FEDERAL ELECTION COMMISSION

Washington, DC 20463

VIA FIRST CLASS MAIL

Government Intçgrity LLC

c/o James C. Thomas,III

7509 NV/ Tiffany Springs Parkway

Suite 300

Kansas City, MO 64152

RE: MUR 6920

Dear Mr. Thomas

The Federal Election Commission ("Commission") is the regulatory agency that

administers and enforces the Federal Election Campaign Act of 1971, as amended (the "Act").

Based on a complaint filed by Citizens for Responsibility and Ethics in V/ashington on February

27,2015, the Commission found reason to believe that Unknown Respondent violated 52 U.S.C.

S 30122 by making a $1.71 million contribution to Now or Never PAC in the name of American

Conservative Union.l The Complaint and the Factual and Legal Analysis which formed the basis

for the Commission's finding are attached for your information.

The Commission authorized the Office of General Counsel to investigate the source of

the contribution. During our investigation, we obtained information indicating that Government

Integrity LLC may be an Unknown Respondent as to which the Commission made findings.

Specifically, we received information indicating that you wired the $1.71 million contribution to

American Conservative Union from an account in the name of Government Integrity LLC for

delivery to Now or Never PAC. 'We 

are now preparing to make a tecommendation to the

Commission in connection with that information. Prior to making our recommendation, we offer

you an opportunity to provide in writing a response to the Complaint and the Commission's

Factual and Legal Analysis. Should you choose to respond, you may also submit any materials

- 

including documents or affidavits from persons with relevant knowledge -thatyou believe

may be relevant or useful to the Commission's consideration of this matter.

Your submission, if you choose to make one, must be submitted within 15 days of receipt

of this letter. You should address any response to the Office of General Counsel, and the

response should reference MUR 6920. After 15 days, we will prepare recom.mendations to the

Commission, taking into account any response you submit in making our recommendations. For

t A "reason to believe" finding is not a finding that any person violated the Act; rather, it means only that the

Commission believes a violation may have occurred. See 52 U.S.C. $ 30109(a)(2).

APR 2,0 2017
MUR 6920

Government Integrity LLC

Page2

your information, I have enclosed a brief description of the Commission's preliminary

procedures for processing possible violations discovered by the Commission.

This matter will remain confidential in accordance with 52 U.S.C. $$ 30109(a)(a)(B) and

30109(a)(12)(A) unless you noti$'the Commission in writing that you wish the matter to be made

public. Please be advised that, although the Commission cannot disclose information regarding

an investigation to the public, it may share information on a confidential basis with other law

enforçement agencies.2 If you intend to be represented by legal counsel in this matter, please

advise the Commission by completing the enclosed form stating the name, address, and

telephone number of such counsel, and authorizing such counsel to receive any notifications and

other communications from the Commission.

If you have any questions, please contact Antoinette Fuoto, the attorney handling this

matter, at (202) 694-1634. Information is also available on the Commission's website at

www.fec.gov.

Sincerely,

Kathleen 

K'çL-W

Guith

Associate General Counsel for Enforcement

Enclosures:

Complaint

Factual and Legal Analysis

Procedures

Designation of Counsel Form

2 The Commission has the statutory authority to refer knowing and willful violations of the Act to the

Department of Justice for potential criminal prosecution, 52 U.S.C. $ 30109(a)(5)(C), and to report information

regãrdingviolationsoflawnotwithinitsjurisdictiontoappropriatelawenforcementauthorities. 1d. $30107(a)(9).
:.. .' 'r

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In the mafterof: I I i'il ';: 5!.r :''" ?-1 t' ' 2: i g 

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American Conservative Union J,;i , . ..

Now or Never PAc 

:^.., ^, James C. Thomas lll, Treasurer, Now or ,.,^.,.. Ncver PAC oo. Lo QZO

Unknown Respondent

COMPLAINT SENSITI\{E'

1. Citizens for Responsibitity and Ethics in Washington ("CREW") and Anne L.

Weismann bring this complaint before the Federal Election Commission ("FEC") seeking an

immediate investigation and enforcement action against the American Conservative Union, Now

or Never PAC, James C. Thomas lll, and an Unknown Respondent for direct and serious

violations of the Federal Election Campaign Act ("FECA").

Complainants

2. Complainant CRETW is a non-profit corporation, organized under section

501(c)(3) of the Internal Revenue Code. CREW is committed to protecting the right of citizens

to be informed about the activities of government officials and to ensuring the integrity of

government officials. CREW seeks to empower citizens to have an influential voice in

government decisions and in the governmental decision-making process. CREW uses a

combination of research, Iitigation, and advocacy to advance its mission.

3. In furtherance of its mission, CREW seeks to expose unethical and illegal conduct

of those involved in government. One way CREW does this is by educating citizens regarding

the integrity of the electoral process and our system of government. Toward this end, CREW

monitors the campaign finance activities of those who run for federal office and those who make

expenditures to infiuence federal elections, and publicizes those who violate federal campaign

finance laws through its website, press releases, and other mcthods of distribution. CREW also
files complaints with the FEC when it discovers violations of the FECA. Publicizing campaign

finance violations and filing complaints with the IìEC scrve CRIIW's mission of keeping the

public informed about individuals and çntities that violale campaign finance laws and deterring

future violations of campaign finance law.

4. Complainant Anne L. Weismann is the intcrirn executive director and chief

counsel of Citizens for Responsibility and Ethics in Washington, a citizen of the United States,

and a registered voter and resident of Maryland. Both as a voter and as part of her

responsibilities for CREW, Ms. Weismann is committed to ensuring the integrity of federal

elections and the campaign finance requirements of the FECA. To that end, Ms. Weismann

reviews campaign finance filings and media reports to determine whether candidates and

political committees comply with the requirements of the FECA.

5. When CREW and Ms. Weismann discover a violation of the FECA, they submit

complaints against violators pursuant to their rights under the FECA. 52 U.S.C. $ 30109(a)(1).

CREW and Ms. Weismann rely on the FEC to comply with the FECA when making its

enforcement decisions because the FEC is the exclusive civil enforcement authority for

violations of the FECA. 52 U.S.C. $ 30107(e). CREW and Ms, Weismann are injured if the

FEC dismisses their complaints contrary to the FECA.

6. In addition, in order to assess whether an individual, candidate, political

committee, or other regulated entity is complying with federal campaign finance law, CREW

needs the information contained in receipts and disbursements disclosure reports political

committees must file pursuant to the FECA, 52 U.S.C. $ 3010a(a); 11 C.F.R. $ 104.1. CREW is

hindered in its programmatic activity when an individual, candidate, political committee, or other

regulated entity fails to disclose campaign finance information in reports required by the FECA.
7 . CREW relies on the FEC's proper administration of the IrECA's reporting

requirements because the FECA-mandated disclosure reports are the only source of information

CREW can use to determine if an individual or entity is complying with the FECA. The proper

adnrinistration of the FECA's reporting requirements includes n-randating that all disclosure

reports required by the FECA are properly and timely filed with the FEC. CREW is hindered in

its programmatic activity when the FEC lails to properly administer the FECìA's reporling

requirements, because it denies CREW information to which it is statutorily entitled.

8. Ms. Weismann also is sntitled to receive information contained in disclosure

reports required by the FECA,52 U.S.C. $ 30104(a); 11 C'F.R. $ 104.1. Ms. Weismann is

harmed when an individual, candidate, political committee or other entity fails to report

campaign finance activity as required by the FECA. See FEC v. Akins,524 U.S. 11, 19 (1998)'

quotitlg Buckley v. Valeo,424 U.S. L,66-67 (1976) (political committees must disclose

contributors and disbursements to help voters understand who provides which candidates with

financial support). Ms. Weismann is further harmed when the FEC fails to properly administer

the FECA's reporting requirements, limiting her abitity to review campaign finance information.

Respondents

9. The American Conservative Union (.'ACU") is a tax-exempt organization formed

in 1964 and organized under section 501(c)(a) of the Internal Revenue Code.r

10, Now or Never PAC is an independent-expenditure only committee ("super PAC")

formed in2012.2

11. Mr. Thomas is the treasurer of Now or Never PAC.3

L 

^ClJ 

ZOl2lnitial Form 990, November 14,2013, at 1 (excerpts attachetl as Exhibit A).

? Now or Never PAC, FEC Forfn 1. Statement of Organi:4tion, Fcbruary 2I,2012, uvailable at

þqr:iitjocqucry. lcc.gt¡v/pclt,¡496,11 2(130744496/ l.lfË!&#qô+dl.

3 Id.
12. Unknown Respondcnt is thc true source of funds ACU transfcrred to Now or

Never PAC.

Factual allegations

13. During the 2012 election cycle, Now or Never PAC's reported spending

57,760,174 on independent expenditures.l

14. Now or Never PAC disclosed receiving $t1,200,500 in contributions during the

2012 election cycle.s The largest contríbution the group disclosed to the FEC was from ACU,

which Now or Never PAC said contributed $1,710,000 on October 37,2072.6 Mr. Thomas

electronically signed the form, certifying he had examined thc report and it was true, correct, and

complete to the best of his knowledge and belief.T

15. ACU initially filed its2012lnternal Revenue Service ("lRS") Form 990 tax return

in November 2013.8 Despite Now or Never PAC's report to the FEC of receiving the $1.71

million contribution, ACU asserted to the IRS it did not engage in any direct or indirect political

campaign activities, and did not disclose making any contribution to Now or Never PAC.e

16. In April 2Ot4, ACU's tax preparer provided the organization the results of its

independent auditor's rep.ort of ACU's finances for 2012.10 Contrary to ACU's initial tax return,

the auditor's report asserted ACU made a $1.71 million political donation in2}12.tl

a Now or Never PAC, Two-Year Summary for 2012, available at þ.1¡p";¡lfç-c4*ylj"i.n¡nç-c"¡:d-isçlqi$f-ç,:"ci$d-ç-[te*

in["s;]irul,

5Id.

ó Now or Never PAC, FEÇ Form 3& 2012 Post-Election Report, December 5,2012, available at

lit tp;.,'¡drtcq uc¡y. f cc.gov/¡:rll7968i I 2962832968/J 29638-12968.p.d1'#qavpancs=l).

7 Id.

I ACU 2012 Inirial Form 990, at 1.

, Id.,Paú IV, Question 3.

r0 Conlon and Associates, American Conservative Union. Finangial Stateqçnts and lndependent Auditor's Report

for the-Year Ended December_31. 2012, April 9, 2014 (attachcd as Exhibit B).

tt Id. at 6.
17. A month later, in M.ay 2014, ACU filed an amended 2012 tax return with thc

IRS.12 This tax rerurn acknowledged ACU engaged in political campaign activities in 2012, and

further disctosed ACU's $1.71 million contribution to Now or Never PAC.rr The funds for this

contribution, however, were not from ACU, According to ACU's amended tax return, ACU

acted as a conduit for a contribution earmarked to Now or Never PAC'¡4

18. IRS regulations permit tax-exempt organizations to accept political contributions

and "promptly and directly" transfer those funds to a separate segregated fund. 26 C.F-.R. $

L.521-6(e). The IRS instructions for reporting political contributions characterize such transfers

as occurring when a "section 501(c) organization collects politicalcontributions or member dues

earmarked for a separate segregated fund, and promptly and directly transfers them to that

fund."l5

19. ACU's tax retum designates its contribution to Now or Never PAC as this type of

transfer. As ACU explained, the "$1,710,000 was a political contribution received by the

Organization and promptly and directly delivered to a separate political organization."t6

Confirming the designation, in reporting the transfer, ACU filled out "0" in the column for the

"[a]mount paid from filing organization's funds," and put "1,710,000" in the column for

"[a]mount of political contributions received and promptly and directly delivered to a separate

pol itical organization." I 7

r2 ACU 2012 Amended Form 990, May 12,2014 (excerpts attachcd as Exhibit C).

t1 Id.,Part tV, Question 3 and Schedule C, Parl I-C, Line 5.

¡1Id., Schedule C, Part I-C, Line 5(d), (e) and Schedule O.

f s IRS, 2014 Instructions for Schedule C (Forn-r.990 or 990-EZ),aI3, ovailable al httg4¡qlgu.u:.guYau.lr¡-uli:

ps!]¡9!0sc.ndl.

16 ACU 2012 Amended Form 990, Schedule O.

17 /d., Schcdule C, Part I-C, Linc 5 (d), (e).
Z(\. Even though ACU was not the source of the transferred funds, Now or Never

PAC reported ACU as the contributor,'s ACU has not publicly identified the contributor who

provided the $1.71 million contribution it delivered to Now or Never PAC.

Çpu.nt I

Zl. The FECA and FEC regulations prohibit knowingly permitting one's name to be

usecl to effect a contribution in the name of another person and knowingly helping or assisting

any person in making a contribution in the name of another. 52 U.S.C. $ 30122; 11 C'F'R. $

110.4(b).

22. ACU admitted in its amended 2012tax return - filed under penalty of perjury -

that it received a $1.71 million political contribution earmarked for Now or Never PAC, then

promptly and directly delivered the contribution to the super PAC. ACU further reported that

none of the money transferred to Now or Never PAC came from ACU's funds. As a result, ACU

knowingly permitted its name to be used to effect the contribution and knowingly helped the

undisclosed donor make the contribution, in violation of 52 U.S.C. ç 30122 and 11 C.F.R. $

110.4(b).

23. Any person who knowingly and willingly violates any provision of the FECA

involving the making, receiving, or reporting of any contribution aggregating more than $25,000

in a calendar year is subject to up to five years in prison and fines. 52 U.S.C. $ 30109(dXl).

ACU only disclosed the contribution to Now or Never PAC after an independent audit of its

201,2 finances, and its amended 2012 tax return reported ACU simply acted as a conduit for a

contribution by an undisclosed donor. As a result, ACU's conduct was knowing and willful, and

t8 Now or Nevcr PAC, FEC Form 3X. 2012 Post-Election ReppI]!, Dccember 5,2012, avuilal¡le at

hLrÐ:iitkrcquc r.v,l'cc.gt¡v/Pcl(.i9l.iiì¡ I 29(i283296fì/ I l!)62832968,pt1Í.
thus subject to criminal penalties and referral to the Department of Justice. 52 U.S.C' $$

3010e(a)(5XC), (dX1).

Co.unt Il

2.4, The FECA and FEC regulations also prohibit knowingly acccpting a contribution

macle by one person in the name of another. 52 U.S.C. $ 30122; 11 C'F'R. $ 1 t0'4(b)'

25. If Now or Never PAC knowingly accepted a $1.71 million contribution f¡om

ACU made in the name of another, Now or Never PAC violated 52 U.S.C' $ 30122 and 11

C.F.R. 5 I10.4(b). If Now or Never PAC's violations were knowing and willful, they also are

subject to criminal penalties and referral to the Department of Justice. 52 U.S.C. $$

3010e(a)(5XC), (dX1).

Count Ill

26. The FECA and FEC regulations further prohibit making a contribution in the

name of another person. 52 U.S.C. $ 30122; 11 C.F.R. $ 110.4(b).

27. The Unknown Respondent provided to RCU the $1.71 million it in turn

transferred to Now or Never PAC. By making a contribution to Now or Never PAC in the name

of ACU, the Unknown Respondent violatsd 52 U.S.C. ç 30122 and 11 C.F.R' $ 1 10'4(b). If the

Unknown Respondent's violations were knowing and willful, they also are subject to criminal

penalties and referral to the Department of Justice. 52 U.S.C. $$ 30109(aX5XC), (dxl).

Conqlusion

WHEREFORE, Citizens for Responsibility and Ethics in Washington and Anne L.

Weismann request that the FEC conduct an investigation into these allegations, declare the

respondents to have violated the FECA and applicable FEC regulations, impose sanctions
appropriate to these violations and take such further action as may be appropriate, including

referring this case to the Department of Justice for criminal prosecution'

ON 

lw

BEHALF OF COMPLAINANTS

Anne L. Weismann

Interim Executive Director

Citizens for Responsibility and Ethics in

Washington

455 Massachusetts Ave., NW, Sixth Floor

Washington, D.C. 20001

(202) 408-5565 þhone)

(202) s88-s020 (fax)
Verificatjo.n

Citizens for Responsibility and Ethics in Washington and Anne L. Weismann hereby

verify that thc statements made in the attached Complaint are, upon information and belief, true.

Sworn pursuant to 18 U.S.C. $ 1001.

Anne L. Welsmann

Sworn to and subscribed before me thidzth day of February, 2014

Notary Publ tc

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EXHIBIT A
,"- 990

B C¡ì€ct rl aÞÞhcabt€'

fl eaot ". *t"rç"

f] ¡¡arne c¡,arrgu

I lnrtral rotum

ü Temrnated

D nmerøud rstu^

D npplcatmpondrng

Wobslt : >

K Fmof

Return of Or$anizatlon Exempt From lncome Tax

under sællon 5o1(c), 5ø7, or 49{7(a}(l) ot tho lntomsl Rovonue codo (orcept black lung

bonGfil tn¡81 or prlvatê foundûlon)

H(el h l¡.9 .gwp Ghm lq ¡fÛrtos?

Hfbl At€ all 8tltlÉtos rncludod?

oMB No t545-00,á7

2@12,

û

O Emplolrr lúnttfcttion ñumb.t

E Td8phoôa nsmb€r

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flvo E

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l,lo

cþpslmcnt of lho TfEUry

Flsvenæ S€ñtæ > The orgsnlzation hav€ to use a of tllls ¡elum to state repodrng requlremenls.

A

ll 'No," 8ttæ¡ a lßt (sg lnstuclrfrs)

numbs >

M Stâ16 dornrelo

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3

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5

6

7a

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4

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a)

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å

1 descnbe th€ organizatton's mission or most signilicant actrvitios: -r¡9-tIiE9j9$.9J-thg-grSe!Ûlglio-.r:-t:-I9-99-Sn9!"liç9-t9-.-

il the organrzatron discontinusd ¡ts operations or drsposed ol more lhan % ot its net assets.

Number of vot¡ng members of thø goveming body (Part Vl' line 1a) 

'

Number ol rndependent voting members of the goveming Þody (Part Vl' lino 1b)

Total number ol individuals employed in calendar yøar 2012 (Part V' kne 2a)

Tqtal numbor ot volunteers (estimate ¡l nec€ssary)

Total unrelated business r€venuo lrom Parl Vlll, column (C)' tine 12

unrelated buslness ê

3 32

11

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luô, corÌoct¡ ¡nd co.îplols

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EÞclrr8tlon ot Prepârs lolhet

lhrE ratum, mcludrn0 accom[ltnyílg tclr'dult¡ ¡nd Csttn€ntr, añd to tho b6t

thsn officêr, rs bas€d ori sll ntdmâùon of YttEh pl€påtlr tlâs ôny klou,lâalg€

ot my knowl€<fts and boftot, lt ls

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Open to Public

lnspeclion

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Roory'surlo Number and ¡trtal (or P Q Þ.x ll mårl ls nol dslrvoÉd to stro€t sddrcs)

1H

Crty, town or p6l ott¡cs, ¡lslg, and ZIP cod€

F l.¡ame and 8ddre33 ol pnnopal oftccr Al Csrdenss, Chairman

I no

Assocrtton L Yoâr ol frusl

4

5

6

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7b

Prlor Yo¡r

3.S¡11.S67

¡¡85.98¡¡

3l¡1.e03

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I

9

10

11

Contnbutlons and granls (Part Vllt, line

Program seryice revenue (Pari Vlll, line

lnvêstment incom€ (Part Vlll, column

Other revenue (Part Vlll, column (A),

12 Total rovenue-add hnos I through 1'l

525.061 d

3.70{,685

a.3!9.397

¡133.157

13

14

r5

16a

b

17

18

19

Grants and sirnllar amounls patd (Part

Benelrts paid to or for membêrs (Part

Professional fundrarslng leos (Part lX, column {A), line 1 1e)

Total lundraislng €xpenses (Part lX, column (D), llne 25) > -------.-----3{-EgI-3-

Other oxpenses (Parl lX, column (A), lines 1 1 a-1 1d' 111'24e)

Total expens€s. Add lines 13-17 {must equal Part lX, column (A), line 25)

o)

Revenue less ðxp€ns€s. Subtract line 18 from ltne 1 2

Salaries, other componsation, employe€

g.ghfl¡g ot Cttr.nl Y.rr

1.682.689

1.r04.178

578.5r 1

20 Tolal assets (Part X, llne 16)

21 Total liabilitlæ (Parl X, line 26) .

æ, Net assets or fund balsncas. $þ!Qç! lins 21 lrom line 20

Part I

Part ll

IPrepvø's tl ugnature

lØ-¿-at* PnrìVTypo proparer'g namo

Thómãs R. Conlon CPA //-/,/u/?

Frm's mma > Conlon & Assoc¡ates, LLC

Frñ'ß addrss > PO Box 5213. Silver Sor¡nq, MD 20916-ô213 Lpr

lyp€ or pnít-name and t¡tl8

Paid

Prcparer

Use Only

l{o

1^

\"

Fof Paperwork Reductlon Act Notlc€, see tha s.parate inotruc(lons' csr No 11282Y Fm orrrl0
Fom 99O (2012) s2-08L08L3 Paso 2

tæBl¡¡¡ Slatement of Program Serv¡ce

Check in this Part lll if Schedule O to

1 Briofly dêscnb€ the organizatron's

T DiO tfrã organizatian undertak€ any significant program serv¡ces during the yoar wh¡ch were not listed on the

prior Form 990 er 9S0-F2? tves ØHo

lf "Yes,' doscribe iheso new services on Schedule O.

Did the organlzation cease conductrng, or make significant changes in how lt conducts, any program

services? flyes E] No

lf 'Yes," describe thes€ changes on Schedule O,

Describe the grganizatlon's program servlce accomplishments for each ol ils three largest program services, as measured by

exponses. Sectiôn 501(c)(3) and 501(cX4) organizations are required to r€port the amount of grants and allocations to others,

the total expenses, and revenue, if any. lor each program service r€ported.

4s (Code: -_---,-_-.-__-.) (Expensos $ -..---__--1.9_!-4rl-90. ¡nclud¡ng grants

3

4

iî-q!-vi!t9gl9-etd-9-9tP9I-s-!19¡-€-t9fie!-d-l0s-p-o-1.!!iç9-l-1-s-s!-e9- end to educrte ¡ñd ç?Îte crecullves ¡nd lêdislst¡ve

on thê ñeêd lô åddress lhêsê lssues.

4b (Code: _-----_-_-_---.) (Expenses $...-.-.---.--_-.,---". including grants of $ ) (Revenue $ _____-_-_---_------..._- )

4c (Code:-_ _ -__---..)(Exponses$--__----------__._-,..includrnggrantsof $ ) (Revenuo $ _---_-_-_-__-_._-----_ )

{d Other program services (Descrrbe ln Schedule O.)

(Expenses $ ¡ncluding grants of $ ) {Revenue $ )

ee

Flm P012)
of

Ygs

1

2

3

4

5

6

7

I

I

10

1la

TT

1'tb

11c

11d

11e

11f

12Â

12b

13

14a

'l.llt

15

16

't7

18

19

204

20b

Part lV

Fom 990 (2O12) 52-sur0813 Pago 3

1

2

3

4

5

I

7

I

I

10

't1

ø

b

c

d

e

1

12a

b

ls the organization described in section 501(cX3) or 4947(aX1) (other than a private loundation)? ll'"rcs,'

complela Schedule A .

ls the organization requrred to complete Schedule B, Scñodule of Conlnbuloæ (see inslructions)?

D¡d the õrganizatron engage in dlrect or indirect political campaign activ¡ties on behalf of or ln oppositron to

candidates for public o¡lrce? tl "Yes," compløte Scäedu/e C' Pad I

Sectlon 5O1(cx3l orgsnl¡atlons. Did the organtzalìon ongage in lobbying aclivities, or have a section 501(h)

election ¡n eflect dunng the tax yea(l ll'Yes"'complete Schedule C, Pad il ,

ls the organrzatton a section 501(cX4),50f (cX5), or 501(cX6) organization that receives membersh¡p dues'

assessmenls, or similar amounts as detrned rn Fevenue Procedure 98-19? ,f "Yes," complete Schedule C,

Pa¡l lll .

Did the organization ma¡ntain any donor adv¡sed funds or any simllar funds or accounts for which dono¡s

have the ãght to provlde advice on the distr¡bution or investment ol amounts in such funds or accounts? ll

"Yas," complete Schadulo D, Part I

Did the organlzatlon recelve or hold a conseryalron easemenl, including easements to preserve oPen space'

the enviroñmonl, histor¡c land areas, or hislonc structurss? lt'\es," complefe Scñedule D, Pa¡1 ll

Did the organ¡zaìion mainta¡n collections of works of art, historical treasures, or other similar assels? ll "Yes,"

complete Scñedu/e D, Pad ill

Did the organization report an amount in Part X, l¡no 21 , 

for Êscrow or custod¡al account llabtlity; serv€ as a

custodian for amounts not hsted tn Part X; or provide credit counsellng, debt management, credlt repatr' or

debt negot¡alion services? tl'Yas," complete Schedule D, Pa¡l lV

Did the ergani2ation, d¡rectly gr through a related organrzallon, hold assets ¡n temporarily restricted

endowmentã, p€rmanont endowments, or quasi'endowments? ll oYes," complete $clÊdule D' Pad V

lf the organization's answer to any of the lollowing questlons is "Yes," then complete Schodule D' Parts Vl,

Vll, Vlll, lX, or X as applicablo.

Did the organtzalton report an amount lor land, buildings, and equlpment in Parl X, line 10? lf "Yes'"

complato Scåedule D, Pa¡lVl

Did the organlzat¡on report an amount for ¡nvestments-other securilies in Part X, line 12 that is 50u6 or more

ol ns total assets reported in Parl X, hne 16? ll "Yes," coñplete Schedule D, Patl Vil

Did the organtzation report an amount for lnvostments-progrtrm related ln Part X; line 13 that ¡s 59ó or more

of ils total assels reported in Part X, line 16? ll "Yes," complete Schedule D, Pad Wil .

Did the organ¡zqtion report an Âmount for other assets in Part X, line 15 that ls 5% or rnore of lts total assets

reported ln Part X, l¡no 16? ll "Yes,' complate Scñedu,e D, Pad lX

D¡cf the organization repoí an amount lor other liabilities in Part X, line 25? lt 'Yes,' complete Sclodule Ð, Part X

Dld lhe organzation's separate or consolidated linancial sta'temenls for the tax yeat include a footnole that addresses

the organliation's liability for uncertain lax posit¡ons under FIN 48 (ASC 740)? lf qYes,o complate Schedule D, Pañ X

Drd the organrzatton oblain separate, rndependent audrted frnanctal statomants lor lha tax yøa(l ll "Yas,'completø

Scåedu/e D, Pans Xl and Xll

Was the organr¿atron inctuded in consolidatod, independont audited financial statemonl$ fu the tax yøúl ,l'Yes,' and t{

the organizatton answe¡ed 'l'fo' lo line l2a, than completing Scl¡edu/e D, Pads Xl and Xil ts oPfional 

'

ls the organizat¡on a sÇhool described in section 1 70(bxl XAX¡¡)? lf "Yes," complete Schedule E

D¡d lhe ofganizat¡on maintain an office, employees, or agents outstde ol the Un¡tecf States?

Dld the organlzatlon have aggregate revenues or exp€nses of more than $10'000 frgm grantmaking,

fundratsing, buslness, investment, snd program service act¡viti€s outside the United States, or aggregat€

forergn investments valued at $1OO,O0O or qtore? ff 'Yes," conprete Sc¡,edu,o F, Parts I and lV,

Did the organrzat¡on repor.t on Part lX, column (A), line 3, more than $5,000 ol grants or assistanc,e. to any

organization or entity located or¡tsrde the United States? ll'Yes," completa Schedule F, Pa¡1s ll and lV ,

Did the organization report on Part lX, column (A), line 3, more than $5,000 ol aggregate grants or assistance

to individuals located outslde the Unitecf States? ll *Yes," c¡,mplete Schedule F, Parls lll and lV

Did the organlzat¡on roporl a total of moie than $15,000 of expenses for professional fundratsing services on

Part lX. column (A), lines 6 and '1 1e? ,f "yes, " complete Sct¡edule G, Patt I lsee tnstruct onsj

Did lhe organization report more lhan $15,000 lotal of lundrais¡ng event gross ¡ncome and contributions on

Part Vlll, lrnes 1c and 8a? ll "Yes,' complele Scñedule G, Part ll .

Did the organization report more than $15.000 of gross tncQme from gaming actlvlties on Part Vlll, line 9a?

ll "Yes,n complate Schodule G, Pad lll

D¡Cl the organizatlon operate one or more hospilal facilities? Il "Yes," complete Schedule H ,

t3

14a

b

15

1€

't7

18

19

20a

b lf "Yes" to a to this retum?

Fom (2012)
7,

EXHIBIT B

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{

AMERICAN CONSERVATIVE UNION, INC.

Fioancial Statemenas

Ard

Independent Auditor's RePott,

For The Yerr Ended December 3l'r Z0t2

Conlon ¡nd Associstes

Certified Public,{ccouuta¡ ts
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CONTENTS

TNDEPENDENT AUDITOR'S REPORT

Statement of Financial Position, as o[ December 3 t , 2012

Statement of Activities, Year Ended December 31,2012

Sta¡ement of Cash Flov,'s, Year Ended December 31, 2012

Statement of Functional Expenses, Yea¡ Ended Decembe r 3l ' 

2012

Notes to Financial Sntements

PAGE

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CONLON AND ASSOCIATES

CERTINÉP PU BU C ACCOUNTÁ,I\¡TS

INDEPENTIENT AUDITOR"S REPORT

The Board of Directors

American Conservative Union, fnc

Washington, D,C,

\#e have audited the accornpanying finamial statemenß of the American Cons¿rva¡ive UniorE

tnc. (Organization), r.r,hich comprise the stqtement of Frnanciat position as of Dccernber 31, 20 12, and the

related sutements of ac¡iviries, cash flows, a¡d functional espenses for theyear then ended, and ¡he

related notes fo the financial stslernents.

ñ f anagement's Respoosibility for the Fioancial Statemenls

lvtanagement is responsible for the preparation and fair presenution of theæ fìnancial sutcments

in accordance rvith U.S. gencralll' accepted açcounting principles; this includes the design,

implementrúcn, and mrintenance of inter¡al control relevant to the preparation and fair presentation of

ftnanc ial starements that are frce from material misstatement, wheürer due to fraud or error.

Aud itor's Responsibility

Our responsibilitv is to express an opinion on thesc fìnancial statemûns based on our audit. We

conducled our audit in accordance wittr U.S, generally accepted auditing srandards. Those standards

require rhat rvc plan and perform tlre audit to obtain reasonable assurance about wherher the f¡nancial

statemen¡s are free from material misstatement'

,{n audit involves pcrforming procedures to obtain audit evidence about tle amounts and

disclosures in the financial statemens. The procedurss selected dcpend on the auditor's judgment,

including the assessmen¡ of rhe risks of material misstatement olthe fìnancial statemenls, whether due to

fr¿ud orinor. In making those risk asscssments, ¡he auditor considen internal connol relevant to the

entiry's prcparation and fair presentation of the finnncial stafements in order to design audít procedurcs

thar are appropriate in the circumstances, buI not for the purPose of e.rpressing an opinion on the

effectiveness ot'the entitv's internal control. Accordingly, we express no such opinion, An audit also

includcs cvaluating the appropr¡ateness of accounring policies used ¡nd the reæonableness of signifìcant

accounting esdma¡es made by managemenq as rvell æ evaluating the overall presentaÌion o[t]¡e fìnancial

s¡¡rlçmenL5.

Vy'e believe rhar rhe audit evidcnce we have obt¡ined is suñicient and appropriate to providc a

basis for our audit opinion.

Opinion

In our opinion, the financìal stetemenß relerred lo sbove present fa'trly, in all material respectst

the frnancial position of the American Conservative Union, f nc. as of December3l, ?012, rnd the results

ifiaoperations anditscashflowsfortheyearlhenendcd,inaccordance rvithU,S.generallysccepred

accounting principles.

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AMERJCAN CONSERVATI\TE UNION, INC.

Statement of Financial Position

As of December 31, 201 ?

ASSETS

Cash and cæh equivalents

Prepaid expenses

Property and equipment (net of accumulated depreciation of S84,370)

Rent deposit

Other assets

TOTAT ASSETS

LIABTLITIES

Accounts pa¡rable

Due to American Conservative Union Foundation, Inc.

Revenue received in advance

Other liabilities

TOTAL LIABTLITIES

N'ET ASSETS

Un¡esnicted

Total nel assets

TOT.AL LIABILTTIES A,¡\D NET ASSETS

s 479,682

491,2 l8

135,696

26,396

-.?2.325

t.155.307

4l ,879

¡ 40,468

594,216

, ?t7.186

.e93.7!9

161.558

-L6l,¡J8

s r.r55.307

The No¡es to thc Financial S13temenr are cn Integral Pa¡r of Thes¿ Salements

j
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AMERJCAN CONSERVATI\.E UT{ION, INC.

Stare ment of Activities

For the Year Ended December 3l, 2012

REVENUES AND OTHER SI.'PPORT

Conributions

Conference fees

lvlember dues and sen'ices

Management fees

Other revenue

TOTAL REVENTJES AND OT}IER SUPPORT

EXPEI{SES

Program

Management and general

Fundraising

TOTAL EXPENSES

CHANCE IN ì\'ET ASSETS

NET ASSETS AT BEGrl\fNIÑ*G OF YEAR

NET ASSETS AT END OF YEAR

$ 8,413,603

1,599,378

71,900

t 64,828

37,414

10,277,123

8,612,669

n7 7n'J t --t-vtr359,205

10,694,076

(416.953)'

-,_ i"iE,i r r

$ r 6l .558

The Notes ro thc Finrncial sUtemenu art an Integnl P¡n olThc¡e st¡temenrs

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4 AMERICAN COIùSERVATIVE UNION, tNC

Sutement olCæh Flows

For the Year Endcd Dçccmber 3 l, 201?

CASH FLOWS FRO|VI OPER,TTI\G ACTTVTTTf,S

Change in net assets

Adjustme nts to rcconcile changc in net

assec to cash provided by operating activilies:

Depreciation

(lncrease) decrçese in operating assets:

Funds in esçro\r

Prepaid e.\penses

Increase (decrease) in operating liabilities:

Accounts payable and accrued expcnses

Due to American Conservative Union Foundation

Revenue rcceived in advance

Other liabili¡ies

Net Cash Used by Opcrating Activities

C.{SH FLOIVS F'ROM [\\rESTnlG ACTNTITIES

Payments for properly and equipment

Net Cash Uscd by lnvesting Activitics

NET Ctt,\NGE IN CASÍI

cAsH tut{D cAsH EQUTVALE|iTS AT BËGNNÍ¡iC OF yEAR

CASH tuTD CASH EQUTVALENTS AT E¡YD OF YEÀR

s (4 r6,953)

33,978

409,529

(25?,3 6ó)

(46,3 59)

t 04,994

(350,09?)

r8r 028

(33 6.241)

047.300)

( 147.300)

(483,54 t )

963.2?3

5 479,682

The No¡es to fhe Finar¡cial St¿tements arc an Integnl P¿n olThese Statemens

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AMERICAN CONSERVATIVE LNION, INC.

Statement of Functional Expenses

For the Yea¡ Ended Decemhr 31,2012

Program

ìWanagement

Expense Calegory Aod Ceueral Frrndraisiug Total

Advcnísing

Benefrts, employee

Com pensation, em ployee

Con5ultants, accounting

Consultants, direct mail

Consu ltants, professional fu ndraisi n g

Consultants, legal

Consultanus, lobbying

Consultants, other

Depreciation

Information technolog¡'

lnsurance

fnlc¡est

Meetings and conferences

Occupancy

Oñice

Political donations

Tares, payroll

Travel

To¡al

$ 30,000 s

ót,026

59d,653

3,366,;18l

54,600

179,831

4,304

19,423 S

7,203

70,16?

I 3,5 54

t05,681

3,650

33,978

46,035

¡ t,380

2,104

2?9,604

I 3,79 I

92,314

12,707

124,161

49,423

80,936

7E9, t 87

I 3,5 54

4,J72,056

t24,872

t05,88 t

54,600

2n,264

J3,978

50,139

I 1,i80

2,t04

2,540,947

r54,9i0

133,979

1,710,000

53,741

200,883

s

1,005,57i

124,872

27,583

24,327

2,261,347

1 tó,832

4 1,60 j

1,710,000

40,522

t5 1,466

4,793

I 7,879

8,418

3 1,5i8

$ E,612,ó69 s 72?.?A2 S 1,3 59,205 $ 10.694,076

The Notes to the Fin¡¡cial Statemcnts aæ an lnrcgnl Part of Thesc State¡nenn

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AùIERICAN CONSERVATIVE UNION, INC.

Notes To Financial Statements

As of and for the Yea¡ Ended December 31, 2012

NOTE I:

Organization

SU M IVIARY OF STGN TFI CANT ACCOIINTINC PO LI CIES

The American Conservative Union (Organization) rvæ incorporated as a non-stock, nonprofìl

corporation in the Commons'ealth of Virginia in 1964. ln 2006, the Organization incorporated in

the District of Columbia, under the Disuict of Columbia Nonprofìt Coçorarion Act.

The mission of the Organiz¿tion is to educate the public about current social, economic, and

political issues.

Signifìcant accounting policies are as follows:

Basis of Presentation

Financial sn¡emenr presentation follows the recommendations of the FASB ASC 958-205

Presenntion of Financial Statementsfor Not-for-Profit CIrganízatioru. Under FASB ASC 958-

205, the Organization is required to report information regarding its l¡nancial position and

activities according to ttuee ctasses of net assets: unrestricted net asseß, temporarily restricted

net assets, and permanently restricled net assets. The Organization did not have any temporarily

or pcrmanently restricted net assets at December 3 l, 2012.

Use of Esimates

The prepararion of fìnancial staremens in conformity wi¡h accounting principles generally

accepted in the United Sures of America requires manâgement to make es¡imates and

assumprions that affecr: (l) rhe reponed amounts of æsets and liabilities and discloswe of

conringent assers and liabiliries at the date of the financial statements;and (2) the reported

arnounts of rcvenues and expenscs during the reporting period. Acrual results could differ from

those estimates.

Incorne T¿res

The Organizatíon is exempt from federal income taxes under xcúon 501 (a) of the Internal

Revenue Code, æ an organization described in section 501(c)(4).

The Organization's income lax ¡erurns are subject to revierv and examination by federal a¡d state

authoriries. The Organízation is not a\yare of any activities that u'ould jeopardize its tax-cxempt

süarus. The Organization ís not a\\'are of any act¡v¡ties that a¡e subject to t&\ on un¡elated

business income.

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AT\ÍERICAN CONSERVATI\€ UNION, INC.

No¡es To Financial Statemenls

As o f and for the Yea¡ Ended December 3 I , 20 I 2

NOTE l; SUñtMARY OF SICNIFICANT ACCOUNTING POLICIES' CONTINUED

Revenue Recognition

Conuiburions are recognized rvhen the donor makes a promise to give to the Organization that is,

in substance, unconditional. Contributions a¡e considered to be available for un¡estricted use

unless specilìcally restricred by tie donor. Support ¡hat is rest¡icted b1' the donor is reponcd as

an increase in temporaril¡- restrícred net astets, depending on Úle nature of the restriction and

rvhen the restrictions a¡e rnet. When a restriction expires (that is, when a stipulated time

resrriction ends or the purpose of the restriction is accomplished), temporarily restricted net

ass€ts are reclassified to urirestficted net assets in the Statement of Activities. Revenue received

wirh remporar)' resrrictions rha¡ are met in the same reporting period is reported as uruestricted

suppon, and increases unrestricted net assets.

Otlrer t-vpes of revenue, such as conference fees, rnemberships, and management fces are

recognized when earned,

Functional Classi hcatíon of Expenses

The Organizarion allocares its expenses on a functional basis among prog¡arn, and management

and geniral, and ñ.rndraising, according to their natural expendirure classiltcation.

Related Part-v Transactions

The Organization is under corn¡non cont¡ol rvith the American Consen'a¡ive Union Foundation,

lnc. (Fo-undation). The Foundarion is organized exclusively for cha¡itable, religious, education'

and/or scientific þutpor.s under Section 501(cXl) of the Internal Revenue Code' A majorir,v of

the rotal numbe r of voting directors of the Foundation shall al all times be cunent or formçr

yoring membe rs of the Bòud of Directon of the Aa¡erican Consen'ative Union, lnc. There is no

frnanõial inrerest betryeen the Organization and the Foundation. Horvever, the Organization

received managernenr lees of s164,828 from the Foundation in 2012.

Cash and Cash Equivalents

The Organization considen a.lt invest¡s¡ts u'ith an original maturiqv of ¡tuee months or less to

be cash equivalents.

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Al\,r ERICAN CONSERVATIVE LJNION, INC.

Nofes To Financial Statements

As of and for ¡he Yea¡ Ended December 31,2012

NOTE 2: PROPERTI'Á'¡\D EQUIPMENT

Cost incurred to purchase office equipment and furnishings are capitalized and deprcciatcd over

the estimated useful life, on a straight-line basis.

NOTE 3: DUE TO AMERICAN CONSERVATM UNION FOUNDATION, INC.

The Organization. at Dece mber i I , 2012 ou'ed S 140,468 to the American Conserva¡ive Union

Foundation, a rclated panl'.

NOTE {: RE\rENUE RECEIVED Iìt{ ADVANCE

The revenue was receil'ed in advance for a conflerence held in 2013

NOTE 5: .ADVERTISINC COSTS

The Organizarion incu¡s advenising cos¡s in order (o advocate for its mission, Advertising costs,

which totaled 549,423. a¡e classifìed $30,000 as program costs. Other non-progra¡n related

advenising cofs of S 19,423 a¡e classified as management and general costs. All advertising

costs are e.rpensed in the y-ear incuned.

NOTE 6; JOI¡\íT COSTS R-ELATIn*G TO PROGR¡{IU l{l\*D FITNDRAISING

The Organizarion conducts direct mailcampaigns that a¡e panly a fundraising fi,rnction and

partly provide prog¡arn education. The coss of 54,3?2,056 æsociated ç'ith direct mail

processing, printing, and posuge, are allocated 33,366,483 lo program and $1,005,571 to

fundraising costs, based on the facts and circu¡n$ances of each mailing,

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AJ\.TERICAN CONSERVATIVE UNION, INC.

Notes To Financial Statements

As of and for the Year Ended December 31,2012

NQTE 7: OPERATTNG LEASE

The Organization is party, as renant, to a lease comrnencing Decernber 15, 201 l, for a period of

fìve years. '[he esrimated furure lease payments for the next five years, which a¡e bæed on an

average an¡ual increase of lou¡ p€rcenl per yeart are as follows. Fifty percent ofthe first seven

months oflbase rent shall be abated,

Leæe Year

I

2

3

4

$ t64,708

t7 t.297

178,t49

185,275

Aggregare S €99J2?

NOTE 8: SUBSEQUEIYT EVENTS

In preparing these financial sutements, the Organization has evalua¡ed events and transactions

for potential recognition or disclosure througJr April 9, 20t4, the date the frnancial sratements

rvere availablc to be issued.

NOTE 9: REPORT RELE.{SE DATE

ñlanagemenr has perforrned its final revierv of the financial sutements through April9,20l4, the

date the finar¡ciai statements rvere available to be issued'

t0
EXHIBIT C
,-. göil oMB No. r5'15"0047

Return of Organizatlon Exempt From lncome Tax

Under sect¡on sof(cf, 527, or {$a7{a}(rf of the ¡ntomal Rovcnue Codo (excepl black lung

ben€Ír ttu6r or prtvle loundalionl

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Briefly descnbe lhe organrzation's m¡ssion or rìost slgnlt¡cant acl¡vilres: Ib:_Ei:¡-LqA.gf-l¡?-9,ISÊ4'¡-?!l9I1n_t-S-çg[Ítgn'"elg--

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12

Frogram servrce revenue (Part Vlll, l¡ne 29)

lnvostmsnt lncome (Pa¡t Vlll, column (A), lines 3, 4, and 7d)

Olher revenue (Part Vlll, columñ (A), l¡nes 5, 6d, 8c, 9c, 10c. and I I e)

Totâl revenue-add hnes I through 11 (must egual Psrt Vlll. column þ), llne 12)

Conrnbuïons and grsnts (Part Vlll, ln€ t h)

525-O6¡!

¡1.33939t

¡t33.15t

13

14

15

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b

17

18

19

Grants and grmrlar amounts pad (Pari lX, column {A}, l¡nes 1-3) .

Ber¡efits pald lo or for members (Part lX, column (A), llne a)

Salanss, orhgr cornp€nsstþn, €mpþyeo Þ€nefits (Part lX, column þ). lrnes S'10)

Professlonal fundrarslng foes (Part lX, column (A), fine 1 1e)

Total lundrarsrng exp€nsos (Paf lX, column (D). line 25) > 

--_----__..-!13.9-9r_2_9_5-

Other experises (Parl lX, çolumn (Al, Ùn€s 1 1a-l t cl, 1 1f-24e)

Total exp€ns€s. Actd l¡nes 13-1 7 (musl equãl Part lX, column (A), line 25)

Revenue less exp€nses. Subtracl line 18 lrom line 12

l.lnruñg ql Cun.rt Y.ü

t.6¡2-3¡S

I _!fta.178

578.51 t

4 Total assets (Part X, ftne l6)

21 Total lrabllrtres (Part X, lrne 26} .

zz Nel asssls or fund balanc¡o. Subbqcl line 21 from lne 20

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Check thrs box ) [ rf the organrzatlon

Number ol votrng members of the govemtng

Number ol rndependent volrng membels ol lha

Tolal number ol rndrvrduals employed rn

Total number of volunteoß (€slrmâte I

Total unr€lated busrness revenue from Part Vlll,

Nst unrohled busrness from

than assels.

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BT q
Fqmesoeor2) 52-0810813 2

Statement of m

Check ¡f Sched conlalns a tn this il

d€scnbe the organlzallon's mlsslon:

i Drd the organizaton undertake any signrllcant program servlces dunng the year which we¡e not l¡sl€d on lhe

prlor Form 990 or 990-EZ? DYes Øtto

lf uYes," descr¡be these new servlces on Schedule O

Dtd ths organlzation cease conduclrng, or make signiftcant changes in how it conducls, any program

servrces?. Úves ElHo

lf "Yes," descríbe lhese changes on Schedule O.

Descnbe lhe organÞat¡on's prograrn sorv¡ce accomplshments lor each of ¡ls three largesl program services, as measured by

exp€ns8s. Sect¡on Soi(cX3) ãn¿ SOI(c)(C) organizatrons are requ¡red to r€porl lhe amount of grants and allocalions to olh8rs,

the total expenses, and r6venue, ll any, lor each program service repoded.

¡ta (Code : 

-- _ _ _. -_-- _-- - ) (Expenses $ _-_.____-s*-3_s_!rL?? rncludrng granls of $ _--_-. ) (Revenue S 

-..---..._-..._-_..--...

3

4

The orqant:sr¡on commun¡c¡red to ¡nd educated thç-p-'lþ-tj-c--qÞ-s-u-!-c-rjlf-e-Lt-5-99-¡!-l¡--e-c.g¡g.t3iç,-q8gI9l'.!-c.?l issues bY orovidino

4b (Code:---_-.--_.---_ )

(Expenses $ -...___--?.2-q!.-3J? lncludrng granls of $ 

-.-- ) (Rev€nue $ ._--.._--.----------._. )

!9-s-9-9t-g-!g-t9.#.y-ç9!9-f.e-{gri!.:!Ld-tl!-!e.?.199-'J!ry-e-:.-srg-l9sl¡!9-tjvi bodies on tÌÉ neecl to lhêsê lssues

4d Other program seryrces (Descnbe tn Schedule O.)

$ of$ $

Fom P0r2)
Yõ

1

2

3

4

5

G

7

I

I

I

11a

l0

T

r1b

lfc

1td

11e

'tff

12a

1ù

13

1/þ

't4b

l5

f6

17

t8

t9

ã)a

ã)b

Part lV

1

2

J

4

5

6

I

I

o

q?-08108r3

Fûm 990 (2U12)

11

ls the organization described ln seclion 501(cxg) or 4947(a)(1) (ott€r than a pnvate foundation)? ll qfts,"

complete ScñeduleÁ .

ls the organrzat¡on requrred to complete Sclndule B, Schedule of Contribtttots (see instruclions)?

Dtd the ðrganizatron engage in dued or tnd¡recl politrcal cåmpargn acliv¡ties on b€half of or ln opposlllon lo

candidates lor public otfice? ll Ies," co'If,tetø SctÊdule C, Patt I

Section 501(cx3l organÞst¡ons. Did the organrzalton engage ¡n lobbyrng actrvrlres, or have a seclion 501(h)

eleclion ln effect during the lu yeal? ll "Yes,' complate Schedule C' Pad ll .

ls the organtzatlon a sect¡on 501(çX4), 501(c)(5), or 501(cX6) organizal¡on thal receives membershrp dues,

assessments, or stmilar arnounts as defined rn Revenue Procedure 98-19? ll "Yes," complate Scñedule C,

Pa^ lll .

Dld the orgarìtzAlton m6intatn any donor advlsed lunds or any sim¡lar funds or accounts for which donors

have the rlght lo provido adv¡ca on the dlslribution or tnvestment of amounts in such funds or accounls? //

"Yes," coñplete Scñsduls O, Pad I

D¡d the organizatÌon receNe or hold a conservation easement, rncluding easemerds to pr€s€rva open spac€,

the envifonment, h6lsrc land areas, or historic slructur€s? ll -Yas,'complete Schedule D, Pa¡l ll

Drd lhe organlzalion malntaln collectiorìs of works of arl, h¡stoncal treasures, or olher s¡milar assets? rl'yes,'

c'omplete Schedsle 0, Pafl lt¡

D¡d the organuåtton reporlpn amount ¡n Pa'l X, line 21, for escrow orcuslodtal accounl llab¡lrty; s€rve as a

cuslodtsn for amounls not irsled tn Part x; or provide crodrl counseling, debt management, credit repair, or

debt negotiation seNtc€s? ll 'Yes,' complele Scfiedurg t, P8I1 tV

Dld lhe organization, dtrectry or lhrough a related organrzalion, hold assels tn tempora¡¡ly restricled

endowmenls. pormanenl endowments, or quas¡-endowment's? lf nles,'complete Schedule D, Pañ V

ll the organsation's answer to any of the follo,r,ring quelbns rs "Yes," then complete Schedule D, Parts Vl,

Vll, Vlll. lX, or X as appÎcabfe.

Did the organ¡zalion reporl an amount lor lsnd, burldrngs, and equrpment in Part X, line l0? ll "Yes,'

complele Schedsle D, PadVl

Þld lho organrzatlon report an amount lor lnveslmenls-olher secur¡ties in Part x' l¡ne 12 lhat ls 5% or more

of ils total assets repoled in Pa¡t X, hne 16? f "Yes,' ctnplotø Schedute D, Parl Vll

Ord lhe organlzatlon teport an amount for investments-ptogram r€lated In Part X, llne 13 that ls 596 or more

of rts tolal assets neported rn Part X, llne 16? ¡l'Yes," complele $chedule o, Paft Vill .

Dtd the organlzallon report an amounl lor other sss€ts in Part X, frne 15 lhal rs 5% or morE of tts total assels

reported rn Part X, tne 16? lf "Yes,'cornpþf€ Schsdu/e O, Patl lX

Drd the organuatron report an amount lor other ftahlhres rn Part X. lirÊ 25? ll "Yes,' cenqete *hodule D, Part X

Drd ttw oçanrzatþn's separÌll€ or consohdated finsnclaj stãtem€¡ts for lhe tax yeât rnclude a foolnote lhat addresses

lho organrzallon's lÉbllrty for urrÆds¡n tax pos{$oßs urider FIN 48 (ASC 740P ,f 'yss,'comprere Sclpdule O, Pa,l X

Drd the organuahon oblaln s€parste, rndep€ndoil audrted financtal slstemenls fo. th€ lax yea/l lf'Yes,^ complete

Scàedu/e Q Pans t4 aN Xil

Was th€ organø,at¡m lncluded tß consdrdated, lrdoperulont qùdited financ¡a¡ stalsnor¡ts for tho tax y€af,l lí 'Yss,' and I

lhe oryanawn Øswetú 'No' to hna l2a tlþn wnflhtittg Sùadule D, fuils )0 and Xls oplroaa/ .

ls ths organlzaùon a school descnbed ln secüon 170(bXlXl\X¡¡)? ll 'Yes,' cc,mplete Schúula E

Dd the organizatron ma¡rdain an gf{rce, smplcryçæ, q agents orlside of the Unlted Stateô?

Dd lhe organlråtton have aggægate revenues or €xp€nses of more thsn $'10,000 from gøntmaking,

fundraising. bustness, investmenl, and prwram s€rv¡ce sclivilies oúslde the Unlted Stales, or aggregate

forergn investrr¡snts vsfued al $1ffi.000 oÍ íøre? îl 'Yes,' complele Scñedule F, Pa¡ls I ancl lV.

Di¡J lhs organlzåtton reporl on Part lX. column (A), line 3, more than $5,000 of gr8nls or ass¡slance lo any

organrzalron or entrry focated outslde the unllsd slates? ,/ "Yes," çþñplele scl¡edule F, Pais ll and lV .

Did the orqanlzatÍon report on Part lX, column ( 1, line 3, mo¡e than $5,000 of aggregate granls or assistanco

lo rndrv¡duals located outsde the Unrted $tates? lf Yes,'complete Schedulo F, Püls ill aN lv

Drd lhe organrzatron reporl a total of more lhan $15,000 of expensæ for professronaf fundrastng s€rvtces on

Part X, column (4, lines 6 sncf 11e? ff "Yes," cnmplete SÊhedulø G, ftrt / lse€ ¡nstrucíonsj

Drd the organ'tzation report more than $15,000 total òf funcfrsrsîng event grass rrìcome and contributrorìs on

Par1 Ull, lines 1 c and k? il "Yes,' complete Sc,hedula G, Pa¡t ll .

Drd the organizat¡on fepol rnore than S15.00O ol grpss income ffom gaming actvrtres on Pa¡t Vlll, tine 9a?

ll'Yes,' complelp Scl¡odu/e G, Pan l[

D¡d th€ organlzatron op€rale ong or more hæprtal fac¡lttles? ll 'Yes.' complete Schedu/e H .

raso 3

r0

a

b

G

d

e

t

12a

b

13

14a

b

15.

l6

17

18

fg

20a

b tf a of audited financial statements to this

Fam Pqr?)
romseot2o'12) 52-0810813

not on

8b, 9ö, and lûb ol Parl Vlll.

Grants olhe¡ t0 governmcìts

organrzåtrorls m lhe Uruted Stãl€s. See Pa't fV, ttne 21

2 Grants and olher assistance to lndv¡duals in

lh€ Unrred Stales, See Parl lV, llne 22

3 G¡ants and olher assrstance lo governments,

orgånøat¡orìs, and lndrv¡duals ouls¡do th€

Unrled Stat€s. See Part lV. lnss 15 atìd 16 .

Benel¡ts paid ls or for memþers

Compensalron of cun€nl oflìcers, dtrectors'

trustees, and key emFloyêes

Compensatún not ¡ncluded above, to dlsquatufiod

persons (as defined under secnon 4958(f)(I)) and

p€rsons doscnbed rn sectron ¡958{cX3)Ð

Other salaries and wages

Pen$on plan accruats and crntnbutlons (lnclude

secl¡on 401{k} and 4B(b) employet coritnbut¡ons)

Other employee benefìÎs .

Payroll taxes

Fees f or servrces (non-employees).

Management

Legal

Accounllng

Lobbyrng

Profess¡or¡el fundra¡srng sennces. Sae Pa¡t N, ltrc l7

lnvestmenl management f€es

pûrcr. (lf lne I lg anounl e¡cæds 1096 ol tne 25, column

(Al srnount, tsr tn€ t lg expúrE€s on Såedde 0.)

Aclverl¡s¡ng and promotron

Otfice expenses

tnf ormatron lechnology

Royaltles

Occupancy

Travel

Paymenls of travel or enlelatnment expenses

for any f€doral, stat€. ot locat publrc oflicsls

Conferences, convenlions, and meeÌings

lnterest

Payments to affikales

Dep¡eclalþn, depletion, qnd aÌnortizatlon

lnsuranc€ . .

Othe¡ oxpenses. llemhe expenses not covered

above (Lrsl m¡scellaneous e¡pensss ln lino 24e. ll

lrne 24e amounl axoesds 109{ of l¡ne 25, coluttut

(4 aûìounl, l$t hn€ 24e expenses on Scf¡edule O.l

{

5

6

I

I

I

10

11

6

b

c

d

e

I

s

12

13

1{

15

16

17

1S

19

20

21

2,

23

24

a

b

c

d

e

Pollticrl

Oirect rnell

All other exp€rrsæ

25 Totaf functional

26 c09ls.

organizatron roÞoned rn column

frgrn a cambned educalpnal

F) costs

and

il

otganEattons

contatns a to

(cJ

tlatågo¡nãfl ürd

.ffdæña¡

(Bl

Progrm*mæ e¡9ôßË

(¡

folal e¡gensas

2r5,0æ t 61.250 a2.25ô

5t4,181 {33.¡103 38.1'17

80.935 61,026 7.203

53.?¡3 10.522 1.783

105.881 o 105¡81

o f 3.55¡t t3.55¡t

5¡1,6iæ 5¿l,GOo 0

12a.A7Z

211,261 1?9.83t ¡,850

19,423 3o.(xb 19.¡123

133,979 {1,605 92.37a

s0.339 ¡¡.30t ¿6.O35

r5{.950 I 16.832 13,791

z(X)¡83 lgt.a6,6 r?,8?9

2.5¡¡0.91t 2,?61.U7 279.6ü¡

2.1t1 0 2.1O¿l

33.978 0 33.978

t1.380 0 rt.3&)

t,?10,m0 r-t10.odl 0

a.3r2.o56 l_366-¡At 0

10.634.Ot6 R G't2 ßßq 77?-?O2

a.372.056 3.366.483

Page 1O

3

hte

tornt

Fdm Fol2)
SCHEDULE C

(Form 9$ or 990-El

oeprrllgl ol tha frcasury hlm¡rR.truSãvæ

Political Campaign and Lobbying Activities

For Organl¡ãtlons É(etnpt Fþm lncome fax Undor gectlon 50{c) snd soctlon 527

> complete I the orsanizalio^ ,1.å1;i3åjril",î;> Attach to Form eeo or Fonñ eflo'Ez'

OMA No. l5¡HO¿7

2@12

ll tfie organizatíon answercd sYcs"'to Forr¡ 09O' Parl fV, ftne 3, or Form ÍX)GE, Part V, lin€ 46 (Politicol Crmpargn Activlt¡esl' then

. Sect¡oñ 501(oX3) organtzauons' Coî¡plele P6fts l-A and ã Oo not oomplet€ Fe'Î l{

. Seotþn 501(c) (other lllan iêc,tton 50r(c)f3)) organi¿át¡ons' Comdde Parts l.A end C b€low. Cro nol c¡mPlote Pârl l'8.

. Sechon 52? orga¡|zåtons' Complele Part l-A only

lt the oÌganlráfon answersd 'Yos,'to Form 9!lO, Parl N, llne 4, or Form 9{Xt EZ Parl Vl, l¡ne a7 Gobbúng Ac{vhles}, t}æn

. Secrron SO1(c)(3) orgsnlzâtrons that have f¡lod Form 5768 (elecllon under seçton 501O)f Comptete Pan !l-A Do nol comdete Part ll-B

. S€ctton 501{c)(3} o¡gamz¿l¡oas rhat hrve NOT t¡ted Fom 5768 (electon under s¿ctlon sol(h)). Complete Pstt ll-B' oo nol comp¡ete Patl ll'4.

í t'|e organlztt'ron answered ,¡les,. to Form 890, Parl lV, lino 5 {Proxy Text or Form 90GÊ2. Parl V, line 35c (Prox)Í Tax}' Îfien

or Pari lll

Pmvide a ol the organizat¡on's and ¡ndirecl campargn aclivili€s in Pa¡t lV. f

2

3

1,?10,æ0 Politrcal exp€ndrlures

Vofunteer hours .

0

lnspection

Parr l-A un

Part l-B section 50f

1

2

3

4a

b

Enter lho amount af any excts€ lax tncu¡red lhe organrzatþn undsr seclton 4955

Enler the amounl of any oxctsô lax tncured by organlzatlon fnanagors under SeChOn 4955

ll lhe organrzatlon incuned a section 4955 14,\, dld tl f rle Form 4720 for thls yearT

Was I correct¡on made?

U

l

LINo

!Ho

Yes

Yes

Parl l-C section 501

2 Enter lhe amount ol the f¡l¡ng organtzatton's funds cqnlnbuted to olher organ¡zations for seclion

5?Texemptlunctronactivrlies . . > $ r.?to,o0o

3 Total exempl lunction expendrlures. Add l¡nes 1 and 2 Enter hero and on Form 1120-POL,

It ¡n Pa'l lV

1 Enter by organizalron lor seoton 527 exempl

actYrtres >5

line 17b >$ 7r0.000

4 Drd the filrng organrzålron f¡le Form 11æ-POL lor lhrs year? ' . I Ves Ø Ho

5 Ent€r the names, addr€ss€s and employer denttficaton numÞer (ElN) of all seclron 527 pofttrcal organtzahons to whch the liltng

of gan¡¿alron made payments. For each organrzaton ltsted, enter thq añount pard hom lhe ñhng organrzalion's funds. AIso enter

tho amounl of pohtrcal cofltñbtrttons receivsd thal wçro promptly añd dlreclly doÍrvered to a sepüal€ pohtfcal organtzallon. such

as ô separate sogregated fund o¡ a pohtrcsJ acllon c,ommûtee (PAC) il addilional space rs needed, rnlormatþn rn Parl lV,

{¡} N¡.m Irl ÂnÞrr¡t oa pol'ù€l

ol¡tnÞitl¡s rñr6d urd

prompl¡y

dddGó

sndúlcüy

þ I iapa¡ato

pol¡tal ooâr!¿¡ls ll

m.ðlr 'O.

t,

(1)

(2)

l3)

(4)

(51

(61

For Pap.rrort Beduçl¡on Açl Nol¡co, rsc the ln¡tn¡ctions lor Fon¡ Sl0 o¡ gllû'EL Cat No 5dl81s S€fi.'ddr C {Fom E90 d æSAl 20le

lc) EIN (d')A¡rcql F'd noñ

filhg rgsñE't&'s

funds Í rìqnG, cntu +

(b¡¡ddË

¿S¡5421¡18 o

l_r-il.-r-r.!{¡¡.1-Þcfg-gij-e.s-q!!ç j-qg__.

l(¡nss Clrv- MO 641t5
scJì.duroc(Fqm9eod9e0-Ez)aolz 52-0810813 

. , r::!r! 'Pqc2

trää

A Check Þ

I Check Þ

olal

section 5Ot

he to an group tn

namg, ElN, expenses, and share of excess lobbYtng expenditures).

¡f the box A

on

term "expendlturesn means amounts pald or lncurred.t

expendilures prrblrc oprnion (grass rools lobbyng)

a legislative body (drect lobb¡nng) Tolal lobbying expendttures lQ influence

n

ed group

4720

þl^Jrd'arñ

ororp lord!

flYes INo

fa

b

c

d

e

T

Tolal lobbyrng expendrtures (Êctd l¡nes 1a and 1b)

Other exempt purpcse exp€nd¡turâs

Total oxempt purpose exp€ndltures (adcl ltnes 1c and ld) .

Lobbyrng nontaxable amounl. Enler the amount ffom the following labfe in bolh

columns.

s

h

¡

I

Grassroots nontaxable amount (enter 25% of line 10

Subtract hng 1 g fram lrne 1 e. lf zero or less, enler -0-

Subtracì lrne 1l from l¡ne lc. ll zero or fess, enler -0'

,f fhere ls an a¡Tþunt other than zeþ on €llher llne lh ot line 1r. drd the organlzallon I

reporung seclron 491 1 tax lor this yeâr?

(ð) F¡lng

ðrganr¡rt¡oñ's lotaiS

Tlro lobbvrns nontarable amot¡rl is: ll lh€ amount on l¡nÊ 1c, column (a) or (b) ls:

Nôt ov€r S500.0OO 20% ol lh€ amounl on l¡no 1e

Over S100.000 olus 1591 of the exc€ss over S500,000 $500.000 but rþl over $1O00,m0

Over $'t ?5.000 olus 109{ ot lh€ excoss oìr'er S1,000,000. S1 ,000,000 but nol over 51,500,000

Ov€r 596 of lhs ercess $1,5ft,,000 bLí riðt ov€r S17,O00,00O

Over tl 7.00O.000 s1

4-Y€arAveraglng Period Under Section 50lfhl

($ome organizsf¡ons that mÐde a sect¡on 501(h) electlon do not have to complete all of the five

columns below. See the lnsbuctions for lines ?a through ?f on page 4'l

4-Year Period

Calendar ysôr (or lrscal YeBr

þegrnnrm rn)

2a Lobbyrng nonlaxable âmount

cerl¡ng amounl

50026 ol lrne 2a, column

c Iotal aobbying exp€ndrlur€s

d Grassroots nontÐ(abl€ amgunt

e

50% ol lrne 2d, column (Ð

f GrassroolslobÞyrnggxpond¡tu¡es

lelTolal

Sct¡.dulo C fFoñr S90 d 9e0-Q 2012

(al 2009 (bl 201 0 (cl ¿0f 1 {d} 2012
Ysg

1

2

3

Part

Parl ll-B

(ã

Ycs l{o

I

I

I

I

Part lll-A

1

Sç¡edvbc lFòme€oorosOEA2012 5 2 - 0 I I 0 B I 3

org under and

under ssct¡on 501

For each "Yes," ¡esponse fo l,n€s la through li below, prowde n Pad M a detailed

descnption ol the lobbyng activtty.

Dunng the yeat, did

legislatron, includrng

the ûl¡ng organtzåtton attempt to influence loreign, natronal, stâle or ¡ocal

any attempl to rnflu€nce puÞllc opinion on a legtslallve matter ol

relerendum, lhrough the use ol:

Volunteers?

pa¡d stafl or management $nclucte compensatron in erp€rses reporled on lrnes 1c through lil?

Medlà advertis€ments?

Marlrng5 to members, legtslators, or the public?

Pubtications, or p{.rblished or broadcasl s1ålements?

Granls lo othet orgânrzattons for loÞþylng purpoces?

Dlrecl contacl wrth leg6lators, the¡r statts, ggwmment offtq¡als' or a legislåtrve body?

Rallies, demonStratiqßs, sem¡nars, cqnvenlions, sp€eches, lectures, or any similar means? .

Othe¡ actMties?

Total. Add lrnes 1c through 1t

Dtd the act¡vlties in fine 1 cause lhe ofgantzalion to be not described in seclron 501(Cl(g)?

lf "Yes," ênÎ€r lhê amount ol any tax incurred under 66çtlon 49¡2

It'Yes,'enler the amount of âny lax incur¡ed by organrzalton manag€rs under sectlon 4912

lf tho rncuned a seclK,n 4912 ta(, dtd n fle Form 4720 lor thts yea/l

tha exempt under

501

Were substantrally all (9096 or moæ) dues receryÊd noncleducllblg by members?

Did

oid

tho organization måk€ onty ¡n-house lobbying exp€ndrtures ot $2,000 or less?

to ov6r lrom

Complete if the organ iz¿tion is erempt under sêction 5O1 section 501

5ol(cX6l and if either (a)

ãnswered tYes,tt

BOTH Part lll-A' lanes I and 2, are answered "Nor'l

Dues, assæsments and amounts rnembers

Seclron 162(e) nondeducttue lobþylng and politrcal expendtlures (do nol lnclude amounts of

potitlcal erp€nses lor rvftlch the scstion 527(fl t¡x was pald).

Curranl year

b Carryowr ftom last l¡ea¡

Total

Aggregate amount reported tn sect¡on 60ii3(eXlXA) notrcss of nondeductrble sectron 162(e) dues .

It notlces wer€ senl And lhe amount on line 2c sxcg€ds the amounl on line 3' whal portron ol the

excoss does ll,ls organt¿atlon agro€ lo çarryover to rhe roasonable estrmate of nondEducllble lobbylng

and politrcal expendrlu¡e nexl yæ17

3

Form

Amodnt

or

(c)(5), or section

OR (bl Part lll'A, line 3, is

a

b

c

cl

o

f

s

h

I

i

2a

b

c

ó

1

2

3

1

2

a

c

3

4

5 Taxable amount ol and expendilures instruc'ttons)

the l-4, hne

l¡st): Parl ll-4, line 2; and Parl ll-8. hns 1. Also. complete this part lo¡ any additpnal rnformatlon,

5; Part gforJp

l¡-l-L4.-utg-l-if-gtg-çIYggg-99-t-9-!3glÌ99-QIe¡n|2.?9-9J]-fE.S-99-ti9-r-¡-!-?L9-19-'!P-t-f-u¡$i-o-ç-9-ç!¡d!¡-e-9.-

f

2a

2b

2c

3

4

5

Part lV

Scì.dub ç Coñ 900 or CxF€4 1012
SCHEOULEO 

(Form 990 or 990-EZ) Supplemental Information to Form 990 or 990-EZ 

OM8 No 15<111'-<>047 

�@12 

Depanmoni or 1,.., Troesllf) 

fn!ornol Revtnuo Savic< 

Nam• or cr>e organaell()(l 

Amerlc.;,n Conserva1111e Union, Inc 

Complolo to provide Information for responses to specific questions on 

form 890 or 990-EZ or lo proV<de any ad ditional lnfonnaUon. 

"' Attach to fonn 990 or 990-EZ. 

Emp!oyct idenllfrcation number 

52,0810813 

Form 990. Pa.9e 1. Box.8:The Form 990 has been amended, to incor:porate audit ol_the Cinancial statements .• Schedule�.c. G,_R added. _____ .••.

. 

Form 990 P11r1 VU Hst_ol olficers,_dlrl!'c:tors, and ke_y em_p)o_yee has been U,!!dated. Schedule B list ol donors_has been_l;I.P(fated. Schel1ule J ·-·-·· 

has been updaled _Schedule O has be<in rev1se<l'_to clanl1 ex.Planatol}' lnrormatcon._ ...•..••.•.•.•.•......•• _ .... _ .....•.•..•.. --····· .. ········-········ 

Form 990, Per, VI, Scct,on B, Lme_11b:_The Form 9$0 and_Schedules ere _prepa,:ed b_y a Cer1olied Public Accountant._lt is presented to the ····-· 

Treasurer,_and then the lull.Board, for review and a_pproval Upon appJoval, it 1s s!gned by an officer and filed wnh lhe IRS.--

----

-····--·

--····-·· 

Form 990. Part V�. S1!c1lon B, Lme 12: Proetidures for monl1onn..9.the connict ol interes1_poh9 are.being lltl,1llemented. ···-·-··-·-·-·-···--·-----··· 

Fonn 990c Pan VI,. Secuon I!. Line 15: An executive c:ompensation 20hc.1.

is being implemented._During_ 2012, executive compensation was •••.• 

managod vie.the Organization's btJ�llng_pfCX:OS5, ·

-········--·--·····-··-·······--···------··--·····----·-···-··-·-····-··-·········-······••••········· 

Form 990, Par1 v, .. Secuon c, Une 19: The Ar11cles.or lncorporauon are avallablo rrom !/le Oistrlct

.ol Columbla Depanmen1 or Consunier and ••. 

��ulalor.t Affairs Co,porallons D1v1sion. Financial statements ma__y be available 1n some states where the Or.9anrzalion_1s registered to ________ _ 

sohcn runds _ 011,er_g_ovcrning_ documents.arc not available to tho publ1c _ .•••.••.•. -•• ·--··········-·······-··-········-··-·--···-·-·····-·········-··-·····­

f.�!.'!!-��c P!,�J)(,_L,ne 2.4�:. s1,no,ooo.was apolcllcal c·ontribuc!on recei_ved by the Organization.and prom11t!Y and direclly delivered lo.a···-·-· 

separatepollc1tc11l_or.9an1zauon. The s_pec,ncs are_prov1ded in Schedule c. ·····-··--·-··-·-······-----·······-····-·······-··-············-·-------·-······ 

Form 990, Pan IX, Lloe 24b. Direct mail costs or S4,3J2,0S6_cons1st of the followin..9_ S4.0J7,518(exc1Lidin!l S124.S72_1n_proless1onal rund· 

•.•••.• 

ralstng serv,cesj�id to the direct mail processin..9. company lrsted_in_Schedule G,_S7,416 In se.EJrate hsl rental. $42,758 in separate ..........••.. 

postage, and $284,364 1n se_p81:ate println,g_ This total of $4,37Z,a56_ts allocated SJ,366.483 to_pJog,ram cost and Sl,005.573 to rundralslng ______ _ 

c:o_s\,. based on the content of the_ malllngs .••• -. ·····-···· ............ ·-···-·-·------·. ····--·----------···--·--······---------·-·····----····--····-············. 

For Paperworl< Reduction Act Notice, see the Instructions lor Form 990 or 990-EZ. Cal No 51056K Schedule O (Form 19() or 99()-EZJ (2012) 
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FEDERAL ELECTION COMMISSION

FACTUAL AND LEGAL ANALYSIS

RESPONDENT: Unknown Respondent MUR: 6920

5 I. INTRODUCTION

6 This matter was generated by a Complaint alleging that an Unknown Respondent made a

7 $1.71 million contribution to Now or Never PAC in the name of American Conservative Union

8 ("ACU"), in violation of 52 U.S.C. ç 30122 and 11 C.F.R. $ 110.4(b).

9 II. FACTS

l0 Now or Never PAC, an independent expenditure only committee, reported that on

1 1 October 31,2012, it received a $1.71 million contribution from ACU,t a 501(c)(4) social welfare

12 organization.2 In ly'ray 2074, apparently after an independent auditor reviewed ifs 2012

l3 finances,3 ACU filed an Amended20l2IRS Form 990 that disclosed the $1.71 contribution to

14 Now or Never PAC as "a political contribution received by the Organization and promptly and

15 directly delivered to a separate political organization."4 The Complaint alleges that Unknown

16 Respondent is the true source of the $1.71 million contribution made in ACU's name to Now or

17 Never PAC.5

I Now or Nevsr PAC,20L2 Post-General Report (Dec. 6, 2012) at 6; see also Compl. !f la @eb. 27,2015),

2 ACU Resp. at I (Apr. 23,2015).

, Compl. tllf l5-17, Exs. B (Conlon & Associates Independent Auditor's Report, Apr. 9, 2014) and C (ACU

Amended Form 990, }l4:ay 12,2014).

a Compl Ex. C at Schedule O, Schedulo C.

t Compl.'l[u 12, 17.
MUR 6920 (Unknown Respondent)

Factual and Legal Analysis

Page2 of3

1 III. LEGAL ANALYSIS

2 The Act prohibits a person from knowingly permitting his or her name to be used to

3 effect a contribution in the name of another.6 The requirement that a contribution be made in the

4 name of its true source promotes Congress's objective of ensuring the complete and accurate

5 disclosure by candidates and committees of the political contributions they receive,T Courts have

6 uniformly rejected the assertion that "only the person who actually transmits funds . . . makes the

7 contribution,"s recognizing that"it is implausible that Congress, in seeking to promote

8 transparency, would have understood the relevant contributor to be [an] intermediary who

9 merely transmitted the campaign gift."e Accordingly, the Act and the Commission's regulations

10 provide that a person who provides funds to another for the purposes of contributing to a

l1 candidate or committee "makes" the resulting contribution.l0 If an intermediary merely plays a

12 "ministerial role" in transmitting a contribution, the contribution should not be attributed to the

13 intermediary but instead to the original source. l1

14 Based on ACU's representation that the contribution to Now or Never PAC was "a

15 political contribution received by the Organization and promptly and directly delivered to a

6 52 U.S.C. $ 30122; see qlso 11 C.F.R. $ I10.4(b). The term "person" includes partnerships, corporations,

andotherorganizations. 52U.S.C, $ 30101(11); ll C'F'R' $ 100'10.

7 See, e.g., (lnited States v. O'Donnell,608 F.3d 546, 553 (9th Cir. 2010) ("[T]he congressional purpose

behind [section 3An2]-to ensure the complete and accurate disclosure of the contributors who finance federal

elections 

- 

is plain.").

r United States v. Boender,649 F.3d 650, 660 (7th Cir. 2011).

O'Donnell,608 F.3d af 554.

r0 See, e.g., Boender,649 F.3d at 660 ("pV]e consider the giver to be.the source ofthe gift, not any

intermediary who simply conveys the gift from the donor to the donee.")'

lt O'Donnell,608 F.3d at 550
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MUR 6920 (Unknown Respondent)

Factual and Legal Analysis

Page 3 of3

separate political organization," the Commission frnds reason to believe that Unknown

Respondent violated 52 U.S.C. ç 30122.