Your web browser is not supported You're using Internet Explorer, some features might not work. Please switch to another browser like Chrome, Firefox, or Edge for a better experience.


An official website of the United States government Here's how you know
 **Official websites use .gov**
            
            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
            
            A **lock** ( A locked padlock ) or **https://** means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Federal Election Commission | United States of America Calendar
           Glossary
          Search
              Search


Menu
      Home
      Campaign finance data
        All data
            Raising
            Spending
            Loans and debts
            Filings and reports
            Candidates
            Committees
            Bulk data
            Campaign finance statistics
        Find elections. Search by state or ZIP code
          Look up contributions from specific individuals
      Help for candidates and committees
        All compliance resources
            Guides
            Forms
            Dates and deadlines
            Trainings
        Learn about electronic filing
          Find and contact your committee's analyst
      Legal resources
        All legal resources
            Advisory opinions
            Enforcement
            Statutes
            Legislation
            Regulations
            Court cases
            Policy and other guidance
        Search across all legal resources
          Search guidance documents
      About
        All about the FEC
            News and announcements
            Commission meetings
            Mission and history
            Leadership and structure
            Reports about the FEC
            Careers
            Working with the FEC
            Contact
        Introduction to campaign finance and elections


- Home
- ›
        Help for candidates and committees
- ›
        Taking in receipts as a PAC
- ›
      Investment income of nonconnected PACs

Investment income of nonconnected PACs Interest and dividends A nonconnected committee may raise money by earning interest and dividends on invested funds. For example, a committee may invest contributions it has received in a savings account, a money market fund or a certificate of deposit. Interest and dividends are not contributions (and are therefore not subject to limits) but they must be reported. Investments at banks Any bank where the committee deposits funds must be listed on Line 9 of the committee’s Statement of Organization (Form 1). Other investments Committee investments that are not held by banks (such as stocks, bonds, etc.) are not required to be listed as depositories on the committee’s Statement of Organization. Before disbursing the funds earned from such investments, the committee must first transfer them to a checking account maintained at one of the committee’s campaign depositories. Committee must pay taxes A nonconnected committee generally must pay taxes on interest and dividend income. Contact the Internal Revenue Service and state tax collection agencies for more information.
 Reporting investments Principal When the committee invests funds in a savings account, money market fund, certificate of deposit or similar type of account, the principal deposited must be included in the committee’s cash on hand total. (Investment properties, such as shares of stock, are not included in cash on hand.) The committee does not report this type of investment as a disbursement because the money is still a committee asset. Any other committee investments valued at cost are also included in cash on hand because they would be a conversion of one form of cash on hand to another. Funds invested with banks If the committee invests its funds in an account at a bank that was not previously identified as a campaign depository on the committee’s Statement of Organization (FEC Form 1), the committee must file an amended Form 1 disclosing the name and address of the additional depository. The amendment must be filed within 10 days of opening the account. Funds invested with other establishments If committee funds are invested in an account that is not operated by a bank (such as a money market account operated by a brokerage firm), no amendment to the Form 1 is required. However, before disbursing the funds in the account (principal and interest), the committee must first transfer them to a committee checking account maintained in a designated depository.
 Investment income or loss Report interest income received during the reporting period in the “Other Receipts” category (Line 17) of the Detailed Summary Page. If investment income received from one source aggregates over $200 during a calendar year, itemize the interest on a Schedule A for Line 17. To report an investment loss, enter the amount as a negative entry.
 Income tax Include income taxes paid by the committee as an operating expenditure on Line 21b. Itemize income tax payments on Schedule B only if they aggregate over $200 per year to the same payee—i.e., the local, state or federal government.
 Read next
            
          
            
          Offsets to operatng expendituresBank accounts of nonconnected PACs Need help? Get help from the FEC by phone or email
 Legal citations Regulations 11 CFR 102.2(a)(2)Statement of organization 11 CFR 102.10 Disbursement by check 11 CFR 103.3(a)Deposit of receipts and disbursements 11 CFR 104.3(a)(1) and (4)Reporting of receipts
 Advisory opinions AO 2017-02Campaign funds maintained in bank deposit program AO 1999-08Investment of excess campaign funds AO 1997-06Reinvestment by political committee of investment income AO 1990-02Candidate's use of excess campaign funds to secure loan for party committee AO 1986-18Campaign funds maintained in cash management account AO 1980-39 Investment of funds in money market fund


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


About
          Careers
          Press
          Contact
   Privacy and security policy
          Plain language
          No FEAR Act
          Strategy, budget and performance
 Open government
          Protected Voices
          USA.gov
          Inspector General
          FOIA
 OpenFEC API
          GitHub repository
          Release notes
          FEC.gov status


Federal Election Commission
 The FEC's Twitter page
            The FEC's YouTube page Sign up for FECMail


Hide glossary Glossary Search terms