent.

If you are in charge of a PAC, you need to make sure you are complying with state and federal election law (or you will get hit with some hefty fees!). Here is the 2023 Disclosure Calendar, so make sure you are paying close attention to the filing dates.

You can start a PAC as an individual. However, forming a PAC with a group of like-minded individuals can help with fundraising, community building, and overall impact. And it makes it more fun!

The best time is always now! Especially if you have already started any type of political activity. 

Also, consider starting your first PAC before a special election, primary election or general election. We need your voice!