FEDERAL ELECTION COMMISSION 

WASHINGTON, D.C. 20463 

VIA CERTIFIED MAIL 

Government Integrity LLC 

The Company Corporation 

251 Little Falls Drive 

Wilmington, Delaware 19808 

AUG 03 2017 

RE: MUR 6920 

4 

I 

Dear Sir or Madam: 

The attached notification letters to Government Integrity LLC ("GI LLC") previously 

were sent to James Thomas, Esq., who represented GI LLC in connection with the 2012 

transactions described in the Commission's enclosed Factual and Legal Analysis. 

We recently had communications with Kory Langhofer, counsel for Mr. Thomas, who 

suggested that the Commission's notification letters also be served on GI LLC's registered agent. 

If you have questions, please contact me at (202) 694-1634 or afuoto@fec.gov. 

Sincerely, 

ajz^' 

Antoinette Fuoto 

Staff Attorney 

Enclosures: 

Reason to Believe Notification Package sent to GI LLC 

Prior Unknown Respondent Notification Package sent to GI LLC 
FEDERAL ELECTION COMMISSION ^ ^ 

WASI IINCTON, D.C. 20463 

ELECTRONIC MAIL AND FIRST CLASS U.S. MAIL 

James C. Thomas, 111, agent 

Government Integrity, LLC 

c/o Kory Langhofer, Esq. 

Statecraft PLLC 

649 North Fourth Avenue, First Floor 

Phoenix, AZ 85003 

'4 kory@statecraftlaw.com 

I RE: MUR 6920 

p Government Integrity, LLC 

|| James C. Thomas, agent 

^ Dear Mr. Langhofer; 

On April 20, 2017, the Federal Election Commission notified your client, James C. 

Thomas, HI in his Official capacity as agent of Government Integrity, LLC, of a complaint 

alleging violations of certain sections of the Federal Election Campaign Act of 1971, as amisnded 

("the Act"). A copy of the complaint was forwarded to your client at that time. 

Upon review of the allegations contained in the complaint, and information provided by 

your client, the Commission, on July 11, 2017, found that there is reason to believe that your 

client violated 52 U.S.C. § 30122, a provision of the Act. Thie Factual and Legal Analysis, which 

formed a basis for the Commission's finding, is enclosed for your information. 

Your client may submit any factual or legal materials that you believe are relevant to the 

Commission's consideration of this matter. Please submit such materials to the Office of the 

General Counsel within 15 days of receipt of this notification. Where appropriate, statements 

should be submitted under oath. In the absence of additional information, the Commission may 

find probable cause to believe that a violation has occurred and proceed with conciliation. See 52 

use § 30109(a)(4). 

Please note that you and your client have a legal obligation to preserve all documents, 

records and materials relating to this matter until such time as you are notified that the 

Commission has closed its file in this matter. See 18 U.S.C. § 1519. 

If your client is interested in pursuing pre-probable cause conciliation, you should make 

such a request by letter to the Office of the General Counsel. See 11 C.F.R. § 111.18(d). Upon 

receipt of the request, the Office of the General Counsel will make recommendations to the 
Commission either proposing an agreement in settlement of the matter or recommending 

declining that pre-probable cause conciliation be pursued. The Office of the General Counsel 

may recommend that pre-probable cause conciliation not be entered into in order to complete its 

investigation of the matter. Further, the Commission wall not entertain requests for pre-probable 

cause conciliation after briefs on probable cause have been delivered to the respondent(s}. 

Requests for extensions of time are not routinely granted. Requests must be made in writing at 

least five days prior to the due date of the response and good cause must be demonstrated. In 

addition, the Office of the General Counsel ordinarily will not give extensions beyond 20 days. 

Extensions will not be granted absent your client's agreement to toll the statute of limitations. 

Pre-probable cause conciliation, extensions of time, and other enforcement procedures and 

k options are discussed more comprehensively iri the Commission's "Guidebook for Complainaiits 

0 and Respondents on the FCC Eriforuement Process," which is available on the Commission's 

website at http://www.fec.gov/em/respondent_guide.pdf. 

Please be advised that,, although the Conrunission cannot disclose information regarding 

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

enforcement agencies.' 

Tliis matter will remain confidential in accordance with 52 U.S.C. § 30109(a)(4)(B) and 

30109(a)(l2)(A) unless you notify the Commission in writing that you wish the matter to be 

made public. For your information, we have enclosed a brief description of the Commission's 

procedures for handling possible violations of the Act. If you have any questions, please contact 

Antoinette Fuoto, the attorney assigned to this matter, at (202) 694-1634 or afuoto@fec.gov. 

On behalf of the Commission, 

Steven T. Walther 

Chairman 

Enclosures 

Factual and Legal Analysis 

' 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 regarding violations of law not within its jurisdiction to appropriate law 

enforcement authorities. Jd. §30107(a)(9). 
4 

1 FEDERAL ELECTION COMMISSION 

2 

3 FACTUAL AND LEGAL ANALYSIS 

4 

5 MUR: 6920 

6 RESPONDENT; Goveriiment Integrity LLC 

7 I. INTRODUCTION 

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

9 $1.71 million contribution to Now or Never. PAC in the name of American Conservative Union 

10 ("ACU"). in violation of 52 U^S.C. § 30122 and 11 C.F.R. § 110.4(b). The Commission.found 

^ 11 reason to believe that Unknown Respondent violated 52 U.S.C. § 30122. Based on the available 

4 12 information, the Commission now substitutes Government Integrity LLC in the place of 

13 "Unknown Respondent" in the Corhmission's previous reason-to-believe. finding. 

14 11. FACTUAL BACKGROUND 

15 Now or Never PAC, an independent expenditure orily committee, reported that on 

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

17 organization.^ In May 2014, apparently after an independent auditor reviewed its 2012 finaiices,^ 

18 ACU filed an Amended 2012 IRS Form 990 that disclosed the $ 1.71 contribution to.Now or 

1.9 Never PAC as "a political contribution received by the Organization and promptly and directly 

20 delivered to a separate political organization,"^ The Complaint alleged that Unknown 

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

s 

' Now or Never PAC, 2012 Post-General Report (Dec. 6,2012) at 6; see abo Compl. $ 1.4 (Feb..27.2015). 

' ACU Resp. at 1 (Apr. 23,2015). 

^ Compl. KK 15-17, Exs. B (Conlon & Associates Independent Auditor's Report, Apr. 9,2014) and C (ACU 

Amended Form 990, May 12,2014). 

* Compl Ex. C at Schedule O, Schedule C. 
MU R. 6920 (Government Integrity LLC) 

Factual and Legal Analysis 

Page 2 of 3 

1 Never PAC.^ Based on ACU's representa;tion that the contribution to Now or Never PA.C was "a 

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

3 separate political organization,"® the Commission found reason to belieye that an Unknown 

4 Respondent violated 52 U.S.C. § 30122 and commenced an investigation. 

5 During the investigation, the Commission learned that .Tames C. Thomas, III, who is also 

6 the treasurer of Now or Never PAC, wired $1,800,000 to ACU from an account with the name 

,4 7 Govermnent Integrity LLC and provided an employee of ACU instructions for wiring the 

S 8 $ 1,710,000 contribution to Now or Never PAC. Based on this information, OGC designated G1 

^ 9 LLC and Thomas, as agent of GI LLC, as respondents and notified them of the Complaint. GI 

4 |C 10 LLC did not respond to tlie notification. 

P 

i 11 III. LEGAL ANALYSIS 

I 12 The Act prohibits a person from knowingly permitting his or her name to be used to 

I 13 effect a contribution in the name of another. ' The requirement that a contribution be made in the 

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

15 disclosure by candidates and committees of the political contributions they receive.* Courts, have 

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

17 contribution,"' recognizing that "it is implausible that Congress, in seeking to promote 

^ Compl. 12, 17. 

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

' 52 U.S.C. § 30122; see also 11 C.F.R. § 110.4(b). The term "person" includes partnerships, corporations, 

and other organizations. 52 U.S.C. § 30101(11); 11 C.F.R. § 100.10. 

» See. e.g., United States v. O 'Donnell, 608 F.3d 546,553 (9th Cir. 2010) Cltihe Pongressionai puiposcbehind [section 30122] — to ensure the complete and accurate disclosure of the contributors who fihancd fcdcrai 

elections — is plain."). 

' United States v. Boender, 649 F.3d 650, 660 (7th Cir. 2011). 
5 

'4 

7 

MUR 6920 (Government Integrity LLC) 

FRCtuai and Legal Analysis 

Page 3 of 3 

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

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

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

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

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

6 intermediary but instead to the original source.'^ 

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

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

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

0 Respondent violated 52 U.S.C. § 30122. Because the Commission identified Government 

1 Integrity LLC as the "Organization" that provided ACU with the political contribution that it 

2 immediately delivered to Now or Never. PAC, the Commission substitutes Government Integrity 

3 LLC in the place of "Unknown Respondent" in the Commission's previous finding that there is 

4 reason to believe that Unknown Respondent violated 52 U.S.C. § 30122 by making a 

5 contribution in the name of another. 

'« O'Do«ne//,608F.3dat554. 

'' See, e.g., Boender, 64.9 F.3d at 660 ("[W]c consider the giver to be the source of the gift, not any 

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

O'Dcvmc//,608 F.3dat 550. 
FEDERAL ELECTION COMMISSION 

Washington. DC 20463 

VIA FIRST CLASS MAIL 

i, Government Integrity LLC jton A A 9ni7 

f do James C. Thomas, in 

g 7509 NW Tiffany Sprmgs Parkway 

4 Suite 300 

4 Kansas City. MO 64152 

4 RE: MUR6920 

g Dear Mr, Thomas: 

4 

g The Federal Election Commission C'Corrunission") 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 Washington on February 

27.2015, the Commission found reason to believe that Unknown Respondent violated 52 U.S.C. 

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

; Conservative Union.' 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 recommendation to the 

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

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 — that you 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 recommendations to the 

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

' 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). 
MUR 6920 

Government Integrity LLC 

Page 2 

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)(4)(B) and 

30109(a)(12)(A) unless you notify 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 

enforcement agencies.^ 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 Guith 

Associate General Counsel for Enforcement 

Enclosures: 

Complaint 

Factual and Legal Analysis 

Drr%norliirA^ 

-n -f/-— 

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

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

regarding violations of law not within its jurisdiction to appropriate law enfbroemcnt authorities; Id. § .3.0107(a)(9). 
.0 

'• Fii::;;:;'.i :-l ! :'i! V; 

. /J- . •- FEDERAL ELECTION COMMISSION 

, ^ 20i:FEl;27 r;: 2: !9 

In the maiterof; • j i ?•;; 2: 5*4 

Qp|T JP * I 

American Conservative Union L;" ' MUR 

Now or Never PAC / . Of 9;/^ 

James C. Thomas 111, Treasurer, Now or Never PAC jfLll— 

Unknown Respondent 

COMPLA,NT . SENSITIVE, 

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

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

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

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

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

Complainants 

2. Complainant CREW 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, litigation, 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 influence federal elections, and publicizes those who violate federal campaign 

finance laws through its website, press relea.ses, and other methods of distribution. CREW al.so 
files complainls with the FEC when it discovers violations of the FECA. Publicizing campaign 

finance violations and filing complaints with the I'EC serve CRE Ws niission of keeping the 

public informed about individuals and entities that violate campaign finance laws and deterring 

future violations of campaign finance law. 

4. Complainant Anne L. WeLsmann is the interim 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 

complainls 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 decisioris 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. § 30104(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 FECA's reporting 

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

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

administration of the FECA's reporting requirements includes mandating 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 fails to properly administer the FECA's reporting 

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

8. Ms. Weismann also is entitled to receive information contained in di.sc}osure 

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), 

quoting Buckley v. Valeo, 424 U.S. 1,66-67 (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 ability 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)(4) of the Internal Revenue Code.' 

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

formed in 2012.^ 

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

' ACU 2012 Iniliat Form 990, November 14,2013. ai 1 (excerpts altiichcd as Exiiibil A). 

' Now or Never PAC, FEC Foiin t. Siaienicnt of OrPani/niion. Fcbrusry 21, 2012, available al 
12. Unknown Respondent is the true source of funds ACU transferred to Now or 

Never PAC. 

Factual aliceaiions 

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

S7,760,174 on independent expenditures.^ 

14. Now or Never PAC disclosed receiving $8,200,500 in contributions during the 

2012 election cycle,'' The largest contribution the group disclosed to the PEG was from ACU, 

which Now or Never PAC said contributed $1,710,000 on October 31,2012.'^ Mr, Thomas 4 

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

P complete to the best of his knowledge and belief,' 

^ 15, ACU initially filed its 2012 Internal Revenue Service ("IRS") Form 990 tax return 

in November 2013.® 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,' 

16, In April 2014, ACU's lax preparer provided the organization the results of its 

independent auditor's report of ACU's finances for 2012.."' Contrary to ACU's initial tax return, 

the auditor's report asserted ACU made a $1,71 million political donation in 2012," 

' Now or Never PAC, Two-Year Summary for 2012, available at I 

info.shlinl. 

. •' W-

* Now or Never PAC, I-EC Form 3X. 2Ql2 Po.-ii.firueUan Rchor.l-, Deeombcr 5,2012, available at 

llUn://d..cuuL•rv.fuc.ucw^cllWfi8/l20rt2.S•^3qfiS/^20<i3S•129(W:hcl^tfm.vn:»nes=t)• 

'/rf. , • 

»ACU 2012 tnilial Form 990, at 1, 

''/rf.. Pan IV, Question 3. 

'» Conlon and Associates,.American Coiiscrvaii.ve.Union. Fln;iiicial Statcincnts and liidcn'eiiilcht.Audilor,'!! Renortfor the Year Ended D'ecuinbcr 31. 2'012: April 9,2014 (iitlached as Exliiliii B).' 

"/4. ate. 
17. A month later, in May 2014, ACU filed an amended 2012 lax return with the 

IRS.'- This tax return acknowledged ACU engaged in political campaign activities in 2012, and 

further disclosed ACU's $1.71 million contribution to Now or Never PAG.'-' 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.'^ 

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

and "promptly and directly?' transfer those funds to a separate segregated fund. 26 C.F.R. § 

1.527-6(e). The IRS instructions for reporting political contributions characterize such transfers 

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

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

^ fund.'"^ 

19. ACU's tax return 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."'® 

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

political organization."" 

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

" fd.. Part IV, Question 3 and Schediile C, Part 1-C, Line 5. 

/a., Schedule C. Part I-C, Line 5(d), (e) and Schedule O. 

" IRS, 20til [pytr'uciidiis for Sehcdute G/Forni 990 or 990'-EZl. at 3, available at httn://w.ww;ifs.iiiiv.''iiuli/irsI Amended Form 990, Schedule O. 

"fd.. Schedule C. Part I-C, Lino 5 (d), (c). 
20. Even though AGU was not the source of the trahsfcrred funds, Now or Never 

PAG reported AGU as the. contributor.'" AGU has not publicly identified the contributor who 

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

Count I. 

21. The FECA and PEG regulations prohibit knowingly perrriitting one's name to be 

used 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. AGU admitted in its amended 2012 tax 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 AGU further reported that 

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

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.G. § 30122 and II C.F.R. § 

110.4(b). 

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

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.G. § 30109(d)(1). 

AGU only disclosed the contribution to Now or Never PAC after an independent audit qf.its 

2012 finances, and its amended 2012 tax return reported AGU simply acted as a conduit for a 

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

Now or Never PAC, FI2G For in rtX. 20.i2-Po.';i-lttectton Itenori. December 5,2Ql2.avu{lable ai 
thus subject to criminal penalties arid referral to the Department of Justice.. 52 U.S,C. §§ 

30109(a)(5)(C). (d)(1). 

Count II 

24. The FECA and FEC regulations also prohibit knowingly accepting a contribution 

made by one person in the name, of another. 52 U.S.C. § 30122; 11 C.F.R. § 110.4(b). 

25. If Now or Never PAC knowingly accepted a S1.7I million contribution from 

^ ACU made in the name of another. Now or Never PAC violated 52 U.S.G. § 30122 and 11 

4 C.F.R. § 110.4(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. §§ 

I 30109(a)(5)(C). (d)(1). 

? Count Hi 

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

1 

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

27. The Unknown Respondent provided to ACU 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 violated 52 U.S.C. § 30122 and 11 C.F.R. § 110.4(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(a)(5)(C). (d)(1). 

Conclusion 

WHEREFCREi 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 BEHALF QF 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 (phone) 

(202) 588-5020 (fax) 
4 

Verification 

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

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

Sworn pursuant to 18 U.S.C. § 1001. 

Anne L. Weismann 

I 

Sworji to and subscribed, before me this«^th day of February, 2014, 

Notary Publre\ O 
i 

A 

EXHIBIT A 
Fo«n 990 

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Return of Organization Exempt From Income Tax 

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boneflt iruet or ortvato foundation) 

^ The organlMilen way havo ic u»e a copy oi frt reium to aalitiy aiaie loponing requlremenia. 

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ir 'No.' atuen a lut (aaa msmmanO 1 Tu.e.smiilautui • SOKcint (SMUCX 4 )4 Imoilno) •asayraXOor Ossy 

1 WahttM^, ^ ...» 

H(e|kl)uagniupialianliiiij3i!an.UYM (3NO 

H(b)AraailaiHiainfflCiudad7 •lea ONO 

ir 'No.' atuen a lut (aaa msmmanO 

V wavopo - bVfl 

K Form ol oreaniiaion 1 

gS'. — , 1 ZICbrcarttonUTnial •Aaaooalien noiharP I LVoarclkinnaiian 1664 1 MSlataatlonalOofflwIa pC 

<1*0 

1 Brtofly descnbe Iho organiaalion's mission or most slQniflcanI activllles: Jhcmisswnof the Orflon^^^^^ 

1 

2 

3 

4 

5 

6 

7a 

b 

C'h9ck Vhis'box b>Oii't)i'e"wgmiuiion dlscbnVln^^ more than 21 

Number of voiing members of the governing body (Pari VI, line fa) 

Number ol indopondent voting members of the governing body (Pari VI, line lb) 

Total number of Individuals employed In calendar year 2012 (Part V, line 2a) 

Total number of volunteers (estimate if noeessaiy) 

Totalunrelated business revenue from Part VIII, column (C), line 12 .... 

Not unreloted Business laxabio Income from Form 090-T. lino 34 . . . 

%'of"lts nA'assots." 

3 32 

32 

11 

100 

6 Contnbutlons end grants (Part VIII, Una 

9 Program SOIVICB revenue (Part VIII, line 

10 investment income (Part VIII, column (A 

11 Other revenue (Part VIII, column (A), llni 

12 Tola! revenue—add lines B through 11 

RECEIVED". 

ia.3r4.,.ond 7d) -

Od,dAi9Ci1S/:49rv4Uc 

Wljoqu 

PiforVes' CurtMlViv 

3.a«1.9G7 381,20S 

465.984 53160.520 

344.603 

230.756 

4.772,554 6.478,561 

13 

14 

ia 

16a 

b 

17 

16 

IB 

Grants and similar amounts paid (fart R. cSlipr^llnao >-3)t««)S 

Benolits paid to or for members (Part 1^, colufenfj^iSiiy^, UT • 

Salarlas, oihar compensation, employee bonofl(i1P3)tT)OXdoinir{A)Hlnosi-10) 

Professional fundraislng fees (Part IX, column (^, line lie) 

Total lundralsing expenses (Pari IX, column (0), line 25) ^ 246jr3 

Other expanses (Part IX, column (A), lines 11a-11d, 1lf-24ei""'"~,~'" ". 

Total ospansea. Add llnea 13-17 (must equal Part IX, column (A), line 25) . 

Revenue lose exponsos, Subiraci Una 18 from lino 12 

525,064 

48 171,456 

20 

21 

22 

Total assets (Pan X, line 16) 

ToteMlebllltles (Part X, line 26) 

Nat assets or fund balances, Subtraci lino 21 from lino 20 

Sinnoturo Block 

3.704,665 

4.339.367 

433,157 

BagtiiweofCimnlYur 

1,662,689 

1.104,178 

578,511 

jjs&m 

jiazii 

EndelVotr 

_SSi331 

665.526 

UnlirpanallKSOlpaiury, leKlanillwiliMa ... 

tnM, canael, and comiilato Oaclanlian cl prtparar (oVier llian olflcir) ii baand on all inlormalian el viliich piopanr roa any uioMtatfeo 

ISO vua ralum, ndudine accoifipanyiro aelvidiMi and.datenwila, and to lha boat «r my kndwiadga and bahal, ii a 

Sign 

Here 

SiBnaMiaotoilicc' Data 

TVfw or dnni-nomo and Mio 

PnnVTypa piaparsr'a name 

Hiomas R. Conlon CPA 

Pioparar'a iignaluie FIW 

-2S£:_ 

Paid 

preparer 

Use Only 

F<mi.a addwaa > PO Box 6213. Silver Spring, MO 20916-6213 

May the IRS discuss Ihls rolum with ihe preparer shown ebove? (see inslrucllons) 

finnY nama • Conlon 6 Associates, LLC 

Oaie Chaelen * 

u»,< l,«ffl|iisyad P01456002 

^ rwttiM* 

Fhonoiio 3Q1-S39-a851 

lECH 

For Paperwork Reduction Act Notice, aaa lha aataarate Inatructtons. Cat No 112821 Form 990 (201 

K 
Fonn9eapai2| 52-0810813 P«soZ 

SFiniiii statement of ProBrom Sorvico Accompllshmonls 

Check H Schedule O contains a fesoonso to any Quesllon In this Part III •. 

1 Briefly doscnbe the organluiion's mission: 

I?.?JTM!??JP.npj«>?.OraonlHUonJ.yo,eoinmwjcsiolosnejopdueaw,lto jub^^ 

Old the orgenlzetlon undertake any significant program soivices during the year which were not listed on the 

prior Form 990 or 990-EZ7 QVes 0No 

II 'Yes,* describe these new sarvleos on Schedule O. 

•Id the organliotlon cease conducting, or make algnHlcant changes In how It conducts, any program 

services'? pVes IZlNo 

If "Yes,* describe these changes on Schedule O. 

Oosctlbe the organization's program ssrvico aecompllshmenis lor each 0l He three largest program services, as msasured by 

expenses. Soctlon S0l(c)|3) and SOI (c)(4) organizations are required to report the emount of grants end ailocailons to olhura, 

the total expensas, end revenue, H any, lor each program service reported. 

4a (Code: _) (Expenses S A?!?, wo Including grams ol 5 ^ _ j (Revenue % ) 

Ihq.O.W.nJWl.l.pn.M'nmy.dHledl.qjS.ndcdueaJod.lhopulrJIpjtoirt.c 

F.V.W.?.^l0.'Rm?,yRa!lV.WAh9.V!AIJRi9.»'.-.Th.oOrasguaUoncoi!ducicdTO 

!n4!yi<twJs.q!!dcorM.qoii.qnv.oa9.n!lnafiPji.UealjKUMen 

RO.!!tSJ.o?j!.w.?.<!teJ.».lhfse!ssuM^^ 

4b (Code: ) (Expenses $, Including grants of S ) (Revenue $, ) 

4c (Code; ) (Expenses S. Including grants of S ) (Revenue S , 

4d Other program services Pescribc In Schedule O.) 

(Expenses $ Including grants of S ) (Revenue $ ) 

4o Total program servteo expenses ^ i5.344,iso 

Fcm 9908012) 
Ponn 980 (2012) 52-0010813 

EBBUr Checklist ot Roqulred Schodules 

1 l3 the organizallon described In seclicn S01(cK3) or 4947(a)(1) [other than a private loundatlon)? It 'Yes,* 

compteia Schedule A 

2 Is the organization required to complote SchodulB B, Schadufe of Contributors (see hstructlons)^? . . . 

a Old the organization engage In direct or Indirect political campaign nctlvllles on behnll of or in opposition to 

candidates lor public otfice? II 'Yes." complete Schedule C. Pen I 

4 Section SOI (c)(3) organlzatlone. Old the organization engage In lobbying aeUviUes, or have a section S01(h) 

election In cHect dunng the tax year? It 'Yes." complete Schedule C, Pert II 

5 Is the organization a section S0t(c)(4), S0t(c)(5). or S01(c)(6) organization that receives membership dues, 

assessments, or similar amounts as delined in Revenue Procedure 98-197 It 'Yes,' completo Schedule Q 

Part III 

e Old the organization maintain any donor advised funds or any similar funds or accounts for which donors 

have the right to provide advice on the distribution or Invostment of amounts In such funds or accounts? It 

'Yes." eomplele Schedule D, Part I 

T Old the organization receive or hold a conservation easement. Including easements to preserve open space, 

theenvlronment, hlstoriclond areas, or histoncstnjctures?!/'Yes,"comp/ofo Schedule0, Part ri . . . 

0 Did the organization maintain collocllons of works of art, hisforfcal treasures, or other similar assets? It 'Yes." 

complota Schedule 0, Part III 

9 Old tho organization report an amount In Part X, line 21, for escrow or custodial account liability; serva as e 

custodlon for amounts not listed in Pan X; or provide credit counseling, debt management, credit repair, or 

debt negotiation services? It "Yos,' complete Schedule D. Part IV 

to Old the organization, directly or through a related organization, hold assets In temporarily restricted 

endowments, permanent endowments, or quael-cndowmento? If 'Yes,' complete Schedule O, Part V . , 

It II the organization's answer to any of the following questions Is "Yes," then complete Schedule 0, Psrte VI. 

VII, VIII, IX, or X as eppllceble. 

e Did the organization report en amount for land, buildings, and equipment In Part X, line 10? It "Yes,' 

complete Schedule O. Part VI 

b Old tho organization report an amount for Investments—other secuillles m Part X, line 12 that Is 5% or more 

of Its total assets reported In Part X, line 16? It 'Yes, * complete Schedule D. Pert Ml 

o Old the organization report on amount for Investments—program related In Port X,' line 13 that Is SK or more 

of Its total assets reported In Pert X, line 167 It "Yes,"complete Schedule D. Pert VIII 

d Did the organizallon report an amount for other assets In Pert X. line 15 that Is 5% or more of its total assets 

reportod In Part X, line 167 It 'Yes," complete Schedule 0, Part IX 

e Old the orgonlzatlon report en emouni lor other llabmtlas In Pert X, line 26? It "Yes, * complete Schodlrlo D, Pert X 

f Old the organizellon's separate or consolidated financial statements for the tax year Include a footnols that addresses 

the organization's liability for uncertain tax positions under FIN 48 (ASC 740)7 II "Yes,'eemplote Schedule 0, Part X . 

12 e Did the organization obtain separate, independent audited financial statements tor the tax year? If •Yes,' complete 

Schedule 0, Parts XI and XII 

b Was the otgamtetion Incttxfed In consolldatod. Independent sudlted llnanclal slatomenls for the tax yoar? II 'Yes,' and it 

the orgonlzsOon answered 'No' lo Bne 12a, Ihen completing Schedule 0, Parts XI and XII a qpOonsl 

13 Is the orgenlzationo school described In aectlon170|b}(t)(AXII)7 If "Yes," complete ScfwduleB , . . . 

14 e Did the organization maintain an office, employees, or agents ouUide of tho United Stales? 

b Old the organization have aggregate revenues or expenses of more than $10,000 from gienimaWng, 

fundraising, buslnesc. Investment, and program eervlce activities outside the United States, or aggregate 

foreign Investments valued el $100,000 or njore? if "Yes," compiets Schedule F, Pans I and IV 

15 Old the organization report on Part IX, column (A), One 3, more than $5,000 of grants or assistance to any 

organization or entity located outside the United States? II "Yes. * complete Schedule P, Parts II end IV . . 

IS Old the organization repon on Part IX, column (A), line 3, more then $5,000 ot aggragele granta or assistance 

tolndlvldualslocatedoutsldeth9UnltBdState8717'Yes,*coffpleloSchecluloP, Parts fll and/V , . , , 

17 Old the organlzollon report a total of more than $15,000 of expenses for professional fundraising services on 

Pert IX, column (A), lines 0 and 11 e? It 'Yes," complete Schedule G, Pert I (see mstrvctions) 

18 Old the organization report more lhan $15,000 total of fundraising event gross Income and conlitbutlons on 

PortVUMinas tc ettd BeT If'Yes,'complete ScheduleG, PertII 

19 Old the organization report more then $15,000 of gross income from gaming activities on Part VIII, line 9a? 

It 'Yes," complBlB Schedule G, Part III 

80 a Old the organization operate one or more hospllalfaellltlas? 17 "Yes," complsrs Schedule fY. ..... 

b II "Yas' to line 20o, did tho orgenizotlon atlnch a copy of lis eudlted financlel aiefcmonia to this return? , 

Ptg>3 

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3 / 

4 

5 

j 

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i 

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TMIBXT 
AMERICAN CONSERVATIVE UNION, INC. 

Financial Statements 

And 

Independent Auditor's Report, 

For The Year Ended December 31,3012 

Conlon and Associates 

Certined Public Accountants 
CONTENTS 

EASE 

INDEPENDENT AUDITOR'S REPORT 2 

Statement of Finemcial Position, as of December 31,2012 3 

Statement of Activities, Year Ended Deceimber 31,2012 A 

Statement of Cash Flows, Year Ended December 3 2012 5 

Statement of Functional Expenses, Year Ended December 3), 2012 6 

Notes to Financial Statements ® 
J 

i 

I 

CONLON AND ASSOCIATES 

CERTinEO PUbUC ACCOUNTANTS 

INDEPENDENT AUDITOR'S REPORT 

The Board of Directors 

American Conservative Union, Inc. 

Washington, D.C. 

Wc have audited the accompanying financial statemenu of the American Conservative Union, 

Inc. (Organization), which comprise the statement of financial position as of December 31,2012, and ihe 

related siaiements of aciiviries, cash Rows, and ftinctional expenses for the year ihen ended, and the 

related notes to the financial statements. 

Managemcot's Respoosibility for the Fiaaucial Statements 

Management is responsible for the preparation and fair presentab'on of these Rrianeial statements 

in accordance with U.S. generall)- accepted accounting principles; this includes the liesign, 

implementation, and maintenance ofintenial control-relcviint to the preparation ond fair presentation of 

financial statements that are free from material misstatement, whether due to fraud or error. 

Auditor's Responsibility 

Dur responsibility is to e.xpress an opinion on these rinancial statements based on our audit. We 

conducted our audit in accordance with U.S. genenilly accepted auditing standards.Those standards 

require that we plari and perform the audit to obtain reasonable assurance about whether the financiai 

statements are ftee from material misstatement. 

An audit involves performing procedures to obtain audit evidence about the amounts and 

disclosures in the financial statements. The procedures selected depend on the sudilor's judgment, 

including the assessment of the risks of materiol misstatement ofihe ftnaiicial statements, whether due to 

fraud or error. In making those risk assessments, the auditor considers inlemal control relevant to the 

entity's preparation and fair presentation of the finimciat statements in order to design audit procedures 

that are appropriate in the-circumstances, but not for the purpose of c.epressing an opinion on the 

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

includes evaluating Ihe appropriateness pfaccouniing policies used ond the reosonabichess of significant 

accounting estiniates made by management, as well as evaluating the overall presentation of the Rnancial 

statements. 

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a 

basis for our audit opinion. 

Opioioo 

In our opinion, the flnoncial suiements leferred to above present fairly, iii all material respects, 

the Tinanclal position of the American Conservative Union, Inc. as ofDecemlMrjl, 2012, and the results 

if its operations and its cash flows for the year then ended, in accordance with U.S. generally.accepted' 

accounting principles. 

April 9,2014 

SILVER SmNC, MD • TELEPHONE: (301) 5904551 • FACStMtlJE: (SOtJ 598-3738 

• EouU; {Qitfoncwftmnswai. 
AMERICAN CONSERVATIVE UNION, INC. 

Statement of Financial Position 

As ofDeccmber3l,20l2 

ASSETS 

Cash and cash equivalents 

Prepaid c.xpenses 

Property and equipment (net of accumulated depreciation of 584,370} 

Rent deposit 

Other assets 

TOTAL ASSETS 

LIABILITIES 

Accounts-payable 

Due-t'o'.Amcricaii Conservative Union Foundation, Inc. 

Revenue received in advance 

Other liabilities 

TOTAL LIABILITIES 

NET ASSETS 

Unrestricted 

Total net assets 

TOTAL LIABILITIES AND NET ASSETS 

S 479,682 

491,218 

135,686 

2.6,396 

22,32? 

I.1?S.3Q7 

41,879 

140,468 

-594,216 

.217.186 

'993.749' 

16.1 •558. 

•Si I d55jti7 

•The Notes to tlje Financial Statements are an Integral Part of "niese Satetnents 

3 
AMERICAN CONSERVATIVE UNION, INC. 

Staiemenl of Activities 

For the Vear Ended December 31,2012 

1 

4 

4 

4 

8 

REVENUES AND OTHER SUPPORT 

Conrribuiions 

Conference fees 

Member dues and services 

Management fees 

• Other revenue 

TOTAL REVENUES AND OTHER SUPPORT 

EXPENSES 

Program 

Management and general 

Fundraising 

TOTAL EXPENSES 

CHANGE IN NET ASSETS 

NET ASSETS AT BEGINNING OF YEAR 

NET ASSETS AT END OF YEAR 

8i4l3,603 

1,589,378 

71,900 

164,828 

10,277,123 

8.612-,669 

72*202 

Jil 

I0i^94.076 

(416..953V 

378,511. 

;$• 161,558 

The Notes to the FinsncislSuiemenis.sre an Integral Pan ofThese Sutenienis 

4 
AMERICAN CONSERVATIVE UiNIQNi INC. 

SiBiemeai of Cash Flows 

For the Year Ended December^ 1,2012 

CASH FLOWS FROM OPERATING ACTIVITIES 

Change in net assets 

Adjustments to reconcile change in net 

assets to cash provided by operating activities: 

Depreciation 

(Increase) decrease in operating assets: 

Funds in escrow 

Prepaid expenses. 

increase (decrease) in operating liabilities: 

Accounts payable an.d .accrued expenses 

Due to. Atn.crican Conservative Union Foundation 

Revenue received in advance 

Other liabilities 

Net Cash Used by Operating Activities 

CASH FLOWS FROM BWESTING ACrTVmZS 

Payments for property and equipment 

Net Cash Used by Investing Activities 

NET CHANGE IN CASH 

CASH AND CASH EQUTVALEINTS AT BEGINNING OF YEAR 

CASH AND CASH EQUIVALENTS AT END OF YEAR 

{•He,933) 

33,978 

409.329 

(252,366) 

(46,359) 

104,994 

(350,092) 

181,028 

(336,241) 

(147.300). 

(IA7,3J0!).. 

(483V541) 

963.223f 

47.9i682-

The Notes to Che Financial Statements are an Integral Pan of These Statementi 

S 
AMERICAN CONSERVATIVE UNION, INC. 

Siaiement of Functional Expenses 

For Che Year Ended December 31,2012 

Manngcment 

I 

Expense Category Program And General Fundraising Total 

Advertising S 30.000 S 19,423 S 5- 49,423 

Benefits, emplo)^ee 61,026 7,203 1.2,707 80,936 

Compensacion, employee 594,653 70,367 124,167 789,187 

Consulunis, accounting 13,554 . 13,554 

Consultants, direct mail 3,366,483 . 1,0.05,373 4,372,056 

Consultants, professional fundraising - 124,872 124,872 

Consultants, legal -• 105,881 105,881 

Consultants, lobbying 54,600 . . 54,600 

Consultants, other 179,831 3,830 27,583 211,264 

Depreciation 33^978 •T 33,978 

Information technology 4,304 46,035 - 50,339 

Insurance - 11,380 ..r 11,380 

Interest . 2,104 2,104 

Meetings and conferences 2,261,347 2.79,600 • • 2,540,947 

Occupancy 116,832. 13,791 24,327 154,950 

Office 41,605 92,374 - 133,979 

Political donations 1,710,000 • - 1,710,000 

Taxes, payroll 40,522 4,7.83 8,438 .53,743 

Travel 15.1,46.6 17,879 31,338 200;,8'83 

Total S 8,612669 S 722,202 5 l;359-203. .5 10,694.0.76 

The Nows to the Financial Statetnents are an Integral Part oflTiese Statements 

6 
AMERICAN CONSERVATIVE UNION, INC. 

Notes To Financial Statements 

As of and for the Year Ended December 31,2012 

NOTEl: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 

Organization 

The American Conservative Union (Organization) was incorporated as a non-stock, nonprofit 

corporation in the Commonwealth of Virginia in 1964. In 2006, the Organization incorporated in 

the District of Columbia, under the District of Columbia Nonprofit Corporation Act. 

The mission of the Organization is to educate the public about current social, economic, and 

political issues. 

Significant accounting policies are as follows: 

Basis of Presentation 

Financial statement presentation follows the recommendations of the FASB ASC 958-205 

Presentation of Financial Statements for Noi-for-Profu Organisations. Under F ASB ASC 958-

203, the Organization is required to report information regarding its financial position and 

activities according to three classes of net assets; unrestricted net assets, temporarily restricted 

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

or permanently restricted net assets at December .31,2012. 

Use of Estimates 

The preparation of financial statements in conformity with accounting principles generally 

accepted in the United States of America requires management to make estimates and 

assumptions that afTeci: (I) the reported ampuhts of assets andliabilities and.disclosure of 

cdritingcnt assets and liabilities at the date of the finahciai statccnenU; and (2) the reported 

amounts of revenues and e.xpenscs during the reporting period. Acrual results.cotijddiiTe'r from 

those estimates. 

Income Taxes 

The Organization is e.xempi from federal income lalxes under secdon 501(a) of the Internal 

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

The Organization's, income lax returns are subject to review and ex8mioation ,by federal an.d.state 

authorities. The Organization is not aware of any. activities that would jeopardize its taxTCxempt 

status. The Organization is not aware of any activities that art subject to tax oh unrelated 

business income. 
7 

/ • 

1 

1 

/ 

2 

0 

1 AMERICAN CONSERVATIVE UNION, INC. 

4 Notes To Financial Statements 

As ofand for the Year Ended December 3), 2012 

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, CONTINUED 

Revenue Recognition 

Contributions are recognized when the donor makes a promise to give to the Organization that is, 

in substance, unconditional. Contributions are considered to be available for unrestricted use 

unless specifically restricted by the donor. Support that is restricted by the donor is reponcd as 

an increase in temporarily restricted net assets, depending on the nature of the restriction and 

when the restrictions are met. SVhen a restriction expires (that is, when a stipulated time 

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

assets are reclassified to unrestricted net assets in the Statement of Activities. Revenue received 

with temporary restrictions that are met in the same reporting period is reported as unrestricted 

support, and increases unrestricted net assets. 

Other types of revenue, such as conference fees, memberships, and management fees are 

recognized when earned. 

Functional Class! ftcetion of E.xpenscs 

The Organization allocates its expenses on a ItinctionaJ basis among program, and management 

and general, and fundraising, according to their natural expenditure classification. 

Related Party Transactions 

The Organization is under contmdn cohtrbl \viih the Arncrican Conservative Union Foundation, 

Inc. (Foundation), "the Foundation is organized c.xclusively for charitable, relig|.ous, education, 

and/or scientific purposes under Section 501 {c)(3) of the Iritertial Revenue Code. A majority of 

the total number of voting directors o.f the Foundation shall at all times be.cutTeni,or former 

voting members of the Board of Di.rcctois of the American Coriservntivc Union, inc. There is,no 

financial interest benvcen the Organization and the Foundation. However, the Organization 

received management fees of 5164,828 from the Foundation in 2012. 

Cash and Cash Equivalents 

The Organization considers all investments \vith an original maturity of three months or less to 

be cash equivalents. 
1 

/ • 

1 

1 

/ 

a 

J AMERICAN CONSERVATIVE UNION, INC. 

4 Notes To Financial Statements 

As of and for the Year Ended December 31,2012 

NOTE 2; PROPERTY AND EQUTPMENT 

Cost incurred to purchase ofTice equipment and furnishings are capitalized and depreciated over 

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

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

The Organization, at December 31,2012 owed S140,468 to the American Conservative Union 

Foundation, a related party. 

NOTE 4: REVENUE RECEIVED IN ADVANCE 

4 3 The revenue was received in advance for a conference held in 2013. 

4 

g NOTE 5: ADVERTISING COSTS 

Z The Organization incurs advertising costs in order to advocate for its mission. Advertising costs, 

i which totaled S49,423, are classined $30,000 as program costs. Other non-progr<tm related 

advertising costs of S19,423 are classified as management and general costs. Ail advertising 

costs are e.\pensed in the year incurred. 

NOTE 6: JOINT COSTS RELATING TO PROGRAM AND FUNDRAISING 

The Organization conducts direct tnail campaigns that are partly a ftindraising function and 

partly provide ptognun education, the cosu of 54,372,056 associated with direct meiil 

processing, printing, and postage, arc allocated 33,366,483 to program and $1,003,573 to 

fundraising costs, based on the facts and circumstances of each mailing. 
AJMERICAN CONSERVATIVE UNION, INC. 

Noies To Financial Siaiemcnts 

As of and. for the Year Ended December 31,2012 

NOTE 7: OPERATING LEASE 

The Organization is party, as tenant, to a lease commencing December 15,2011, for a period of 

five years. The estimated future lease payments for the hext five yearSj which are based on an 

average annual increase of four percent per year, are as follows. Fifty percent of the first seven 

months of base rent shall be abated. 

Lease Year 

4 S 164,708 

171,297 

178,1.49 

183.273 

Aggregate Sj622i22 

NOTE 8: SUBSEQUENT EVENTS 

In preparing these financial sutemems, the Organization has evaluated events and transactions 

for potential recognition or disclostire through April 9,2014, the date the financial statements 

were available to be issued. 

NOTE 9: REPORT RELEASE DATE 

Management has performed its final review of the financial siaiements through April 9,2014, the 

date the financial statements were available to be issued. 

10 

4 

'4 

3 

99t) 

OtpaAnerJ of TIMMO 

M«maf P«wvfiwo 

Return of Organization Exempt From Income Tax 

Under section S01tc|, S27. or 494T(sK1| of Uio Intomal Revenue Code (oxeept bUcK lung 

benetti (rust or prtvaie foundailon) 

b- TTio oroirvciiUort may have to use o copy of itue ralum to seiisly sUte repoiting roqiilromcnts. 

OMBNo.iS4»d04r 

^©12 

Open lo PuPlpc 

Inspection 

A For Iho 2013 eate ndar vaai. or tax voar teoinnlnn . 2012. 4nd BOduio .20 

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524)910911 

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Q Inlxi rctc/m 

Q Tomvtticd 

[7) Amrnooo fvimn 

ifuiiUar ant jwn loi P 0 boa it mat n noi delMiod Ig (vaal addiasil floenVviaa 

1511 H Sueel NW SOO 702.Sd7.9S8S 

6 CnocktlapDCBiMQ Addrost ciispq* 

Q Nv/nacAoAgi 

Q Inlxi rctc/m 

Q Tomvtticd 

[7) Amrnooo fvimn 

Oiy. lawn a> poll oHieo. iiair. and ZIP coot 

Wsshlnoton. OC 20005 OOisuiecoobS 10.777.125 

r Mama am amrgu or pnmaal olTKar At Caidcnaa. Chairman 

1131 It sueel NW. Wsihlrxiton. OC ZOOOS 

MlalbiaiigmipnMBloaSiiUiiOVM UjNa 

NlblNeillafldalMinciudad? Qras DNO 

n -Me,- iRaali a in (laa rabvdm) 

Hid Orauo raimBDon mains » 

t T4x.a.cmnis(aui •soifcMi QaOtfcll 4 '•»>/ 

MlalbiaiigmipnMBloaSiiUiiOVM UjNa 

NlblNeillafldalMinciudad? Qras DNO 

n -Me,- iRaali a in (laa rabvdm) 

J • conservaUv6.oro Hid Orauo raimBDon mains » 

MlalbiaiigmipnMBloaSiiUiiOVM UjNa 

NlblNeillafldalMinciudad? Qras DNO 

n -Me,- iRaali a in (laa rabvdm) 

Hid Orauo raimBDon mains » 

H F^«»o«o«nft«\ianQeorpM«onnTn/f1 • • OtAflf ^ llYwreno^o) 1964 ] M Sots ol leool dofnele OC 

•vpIM Summary 

f| 

OricDy descnb'o the organisation's mission or most signilicant octivllies: TheirissiDn of ihB^prganiiolian 

- -

'Cii(xicVliis'bo«V'0''VhVVrgnnizalion 

Number ol voting mombers of the governing bod |Pon] 

Number ol independent volirig membsr'i ot tno gi 

Total number ol individuals employed in calendar 

, Total number ol volunteeni (estimate II noccssnry 

1 Total unrelated business revenue from Pen VIII, o 

Nel unrelated business tasablo income from Fern 

y&' 

Are titan 2S% ot its net assets. 

2012 (Part V, lino 2a) 

. MAY.'g.e ZOU 

n(C).lino12 . . . 

sgoTniiim.^ 

J^O 

CO 

8 Coninbulions end gronta (Part Vlll, lino 1h|. 

8 Program service revenue (Pan Vlll, line 2g| 

10 lnveslmentlncorne(Pan Vlll, coIumn(A), linosS, 4,and7d) ... 

It Oilier revenue (Pan Vlll. column (A), lines S. 6d, Be. 8c, IOc, and 11e) 

12 Total revenue—add tnes S through 11 (must equal Part Vlll, column (A), line 12) 

70 

7b 

Pner Vur 

13 Grant9andsimilivomounl9piiid(PaniX, column (A), lines 1-3) . . . 

14 Benollts pefd lo Of for members (Pan IX, column (A), lino 4) .... 

15 Sslones, other compansalion, emptoyee benefits (Pan IX, column (A), lines 5-10) 

16o Prolesslonol lundraiaing lees (Pan IX, column (^, line lie) 

b Tots) tundrsising expenses (Part tX, oolumn (0), line 25) ti.44.Sy20fi 

17 Other expenses (Pen IX coiumr)(A), linos 11B-1 Id, 111-248) . . 

18 Tololexpenses. Add fines 13-17 (musi equal Pan IX. column(A), lins2S) 

19 Revenue less cxoonses.Subiracl tine 10 from line 12 . . . . . . . 

3,8«l,»CT 

485,984 

JilWl 

«.777.tSI 

20 Totsi assets (Pan X. line 16) .... 

21 Total liabdities (Part X. line 26) 

22 Net assols or fund balances. Subtract line 2) trom line 20 

Slgnoiuro Block 

I|l||p8 

51 

II 

II 

too 

l.lH.lOB 

57.414 

10:717.125 

789.187 

tzm 

.IZfilMi 

4,559397 

<».1" 

OtgvwQiig of CunvM Tmv 

J£!2£!i 

1,104,178 

578.911 

i 

jyesfiii 

10.894.07C 

1416,951) 

End <17441 

J.1SSJ07 

995.749 

J61^ 

UiMr pBiuiiiet 41 pai|uy.l 

4114. coniel, and comiitau 

lIKwr 

^rpam] 

e4nied«tviticii<dUBi<ndiUER<inu,indlolii<ben4lin(iuw>l4de4 «<d«itcf,4e 

9 ag nlanviliin cd ndKh pnptnr nu Bnyimomtcclled 

Sign 

Here 

l!ie«4lu<oloifi6«_X 

Tyeo 01 • pmifiinnlnn-e <nd MX 

/Jf ao/? 

PrvfirriMDivpar^r'if 

TTionus R. Conlon CPft 

Paid 

Preparer 

Use Only 

rvm-o addXM p PO Bei 8215 SIIVBT Serine. MO 70016.6215 

May the IRS discuss ihls roium with iho preparer shown obove? (soo Insirucilons) 

TO 

FmnaMm. <• Qpnleq ftJVssocleles, LLC 

Cieck 

(49. 

xnn-ii 

.Mipa/M 

TOT 

poiieiiaei 

r«m^ tirt » 

For PbporwofV Bvduction Act Nobe«i 19a tht •es»rote Instmenona. C&MO lUDY 

Mcma 

Fom 990 9019)01!)^ —0^ 
4 

Fcnn9Mpai«) 52-0610813 *piee2 

iPlillll Stsiemeni or Program Sorvico Accomplishments 

Check II Schedule 0 cortlalns a response lo any oueslion m this Part ill • 

1 Brielly dcscnIX! the organtealion's mission; 

JA®.frl55'SP.Pl\hy_p;gani«Uon Isl.ocqmmunicfleto ef>dJoeduMAe.lheiuMic.»l^_w^^^^ 

~2 Old tho organiiation undenake any signiliconi prcgram norvices during the year which wc/e not listed on Iho 

prtor Form 990 or 990-EZ7 ..... QYes 0No 

If "Yos," dcscnbe these new services on Schedule 0 

3 Old ihe orgnnizalion cease conducting, or make signilicanl changes In how II conducts, any program 

services? . . QYes 0Mo 

II *Yos,* descrlba Ihese changes on Schedule 0. 

4 Ooscntjo the orgonlzalion's program service accompiishmenis lor each ol its three lartj'esi program services, as mcasuied by 

expcnsDS.'Section 501 (e)P) ond 501(c)(4} organlzalione era required to report the amount of grants and allocations to others, 

Iho toial expenses, and rouonue. II any, lor each pogram service reported. 

~4n (Code: ) (Expenses S ..fij.sji?.?.' including grants of $ ).(Revon'uo S | 

j^®.0'J9.il?!i«.I.W.£?r!\n:y.n!e.«wtJ.9.!n.d educated jho_poWteab^^^^ 

.k.y.^.s.nt.ln.'.n.tW.yp.P.ihrouihouMIre 

4b (Code: ) (Exponses 3 including grohts of $ | (Revenue 3 1 

.Xta.9.'a».P.'HV.W..«.9n?.>f.e.'.®ft.'!«elinis.«nd.cqnfiCT.n?.«.!?..».n.b?.W..®!fl!?.Wm?.5.o!.ln.d.i.yIdunJs.andcp^^^ 

!?.W.S?.?.0.'l.'.9.9fly.'s9!?.ly.dor.»!.Snd,»uj_oo«9<^i|y_esjnilJcgisl«ilvBjbadjos_or;_iJwne^^ 

4c (Code. ) (Expenses 3 including grants ol 3 ) (Revenue 3 ) 

4d Other program services (Ooscnbe in Schedule 0.) 

(Expenses S including grants of t ) (ncyenue S ) 

40 ToUil progrom servico expenses ^ s.ctz ess 

farm 990tatti) 
52-0810813 

Checkllsi of Roquirod Schedules 

4 

4 

4 

8 

10 

11 

e 

f 

12a 

13 

14o 

b 

16 . 

10 

17 

18 

19 

20a 

b 

Is ihe ofgsnlzalion described In secllon S01(c|(3) or 4947(a)|1) (other than a onvale (oundalion)? II 'Ves,' 

comp/cioSchadiy'c/1 

Is the organiuiion required to eompleic Sehodulo 0, Schedule ot Confrlbirfo/s (sac Instructions)? . . 

Did tho organization ongagt; In dirtict or indlreci polliicai campaign aciMtliw on behalf ol or In opposilion to 

candidates tor putstic olfico? II *Ves,* contp/olo Schedule C, Pan I 

Soction S0i(e)(3) organizations. Old the organization engaga In lobbying activities, or have a section SOl(h) 

oioctlon In oHoct during tho tax year? II •yea,'complete SchcdUfo C, Part II 

Is the orgsniznllon a soction S01|cK4), 901(c)(S), or 50l(cX6) organization that rucoives membership dues, 

assessments, or similar amounts as defined in Ravonuo Prooeduro eo-to? II 'Yes,' cemplete Schedule C, 

Part III 

Old the organization maintain any donor advtsed lunds or any similar funds or accounts lor which donors 

have the right to provide advice on tho distribution or invastment ol amounts In such lunds or accounts? II 

'Yes,' complete Seneouie O.Pan I 

Did the organization receive or hold a consoivalion easement, including easements to prosorvo open space, 

the environment, hotoric land areas, or historic strvctunis? H yes,' complete Schedule 0, Part II .. . 

Did the organlzallon maintain collections ol worits of art, hlstoncal treasuras, or olhcr similar assois? II 'Yes,' 

complete Schedule D, Part III 

Did the organization report pn amount In Pan X, line 21, for escrow or custodial account laibllity; serve as a 

custodian lor amcunta not listed in Part X; or provide credit counseling, debt management, credit ropeir, or 

debt negotiation services? ir "fas,* comptele Schedule 0, Pan Itr 

Old iho organlzallon, diroclly or through a related argnnizatlon, hold esselo in tcmpororlly roslrioted 

endowmenis, pcrmsneni endowments, or quasl-endovrments? II •yes,' complete Schedule O, Part V , . 

II the orgsnizDtlon's ansveer to any ol the lollowing questbns is 'Yes,* then complete Schedule D, Parts VI, 

VII,VIII.IX,orX8sapplicoble. 

Did the organizallon report an amount for land, buildings, and equipment In Pan X, line 107 II *Yes,' 

complete Schedule 0, Part Vl 

Did tho organizaiion repots an amouni for Invcsimenis-other securities In Pan X. line 12 thai is 5% or more 

ol lis lotal assois rcponad In Pan X, line 16? If yes,'complete Schedule O, Part VU 

Old Ihe oiganlzBtlon repon an amouni lor Investments—piogram ralatad In Pan X, line 13 Ihat Is 9H or more 

ol Its total oiwets reponod in Pan X, line 16? if *Yes,' comp/ece Schedule O, Pert tffff 

Did the organization report an amount lor othor assets in Pan X, line 19 thai is 9K or more ol its total assets 

reported in Part X. tins 16? II yes,'complete Schodale 0, Pert IX 

Did the organization report an amount lor other hobilNics in Part X. Una 257 II yes,' complete Schedule 0, Part X 

Old Ihs oiganizalion's separslo or consoMatcd financial slaiements lor the tax year include a fcotneto Ihal aodrssses 

Iho organitallon's habAly lor uneortoin tux posmont under ON 48 tpSC 740)7 II 'Yes,' complete Sthedule 0, Part X . 

•id the oigsnization obtain separate, independom audited financvil staieintnis (or the tax year? If 'Yes,' contptols 

Schedule O, Parts XI and XU . 

Was tho ecganizatloii included in consolidatod, tndapendsnt audited ttngncial stslsmorts tor the tax yeai? II USs,' and if 

me eigamzouon sntwciod 'No' le line Its. then cenipletlng Schedule 0. Parts XIandXIIa epiW 

Is the orgaitlzation a school dascnbed In section 17(Xb)(l||A)F07'f*Yes.'eo/npfeleSe/iedlile£' .... 

Old Ihe organization maintain an office, emptoyoBs, or agonts outside ol the United States? 

0x1 the oignnization have aggmgata revenues or oxponsbs of mere than SIO.OOO frem gmntmaldng, 

lundratstng, business, Investment, and program service octhrities outside tho United States, or aggrcgete 

foreign Investmonis veluod et $100,000 or more? If "res.* eomplate Schedule F. Parts I end IV 

Old tho organization report on Part IX, column (A), lino 3, more than $5,000 ol giants or asslstanco to any 

organization or entity located outside the Unhad Stales? II yes,' eomplate Sehodulo F, Parts llandiV . . 

Old the oigonlzatlon report on Part IX, column Una 3, moro than $5,000 ol aggiegate giants or assistance 

tomdivldualslocatedoutsidethaUnitedStotB5?//'yes,*compfcta5cfia<fufoP,Parfs///andfl/ . , , 

Did the orgonrzation report o total of more than $15,000 of expenses lor prolesswnal lundraising services on 

Pan IX, column (A), lines 6 and 11 e? If yes,' eomplelo Schedule G. Pan I (see tnauucdons} 

0x1 the organlzollon report mora than $15,000 total ol fundiaising event grass incoma and contilbulions on 

Part VIII. lines 1enndea?ff'Yos,« eomplelo SchodVfoO, Part ff. , 

Old the organlzallon report mora than $15,000 of graas income from gaming aclivities on Port VIII, line 9a? 

II yes,'eomplBle Schedule G, Part III 

Old ihc ortianlzation operate one or mora hospital facilities? II yes,' oorrtpiera Sehodulo H 

If 'Vea* to line 20B. did ths organlzallon atlach a copy of its audited financial statements to this return? , 

V»1 Me 

1 / 

2 / 

3 / 

4 

5 / 

6 • 

7 • 

8 • 

9 • 

10 • 

lis • 

lib / 

lie • 

lid • 

lie / 

11f / 

12a / 

12b / 

13 / 

14a • 

14b • 

IS / 

16 • 

17 • 

10 / 

19 / 

20o / 

2ab 

Ferm-dOOpOlZI 
i 

9 

fonn 000130^3) 

Part IX 

52-0810813 PagilO 

SlolemonI ot Functlonol Expenses 

Sacoon 50l(eX3J aM SOI(bJ(4j erganaationa musf eompiolo ot columns. Afl oihor organlalions must comploto column (A). 

Chock i( Schedulo O contains a response to any quaslion in ihis Part IX • . B] 

Do not Inclui/o amounts roportod on Unas 6b, 7b, 

eb, 9b, and tOb of Part VIII. 

~ Gisnis and oiher assistanco i« govomments and 

organiulioni in tht Unlsd Slain. Sw Pwl IV, line 21 

2 Grants and olher assistance lb individuals in 

the Uniiod Stales. Sea Part IV, line 22 . . . 

3 Grants and other assistance to govemmenis, 

organualiens, and individuals outside the 

United Slates. See Part IV. lines tS end t6 . . 

4 Benelits paid to or lor memoers .... 

5 Compensation ol cuh'ent offlcors, directors, 

inrstees, and key employees 

D Compensation not included above, to disqualinad 

persons (as donned under section 495B{Q(t)) and 

persons described in section 49SB(c)(3)|B) . . 

7 Otner salartes and wages 

8 Pension plan acouab and conlnbulions (include 

soclion 401(k) and 403(b) employer contnUubont) 

Otner employee benellis 

Payrpg taxes 

Fees lor services (non-employees). 

Menogcmenl 

Legal 

Aocounling ... ... 

Lobbying 

Protessicnal lundraising lennccs. See Part IV, bne 17 

Invesimenl managemeni faes 

Other. (Klne I Ig amooni eaeeads lOH ol lino 25. column 

|A|imoiinl.liSllne llgegiensasonSchedultOJ . . 

Advertising and promolion 

Otflce expenses 

iniormaiion technology 

Royalties 

Occupancy 

Travel 

Payments or travel or entertainmcm expenses 

for any (edoral, stalo, or local public oKicials 

Conferences, conventions, and moetlngs . 

Interest 

Payments Id alTiliales 

Oeprociaion, depletion, and Bmardzallon 

Insurance 

Olher oxpenscs. Ilembe expenses not covered 

abovG.(ljsl miscellaneous sxpcnsas in lino 24a. II 

line 24e amount exocads tOK ol line 2S, oolunv) 

(A) amount, bat Ime 24s expenses on Schedule 0.) 

to 

t1 

0 

b 

G 

d 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

rotalsipmaai 

215.000 

ST4.ta7 

iu.es6 

S2.74S 

10S.M1 

13.644 

Pnjgiun 

UMmas 

tet.250 

433.103 

6t.02B 

40,522 

32.250 

38.113 

7,203 

4,743 

tasjet 

13,S54 

.asoo 

107.667 

12.707 

JiiU 

211.264 179.837 3.850 27.601 

48.423 30.000 18.423 0 

113,879 41.605 82.374 0 

50,319 4.304 48.035 0 

164.950 116.812 11.791 24.327 

200M3 1S1.46S 17.879 31.838 

2,640.947 2.261.347 270.600 0 

2.104 0 2,104 b 

13,978 0 33,978 0 

11,380 0 . 11.180 

e Pollilcal doiulions 1.710.000 1.710,000 0 0 

b biiecl mail' 4,372.050 2.2.i6,«i3 0 1.805:673 

c 

d 

G All otfior oxpenscs 

25 Totxl hincOonal rxpenssL Add lines i t^iwgh 2*e 

G All otfior oxpenscs 

25 Totxl hincOonal rxpenssL Add lines i t^iwgh 2*e 10,984.07 6 B,«12.6C9 122.202 VS58.20S 

26 Joint costs. Complete this line only H Uio 

orgenftslion repencd in column (B) loinl costs 

from a combined cducaiionel compalgn and 

lundraisuiD solcilaboa Chock hare V [7] H 

following SOP 98-2 (ASC9S8-72d) . . . . 4.372.056 3.366,485 0 1.005.S73 

Sam 990 0012) 
4 

SCHEDULE C 

(FomiggoorggoEZ) 

0«p«/tmcAi ftt 9^4 Treutf^ 

Mtf«I4) RAVtMjtf Some* 

Political Campaign and Lobbying Activities 

For Oreanlzatlolu Exempt From Income Tax Under section 601(c) end soctlcn 627 

e Complelo rl trie crBsnizetlon Is doscrtbcd IKIOW. > Aciseh to Feim 690 or Form 990-EZ, 

> See separate InstrvcOons, 

OMO NO. IMSOOI? 

m2 

open to Public 

Inspection 

II the orgsnlsstion answered 'Yes," to Form 9S0, Part IV, line 3, or Form 990-E2, Pert V, line 46 (Polillcol Csmpaign ActlvKies), dnn 

• • Socnon 50t(eX3| orBaniuvona- Comelote Potts l-Aand B Oonot eomplote Port l-C 

• Sscliort sot (cl (other Itian secton i01(c|(])) orgnnlutlons' Complete Peru l-A end C Mow. Do not contplsls Part l-B. 

• Secuon 527 organlutnns- Complete Port l-A only 

II ate organlutlon aniwerwd 'Ves." to Form 990, Port IV, Uno 4, or Form 990-E2, Port VI, line 47 (Lobbyinp Acdvltlas), then 

• Section S0t(c||3) orgsnizai.'ons mot have liM Form 5768 (otetlon under se^ion S0t(lt)7 Compteie Part ll-A. Do not cornpleie Part ll-B 

• Section SOIIcIO) omaniutions ihal have NOT filod Form S7CB (ofoenen undor section S01|h)). Coinplels Part ll-B. Co not eomplels Port ll-A 

n the orgenlssilon answered 'Yes,* to Form 690, Part IV, lino 5 IProiy Tex) or Form 990-EZ, Port V, line 3Sc (Proiv Tax), then 

Section SOileKo). tS). or (61 omsniinUons .CcmMeioPon IP 

Nsmo 01 orgsniuUon ullon

Anwlcw Censcrvatluo Union. Inc. 

Part l-A 

I'mpletror Identllicatlon number 

52-09toan 

CoiTtplotc H tho organltotlon ls oxoiript under section SOKc) or Is a acctlon S27 orgonltotlon. 

1 Provide 0 dcscilplion of the organiullon's direct end Indirect political campaign oeliviiios In Port IV. 

2 Political expenditures P J 

3 Volunteer hours "" ""~'"o 

Pan l-B 

1 

2 

3 

4e 

b 

CompletB If the organisation Is oxcntpl untier section 501(c)(3). 

Entar iho amount of any excise lax incurred by Iho orgeniiBlmn unifor section 4SSS . 

Enter the amount ol any exciso lax incurred by organization managora under section 49SS 

II the organization Incumid a $001100 4655 tax, did II lite Form 4730 lor this year? . . . 

Was B correction made? 

II •Vas.'dcscnbe in Part IV. 

• 

• 

Tvia "n 

• Ves • 

NO 

No 

_I_.7I0.000 

pan i-c Comploto 11 mo orqanlzailon Is oxompt under soclion SOifc), oxcopt section 501(c)(3). 

1 Enter the omouni directly expended by Ihe liling oiganlzalion lor section 527 excmpi lunciion 

activities • $ 

2 Enter Ihe amount ol Ihe hiing organization's funds conlnbuted to other organizallcns lor section 

527 exempt lunction activities PS 

3 Total exempt lunciion oxpcndilures. Add lines 1 and 2 Enier here and on Form 1120-POL, 

'•"•''I' • S 

4 Did the filing organization lilc Fomi 1120-POL lor this year? '".""Q Yos""13'Nb" 

5 Enter the nomoa, addresses ond employer etcnliricolion number (EIN) of all socnon 527 polifacal organizations to which Ihe liling 

organieaiion made peymcnis. For each orgenization listed, onior the. amount paid horn Ihe liling oiganizallon's lunds. Also enter 

Iho amount ol polincal conlnbulicns rccelvod Ihal were promptly and dirocUy dolivetsd to a soperale political oiganizalloni such 

as 0 separale segregated tund or a polilical oclion committee (PAC) II addlllonal space is needed, provide inlormauon in Part IV. 

|l)Mli 

(II 

Now or No»cr PAC 

(2) 

PI 

(4) 

MASdmH 

Kansas CliV. MO 64116 

ICltIN 

For Psperawik Reduction Act Noboe, icc the InibvcSoni lor Fcrni 990 or NO-EZ. 

(d) An«vi1 ^id tarn 

Rhnoorg«mut«n*« 

funds Hnond.eniRt •OIflAineiitteipodDGd 

eomnMioni imMd ind 

pram(rt»irandttiie«y 

dtflUVOd to i M0i/«t6 

pofitica) ofgububon II 

Mna.«Al« .O' 

J.7t0£00 

cm Ne 500643 Schoddi C IFeim 990 « 990-62) 2012 
soMiiioc|Fiiiii<93oo> wo-raiov2 52 - 0810813 ' Pnt2 

Complete If tho organization Is cxompi under soclion 501(c)(3) ond lilod Form 5768 (olcction under 

section 501 (h)). ' 

Part ll-A 

A Check • II iho lUing organlzaiion belongs to an allllialed group (and list tn Part IV each' aftiliaicd group member's 

name, addross. EIN, oxpcnsea. and share ol excess lobbying oxpendltures). 

B Check • if ihe filing organiMlloo checked box A and "Ifmlled cornroi* provisions apply. 

4 

4 

Umlte on Lobbying Expondlluros 

(The term "expenditures* means amounts paid or Incurred.} 

Is Totaliobbymgoxpondnurcs 10 Influcnco public opinion (grass rods lobb'/ing) . . 

b Toiai lobbying expendnures to Innuence a legislative body (direct lobbying) . . . 

o Totol lobbying exponditurea (add lines l a and 1 b) 

d Oiher exempt purposo expendlturos 

o Total exempt pumoae expendlturos (add lines lc and Id) 

( Lobbying nonioxabia amount. Enter ine amount from tho lollowing table In bolh 

columns. 

11 Ihe onuounl on lino la. cohimn (>) or lb) It: Ttio tobbyinfl nontsiobte emounl In: 

Not over SSOO.OOO ZOti ot tho emounl online io 

Over SSOOJDOO but not over S1 POO.OOO StOO.000 plus IStt of me exeoot over SSOO.OOO 

Ovor {1 .OOO.OCO but not ovot SI .500.000 SI 75.000 plus 10M of ino exeoss ever si.ooaoca 

Oxot SI .SOO.OOO bui nor ovor SI 7,000.000 SZZS.OOO plus SU ol llio cxcesi ovor Si.SOO.OOO. 

Over SI 7,000.000 51.1X10.000 

talFeng 

orginulan'i IslaJi 

lalAlirMlM 

gntiploiai 

Subtract line 1g from line Is. II zero or less, onter -0-

Subtract line II frum line 1c. II zero or less, enter-0- .... 

II there Is an amount other than zero on ollhsr Una 1h or line 1i. diO the organizslion Ido Form «7Z0 

reporting section S911 tax lor this yeatO QYos 

4-Year Aversglng Period Undor Soction S01|h) 

(Some of^anlxotions that mode a section 50t(h) olectlen do not hsvo to complole ail of Ihe fixe 

columns below. See the Instrvctions lor Unas 2a through 2T on page 4.) 

Lobbyf ng Expondlturos Durfng 4-Ycar AvcniDlna Period 

CalenOar yaoi (or liscal yosr 

b^inning in) 

(s) 7009 lb) 2010 (0 2011 (d)2012 (e| Total 

2a Lobbying noniaxablo amount 

|150% ol line 2a. column (e)) 

0 Total lobbying exponditurea 

d Giossroots noniaxablo amount 

sciMeiitB e irem SM or seo-ezi son 
4 

2 

Scnidii1aC|Fann0S0or««O-E2)9013 52-0810813 

Complete H tJie organisation Is exempt under section 501(c)(3) end has NOT tiled Foim 5768 

(election under section 501(h)). 

Partll-B 

Pioa3 

For each "Yes," response to lines la through li below, proviOe in Part fV a delailad 

(SescnpOon of the lobbying actlirity. 

t Dunng (he yev, did Ihe tiling organuauon allempi to Influence Icrelgn, nalianol, slolo or loeal 

legislation, Including any aitempt to inlluoncs public opinion on a logislativo matter or 

ralerendum, through the use ol; 

s y/oluiitoorsl 

b Poid siaH or management (include compensation In expenses reported on lines lc through 1()7 

c Media advertisements? 

d Mailings to mcmbcni. legislatora, or the public? 

a Publicailans, or published or broadcast statements? 

t Grants to other organizations (or lobbying purposes? 

e Oirocl contact with tegelators. Ihoir stalls, govomment oKiclals, or a le^slolnre body? . . . 

h RalNos, demonstrations, sominars, conventions, spoochcs, leclurcs, or any similar moans? . . 

I Dthar actlvilles? 

I Tolal.Add lines tc through II 

2a 0x1 the activities In line 1 cause the organization to be not described in section S01(cK3)? . . 

b II "Ves,' enter the amount of any lax Incurred under section 4912 . . . -

e It 'Yes,* enter the amount of any lox Incurred by organization managers under section 4912 , 

d it ihe tiling organization'incurred a sectxin 4912 lay, did it Mo Fomt 4720 lor this year? . . . 

Part lll-A Comploto if the organization la exempt under section 50t(c)|4}, section S0l(o)(5), or. section 

601 (c)(6). 

1 Were substantially all <90H or more) dues received nondeductible by membara? 

2 Old thp organlzalion make only in-housa lobtiying expendiluras ol S2,0(X) or lass?.. 

3 Old the ortienlzatlon onme lo carry ever lobbvlnB and poMitial dxpenditurds (rom itis prior year? . . 

Part III B 

No 

Complete If the organization Is exempt under section 50t(c)(4), section 501(c)(5), or section 

601(c)(6) and H either (a) BOTH Part lll-A, lines 1 end 2, are answered "No," OR (b) Part lll-A, line 3, Is 

answered "Yes." 

1 

2 

a 

b 

0 

3 

4 

Dues, assnssmonts and similar amounts (rom membara ;' . 

Section 162(0) nondeduclibla lobbying and political expenditures (do not Include amounts ol 

political expenses (or which the section 627(0 (ex was paid). 

Currenlyear 

Carryover horn Issl year . , 

Total 

Aggncgalo amount raported in section e033(e)(t){A) nolmes ol nondoduclible section ie2{c} dues . . 

II notices wero sent and the amounl on lino 2e oxeoods iho amount on lino 3, what ponion ol (ha 

oxcoss doos iho oiganization agree lo canyovcr to the reasonable esbmaio ol nondoduclible lobbying 

and political expenditure next year? 

Taxable amount ol lobbying and pollilcnl expendiiures (see Inslnicuons) 

• 

2a 

2ta 

2c 

Supplomontol Inlormatlon 

Cdmpiolo this port to provide Ihe dcsenpiions requlrod lor Pert l-A. bnc 1. Part l-B, line 4; Part l-C. line 5; Part Il-A (ainiisled group 

list); Part Il-A, lino 2; and Port Il-B, lino 1. Also, complete this part lor any addHional mronnolion. 

R?.'?.lA.W.n9.)Afy.T?.?Jf2y!i(?ff.'.9JS?!?l?t9£S»nBaUon.fo;.SBcilon.SJ?.c«Bmji_iJuni5lon.p_rt»tte^ 

SelMduto C ^orm ego or eWB) >012 
4 

4 

4 

! 

SCHEDULE 0 

(Form 990 or990-Cll 

NCMP^O Rrvfma SataAM 

Supplemental Information to Form 990 or 990-EZ 

Compl«i« 10 provW* Infornivlion for mspanMo le opoci/ie quoitloot on 

Form 990 or 99^EZ Of lo ProviOo ony UdhloAol (nformiUon. 

» Much le Fonn 990 or 990-E2. 

OJFBNs SCHEDULE 0 

(Form 990 or990-Cll 

NCMP^O Rrvfma SataAM 

Supplemental Information to Form 990 or 990-EZ 

Compl«i« 10 provW* Infornivlion for mspanMo le opoci/ie quoitloot on 

Form 990 or 99^EZ Of lo ProviOo ony UdhloAol (nformiUon. 

» Much le Fonn 990 or 990-E2. 

i®12 • 

SCHEDULE 0 

(Form 990 or990-Cll 

NCMP^O Rrvfma SataAM 

Supplemental Information to Form 990 or 990-EZ 

Compl«i« 10 provW* Infornivlion for mspanMo le opoci/ie quoitloot on 

Form 990 or 99^EZ Of lo ProviOo ony UdhloAol (nformiUon. 

» Much le Fonn 990 or 990-E2. 

. Open to PuPlip 

lni;pcctinM 

Namr w ina apanaoiort 

AntflctK Conttnativc Union. Ine S9.0MI1813 

f?J7RMq.Penv!!l[si.ol,oiri«f5,«Jiire!of»,wftity.«mj«(OTW»K?sra,Mfl.!«!|.5€^^^ 

!)?>.»«inupaii«d schwunO hn Becnfivagd ioclinl»e.plin»io«y migitwiuon. 

Traa»ur»i. iwd men Ifw lull Baird. lot ravliw »nd jpofovil Upon ippfOTiL II w ilanttf by an oMw jnd filed wilh lh» IBS, 

Pomi 9ML Pan VI. Sttllon B. Lin« »: Piaafdum tw wnlieiirw Itw conWei 01 lnl«t«»l policy irt btlna wipltnwnnd. 

/.9/?P.Port V». Scclion 8,Uno-»; Anoieemhit compcnMiionpolicyli UInoIrapltnitnlad Ouiina Mil.piotullao eomPOBMllonwop 

^Wn^a»fl\l^la^S;flP.o^!^ll9n.•^lh(aalllnsf.^oH^^^ 

roini 980. Part VI. Soenon C. Ufic H; Tho flnictai oUncorporaUen ai« aooUaWa Inm tfw Olwict of ColumBIa IXimvnoni olConiumiran'o 

Booulatofv Mfaif 1 Cotpotalionj Oiwilofi rmiiveiol Haltimnii imy h« avidjblo m «e»tn «m«i whott Hit Ownnnallow ii feolslnoO le 

ioliMJtanflbi.filMi.aoKtnl'JaflWlwJitf.'JW.Wf./lKrtlfP.iP.WllP.I.'itP.Vftte - -

rormppo. Pin IX. Lino tttril.TtttOOOwn ipoBlltilconifHiulloii locfiatrt IwIht Ofaaniituon anOprolno^^^«''''rt"»CllYrtl^^^f»dw.a. 

«H«W«teasPj.P««0IMVfln,.Thfc»SSl(!S««SA'PWSSfl.'2.??.*ft!?.fii - -

Porwippo, PantX. Lino jilt. Oifocl witileoiltol PtjTi.BiScontntof tm fotloartno H.OJI.ilP tetcluiUnasnt.PTPinOfOtniiwullund. 

talalno sofoieaH Ptio 10 Ihe ditaci mail Dioetpaina tempinp liiiaO In SehirtifltG. PI.PIP l>i ippifilt hpn»iiiil.f«l.HP In POPtitit 

pottaoe. ano laeajM m looaralo prtnilno Thli tolal at M.ITI.OM n allocaitO «.M6.aab to pieofim con and Pl.005.in lo tunOramoQ 

Foe Ptpmmtoek He^luetton Act Noiicc. IM lh« lAsvuetions lor Form 9Q0 or MWCZ. C«i NO SIOSSH Sdndt^vOtfoifnttOot ogo*f2)<tOII} 
1 FEDERAL ELECTION COMMISSION 

2 

3 FACTUAL AND LEGAL ANALYSIS 

4 

RESPONDENT: Unlcnown Respondent MUR: 6920 

5 I. INTRODUCTION 

6 This matter vyas generated by a Complaint alleging that an Unknovim Respondent made a 

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

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

9 II. FACTS 

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

11 October 31. 2012, it received a SI.71 million contribution from ACU,' a 501(c)(4) social welfare 

12 organization.^ In May 2014, apparently after an independent auditor reviewed its 2012 

13 finances,^ ACU filed an Amended 2012 IRS 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."'' 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.' 

Now or Never PAC, 2012 Post-General Report (Dec. 6,2012).at 6; see also Compl. H 14 (Feb, 27,2015). 

ACUResp.atl (Apr.23.20I5). 

Compl. 15-17, Exs. B (Conlon & Associates Independent Auditor's Report, Apr. 9,2014) and C (ACU 

Amended Form 990, May 12, 2014). 

Compl Ex. C at Schedule O, Schedule C. 

Compl. IN 12,17. 
MUR 6920 (Unknown Respondent) 

Factual and Legal Analysis 

Page 2 of 3 

1 III, LEGAL ANALYSIS 

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

3 effect a contribution in the name of another.® 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.' Courts have 

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

7 contribution,"® 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."' 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 

11 candidate or committee "makes" the resulting contribution.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.'' 

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 

^ 52 U.S.C. § 30122; see also II C.FJl. § 110.4(b). The term "person" includes partnerships, corporations, 

and other organizations. 52 U.S.C. § 30101(11); 11 C.F.R. § 100.10. 

' See, e.g.. United Slates v. 0'Donne/1,608 F.3d 546, 553 (9th Or. 2010) ("[T]hc congrMsional.purposc 

behind [section 30122] — to ensure the complete and accurate disclosure of the contributors-who fmanM federal 

elections — is plain."). 

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

' O'Donne//.608 F.3dat554. . 

See, e.g., Boender, 649 F.3d at 660 ("[W]e consider the giver to be-the source of the gift, not any 

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

" 0"Donne//,608 F.3dat 550. 
M!QR 6920 (Unknown Respondent) 

Factual and Legal Analysis 

Page 3 of3 

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

2 Respondent violated 52 U.S.C. § 30122. 

3