FEDERAL ELECTION COMMISSION 

Washington, DC 20463 

VIA FIRST CLASS MAIL 

James C. Thomas, ill APR 20.2017 

7509 NW 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 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 you, acting 

on your own behalf or on behalf of Goveniment 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 tlie 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 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, teiking 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 

James C. Thomas, III 

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. 

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

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

3 www.fec.gov. 

Sincerely, 

Kathleen Guith 

Associate General Counsel for Enforcement 

Enclosures: 

Complaint 

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. Id. § 30107(a)(9). 
. • • .--FEDERALELECTION COMMISSION RECEWEH 

2SiiFEI5 27 r: 2^ !9 WU'-Sl 

In the matter.of; • 13 ''i". "i-5'4 'iOl&VtBt' 

OFFICE «.•• ;.L Mtm-a: WWl American Conservative Union ' MUR No. 

Now or Never PAC / Cf O ^ 

James C. Thomas 111, Treasurer, Now or Never PAC y 

Unknown Respondent 

SENSITIVE. 

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

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

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

4 or Never PAC, James C. Thomas 111, and an Unknown.Respondent for direct and serious 

3 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 easuring 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 releases, and other methods of distribution. CREW also 
i 

files complainis with the FEC when it discovers violations of the FECA. Publicizing campaign 

finance violations and filing complaints with the FEC serve CREW's mission 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. Wei.smann is the interim executive director and chief 

counsel of Citizens for Responsibility and Ethics in Wa.shington, 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. § 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 EEC's proper administration of the EECA'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 

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 

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

4 ^ 8. Ms. Weismann also is entitled to receive information contained in di.sclosure 

4 

reports required by the FECA. 52 U.S.C. § i5Ul()4(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. Vaieo, 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 F'EC fails to properly admiiiister 

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

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 Initial Form 990, November 14, 2013. at 1 (excerpts attached as Exhibit A). 

2 Now or Never PAC, FEC Form I. Statement of Orgiinixation. February 21. 2012, available at 
J 2. Unknown Respondcnl is the true source of funds ACU Iransfcrred lo Now or 

Never PAC. 

Factual allcRaiions 

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

$7,760,174 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, 

4 

4 

4 

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

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

4 complete to the best of his knowledge and belief.' 

0 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 tax 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 ai hllD://fm-.uov/fin;incc/'disclo.siirc/oiiii(]ciiiie 

info.shlml. 

•Vd. 

® Now or Never PAC, FEC Form 3X. 20l2To!it-Eleciion Rcoori. December 5.2012, available at 

linn:.//d(icuuerv.ruc.ii{.iv/ndlV068/:l2%2S32<)6S/129(:i2S.V2%S;pd"rtfi\avpahes=(l. 

'/d. 

" ACU 2012 Initial Form 990, at 1. 

/d.. Part IV, Question 3. 

" Conlon and Associates, American Conservative Union. Financial Statements and indeoehdem.Aiidiror's Report 

for the Year Ended December 31. 2012. April 9, 2014 (attached us Exhibit B). 

"/d. at 6. 
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 di.sclo.sed ACU's $1.7rmillion contribution.to Now or Never PAC.'-^ 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 tax-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 

4 

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

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

1 fund."'5 

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 column for the 

"[ajmount 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). 

" Id., Part IV. Question 3 and Schedule C, Part l-C, Line 5. 

" Id., Schedule C. Part l-C. Line .^(d), (e) and Schedule O. 

" IRS. 20.14 Instructions for'Sche'dule C CForm 990 or 990^EZ1. at 3. available at http-./yw.ww.ir.s.miv/pub.'irs- . 

pdiyi990.sc.pjjr. 

ACU 2012 Amended Form 990, Schedule O. 

" W.. Schedule C. Part l-C, Line 5 (d), (c). 
i 

4 

20. Even though ACU wa.s not the source of the transferred funds. Now or Never 

PAC reported ACU as the contributor.'" ACU has not publicly identified the contributor who 

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

Count I • 

21. The FECA and PEC regulations prohibit knowingly permitting one's name to be 

u.sed to effect a contribution in the name of another per.son 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 2012 tax return - filed under penaUy of perjury -

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

2 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. § 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(d)(1). 

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

2012 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 

'* Now or Never PAC, FEC Form 3X. 2012 Post-Elecilon Rcnori. December 5, 2012, available at 

l.nn.//a>icu»crv.fv:c.>.ovAHll/:t)68/12962S.129rt8/t24628.32<>6S.r>Uf. 
ihus subject to criminal penalties and referral to the Department of Justice. 52 U.S.C. §§ 

30l()9(a)(5)(C). (d)(1). 

Count II 

24. The FECA and PEC 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., § 1 l().4(b). 

25. [f 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.C. § 30122 and 11 

^ 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. .§§ 

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

Count III 

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 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 

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 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 (phone) 

(202) 588-5020 (fax) 

4 
I 

Verincalion 

Citizens for Responsibility and Elhias 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. 

LLLL 

Anne L. Weismann 

I 

i. 

4 5 

Sworn to and subscribed before me thist^th day of February, 2014. 

Notary Pub!i^ \ 

.irtlHIln.,. 
1 

EXHIBIT A 
990 

Oepmmeni or the Troisury 

Internal Rovenue Service 

Return of Organization Exempt From Income Tax 

Under section 901(c), 9Z7. or 4947{o)(l) ol Uio tnlemel Revenue Code (except black king 

benefit tnist or prtvate foundation) 

*• The organlMllon may have to use a copy of tins return w sausly stale icporting fequlrenicnts. 

OMBNo iMS-ooer 

A For the 20t2 colendor year, or tax year beqinnlnp 

8 Cnsck ir appucelMQ Addraeg change 

• Name change 

O Initial return 

D Tennnaled 

Q Amended raluin 

Q Application pending 

C Name el mganualion Amcncan Conservallve Union. Inc. 

.20t2. and ending 

>©12. 

Open !o Public 

Inspection 

.20 

Peine Bminaas As 

Numbsi and straei (or p o Doi il mail n not oaiiverao lo strain eddress) 

1331 H Struct NW 

Roontrsune 

500 

City, town or post office, alete. and ZIP coda 

Vtfashlnoton. DC ZOOOS 

I Tn»-a»anipt aiaiue • SOKOOI 

F Nama end adoresa ot pnneipal etteer Al Cardenas, Chairman 

1331 H Street NW, Washington, DC ZOOOS 

EsoneK 4 )e tnacnno) •aa«»iXI)o> • SZf 

J twaeana; • consofvatiue.oro 

Form ol orgoAttaign 

M Summary 

O Employor M«ntHle«tlon numbor 

52-0810813 

6 Tdeptiona numtwr 

Z0Z-347-MB8 

OGroaa racepis I _ii47! 

Yea IZ) 

iZ&SSl 

H(a)bt«)igraupieltiml9ri!ailaalCjYaa [£ihe 

H|b)Aroallo*itate9includad7 OYai ONO 

II 'NO,' attacn a lisi |iao insnuctioni) 

M(cl Gioup eiamplian numoar • 

Other- LVearettemiBiion 19B< 1 M Stele olniaejdoni.ole 0C~ 

£5 

C3 

<JO 

II 

1 Briefly descnbe tho organlzaiion's mission or most significBnt activities: .The misslono/.thejOraanlistl^^^ 

•fc9.>fl.SW,f®n.lA9£l?l.?.?PJSTO5i.WiR9j!y.iSJIsSJS.i-_ 

2 

3 

4 

5 

e 

7a 

b 

Chec'it tiiis box ^ O'ii tlie organization discontinuod Its operations or dispos^ ol morcVlian 25H ol'its net assets. 

Number of voting members of the governing body (Pert VI, line 1a) 

Number ol independent voting memljors ot the governing txxSy pari VI, line lb) 

Total number of individuals employed in calendar year 2012 (Part V, line 2a) 

TOta! number of voluntoois (astlmate If necessary) 

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

Nel unrelated business taxable Income from form 990-7, lino 34 , , , 

8 Contnbutlons and grants (Part VIII, lino ] 

9 Program service revenue (Part VIII, line j 

10 Investment Income (Part VIII, column ( 

11 Other revenue (Part VIII, column (A), tln^ 

12 Total revonuB—ndd Unas 8 through 11 I 

f^eCEfVEDr4vand 7d) -o 

.'|6d,|Bck.9c, tOChOncL 11 

13 

14 

15 

16a 

b 

17 

10 

19 

0 12) 

Grants and similar amounts paid (Part IX, cSlDfrf^A); llnes^ 1-3)-vwwJK 

Benelits paid to or tor members (Part i:[. coluiniiC^OiEgf'O, (JT • 

Salaries, other componsatlon. employee benelHs~(ParrtXrt:oluii iiry!Hne3&-10 

Profosslonal fundraising lees (Port IX, column (^, line tie) . 

Total lundralslng expenses (Part IX, column (D). line 25) • .216..67P. 

Other expenses (Part IX. column (A), lines t la-lid, 111-24^ 

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

Revenue less expenses. Subtract line 18 from line 12 

20 

21 

22 

Total assets (Part X, lir>« 16) 

Total liabilities (Part X. line 26) 

Net assets or fund balances. Subtract line 21 Irom line 20 

7a 

7b 

Prior Yaar 

485.984 

344,603 

4,77Z,5S4 

5Z5,064 

100,648 

Signature Block 

32 

11 

ISO 

CumntYov 

381,205 

5.860,670 

7T6.756 

B,478J81 

891JM 

171,456 

3,704.685 

4,339.397 

433,157 

Bugtinuig si Ciortnl Yur 

1,682,689 

VW4,17a 

578511 

5.795,232 

8,858.227 

End ol Year 

(379,646) 

865,391 

666.576 

jsasy 

Undir ponallw ol ponunr. I doclxn ihn I how 

duo, oonoel, and complMo OoclaroMn ol prapanx (olhu I 

ad Ws rotum, includvig accompanying achodUoi and daiamanu, and lo the boat ol my t 

) II baxod on dl nlarmalien el whKh piepafor has any knowlodgo 

I andbalisl.Ilia 

^ 1 

Sign 

Here 

' Signalura ol offeor Oala 

r Type or pnni nomo and Mlo 

Paid 

Preparer 

line Dnlw 

Prnn/Typo proparori nama 

ThomDS R. Conlon CPA 

Preparar'a aignaliro Dale 

''/-/M-n 

Chod • a 

P71N 

P01486002 

Paid 

Preparer 

line Dnlw firm'i nama • Conlon 4 Associates. U.C Foni-aBN • 

r 

Fum taddroaa - PO Box 62t3, Silver Spring. MO 2D916-62t3 Phono no 30t.S98.6851 

Moy the IRS discuss this rotum with the preparer shown above? (see instructions) . . . . . . 0 . . •lEQSC^ 

For Paperwork Reduction Ad Notice, see tho aaparote tnotrudlens. Cn No iizezY Poin<990i:oi: 'hj' 
Folm 990 (2012) 52-0810613 Page 2 

Part III Statement of Program Service Accomplishments 

Check If Schedule O contains a response to any qoestion In this Part III • 

1 Briefly descnbe the organization's mission: 

IhejTjIssJonof ihoprganjMUonJs.tocomwnlcajetoandjocOucatBj.he^uW 

2 Old the organization undertake any significant program services during the year which were not listed on the 

prior Form 990 or 9gO-EZ7 DYOS (ZJNO 

If "Yes," describe these new services on Schedule O. 

3 Did the organization cease conducting, or make significant changes In how It conducts, any program 

services? •Yes BNo 

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

4 Describe the organization's program service accomplishments for each of Its three largest program services, as measured by 

expenses. Section 501(c)(3) and 501(c)(4) organizations are required to report the amount of grants and allocations to others, 

the total expenses, and revenue, if any, for each program service reported. 

4a (Code: ) (Expenses $ .ii?44ji9o including grants of S } (Revenue S ) 

Ih.c 0/J?nJ?fl'AWE9.'nmkn!5Sl?f{19.?n^.P.9K?iy®f'.th?.pul>Hc8boul.eunBnl_sgcj.aj,.eco_nonilCi^^^^ 

F.yrrf-W.injROTftyfin.lhrguiligul.tJwjear.ThBO/^anizalign conducted. 

3 Indlvidunls and corporations rcqnrdlnq political Issues and to educate leitefat and stale cxecuilvcs and leglslaljye bodies 

^ fiaihene^tg.addre5.s..t.h^^^ 

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

4c (Code: ) (Expenses $ Including grants of S ) (Revenue S ...... j 

4d Other program services (Describe In Schedule 0.) 

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

4e Total program service expenses ^ ss.M4.i30 

Flinn99Oe012) 
Fo<m 990 pois) 52-0B1U813 

Checklist of Rflquirad Schedules 

1 Is the orgsnlzalion described in section 501(0(3) or 4947(0(1) (other than a private foundation)? If "Yes,' 

complele Schedule A 

2 Is the organlaation requred to complete Schedule B. Schedule of Conlributots (see instructions)? . . . 

3 Old the organization engage in direct or indirect poiitical campaign activities on behaif of or in opposition to 

candidates lor pubilc office? II 'Yes,' complete Schedule C, Part I 

4 Section 601(c)(3) organizations. Old the organization engage In lobbying activities, or have a section SOi(h) 

cloctlon In effect dunng the tax year? If 'Yes." complete Schedule C, Part II 

5 Is the organization a section 501(c)(4), 501(c)(5), or 501(cX6) organization that receives mcmborship dues, 

assessments, or similar amounts as defined in Revenue Procedure 98-197 If "Yes,' complete Schedule C, 

Part III 

6 Old the organization maintain any donor advised funds or any similar funds or accounts (or which donors 

have the right to provide advice on the distribution or Investment of amounts In such funds, or accounts? If 

'Yes," complele Schedule O, Part I 

7 Old the organization receive or hold a conservation easement, including easements to preserve open space, 

theenvironment. hlsiorlc land areas, or histonc structures? if "Yes," compfefeSchedu/oO. Part fi . . . 

8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes." 

complete Schedule O, Part III 

e Old the organization report an amount in Part X, line 21, for escrow or custodial account liability; serve as'a 

custodian for amounts not iisted in Part X; or provide credit counseling, deb! management, credit repair, or 

debt negotiation services? If "Yes," comptole Schedule D, Part IV 

10 Did the organization, directly or through a related oiganiution, hold assets In temporarily restricted 

. endowments, permanent endowments, or quasl-endowments? If "Yes," complele Schedule D, Part V . , 

11 II the organization's answer to any ol the following questions Is "Yes," then complete Schedule 0, Parts VI, 

VII, VIII, IX, orXasapplicabls. 

9 Did (he organization report an amount lor land, buildings, and equipment in Part X, iine 10? If "Yes," 

complele Schedule D, Part VI 

b Did the organization report an amount for investments—other securities In Part X. line 12 that Is 5K or more 

ol Its total assets reported In Part X, line 16? If "Yes," complele Schedule 0, Part VII 

0 Did the organization report on amount lor Investments-program related in Part X. line 13 that Is 5% or more 

Ol its total assets reported In Part X. line 16? II 'Yes.' complele Schedule 0, Part VIII 

d Did (he organization report an amount for other assets In Part X, line IS that Is 5% or more ol its total assets 

reported In Part X, lino 16711'Yos.'comp/eio Schedule D, Part fX 

e Did the organization report an amount lor other liabilities in Part X, line 25? If 'Yes,'complete Schedule D, Part X 

( Did the organization's separate or eonsolidatod financial statements for the tax year Include a footnote that addresses 

the organization's liability lor uncertain tax posilions under RN 48 (ASC 740)? If 'Yes,* complete Schedule D, Part X . 

12 a Did the organization obtain separate, irxfependent audited financial slatamants for lha tax year? If "Yes,' complete 

Schedule D, Parts XI end XII 

b Was the organization Included in consoHdatad, independent audited financial statements for the lax year? If "Yes," and if 

the erganliBtion answered 'No' to line 12B. then completing Schedule 0, Parts XI end XII is optional 

13 Is the organization a school described in section 170(b)(1)(A)(li)? if "Yes," compfete Schedule E .... 

14 a Did the organization maintain an office, employees, or agents outside ol the United Steles? 

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

tundraising, business, invesimeni, and program service activHies outside the umtcd Stales, or aggregate 

foreign Investments valued et $100,000 or more? If "Yes," cornplote Schedule F, Parts I end IV 

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

organization or entity located outside the United Slates? If "Yes," complete Schedule F, Parts II and IV . . 

16 Did the organizotion report on Part IX, column (A), line 3, mote than SS.OOO ol aggregate grants or assistance 

to Individuals located outside the United Slates?//"Yes, "comp*efeSchodo/eF, Parts Wand ft/ .... 

17 Did the organizBtion report a total ol more than Sl5,000 of expenses tor professional tundraising services on 

Port tX, column (A), lines 6 and lie? If "Yes." complete Schedule G. Part I (see instructions) 

18 Did the organization report more than $15,000 total of (ut^raislng event gross Income and conlributlons on 

Part VIM. lines 1 c and Ba? If 'Yes.' complete Schedule G, Part II 

19 Did the organization report more than $15,000 of gross income from gaming activities on Pari VIII. line 9a? 

If 'Yes,' complete Schedule O, Pert III 

20 a Did the organization operate one or more hospital facilities? II 'Yes.' complete Schedule H 

b II "Yes" to line 20a. did the organizotion attach a copy of Its audited llnanclal statemenls to ihis return? , 

Pis«3 

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FIIIIII990|ZO1Z) 
4 

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EXHIBET B 
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4 

AMERICAN CONSERVATIVE UNION, INC, 

Financial Statements 

And 

Indepeodent Auditor's Report. 

For The Year Ended December 31, 2012 

Conlon and Associates 

CertiFied Public Accouotaots 
7 

/ • 

1 

1 

i 

\ CONTENTS 

1 

4 

\ 4 

PA^E 

INDEPENDENT AUDITOR'S REPORT 2 

Siaicment of Financial Posilion, as of December 31,2012 3 

Slatement of Aciivi\ies, Year Ended December 31,2012 4 

Staiement of Cash Flows, Year Ended December 31,2012 5 

Sunement of Funcliona) Expenses, Year Ended December 31,2012 6 

Notes to Financial Statements 7-10 
I 

CONLON AND ASSOCIATES 

1 

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2 

0 

J CERTinEO PUBUC ACCOUNTA.VTS 

INDEPENDENT AUDITOR'S REPORT 

The Board of Directors 

American Conservative Union, Inc. 

Washingion. D.C. 

We have audited the accompanying financial suiements of the American Conservative Union, 

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

related suiements of activiocs, cash flows, and fttneiional c.\penscs for the year then ended, and the 

related notes to the financial statements. 

.Manageiaenl's Respoosibility for the Financial Slalemenis 

Management is responsible for the preparation and fair presenution of these financial statements 

in accordance with U.S. generally accepted accounting principles; this includes the design, 

implemenuiion, and maintenance of internal control relevant to the preparation and fair presentation of 

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

Auditor's Responsibility 

Our responsibility is to e.xpress an opinion on these financial statements based on our audit. We 

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

require ihai we plan and perform the audit to obtain reasonable assurance about whether the financial 

siaiemems are free from material misstalemenl. 

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

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

including (he assessment of (he risks of maierial misstatement of the financial statements, whether due to 

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

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

(hat are appropriate in the circumstances, but not for the purpose of e.Kpressing an opinion on the 

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

includes evaluating the appropriateness of accounting policies used and the reasonableness of significant 

accounting estimates made by management, as well as evaluating the overall presentation of the financial 

staiements. 

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

basis for our audit opinion. 

Opioioo 

In our opinion, (he financial statements referred to above present fafrly, in all material respects, 

the financial position of the American Conservative Union, Inc. asof December 31,2012, and the results 

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

accounting principles. 

April 9. 201-1 

SILVER SPIUNC. MD • TELEPHONE: (301) SfS^SSl • FAai.MILE: (SOl) S98-S738 
AMERICAN C0NSERVATI\'E UNION, INC. 

Statement of Financial Position 

As of December 31,2012 

I 

i 

ASSETS 

Cash and cash equivalents 

Prepaid expenses 

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

Rent deposit 

Other Msets 

TOTAL ASSETS 

LIABILITIES 

Accounts payable 

Due to American Conservative Uruon 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 

26,396 

2^-325 

!.1SS.307 

41,879 

140,468 

594,216 

217.186 

993.749 

161.538 

S 1.155.307^ 

The Noies lo the Financial Siawmenis are an Integral Pan ofTheie Statcmenu 

3 
AMERICAN CONSERVATIVE UNION, INC. 

Staiement of Acliviiies 

For the Year Ended December 31, 2012 

4 

4 

REVENUES AJSD OTHER SUPPORT 

Contributions 

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 MET ASSETS 

NET ASSETS AT BECrNNING OF YEAR 

NTT ASSETS AT END OF YEAR 

8,413,603 

1,589,378 

71,900 

.164,828 

• 37,414 

10,277,123 

8,6.12,669 

722,202 

1,359,205 

10;694.076 

(416.9333' 

578.5I1 

161,558 

The Notes to the Financial Suiemrais are an Integral Pah oFThese Siatetnents 

4 
4 

AMERICAN CONSERVATIVE UNION, INC. 

Siaiement of Cash Flows 

For the Year Ended December 31, 2012 

CASH FLOWS FROM OPERATING ACTIVmiS 

Change in net assets 

Adjusiments to reconcile change in net 

assets to cash provided by operating activities: 

Depreciation 

(Increase) decrease in operating assets: 

Funds in escrow 

Prepaid e.xpenses 

Increase (decrease) in operating liabilities: 

Accounts payable and eccnied. expenses 

Due to .American Conservative Union Foundation 

Revenue received in advance 

Other liabilities 

Net Cash Used by Operating Activities 

CASH FLOWS FROM I^•^TSn^G ACTIVITCES 

Paymenu for property and equipment 

NetCash Used by Investing Activities 

NET CH.\NCELN CASH 

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 

CASH AND CASH EQUIVALENTS AT END OF YEAR 

s (416,953) 

33.978 

409,529 

(252.366) 

(46.359) 

104,994 

(350,092) 

181,028 

(3'36.241) . 

(147.300) 

(147.300.) 

(483,541) 

. 963,223 

S 479.682 

The Notes to the Financial Statements are an Integral Part of These Statements 

5 
AMERICAN CONSERVATIVE UNION, INC. 

Statement of Functional Expenses 

For the Year Ended December 31,2012 

Expense Category 

AdvertisingBenefits, employee 

Compensation, eriiployee 

Consultants, accounting 

Consultants, direct mail 

Consultants, professional fundraising 

Consultants, legal 

Consultants, lobbying 

Consultants, other 

Depreciation 

Information technology 

Insurance 

Interest 

Meetings and conferences 

Occupancy 

Office 

Political donations 

Taxes, payroll 

Travel 

Total 

Management 

Program And. General Fundraising Total 

S. 30,000 S 19,423 S S 49,423 

61,026 7,203 12,707 80,936 

594,653 70,367 124,167 789,1.87 

1.3,554 - 13,554 

3,366,483 - 1,005,573 4,372,056 

- 124,872 124,872 

- 105,881 105,88.1 

54,600 . 54,600 

179,831 3,850 27,583 211,264 

. 33,978 33,978 

4,304 46,035 50,339 

• 11,380 11,380 

- 2,104 2,104 

2,261,347 279,600 2,540,947 

116,832 13,791 24,327 154.950 

41,605 92,374 133,979 

1.710,000 .- 1,710,000 

40,522 4,783 8,438 53,743 

15.1.466 17,879 31.538 200,883 

. S 8.612.669 S 722.202 S 1,359.205 S 10,694,076 

The Notes to the Financial Statements are an Integral Part ofThese Statements 

6 
AMER^CA^ CONSERVATIVE UNION, INC. 

Notes To Financial Statements 

As of and for the Year Ended December 31,2012 

NOTE 1: 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 19M. 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 arc as follows: 

Basis of Presentation 

4 Financial statement presentation follovvs the recommendations of the FASB .i\SC 958-205 

§ Presenia/ion of Financial Slatemenls for Nohfor-Profn Organhaiions. Under F ASB ASC 958-

:8 205, 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 Stares of America requires management to make estimates and 

assumptions that affect: (1) the reported amounts of assets and liabilities and disclosure of 

contingent assets and liabilities at the date of the finCancial statements; and (2) the reported 

amounts of revenues and e.xpenscs during the reporting period. Actual results could differ from 

those estimates. 

Income Ta.xes 

The Organization is e.xempt from federal income taxes under section 50,1 (a) of the Internal 

Revenue Code, as an organization described in section 50 i (c)(4). 

The Organization's income tax returns aire subject to review and examioation by federal and state 

authorities. The Organization is not aware of any activities that would jeopardize its tax-exempt 

status. The Organization is not aware of any activities that arc subject to tax on unrelated 

business income. 
1 

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2 

I AMERJCANCONSERVATIVX ONION, INC. 

4 Notes To Financial Swiements 

As of and for the Year Ended December 31,2012 

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 reported as 

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

when the restrictions are met. When 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 arc met in the same reporting period is reported as unrestricted 

support, and increases unrestricted net assets. 

3 Other t^spf revenue, such as conference fees, memberships, and management fees are 

^ recognized when earned. 

9 Functional Classification of Expenses 

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

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

Related Party Transactions 

The Organization is under cottunon conuol with the .American Conservative Union Foundation, 

Inc. (Foundation). The Foundation is organized e.xclusively for charitable, religious, education, 

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

the total number of voting directors of the Foiuidation shall at all times be current or former 

voting meinbcrs of the Board of Directors of the American Conser^'ativc Union, Inc. There is no 

financial interest between 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 ail investments with an original maturity of three months or less to 

be cash equivalents. 
1 

7 / • 

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/ 

0 AMERICAN CONSERVATIVE UNION, INC. 

J Notes To Financial Statements 

As of and for the Year Ended December 31,2012 

NOTE 2: PROPERTY AND EQUIPMENT 

Cost incuned to purchase ofTice ^uipment and furnishings are capitalized and depreciated over 

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

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

The Organization, at December 31, 2012 owed SI40,468 to the American Conservative Union 

1 Foundation, a related party. 

0 NOTE 4: REVENUE RECEIVED IN ADVANCE 

4 

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

1 NOTE 5: ADVERTISING COSTS 

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

6 which totaled S49,423, are classified 530,000 as program costs. Other non-program related 

advertising costs ofS 19,423 are classified as management and general costs. All advertising 

costs are e.xpensed in the year incurred. 

NOTE 6: JOINT COSTS RELATING TO PROGRAM A.ND FUNDRAISING 

The Organization conducts direct mail campaigns that are partly a fiindraising function and 

partly provide program education. The costs of 54,372,056 associated with direct mail 

processing, printing, and postage, are allocated 53,366,483 to program and 51,005,573 to 

fundraising costs, based on the facts and circumstances of each mailing. 
i 

AMERICAN CONSERVATIVE UNION, INC 

Noies TjO Financial Siaiemenis 

As of and for the Year Ended December 31,2012 

NOTE 7: OPERATING LEASE 

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

five years. The estimated fttnire lease payments for the next five yehrs, which arc based on an 

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

rnonths of base rent shall be abated. 

Lease Year 

1 S 164,708 

2 171,297 

3 178,149 

4 183,275 

Aggregate •$ $99,42? 

NOTE 8: . SUBSEQUENT EVENTS 

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

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

were available to be issued. 

NOTE 9; REPORT RELE.ASE DATE 

Manageinent has performed its final review of the financial statements through April 9,2014, the 

date the financial statements were available to be issued. 

to 
i 

Etamoic 
4 

I 

4 

Fonn 99t) 

OiruitnM «l uw Tiaouiy 

InlinMi WawMB ggwco 

Return of Organization Exempt From income Tax 

Under teetion SOl(e), S27, or 4B4T(a)(l| of the Intemal Revenue Code (eicepi black lung 

benelH Iruoi or prtvete toundalion) 

• The organirntion may hove to usee copy ol iiue return lo Mlisly elate lepeitlng tequlfemenU. 

CMS No. 1S4»«047 

»®12 

A For the MH ealonaar year, or la» 

D cneck il app cawr 

O Aoaroai enanpe 

Q Namechanae 

Q Inlialicuim 

• Ternwiaicd 

m Amended iman 

Q Appiicailon pending 

aotk. and endino 

C Nunc ol omiauion American Conscrvouvc Unian. Inc 

bang Bii>,na«i AJ 52-oaiosiJ 

Nicnbcr m) ivtci (oi P 0 e« 4 nu4 it not ddnt'oo lo itcei aooiat) noooVwce eiclepnancnumbv 

1331 H svecl NW 500 202.347.930B 

C<y. UMi or pal ollioe. ticie. oiiO ZIP coot 

Wnshlnoion. DC 20005 OdrauiouipbS 10.277,123 

F Name and addrtaa of principal oHicer Al Caidenas, Chaoman 

1331 H Sliecl NW. tWaehlnnton. DC 2000S 

I laa.eaameltwui •sotlcini Bsotlcli < >•« tnaenno)• asiTlaXiloi Dik/ 

J Wa .eonservatlyexirq 

Open lo Public 

Inspeclion 

• 80 

H|a)hraia«na«mimlBraiR>in«UVvf lijNe 

H(h|*reallalHiaietiiicludad7 •vee ONO 

n •No,' anaeh a tit <>ao ealnMoni) 

M(cl Oievp camiieon numoar e 

leloiOinajpenBCcrpOfelionDTnol •Aaieopiien DOino • 

Summpry 

lYearollonnaleo 19M I MSnleollooaldemoit DC 

ilTk SrieHy descnbe the organiutlon's mission or most significant activities; ^e miision o/,ihe Organitaiim *=• — 

ChKk VhtTbo'ii t»-"Q"i''the'organizAlon Ascon'tinij^ti>opcfotiotm>rdl 

Number of voting members ol tlis governing bodf (Part 

Number ol independent voting members ol the 

Total numtier ol individuals employed m catcndai 

1 Total number ol volunteers (eslimaie H neccssaiV 

1 Total unrelated business revenue Irom Part VIII, 

Not unrelated business taxoblo income Irom Forr 

iiiim 

2012 (Port V, line 20) 

MAY .10. 2014 

(C). line 12 

MEM.Uj 

9 

10 

11 

12 

Ccninbutions and granis(Port VIII, lino 111) . — 

Program service revenue (Part Vlli, line 2g) . 

Investment Income (Pari VIII. column (A), lines 3,4, and 7d) ... 

Other revenue (Part VIII, column (A), lines S, 6d, Be. 9e, 10e, and lie) 

Total revenue-add lines 8 througli 11 (must equal Part VIM, column (A), line 12) 

Oronts and similor amounts paid (Part jX, column (A), lines 1-3). 

Benefits paid to or for members (Part IX, column (A), line 4) .... 

Salanes, other compensetnn, employee benefits (Pan IX, column (A), tines 3-10) 

Professional lundraising lees (Part IX, column (A), line 11c) 

Total tundraising expenses (Part PC, odumn (0), line 25) UIBJOS 

outer expenses (Port IX, column (A), linos 11a-1 Id, 11l-24e) 

Total axpenses. Add lines 13-17 [must equal Part IX. column (A), line 25) 

Revenue less expenses. Subtniet line 1B Irom line 12 

Total assets (Pert X. line 16) ... 

Total liabilities (Part X, line 26) 

Net assets or fund balances. Subtract line 21 trom line 20 

Signature Btock 

t than 259i of its net assets. 

3 

7e 

7b 

Pncr Vccr 

3.941.9S7 

4BS.9B4 

JligOS 

4.T7Z.S54 

525.064 

_3JM^ 

LiiyS. 

<33.157 

BcgtMifig el Currwil-Veir 

33 

13 

too 

e.4BS.503 

t.7S4.20S 

_iai77J2S 

1.082.659 

^W.17e 

57B.S11 

ErdolVacr 

388.187 

9,700.017 

10.094.076 

_1JS$J07 

S93.749 

101,550 

Unoor ponulKi of policy, 

cvc. eoiccl, end oon^c 

Sign 

Here 

Paid 

Preparer 

Use Only 

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gl miach pnpSfV nu tny Imdadgc 

nu.indiB«icpesiofii<yiiiie«icdsc cndbcbcl.ca 

Typadipniriuirccrdaic 

PpmrTypc grcparart r 

Thonus R. Conlen CPA 

'T)rca tuveir 

Dele 

S'-2- H Ciwek • Il 

tan.«inpiayed 

Fmn'crmnc > Conlon 6 Asseelcias. LLC F«m'» BN > 

.FVm-BcddicM V POBOC5213 SilvarSiirtnB.MP200106213 Phone ro 301-59841051 

May the IRS discuss tills return with Hie preparer shown above? (see Instructions) S Yes [ 

Per Pepervrortc Reduedon Act Nebco, see ttu toparsti! Instniellons. CCLNC itlBlv FomiSSOpoie^ 
Fam99O0O12) 52-0810813 Pa^2 

Statement of Proeram Service Accomplishments 

Check II Schedule O contains a response lo any ouesiion in this Part III 0 

1 Qriefly desentre the organizatton's mission; 

JJ«M5?AonplihB,OrftaniM09nJ$locommunie8tjsWand.lortucaAe.V!f«PHWL^ 

Did the organization undertake any significant program services during the year which were not listed.on the 

prior Form 090 or OOO-EZ? • Yes 13 No 

It ''Yes," describe these new services on Schedule 0 

Old the organization cease conducting, or maka signHicant changes in how it conducts, any program 

services? . . DVes 0Nd 

II "Yes," describe these changes on Schedule 0. 

Oescnbe the organization's program service accomplishments lor each ot Its three largest program services, as measured by 

expenses. Section S01 (c)(3) end 501 (c)(4) organizations are required to report the amount of grants and allocations to others, 

the total expenses, and revenue, II any, lor each program service reporied. 

4a (Code: ) (Expenses $ .iSStjSU including grants of $ ) (Revenue S , .) 

IheP/janJiadoncgmnwinieaiedjojndeducaiedlhe.pubncateuAfiuricn^^^^^ 

coirenl^ [ntar^Uon throuqhoul the Jfear ^ | ^ 

1 

4b (Coda: ) (Expenses $ '"eluding grants of $ ) (Revenue $ .) 

IheP/sanizahgncgndueW meetings erulconlcronees.to enhance aya/cn 

!s®K!5.sn.4j.<;.?4pc«tefedM8land_suieo*eeu}ivesand logis!allve.bodlcs_on.^^^^ 

4c (Code. ) (Expenses S including grants of S )(Revenue.S 

4<i Other program services (Oescnbe in Schedule 0.) 

(Expenses. $ including grants of $ j(Revenue S ) 

4e Total program service expenses .P a.siz.sea 

Form 
Fi>nn»W|2U1») 52-0810813 

Chaekllst of Required Schedules 

10 

n 

e 

f 

12a 

13 

14 0 

b 

15 . 

16 

17 

18 

10 

20a 

b 

Is the organization described In section S01(cX3) or 4947(a)(1) (other than a pnvate (oundaiion)7 It 'Vos,' 

complete Schedule A 

Is the organization required to completo Schedule B. Schedule of ConMbute/s (see instructions)? . . 

Did the organization engage in direct or indirect political campaign activities on behalf ol or In opposition to 

candidates lor public otfica? If *Yes," complete Schedule C. Part I 

Section 501(e)(3) organUatlons. Old the organization engage in lobbying activities, or have a section S01(h) 

election In effect during the la* year? If -Yes,'complete Schedulo C, Pert II 

Is the organization a section 501 (c)(4), 501(c)(S). or 50l(cK6) organization that receives membership dues, 

assessments, or simitar amounts as dofined in Revenue Procedure 98-197 If -Yes,' complete Schedule C, 

Portlil 

Did the organization maintain any donor advised lunds or any similar'tunds or accounts tor which donors 

have the right to provide advice on the distribution or investment ol amounts In such lunds or accounts? If 

-Yes - complete Schedule 0, Part I 

Did the organlzabon receive or hold o conservation easement, including easements to preserve open space, 

the environment, hstoric land areas, or historic stnicturas? If -Yes,' complete Schedulo O, Part II .. . 

Old the organization maintain collections ot wortcs of art. histoncal treasures, or other similar ossets? it 'fas.* 

complete Schedule D, Part III 

Did the organization report an amount In Part X, line 21, for escrow or custodial account labliity; serve os a 

custodian for amounts not listed m Part X: or provide Crodit counseling, debt management, credit repair, or 

debt negotiation services? If "Ves,* completo Scltcdulo 0, PortIV 

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

endowments, pormanent endowments, or quasl-endowments? II "Yes, * complete Schedule O, Part V . . 

II Iho organization's answer to any of the following questions is "Yes,* then complete Schedule D, Parts VI, 

VII. VIII, IX, or X as applicable. 

Did the organization report an amount for land, buildings, and equipment In Part X, line 10? If "Yes," 

complete Schedulo 0, Part W 

Did the organization report an amount for Investments—other securities In Part X, line 12 that is 5% or more 

of ns total assets reported In Port X. Imo 16? d -Yea,'completo Schedulo 0, Part VII 

Old the oiganliaiion report an amount for Investmttnts—program rdaled In Part X, line 13 that Is SM or more 

of Its total assets reportod in Part X, line tSflt-Yes,* complete Schedule O, Part VIII 

Did the organization report an amount Tor other essots in Part X, line 15 that is S9S or more ol its total assets 

reported in Part X, line 16? ff "Yes,- cdihplete Schadule 0. Part IX 

Did the organization report an amoura tor other liabilities in Pert X, line 257 II "Yos,' cwnptefe Schedule O, Part X 

Did the organization's separate or consolidatod Rnancial statements lor the tax year include a footnote that addresses 

the organization's hsbilily tor uncertain tax posnions under FIN 48 (ASC 740)7 H *Yos,' complete Schedule D, Pert X . 

Old the oiganization obtain separate, independont audited rinancial statements lot the tax year? II 'Yes,' complete 

Schedule 0, Parts la and XII . 

Was tho organization included in consolidatod, Independont audKad financial statements tor the tax yeai? ff Yas,* and if 

the e/pamation answered •No' to lino Ha. then cernploilng Sehedula D. PartsXiandXaaopiional 

Is the organlzabon a school descnbed In secUon170(b)(t)(A}OQ7ff Yes,'compleroScfiedvfeE .... 

Did tho orgaAlzalion maintain an otfice, omptoyees, or agents outsido ol the UnHod Slates? 

Did the organization have aggregate revenues or expanses oT more than SlO.OtX) from granlmsMng, 

fundrelslng, business. Investment, end program service eciivlilos outside the United Stales, or aggregate 

loreign investments valued at StlXI,(X)0 or more? If -Yes.'complete Schedule F. Parts I end IV 

Did the oiganiZBbon report on Pan IX, column (A), line 3, more than $5,000 ol grsnis or assistance to any 

organizetion or entity located outside the United States? If Yes,' compiaia Schedule F. Parts II and IV . . 

Did Ihe ciganlzetlon report on Part IX. column line 3, more than $5,000 ot aggtegate giants or assistance 

to individuals located outside Ihe United Stales? If "Yes,'complete Schedule F, Parts IllandIV . . . 

Did the crgenization report e total ot more than $15,000 ot expenses for professional (undraising services on 

Part IX, column (A), lines 6 and lie?// Yes, * complelo Schedule G, Part I (see instructions) 

Did the orgsnlzation report mote than $15,000 total of lundreislng event gross income and conlifbuliora on 

Part \/lll. lines 1 c and 6a? If 'Vtes.' cornpfele Schedule G, Part 11 . . 

Did the organization report more than $15,000 of gross income Irom gaming aelivibBS on Part VIII, Uno 9B7 

If -Yes, • complete Schedule G. Part III 

Did the oiganlzaiion operate ono or more hospital facilities? if Yes,* complete Schedule H 

H 'Vca' to line 20a. did tho orqanlzollen attach a cdbv of Its oudilcd financial statements to this returti? 

vn Na 

1 • 

2 • 

3 • 

• 

4 

S / 

6 / 

7 / 

8 / 

9 • 

10 / 

lis • 

lib / 

lle / 

lid / 

lie • 

I1f / 

12a / 

12b / 

13 / 

14a / 

14b / 

16 / 

18 / 

IT / 

18 / 

19 / 

20a • 

20b 

Fam9900012) 
I I 

Fgni) 990 <3013) 52-0810813 Pae>10 irac Stateinont ot Functional Expenses 

Seeww 50rfeJ(3; end SOTfcjffl orgamaiiota must complete aileolumns. All oilier argaflbations must compielo column (A), 

Chock H Schodulo O contains a response to any question in ihis Part IX . B 

Do not includo amounts reported on lines CD, 7b, 

8b, 9b, and 10b of Part VIII. 

1 Grants and oiher assistance lo govennnents and 

organizations in the tjnied Stales. See Part IV, line Zt 

2 Grants ond other assistance to individuals In 

the United Slates. See Part IV, line 22 . . 

3 Grants and other assistance lo governments, 

organizations, and individuals oulsido the 

United States. See Pait IV, imas ts and ts . . 

4 Benefits paid to or for members .... 

5 Compensation of currant officera, directors, 

tnrstees, end key employees 

6 Compensaiion not included above, to disquabried 

persons (as dallned under section 49S8|fX1)) and 

parsons doscnbed in section 49S8|cX3XB) . • 

Other selartos end wages 

Pension plan accruals and eontnbulions {include 

section 40t{li) and 403(b] employer contnbutions) 

Other employee benefits 

Payroll taxes 

Foes for services (non-employees]. 

Management 

Legal 

Accounting . ... ... 

Lobbying 

Pioiassional lundraising services. See Part IV, biie 1 / 

Investment management foos 

Other, dllne ligamounlesceeifs iOKollim25,alum 

(31 amount, bsttneltgexpaiBes on SchodulaO.) . 

Advertising and promotion 

Office expenses 

information technology 

RoyalUes 

Occupancy 

Travel 

Payments ot travel or entertainment expenses 

for any federal, state, or local public cHieiats 

Conferences, conventions, end meetings . 

Interesi 

Payments lo affiliates 

Deprocieton, depletion, and amortization 

Insurance 

Other expenses. Iiembe expenses net ecvered 

above |l,isi miscellaneous expenses in line 24e. II 

line 240 amount exceeds tOK of line 25, column 

amount, list bne 24e expenses on Schedule OJ 

7 

8 

9 

10 

11 

o 

b 

e 

d 

12 

13 

14 

15 

16 

17 

16 

19 

20 

21 

22 

23 

24 

W Tolaleiprntn 

21S.OOO 

_5T4JD7 

53.74S 

105.081 

13.554 

_ OH Pnagiwn 

cipenHi 

1S1.2S0 

433.903 

61.039 

JrtJtS 

39,117 

7,303 

4.783 

.raagai 

J3£S4 

JLSog 

joiiSi 

13,707 

4,438. 

311.364 176.831 3.850 Z7,S83 

49.423 30.000 16.433 0 

133.979 41.605 63.374 0 

90,339 4.aM 46,035 0 

154,950 116.832 13.791 34,337. 

20ILSB3 151.466 17,879 31,539 

3,540.947 2.361.347 379,600 0 

3.104 0 3,104 0 

33.979 0 33.970 0 

11.380 0 11,380 0 

a Polliicel donations 1.710.000 1.710.000 0 0 

b Olivet mall 

c 

b Olivet mall 4.373.056 3.396.493 0 1A05.S7S 

c 

d 

e All olhor expenses 

26 Total hincSonsI experaasi Add linies 1 thiolqh 24c 

d 

e All olhor expenses 

26 Total hincSonsI experaasi Add linies 1 thiolqh 24c 

d 

e All olhor expenses 

26 Total hincSonsI experaasi Add linies 1 thiolqh 24c 10.694.tPE B.61Z.669 723.303 1.359.305 

26 Joint coats. Compielo Ihis Una only H Iho 

oigarsiation reported in column (B) loint costs 

from 8 combined educational campaign and 

lundrasing sdcfiabon. Chock hare V m H 

following SOP 98-2 (ASC 958-720) . . . . 4.373.059 3.366.483 0 1.00S.S7S 

FermSSOpOta) 
SCHEDULEC 

(Form 990or990-EZ] 

Otpftrtml Bl Tfcuvry 

Seme» 

Political Campaign and Lobbying Activities 

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

P Complete if the organization Is daseitbed below. K Attach to Forni SCO or Form MO-EZ. 

» See separata Instruetlona. 

OUBNll.lMS«W; 

^©12 

OpentQ Public 

Inspection 

II the organization answered "Yes," to Form 990, Part IV, line 3, or Form B90-CZ, Fart V, line «6 (Political Campaign Activities), then 

• Soction sot (c)(3) oiganizauons' Complete Parts l-A and B Oo not complete Port l-C 

• Section SOi(c) (odier than section 50l(cipi) organizations' Compliite Parts l-A and C IMIOW. DO not complele Part l-B. 

• Section 527 crganlzaiaris- Complete Part l-A only 

If tho erganlzatlcn onswerod tfos," to Form 990, Part IV, line 4, or Form 990-EZ, Part VI, lino 47 (Lobbying Activities), then 

• Section S0t(c)(3) orgsidzanons that hsva fiM Form 9768 (elecllon under socton 501(h))' Complele Pan 0-A Do not complele Part ll-B 

• Section 50t(c)(3) oigeniielions that heve NDT filed Form 5769 (eleetion under section SOl(h)). Complete Pert ll-B. Do not eomploto Part ll-A 

It the organization onswered •Yes.* to Form 990, Part IV, line S (Proiy Tax) or Form OOO-EZ, Part V, line 3Se (Proxy Tax), dien 

Section 50iie)(4i, i5l, or (61 emaniieuons Cempteie Part m 

Name ol orgoniiall liallon ^ ' Employer MentWicailon number 

fci^cw ConscfvallvB Union. Inc. I 52-0810913 

IfigtBil Complete if the orgoniMtlon Is exempt undor section S01(c) or is n ecetion S27 orflanlzatlon. 

1 Provide s description of the organlzaUon'sdireel and indirect political campaign activiiies In Part IV, 

2 Political expenditures p 9 

3 Volunteer hours , 

Complete if the organitation Is exempt under section 501(cl(3). 

1 Enter the amount of any excise tax incuned by the organizainn under section 4955 . . 

2 Enter the amount of any excise lax incurred by organization managers under section 49SS 

3 IMhe organization Incurred a section 4955 tax, did It file Form 4720 for this year? , , , 

4a Was a correction made? 

b II *Ycs.' descnbe in Part IV, 

P 

P 

- - L Yes MNO 

. ^ • Yes J No 

Pari l-C ^mplelo »the organlzatloit Is exempt under soction 501(c), except section 501 (c)(3),' 

Enter the emounl directly expended by the lilmg organlzalion tor section 527 exempt luncinn 

activities P $ . 

Enter (he amount of the Ming organization's funds contnbuted to other organizations lor section 

527 exempt function aclhriiles P $ i,7io,ooc 

3 Total exempt function expenditures. Add lines 1 and 2 Enter here and on Form 1120-POL, 

Una 17b P J . 1.710,000 

4 Did the liling organization lile Form 1120-POL for this year? Q Yes (3 No 

5 Enlor the names, addresses and smployer idenliricalion number (EIN) ol all seelton 527 pdiiieal organizations to wtuch the Ming 

organization made payments. For each organization listed, enter ihe amount paid liom the liling organization's funds. Also enter 

the amount of political eontnbuticns received that ware promptly and dxeclly delivered lo a separate political crganizatloa such 

as a separate segregated fund or a poMicsl eclicn committee (PAC) II additional space is needed, prbvida infomtaiion in Part IV, 

(•INimo MMdimi to EM Id] Amount pud bom 

hinds llnoM.emr 4>-

IslAmoiaitiXpariaeiil 

oontnbjliani raesmd wid 

prampuywiaoncey 

ddnnred ID • upwstb 

pobbcslwgsrviaMn II 

MKu.anUfd)-

(1) 

NoworNovorPAC 

4131 NUulpeny Drive. Sulie 200 

45-4SBZ14B 0 1,710,000. 

(1) 

NoworNovorPAC Kansas City. MO 64116 45-4SBZ14B 0 1,710,000. 

m 

|3) !1 • 

: 

! 

1 

i 

1 

i 

1 

i 

: : 

(4) 

15) — -

(6) 

For PapsnMiti Raduc«on Act NoUoe, sec the Inibuctleni tar Fami 990 or 89b-EZ. Cd H9 xoais Schadde C |Fomi 890 or ogtFEZ) M1Z 
SclMdulgC(Foril»990lli WO-mMU 52-081081 3 ' 

Complete l( tho organization Is exempt under sectibn.501.(c](3) and tiled Form 5768 (election under 

section 501(h)). 

Partll-A 

owmmn ovnn||» 

Cheek • 11 the nimg organization belongs to an aliniated group (end. list in Part IV each affiliated group member's 

name, address. EIN, expenses, and share ol excess lobbying expenditures). 

I 

B Check » • If the filing organization checked t>ox A and 'limited control* provisions a 

Limits on Lobbying Expenditures 

(The term 'cxpendHures* means emounts paid or Incumid.) 

18 Total lobbying expenditures to Inlluence public opinion (grass roots lobbying) .... 

b Total lobbying expenditures to Influence a legislative body (direct lobbying) 

c Total lobbying expenditures (add lines ta end 1b) 

d Other exempt purpose expenditures 

e Total exempt purpose oxpendllures(Bdd lines tc and Id) 

f Lobbying nonlexabls amount. Enter the amount trom the follovring table In both 

columns. 

II the ainount on line 1e. column (a) or IM Is: 

Nol ovci SSOD.OOO 20H ol the emount on line 1e 

Over SSaQ.000 but nol over St .000.000 S10a.000 rSus 1SW or the excess over SSOO.OOO 

Over St .000.000 but nol over St.soaooo SI 75.000 Dius 10H or the cxeoss over Sl.000i00a 

Over St .SOO.OOO but nol ovor SI 7.000.000 S22S.000 olus 5U ol the oicesi over St,SOO.OOO. 

Overt! 7.000.000 St .000.000 

SEiL 

M fling 

sisanulm'l Islall 

(blMlnilM 

pouplDiA 

g Grassroots nontaxable amount (enter 25% ol line II) 

h Subtract line 1 g from line 1 a. II zero or less, enter -0-

t Subtree! line 11 Irom line 10. II zero or loss, enter-0- .... 

I If mere Is en amount other tharr zero on ollher line th or line ti. did the organization lile Form-. 4720 _ 

reporting section 4911 tax lor this year? UVa* UHo 

4-Ycar Avereglng Period Under Section S01(h) 

(Some organizations thai made a section 601(h) election do not have to complete all of the five 

columns below. See the Instructions for lines 2a through 21 on page 4.) 

Calendar year (or liscel year 

begmningin) 

. (a| 2003 (b|20ia (c| 2011 1412012 (e| Total 

2a Lobbying nontaxable amount 

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

c Total lobbying exponditures 

d Grassroots nontaxable amount 

SelMduto C (fom SSO ar sao-EZI SOtZ 
Scnoduto C (FArm «80 or MO-EZ) 9012 

Part ((-a 

52-0810813 p«a»3 

Complete if the organization is exempt under section 501(c)(3} and has NOT filed Form 5766 

• (election under section 50Hh)). 

For each 'Yes," response to lines la through 1i below, provide in Pan IV a detailed 

description ol the lobbying activity. 

t Dunng the year, did the tiling orgamzalion allempl lo Intluence foreign, national, slate or local 

lagislaiion, including any aitempt to influence putiiic opinion on a legislative matter or 

reterendum, through the use of; 

Volunteors? 

Paid eiaft or management (include compensation In expenses reported on tines ic through ti)7 

Media advertisements? 

Mailings to members, legislators, or the public? 

Publlcalions, or published or broadcast statements? 

Grants to other organizations tor lobbying purposes? 

[}ireclconlact with tegBlaiors, their stalls, government oHicials, or a legisialn/o body? . . . 

rtallies, demoiutrations, seminars, conventions, speeches, lectures, or any similar means? . . 

Other activlUos? 

Total. Add lines 1c through ii 

Old the acbvitles In line 1 cause the organization to be not described in section S0i(c)(3)7 . . 

a 

b 

c 

d 

e 

t 

fl 

h 

I 

I 

2a 

b 

c 

d 

If "Vcs," enter the amount ot any lax Incurred under section 4912 

It "Yes,* enter the amount ot any tax Incurred by organization managers under section 4912 

It the tiling organization incurred a section 4912 tax, did it tile Form 4720 tor this year? 

Part lll-A Complete U the organization is exempt under section S01(e)(4), section 501(c)(5), or section 

50t(c)(6). 

1 Were substantially all (QOH or more) dues received nondeductible by members? . 

2 Old the organization mahe only in-house lobbying expenditures ol 52,000 or lass? , 

3^ W the organizallon agree lo carry over tobb^o and political expenditures Irom the prior year? 

Partlil-B 

Yes No 

Complete If the organization is exempt under section S01(c)(4), section 50t(c)(5). or section 

501(c)(6) and if either (a) BOTH Part ill-A, lines 1 and 2, are answered "No." OR (b) Part lii-A, line 3, is 

answered "Yes." 

1 

2 

a 

b 

c 

3 

4 

Dues, assessments end Similar amounts from members 

Section 162(e) nondeductible lotibying and political expenditures (do not Include amounts of 

political expenses for which the section 627(0 lax was paid). 

Curreni year 

Carryover from last year 

Total 

Aggregate amount reported in section G033(e)|1)|A} notices Ot nondeductible section 182(e) dues . . 

It notices were sent and the amount on line 2e exceeds the amount on line 3. whet portion ol (he 

excess does the oiganizsuon agree lo cenyover to (he reasonable esfamoto of nondeductible lobbying 

and political expenditure next year? 

Taxable amount ot lobbying and polilical expenditures (see Instructions) • 

1 

2a 

2b 

Supplemental Information 

Compiolo this pan to provide the descnpnons required lor Part l-A, ftne i. Part i-B, line 4; Part i-C. line 5; Part il-A (affiliated group 

list): Pan ll-A. line 2; and Part ll-B, hna 1. Also, complete (his part lor any additional inlomnaion. 

Sditfluvi 0 iFami SM w eso-Eq zeia 
SCHEDULE 0 

(Foimg90or990-EZ) 

OrpamMra ol iiwTrmwo 

M«n*AfMnu S€rvlc< 

Supplemental Information to Form 990 or 990-EZ 

CompM* to prpvidatiifonnalfO'i tor nspomea lo cpsciliequaslloni on 

Form 090 or 890'EZ or to provide any addlilcnal IntormaUon. 

» Attach 10 Form MO or 09O«Z. 

OMOMo iSa!^4Mr 

^©12 

Open to Public 

Inspection 

N«ii« n in organouan 

Amerlean Consetvative Union. Inc 

Emolomi iOinbfieationnifflnr 

sooatoBti 

form pan PMB 1 BiThe Form 990 his (^namandad lo toeomorate audit ol the tlnanclal smanenli. Scheduloa c G. B aJdad, 

has been UDdated Sehodulc O his tieomavised loclinlveiiplirwIorv lnlpnnwiOB. 

TrcflSiper, .antf |Hen iHg fallBgard, far ravlaai gnQ approiral Upon approaal, H is slqnerf an orOfer and filod with too IBS.. 

Fortn 990. Pad VI. Soeilon B. Lmo t^ Proeodurostor inenhonna theconlllct oflnitrest potevare helmnnmlemented.: 

foirn tlO. Part VI. Seclion a Una IS; An encutiae comoensatlon nolica Is Uinit Imiiltnianied. Ourino Ml2. eaecutivo ctanpensallomi'js. 

RMcusM!d!i.tIu:Or£Mlli!i)iin:s.livoaettn9s.'iKm.. 

Form 990. Part VL Section C. Une H: The Attailas of Incorporation aia avallaWo from the Olslrtct of Colunittia Deoaitmoni ol Consumif and 

Wegulatonr AWaas Cortwrations Division Finandil statamams may bo ivaBabla in soma states whart the Onianaailor. is reolsterod to 

MlKffJtMn9A.fflMUQyiBCnlOaRMVinOIM.iraAilLAml*l9JPJ!!o|»!>JL'F 

Form 990, Part IX. Una ZU; 11.TIP.OOO was a noHtleal ^tribuHon wcriaed By tho OmanUaiion and urawplhrdiretlly deHyared to a. 

*Mt*«£S»««MJ.wsroiiAVoaJhe.sE9eilte».»«jrflv.'iW..'n.lEt«fe!?.E!. 

Form 990. Pait IX. Line lab. Drect mail costs of M.»7».0SS consist of the tolleialito t«.l07.i1B (tacludlnq Slia.WF ai prolessional lundraising sorvrees) paid to the direct mall preeassaio company listed In Schadule G. 11A16 In saparate list rehld. U2.75B In sepiidt 

Dostaoe. and «8a.lta in saoarato orlntino TWs total of S4 JW.0S6 is allocatad »HS6.«9» to oiooram cost and t1.0BS.573 lolundrahtoo 

Fmfe«sSfl«Uh?.SiSr<«eaLofjhej^^^^ 

For Papciwoitcneductaan Act Nobca.sooiholnstrueoons tor Form 990 or 990-EZ. Cai No 5liB« SehadaisO(Fann«BOcrBao-a)(Ma| 
1 FEDERAL ELECTION COIVIMISSION 

2 

3 FACTUAL AND LEGAL ANALYSIS 

4 

RESPONDENT: Unknown Respondent MUR: 6920 

5 I. INTRODUCTION 

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

1 7 $1.71 million contribution to Now or Never PAC in the.name of American Conservative Union 

5 

4 

.1 

8 ("ACU"), in violation of 52 U.S.C. § 30122 and 11 C.F:R. § n0.4(b). 

9 II. FACTS 

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

11 October 31,2012, it received a $ 1.71 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 $1.7.1. 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.5 

' Now or Never PAC, 2012Post-GenerarReport (Dec. 6,2012) at 6; jee also Gotnpi.H 14 (Feb. 2.7,2.0i5)'.. 

^ ACURcsp.at 1 (Apr.23,2015). 

^ Compl. 15-17, Exs. B. (Conloh & 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. 1112,1.7. 
MUR 6920 (Unknown Respondent) 

Factual and Legal Analysis 

Page 2 of3 

1 III. LEGAL ANALYSIS 

2 The Act prohibits a person froih 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 11 C.F.R. § 110.4(b). The term "person" includes partnerships, corporations, 

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

' See, e.g., United States v. O'Donnell, 608 F.3d 546,553 (9th Cir. 2010) ("[Tjhe congressional purpose 

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

elections — is plain."). 

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

' O'£>o/me//,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."). 

M O'Donnell, 608 F.3d at 550. 
4 

I 

MUR 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