The role of PAC's in the election process?

Answer 1

Political Action Committees (PACs) are an important aspect of American politics and the American electoral system. Political Action Committees exist legally as a means for corporations, trade unions etc. to make donations to candidates for Federal office - something that they cannot do directly.

An organisation will establish a Political Action Committee for which they solicit financial support. In 1974, 608 Political Action Committees were registered with the FEC (Federal Election Committee). By December 1995, there were more than 4,000 of them. There are more corporate Political Action Committees than any other type.

PACs work by raising money from people employed by a corporation or in a trade union. These are called "connected PACs" and they rarely ask for donations from the general public although legally they are free to do so. "Unconnected PACs" (also known as "Independent PACs") are as their title would suggest and they raise money by targeting selected groups within society. In 1985, the Supreme Court decided that there should be no limits on the spending of PACs on a candidates behalf provided that the expenditure is not made in collaboration with a candidate (FED v NICPAC). Thus the PAC must maintain its legal independence. However, an individual's contribution to a PAC is limited to $5000.