March 2011 Federal Election Commission Volume 37, Number 3

Table of Contents

(continued on page 2)

(continued on page 2)

 Court Cases

1 Carey v. FEC

1 Advisory Opinions

 Electronic Filing

5 Mandatory Electronic Filing

 Inflation Adjustments

6 Contribution Limits for 2011-2012

7 2011 Coordinated Party 

Expenditure Limits 

8 2011 Lobbyist Bundling Threshold 

 800 Line

9 Testing the Waters

 Outreach

10 DC Seminar for House and Senate 

Campaigns

10 DC Seminar for Corporations and 

Their PACs

11 Index

Court Cases Advisory 

Carey v. FEC Opinions

On January 31, 2011, Retired 

Rear Admiral James Carey, Kelly 

Eustis and the National Defense 

Political Action Committee (collectively, “the Plaintiffs”) filed suit 

against the FEC. The lawsuit seeks 

a declaratory judgment that the contribution limits in 2 U.S.C. §§441a 

(a)(1)(C) and 441a(a)(3) violate 

the First Amendment to the extent 

such laws prohibit a nonconnected 

political committee from soliciting 

and accepting unlimited contributions to one bank account designated 

for independent expenditures, while 

maintaining a second, separate bank 

account designated for source- and 

amount-limited contributions to candidates and their authorized political committees. Plaintiffs also seek 

injunctive relief enjoining the Commission from enforcing the abovementioned provisions as applied to 

Plaintiffs, and concurrently filed a 

Motion for Preliminary Injunction.

Background

Plaintiff Admiral Carey is the 

founder and treasurer of National 

Defense PAC (“NDPAC”). Kelly Eustis is a registered voter who resides 

in Sacramento, California. NDPAC 

is a nonconnected political comAO 2011-01

Funds Received and Spent 

by Legal Defense Fund 

not Contributions or 

Expenditures

A legal defense fund may be established to pay the costs incurred by 

a Congressional campaign committee in defending against a copyright 

infringement and misappropriation 

lawsuit. The monies received and 

spent by the fund would not be 

“contributions” or “expenditures” as 

defined in the Federal Election Campaign Act (the Act) and Commission 

regulations. 

Background

 Robin Carnahan for Senate (the 

Committee) is the principal campaign committee for Ms. Carnahan, 

who was a candidate in the 2010 

Senate election in Missouri. On 

September 15, 2010, Fox News Network, LLC, and Chris Wallace filed 

a complaint against the Committee alleging that an ad aired by the 

Committee that contained footage of 

a Fox News interview infringed Fox 

News’ copyright, invaded Mr. Wallace’s rights of privacy and publicity 

and misappropriated his likeness and 

persona (the Fox News lawsuit). The 

New Rulemaking 

Search Available

 The Commission has 

launched a new search system 

for public documents generated 

in connection with Commission 

rulemakings. The Searchable 

Electronic Rulemaking System

allows users to search public 

documents developed in the 

course of the Commission’s 

rulemaking process. 
Federal Election Commission RECORD March 2011

2

Federal Election Commission

999 E Street, NW

Washington, DC 20463

800/424-9530 (Toll-Free)

202/694-1100 (Information Div.)

202/501-3413 (FEC Faxline)

202/219-3336 (TDD for the

 hearing impaired)

Cynthia L. Bauerly, 

 Chair

Caroline C. Hunter, 

 Vice Chair

Donald F. McGahn II, 

 Commissioner

Matthew S. Petersen,

 Commissioner

Steven T. Walther,

 Commissioner

Ellen L. Weintraub, 

 Commissioner

Alec Palmer,

 Acting Staff Director

Christopher Hughey, 

 Acting General Counsel

Published by the Information

 Division of the Office of 

 Communications

Greg J. Scott, 

 Assistant Staff Director

Amy L. Kort,

 Deputy Assistant Staff Director

Myles G. Martin, 

 Editor

http://www.fec.gov

Court Cases

(continued from page 1)

Advisory Opinions

(continued from page 1)

mittee registered with the FEC that 

raises and spends funds to support 

candidates for federal office who are 

military veterans and who agree with 

NDPAC’s goals.

On August 11, 2010, NDPAC 

submitted an advisory opinion (AO) 

request to the FEC asking whether, 

based on court decisions in Citizens 

United and SpeechNow1, and the 

Commission’s conclusions in AOs 

2010-09 (Club for Growth) and 

2010-11 (Commonsense Ten), it 

could raise unlimited contributions 

from individuals, political committees, corporations and unions for the 

express purpose of making independent expenditures. Simultaneously, 

NDPAC would raise additional 

contributions from individuals and 

political committees subject to the 

$5,000 per calendar year contribution limit under 2 U.S.C. §441a(a) 

in order to make contributions to 

federal candidates. NDPAC proposed recording and segregating its 

contributions by type into separate 

bank accounts. The Commission 

considered draft responses to the 

request, but was unable to approve 

an AO by the required four affirmative votes.

As a result, NDPAC claims that 

it curtailed its activities during the 

2010 election cycle. The committee states that it planned to make 

independent expenditures targeting 

several opponents of its endorsed 

candidates, but the constraints of 

the $5,000 per year contribution 

limit prevented it from gathering the 

necessary resources. NDPAC says 

it plans to make similar independent expenditures during the 2012 

primary and general election periods 

and claims to have a donor (Mr. Eustis) willing to give $1,300 above the 

$5,000 statutory limit to fund those 

expenditures. NDPAC asserts that 

without the legal authority to solicit 

unlimited contributions, its speech 

will be abridged. In addition, the 

Plaintiffs maintain that NDPAC and 

Admiral Carey will face a threat of 

prosecution if they solicit or accept 

contributions to fund NDPAC’s independent expenditures, and that Mr. 

Eustis will face a threat of prosecution if he makes contributions above 

the $5,000 limit to fund NDPAC’s 

independent expenditures. 

Complaint

The Plaintiffs seek a declaratory judgment from the court that 

the contribution limits in 2 U.S.C. 

§§441a(a)(1)(C) and 441a(a)(3) 

are unconstitutional as applied to 

them and to any other supporters 

who wish to make contributions to 

NDPAC for its independent expenditures. The Plaintiffs also seek preliminary and permanent injunctions 

enjoining the FEC from enforcing 

those provisions against them and 

against any supporters who wish to 

make contributions to NDPAC for its 

independent expenditures. 

The full text of the complaint is 

available at http://www.fec.gov/law/

litigation/carey_carey_complaint.

pdf.

U.S. District Court for the District 

of Columbia: 1:11-cv-00259-RMC 

(D.D.C. filed Jan. 31, 2010).

 —Zainab Smith

1

 Citizens United v. FEC, 130 S.Ct. 876 

(2010) and SpeechNow.org v. FEC, 599 

F3d 686 (D.C. Cir. 2010).

litigation was recently settled by the 

parties. The Committee’s costs to 

defend the lawsuit total more than 

$85,000, and may continue to accrue 

until the settlement is finalized. 

The Committee proposes that 

a separate legal defense fund (the 

Fund) be established to defray the 

Committee’s legal costs. The Fund 

would be independent from the 

Committee and would not be administered or controlled by the Committee. The Committee would not 

be involved in soliciting donations 

to the Fund. None of the individuals 

involved in establishing, administering or operating the Fund would 

be federal candidates or federal 

officeholders. Solicitations for the 

Fund, either in person or in writing, 

would be accompanied by a letter 

(continued on page 3)
March 2011 Federal Election Commission RECORD

3

stating the purpose of the Fund and 

noting that no amounts given to the 

Fund would be used for the purpose 

of influencing any federal election. 

Solicitations for the Fund would be 

conducted separately from any solicitations for the Committee or any 

other federal political committee. 

The Fund plans to accept unlimited 

amounts from individuals, political committees, corporations and 

labor organizations. The Fund would 

terminate once all legal costs were 

paid, and any excess funds would be 

refunded or donated to charity.

Analysis

The Act and Commission regulations define the term “contribution” as any gift, subscription, loan, 

advance or deposit of money or anything of value made by any person 

for the purpose of influencing any 

election for federal office. 2 U.S.C. 

§431(8)(A); 11 CFR 100.52(a). 

Similarly, the term expenditure is 

defined as any purchase, payment, 

distribution, loan, advance, deposit 

or gift of money or anything of value 

made by any person for the purpose 

of influencing any election for federal office. 2 U.S.C. §431(9)(A); 11 

CFR 100.111(a).

The Commission has previously 

concluded that funds received or disbursed for the purpose of defending 

against certain types of lawsuits are 

not for the purpose of influencing a 

federal election, and are therefore 

not contributions or expenditures. 

See AOs 1981-16, 1981-13 and 

1980-04.

The money received and disbursed by the Fund would be strictly 

for the purpose of paying the Committee’s legal costs in connection 

with the Fox News lawsuit. Specifically, this money would compensate 

the Committee’s counsel for legal 

services that enabled the Committee to present a defense to a 

civil complaint in a lawsuit alleging 

copyright infringement, invasion of 

privacy and right of publicity, and 

misappropriation of likeness and 

identity, and to settle the case. The 

proposed Fund would be established 

and administered separately and 

independently from the Committee. 

Solicitations for the Fund would be 

conducted separately from any solicitation for the Committee, and all 

amounts received by the Fund will 

be held separately from the Committee’s funds. No amounts given 

to the Fund could be used for the 

purpose of influencing any federal 

election. Therefore such receipts and 

disbursements would not be “contributions” to, or “expenditures” by, 

the Fund, as defined in the Act and 

Commission regulations, nor would 

they be in-kind “contributions” from 

the Fund to the Committee. 

Since the funds received and disbursed by the Fund are not contributions or expenditures, they are not 

subject to the source prohibitions, 

amount limitations or reporting 

requirements of the Act and Commission regulations

Accordingly, nothing in the Act or 

Commission regulations would limit 

or prohibit the Fund from receiving 

unlimited donations from individuals, political committees, corporations and labor organizations. Also, 

the Fund would not be required to 

register or file disclosure reports 

under the Act or Commission regulations. 

Date Issued: February 17, 2011;

Length: 4 pages.

—Isaac J. Baker

Advisory Opinions

(continued from page 2)

AO 2011-02

Campaign Committee May 

Purchase Copies of Senator’s 

Autobiography if Publisher 

Donates Royalties to Charity

The Scott Brown for U.S. Senate 

Committee (the Committee) may 

purchase copies of Senator Scott 

Brown’s autobiography from the 

publisher at fair market value, and 

the publisher may donate Senator 

Brown’s royalties from that purchase 

to charity. The Committee may additionally post a de minimis amount 

of material promoting the book on 

its website and social media sites. 

Senator Brown may also reimburse 

the Committee personally for the 

fair market value of the rental of its 

mailing and e-mail lists to promote 

the book.

Background

Senator Brown will promote his 

book in a national book tour. His 

agreement with the publisher provides for the payment of advances 

as well as publishing royalties to be 

determined as a percentage of net 

sales revenue. Senator Brown and 

the Committee proposed a number 

of activities related to the book and 

the promotional tour.

First, the Committee wishes to 

purchase several thousand copies 

of the book for campaign-related 

activities, such as distributing the 

books as “thank you” gifts to campaign contributors and supporters. 

The Committee plans to purchase 

the books either at the bulk rate or 

at the usual retail price if the bulk 

rate is not available. The publisher, 

under normal industry practice, may 

make the bulk rate available to large 

purchasers. Senator Brown proposes 

to donate the royalties from the 

Committee’s purchase of the book 

to a charitable organization. Alternatively, the publisher itself is willing 

to donate Senator Brown’s royalties 

from this sale to a charitable organization.

(continued on page 4)
Federal Election Commission RECORD March 2011

4

(continued on page 5)

Advisory Opinions

(continued from page 3)

Second, the Committee proposes 

to promote the book by posting 

information on the Committee’s 

website. Under the Committee’s 

proposal, this information would 

consume no more than 25 percent 

of its home page. The Committee 

also proposes to use the social media 

sites Facebook, Twitter and LinkedIn 

by posting promotional information 

about the book and Senator Brown’s 

book tour. 

Third, the Committee proposes to 

promote the book to individuals on 

the Committee’s e-mail and mailing 

lists.

Fourth, when Senator Brown 

travels to promote the book on the 

national book tour, he proposes to 

host fundraising events for the Committee in the book tour cities. The 

travel costs of the book tour will be 

paid by the book’s publisher.

Finally, the Committee proposes 

to have a campaign staffer collect email addresses from people who attend Senator Brown’s book-signing 

events while on the book tour. The 

Committee plans to use the e-mail 

addresses that it collects to apprise 

people of Committee news and activities and for fundraising.

Analysis

Campaign Purchase of Book. 

The Committee may use campaign 

funds to purchase copies of the book 

from the publisher at the fair market price under the proposal where 

the publisher donates to charity the 

amount that Senator Brown would 

have otherwise earned as royalties 

from that purchase. 

The Federal Election Campaign 

Act (the Act) and Commission 

regulations prohibit the conversion 

of campaign funds by any person 

(including the candidate) to “personal use.” 2 U.S.C. §439a(b); 11 CFR 

113.1(g) and 113.2(e)(5). Under the 

Act, “a contribution or a donation 

shall be considered to be converted 

to personal use if the contribution or 

amount is used to fulfill any commitment, obligation or expense of a 

person that would exist irrespective 

of the candidate’s election campaign 

or individual’s duties as a holder of 

Federal office.” 2 U.S.C. §439a(b)

(2). In several previous Advisory 

Opinions, the Commission has 

considered whether an authorized 

committee’s purchase of its own 

candidate’s book is personal use. 

See, e.g. AOs 2006-18 and 2001-08. 

Here, the Committee’s funds would 

be used to purchase the book solely 

for distribution as gifts to the Committee’s financial contributors and 

political supporters, and thus would 

be used by the Committee only for 

the purpose of influencing Senator 

Brown’s election to federal office. 

As in AO 2001-08, the publisher is 

willing to donate the resulting royalties to a charitable organization and 

not increase the royalty calculation 

that would go to the candidate.

Senator Brown may not personally accept royalties resulting from 

the campaigns purchase of his book, 

even if he then makes a charitable 

donation equal to that amount. 

Although the Act specifically allows 

campaign funds to be donated to a 

charity, it also provides that such a 

contribution or donation cannot be 

converted to personal use. 2 U.S.C. 

§439a(a) and (b)(1). Senator Brown 

must not receive any benefit, tangible or intangible, from the publisher’s donation of the royalty amounts.

Promotional Information. The 

Committee may post a de minimis

amount of material promoting the 

book on its website and on social 

media sites such as Facebook, Twitter and LinkedIn without violating the restriction of personal use 

of campaign funds. The use of an 

authorized committee’s asset, such 

as the Committee’s website, to 

promote the candidate’s book would 

ordinarily constitute a prohibited 

personal use. However, the Commission has previously determined that 

the addition of one or two sentences 

of promotional material about a 

candidate’s book to an authorized 

committee’s website did not constitute personal use of campaign funds, 

since the amount of promotional material and the cost to the candidate’s 

committee were de minimis. See AO 

2006-07. The Commission concluded in this case that the Committee’s 

proposal to devote up to 25 percent 

of the Committee website’s homepage, Facebook page and LinkedIn 

page to book promotion, and up 

to 10 percent of the Committee’s 

Twitter page, is not de minimis. The 

Committee may, however, consistent 

with Advisory Opinion 2006-07, 

post a de minimis amount of material 

on its own website and social media 

sites.

Committee E-mail and Mailing 

Lists. Senator Brown may personally reimburse the Committee for 

the fair market value of the rental of 

its e-mail and mailing lists, based 

on an independent list appraisal, 

and then use the e-mail and mailing 

lists to promote the sale of his book. 

Commission regulations provide that 

the transfer of campaign committee 

assets does not constitute personal 

use, provided that the transfer is for 

fair market value. 11 CFR 113.1(g)

(3). The Commission has previously 

determined that a committee’s mailNeed FEC Material 

in a Hurry?

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 Use a touch tone phone to dial 

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instructions. To order a complete 

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prompt.
March 2011 Federal Election Commission RECORD

5

ing lists are assets that have value 

and are frequently sold, rented or 

exchanged. See, e.g., AOs 2002-14 

and 1982-41. Since Senator Brown 

will receive royalties from the sale 

of the book, the use of the Committee’s e-mail and mailing lists 

for promotion of Senator Brown’s 

book are subject to the personal use 

regulations. However, since Senator 

Brown proposes to reimburse the 

Committee personally for the fair 

market value of the lists, this will not 

result in prohibited personal use of 

campaign funds.

Travel Expenses. The Commission could not approve by the 

required four votes a response to the 

question of whether Senator Brown 

may host fundraising events in cities 

where the book’s publisher pays 

his travel costs as part of the book’s 

promotion.

Collection of E-mail Addresses 

by the Committee. The Commission 

could not approve by the required 

four votes a response to the question 

of whether the Committee could collect the e-mail addresses of people 

who attend the Senator’s book-signing and promotional events for the 

purpose of soliciting contributions in 

the future.

Date Issued: February 17, 2011;

Length: 9 pages.

 —Myles Martin

Advisory Opinions

(continued from page 4)

Advisory Opinion Requests

AOR 2011-03

Use of recount fund for litigation expenses (DSCC, RNC, NRCC, 

DCCC, NRSC, February 7, 2011)

AOR 2011-04 

Membership organization posting candidate position papers on 

a members-only website (AIPAC, 

February 24, 2011)

Electronic 

Filing

Mandatory Electronic Filing

Since January 1, 2001, filers that 

receive contributions or make expenditures in excess of $50,000 in a 

calendar year, or that have reason to 

expect to do so, have been required 

to submit all reports, statements and 

designations to the FEC electronically. 11 CFR 104.18(a)(1). This article answers some frequently asked 

questions about the FEC’s mandatory electronic filing requirements. 

Who is affected? Is it just political 

committees or are individuals 

and other unregistered entities 

required to file electronically too?

Anyone—registered or not—who 

is required to file a report, statement 

or designation with the FEC and 

meets the $50,000 threshold must 

file electronically. 

What about Senate campaigns?

No. Senate candidate committees 

(and other persons who support/

oppose only Senate candidates) file 

with the Secretary of the Senate and 

are not required to file electronically. 

They may, however, voluntarily file 

unofficial copies of their reports 

electronically. 

What happens if an electronic filer 

mistakenly files a report on paper?

Any filer who is required to file 

electronically, but instead files on 

paper, will be considered a nonfiler 

and may be subject to enforcement 

action. 11 CFR 104.18(a)(2). Note 

that this consequence applies to both 

political committees and individual/

non-committee filers. 1

 Exceptions include Debt Settlement 

Plans (FEC Form 8), copies of refund 

checks, copies of redesignation or 

reattribution letters, loan agreements, 

Schedule C-1 with original signatures 

and statements of forgiveness for candidate personal fund loans. A committee’s 

initial Form 1 and a candidate’s initial 

Form 2 are also filed on paper.

Can an e-filer submit anything on 

paper?

No. Electronic filers should plan 

to communicate with the FEC paperlessly.1

 All FEC reporting forms are 

available for e-filing, and filers may 

respond to inquiries and explain 

transactions using the memo text 

function in their electronic filing 

software or a miscellaneous electronic submission (Form 99).

What is meant by “Reason to 

Expect to Exceed the Threshold?”

Once filers actually exceed the 

$50,000 threshold, they have “reason 

to expect” to exceed the threshold 

in the following two calendar years. 

11 CFR 104.18(a)(3)(i). As a result, 

they must begin to file electronically with their next report, statement or designation and continue to 

file electronically for the two years 

(January through December) following the year in which they exceeded 

the threshold. Filers with no historic 

data on which to base their calculations should expect to exceed 

the threshold if they either receive 

contributions or make expenditures that exceed one-quarter of the 

threshold amount in the first quarter 

of the calendar year, or they receive 

contributions or make expenditures 

that exceed one-half of the threshold 

amount in the first half of the calendar year. 11 CFR 104.18(a)(3)(ii).

The regulations allow an exception to the requirement of filing for 

the following two calendar years for 

candidate committees:

•	 That have $50,000 or less in net

debts outstanding on January 1 of 

the year following the election;

(continued on page 6)
Federal Election Commission RECORD March 2011

6

•	 That anticipate terminating prior

to the next election year; and

•	 Whose candidate has not qualified as a candidate for the next 

election and does not intend to 

become a candidate in the next 

election. 11 CFR 104.18(a)(3)(i).

While all committees must file 

electronically in the year in which 

they exceed the threshold, authorized candidate committees meeting 

these requirements do not “expect 

to exceed the threshold” in the 

following two calendar years and, 

therefore, need not file electronically 

during those years unless they actually exceed the threshold.

Who do I contact if I have further 

questions?

For more information, contact the 

following offices between 8:30 a.m. 

and 5:30 p.m. Eastern time:

•	 For general information on

reporting requirements, call the 

Information Division at 800/424-

9530 (press 6) or 202/694-1100 

(e-mail info@fec.gov);

•	 For information about a specific

report you are filing with the 

FEC, call your Campaign Finance 

Analyst (the person who reviews 

your report) in the Reports Analysis Division at 800/424-9530 

(press 5) or 202/694-1130.

•	 If you have problems uploading

your reports or any other technical issue, contact Technical Support at 800/424-9530 (extension 

1307).

•	 For information about how to

obtain a password, FECFile software or other technical questions, 

contact the Electronic Filing Office at 800/424-9530 (extension 

1667).

—Dorothy Yeager

Electronic Filing

(continued from page 5) Contribution Limits for 2011-2012

Type of Contribution Limit

Individuals/Non-multicandidate Committees 

to Candidates per Election $2,500

Individuals/Non-multicandidate Committees

to National Party Committees per Year $30,800

Biennial Limit for Individuals $117,0001

National Party Committee to a Senate Candidate $43,1002

1 This amount is composed of a $46,200 limit for what may be contributed to 

all candidates and a $70,800 limit for what may be contributed to all PACs and 

party committees. Of the $70,800 portion that may contributed to PACs and 

parties, only $46,200 may be contributed to state and local party committees 

and PACs.

2 This limit is shared by the national committee and the Senate campaign committee.

Contribution Limits for 

2011-2012

Under the Federal Election Campaign Act (the Act), certain contribution limits are indexed for inflation 

every two years, based on the change 

in the cost of living since 2001, 

which is the base year for adjusting 

these limits.1 The inflation-adjusted 

limits are:

•	 The limits on contributions made

by persons to candidates and national party committees (2 U.S.C. 

§441a(a)(1)(A) and (B));

•	 The biennial aggregate contribution limits for individuals (2 

U.S.C. §441a(a)(3)); and

•	 The limit on contributions made

by certain political party committees (2 U.S.C. §441a(h)).

Inflation 

Adjustments

1 The applicable cost of living adjustment amount is 1.23152.

Please see the chart above for the 

contribution amount limits applicable for 2011-2012. The inflation 

adjustments to these limits are made 

only in odd-numbered years. The 

per-election limits on contributions 

to candidates are in effect for the 

two-year election cycle beginning 

the day after the general election and 

ending on the date of the next general election (i.e., November 3, 2010 

– November 6, 2012). All other contribution limits are in effect for the 

two-calendar-year period beginning 

on January 1 of the odd-numbered 

year and ending on December 31 of 

the even-numbered year (i.e., January 1, 2011 – December 31, 2012).

Please note, however, that these 

limits do not apply to contributions 

raised to retire debts from past elections. Contributions may not exceed 

the contribution limits in effect on 

the date of the election for which 

those debts were incurred. 11 CFR 

110.1(b)(3)(iii).

The Act also includes a rounding 

provision for all of the amounts that 

(continued on page 7)
March 2011 

7

are increased by the indexing for 

inflation.2 Under this provision, if 

the inflation-adjusted amount is not a 

multiple of $100, then the amount is 

rounded to the nearest $100.

—Elizabeth Kurland

2

 This provision also affects the indexing 

of coordinated party expenditure limits 

and Presidential expenditure limits in 2 

U.S.C. §§441a(b) and 441a(d), as well 

as the disclosure threshold for lobbyist bundled contributions in 2 U.S.C. 

§434(i)(3)(A).

Inflation Adjustments

(continued from page 6) Authority to Make Coordinated Party 

 Expenditures on Behalf of House and 

 Senate Nominees 

 National Party Committee May make expenditures on behalf of House 

 and Senate nominees. May authorize1 other 

 party committees to make expenditures 

 against its own spending limits. National 

 Congressional and Senatorial campaign 

 committees do not have separate limits.

 State Party Committee May make expenditures on behalf of House 

 and Senate nominees seeking election 

 in the committee’s state. May authorize1

 other party committees to make expendi-

 tures against its own spending limits. 

 Local Party Committee May be authorized1 by national or state 

 party committee to make expenditures 

 against its limits.

 Calculating 2011 Coordinated Party 

 Expenditure Limits

Amount Formula

 Senate Nominee See table on The greater of:

 page 8 $20,000 x COLA or

 2¢ x state VAP2 x 

 COLA3

 House Nominee in States

 with Only One Representative $88,400 $20,000 x COLA

 House Nominee in Other States $44,200 $10,000 x COLA

 Nominee for Delegate or

 Resident Commissioner4 $44,200 $10,000 x COLA

 1The authorizing committee must provide prior authorization specifying the 

amount the committee may spend.

 2VAP means voting age population. 

 3COLA means cost-of-living adjustment. The applicable COLA is 4.42246. 

 4American Samoa, the District of Columbia, Guam, the Virgin Islands and the 

Northern Mariana Islands elect Delegates; Puerto Rico elects a Resident Commissioner.

2011 Coordinated Party 

Expenditure Limits

The 2011 coordinated party 

expenditure limits are now available. 

The limits are:

•	 $88,400 for House nominees in

states that have only one U.S. 

House Representative;

•	 $44,200 for House nominees in

states that have more than one 

U.S. House Representative; and

•	 A range from $88,400 to

$2,458,500 for Senate nominees, 

depending on each state’s voting 

age population.

Party committees may make 

these special expenditures on behalf of their 2011 general election 

nominees. National party committees have a separate limit for each 

nominee. The national Senatorial 

and Congressional committees do 

not have separate coordinated party 

expenditure limits, but may receive 

authorization to spend against the 

national limit or state party limits. 

Each state party committee has a 

separate limit for each House and 

Senate nominee in its state. Local party committees do not have 

their own separate limit. One party 

committee may authorize another 

committee of that party to make an 

(continued on page 8)
Federal Election Commission RECORD March 2011

8

Coordinated Party Expenditure Limits for 

2011 General Election Senate Nominees

State Voting Age Population Expenditure Limit

Alabama 3,599,303 $318,400

Alaska* 527,205 $88,400

Arizona 4,940,296 $437,000

Arkansas 2,195,465 $194,200

California 27,795,779 $2,458,500

Colorado 3,865,036 $341,900

Connecticut 2,727,907 $241,300

Delaware* 685,978 $88,400

Florida 14,616,271 $1,292,800

Georgia 7,324,792 $647,900

Hawaii 1,006,338 $89,000

Idaho 1,143,651 $101,200

Illinois 9,777,437 $864,800

Indiana 4,861,307 $430,000

Iowa 2,313,538 $204,600

Kansas 2,133,356 $188,700

Kentucky 3,323,606 $294,000

Louisiana 3,397,965 $300,500

Maine 1,048,523 $92,700

Maryland 4,385,947 $387,900

Massachusetts 5,203,385 $460,200

Michigan 7,623,767 $674,300

Minnesota 4,038,685 $357,200

Mississippi 2,194,892 $194,100

Missouri 4,589,980 $406,000

Montana* 764,058 $88,400

Nebraska 1,359,656 $120,300

Nevada 1,977,693 $174,900

New Hampshire 1,043,155 $92,300

New Jersey 6,691,782 $591,900

New Mexico 1,514,872 $134,000

New York 15,167,513 $1,341,600

North Carolina 7,188,327 $635,800

North Dakota* 511,050 $88,400

Ohio 8,840,340 $781,900

Oklahoma 2,796,489 $247,300

Oregon 2,986,164 $264,100

Pennsylvania 9,880,374 $873,900

Rhode Island 833,168 $88,400

South Carolina 3,515,754 $311,000

South Dakota* 620,912 $88,400

Tennessee 4,847,129 $428,700

Texas 18,210,592 $1,610,700

Utah 1,951,049 $172,600

Vermont* 500,054 $88,400

Virginia 6,103,947 $539,900

Washington 5,170,543 $457,300

West Virginia 1,439,342 $127,300

Wisconsin 4,372,515 $386,700

Wyoming* 417,319 $88,400

Inflation Adjustments

(continued from page 7)

expenditure against the authorizing 

committee’s limit. Local committees 

may only make coordinated party 

expenditures with advance authorization from another committee 

within the party.

Coordinated party expenditure 

limits are separate from the contribution limits; they also differ from contributions in that the party committee 

must spend the funds on behalf of 

the candidate rather than give the 

money directly to the campaign. 

Although these expenditures may 

be made in consultation with the 

candidate, only the party committee 

making the expenditure—not the 

candidate committee—must report 

them. (Coordinated party expenditures are reported on FEC Form 3X, 

line 25, and are always itemized on 

Schedule F, regardless of amount.)

The accompanying tables on 

pages 7-8 include:

•	 Information on which party

committees have the authority to 

make coordinated party expenditures;

•	 The formula used to calculate the

coordinated party expenditure 

limits; and

•	 A listing of the state-by-state

coordinated party expenditure 

limits.

—Elizabeth Kurland

(continued on page 9)

* In these states, which have only one U.S. House Representative, the spending 

limit for the House nominee is $88,400. In other states, the limit for each House 

nominee is $44,200.

2011 Lobbyist Bundling 

Threshold

The Federal Election Campaign 

Act, as amended by the Honest 

Leadership and Open Government 

Act of 2007 (HLOGA), requires certain political committees to disclose 

contributions bundled by lobbyists/

registrants and lobbyist/registrant 

PACs once the contributions exceed 

a specified threshold amount. 

The Commission must adjust the 

threshold amount at the beginning 
March 2011 Federal Election Commission RECORD

9

Inflation Adjustments

(continued from page 8)

1 The applicable cost of living adjustment amount is 1.08163.

800 Line

Testing the Waters

Before deciding to campaign 

for federal office, an individual 

may want to “test the waters”—in 

other words, explore the feasibility 

of becoming a candidate. An individual who merely test the waters, 

but does not campaign for office, 

does not have to register or report 

as a candidate even if the individual 

raises more than $5,000—the dollar 

threshold that would normally trigger registration. Nevertheless, funds 

raised to test the waters are subject 

to the Federal Election Campaign 

Act’s (the Act) contribution limitations and prohibitions. See Advisory 

Opinion 1998-18.

Once an individual begins to 

campaign or decides to become a 

candidate, funds that were raised 

or spent to test the waters apply to 

the $5,000 threshold for qualifying 

as a candidate. 11 CFR 100.72(a)

and 100.131(a). Once that threshold 

is exceeded, the individual must 

register with the FEC (candidates 

for the House of Representatives or 

President) or the Secretary of the 

Senate (candidates for the Senate), 

and begin to file reports. 

Testing the Waters vs. Campaigning. An individual may conduct 

a variety of activities to test the 

waters. Examples of permissible 

testing-the-waters activities include 

polling, travel and telephone calls 

to determine whether the individual 

should become a candidate. 11 CFR 

100.72(a) and 100.131(a). 

Certain activities, however, indicate that the individual has decided 

to become a candidate and is no 

longer testing the waters. In that 

case, once the individual has raised 

or spent more than $5,000, he or she 

must register as a candidate. Intent 

to become a candidate, for example, 

is apparent when individuals:

•	 Make or authorize statements that

refer to themselves as candidates 

(“Smith in 2012” or “Smith for 

Senate”);

•	 Use general public political advertising to publicize their intention to campaign; 

•	 Raise more money than what is

reasonably needed to test the waters or amass funds (seed money) 

to be used after candidacy is 

established;

•	 Conduct activities over a protracted period of time or shortly 

before the election; or

•	 Take action to qualify for the

ballot. 11 CFR 100.72(b) and 

100.131(b).

Contribution Limits. Contribution 

limits apply to all the support given 

to an individual who is testing the 

waters. The limits apply, for example, to: 

•	 Gifts of money, goods and services;

•	 Loans (except bank loans);

•	 Certain staff advances until repaid;

•	 Endorsements and guarantees of

bank loans; and 

•	 Funds given or personally loaned

to the individual to pay for his 

or her living expenses during the 

testing-the-waters period.

For additional information on 

contributions, including current 

contribution limits, please review the 

FEC’s Contributions Brochure.

Prohibitions. An individual who 

is testing the waters must comply 

with the Act’s prohibitions. The Act 

specifically prohibits money from:

•	 Labor organizations (although 

funds from a labor separate segregated fund are permissible);

•	 Corporations, including nonprofit 

corporations (although funds 

from a corporate separate segregated fund are permissible);

•	 Foreign nationals; or

•	 Federal government contractors. 

11 CFR 114.2(a),(b), and (d), 

110.20(a)(3), 115.2.

Recordkeeping. An individual 

who tests the waters must keep 

financial records. If the individual 

later becomes a candidate, the money raised and spent to test the waters 

must be reported by the campaign as 

contributions and expenditures. 11 

CFR 101.3. The money raised and 

spent for testing the waters must be 

disclosed on the first report the principal campaign committee files.

Separate bank account. Although 

this is not a requirement, an individual who tests the waters may 

want to consider segregating testingthe-waters funds from personal 

funds by setting up a separate bank

account for the deposit of receipts 

and the payment of expenses. If the 

individual later becomes a candidate, a campaign account must be 

established to keep campaign funds 

separate from anyone’s personal 

funds. 11 CFR 102.10, 102.15, 

103.2, 103.3(a).

Organizing a Testing-the-Waters 

Committee. An individual may 

organize a committee for testing the 

waters. An exploratory committee 

or a testing-the-waters committee is 

(continued on page 10)

of each calendar year based on the 

change in the cost of living since 

2006, which is the base year for 

adjusting this threshold.1 The resulting amount is rounded to the nearest 

multiple of $100. 2 U.S.C. §441a (c)

(1)(B)(iii). Based on this formula, 

the lobbyist bundling disclosure 

threshold for 2011 is $16,200.

—Elizabeth Kurland
Federal Election Commission RECORD March 2011

10

not considered a political committee under the Act and is not required 

to register with the FEC or to file 

reports. The name of the testing-thewaters committee and statements 

made by committee staff must not 

refer to the individual as a candidate. 

Thus, for instance, a testing-the-waters committee may be named “Sam 

Jones Exploratory Committee,” but 

not “Sam Jones for Congress.” 

If the committee’s activities go 

beyond the testing the waters and 

the committee begins to campaign, 

the committee must register with the 

FEC. The funds raised during the 

testing-the-waters phase automatically become contributions, and the 

funds spent, including polling costs, 

become expenditures. These contributions and expenditures count 

toward the threshold that triggers 

candidate status. Once the contributions exceed $5,000, the individual 

becomes a candidate and must 

register under the Act. To download 

registration and reporting forms, 

please visit the FEC webpage for 

“Forms for Candidates and Authorized Committees.” 

If an individual decides not to run 

for federal office, there is no obligation to report these finances, and the 

donations made to the testing-thewaters committee will not count as 

contributions.

Further information on organizing 

a campaign committee can be found 

in the Campaign Guide for Congressional Candidates and Committees [PDF].

—Stephanie Caccomo

DC Seminar for House and 

Senate Campaigns 

On April 6, 2011, the Commission will hold a one-day seminar 

for House and Senate campaign 

committees at its headquarters in 

Washington, DC.1 This seminar is 

recommended for:

•	 Treasurers and staff of House and

Senate campaigns who have responsibility for compliance with 

federal campaign finance laws; 

•	 Attorneys, accountants and consultants who have clients that are 

any of the above;

•	 Anyone who wants to gain indepth knowledge of federal campaign finance law as it applies to 

campaign committees; and 

•	 Anyone who wants to learn

about recent and possible future 

changes resulting from legislation 

and litigation.

The seminar will address 

fundraising and reporting rules, as 

well as recent changes to the law. 

Specific workshops are designed for 

those seeking an introduction to the 

basic provisions of the law, as well 

as those with more experience in 

campaign finance law. Experienced 

FEC staff and Commissioners will 

conduct the workshops. 

The registration fee for this 

seminar is $100 per attendee. Payment by credit card is required prior 

to the seminar. The FEC recommends waiting to make hotel and air 

reservations until you have received 

confirmation of your registration. 

1 This seminar replaces the FEC’s annual Washington, DC, conference for 

campaign committees. For additional 

information, see the October 2010 Record, page 14.

DC Seminar for 

Corporations and Their 

PACs

On May 11, 2011, the Commission will hold a one-day seminar for 

corporations and their PACs at its 

headquarters in Washington, DC.1

This seminar is recommended for:

•	 Treasurers and staff of corporations and their PACs who have 

responsibility for compliance with 

federal campaign finance laws; 

•	 Attorneys, accountants and consultants who have clients that are 

corporations;

•	 Anyone who wants to gain indepth knowledge of federal campaign finance law as it applies to 

corporations; and 

•	 Anyone who wants to learn

about recent and possible future 

changes resulting from legislation 

and litigation.

The seminar will address 

fundraising and reporting rules, as 

well as recent changes to the law. 

Specific workshops are designed for 

Outreach A full refund will be made for all 

cancellations received before 5 p.m. 

EDT on April 1, 2011. Complete 

information is available on the FEC 

web site at http://www.fec.gov/info/

conferences/2011/candidateseminar.shtml, along with the seminar 

agenda and a list of hotels located 

near the FEC. Questions about the 

seminar should be directed to the 

Information Division by phone at 

800/424-9530 (press 6), or locally 

at 202/694-1100, or via e-mail to 

Conferences@fec.gov.

—Katherine Carothers

1 This seminar replaces the FEC’s annual Washington, DC, conference for 

corporate PACs. For additional information, see the October 2010 Record, 

page 14.

(continued on page 11)

800 Line

(continued from page 9)
March 2011 Federal Election Commission RECORD

11

Outreach

(continued from page 10)

2011 Conferences 

and Seminars

Seminar for House and Senate 

Campaigns

April 6, 2011

FEC Headquarters

Washington, DC

Seminar for Corporations and 

Their PACs

May 11, 2011

FEC Headquarters

Washington, DC

Seminar for Trade Associations, 

Labor Organizations, 

Membership Organizations and 

Their PACs

June 8, 2011

FEC Headquarters

Washington, DC

Regional Conference For 

Campaigns, Party Committees 

and Corporate/Labor/Trade 

PACs

September 7-8, 2011

Minneapolis, MN

Regional Conference For 

Campaigns, Party Committees 

and Corporate/Labor/Trade 

PACs

October 25-26, 2011

San Diego, CA

Index

The first number in each citation refers to the numeric month of 

the 2011 Record issue in which the 

article appeared. The second number, following the colon, indicates 

the page number in that issue. For 

example, “1:4” means that the article 

is in the January issue on page four.

Advisory Opinions

2010-23: Contributions by text message, 1:2

2010-24: Party committee must use 

federal funds for certain salaries 

related to voter registration activities, 1:4

2010-29: Working Families Party 

of Oregon qualifies as state party 

committee, 1:5

2010-30: Rental of e-mail list to 

committees at fair market value 

is not coordinated expenditure or 

coordinated communication, 2:1

2011-01: Funds received and spent 

by legal defense fund not contributions or expenditures, 3:1

2011-02: Campaign committee 

may purchase copies of Senator’s 

autobiography if publisher donates 

royalties to charity, 3:3

those seeking an introduction to the 

basic provisions of the law, as well 

as those with more experience in 

campaign finance law. Experienced 

FEC staff and Commissioners will 

conduct the workshops. 

The registration fee for this 

seminar is $100 per attendee. Payment by credit card is required prior 

to the seminar. The FEC recommends waiting to make hotel and air 

reservations until you have received 

confirmation of your registration. 

A full refund will be made for all 

cancellations received before 5 p.m. 

EDT on May 6, 2011. Complete 

information is available on the FEC 

web site at http://www.fec.gov/info/

conferences/2011/corporateseminar.shtml, along with the seminar 

agenda and a list of hotels located 

near the FEC. Questions about the 

seminar should be directed to the 

Information Division by phone at 

800/424-9530 (press 6), or locally 

at 202/694-1100, or via e-mail to 

Conferences@fec.gov.

—Katherine Carothers

Commission

Message from the Chair, 1:1

FEC elects Chair and Vice Chair for 

2011, 1:2

Court Cases

______ v. FEC

 -Carey, 3:1

FEC v. ______

 -Kazran, 2:1

Electronic Filing

Mandatory electronic filing, 3:5

Inflation Adjustments

2011 coordinated party expenditure 

limits, 3:7

2011 lobbyist bundling threshold, 3:8

Contribution limits for 2011-2012, 

3:6

Outreach

FEC to host reporting and E-Filing 

workshops for the 2010 Year-End 

report, 1:10

DC seminar for corporations and 

their PACs, 3:10

DC seminar for House and Senate 

campaigns, 2:4; 3:10

DC seminar for political party committees, 1:10; 2:3

Reports

Reports Due in 2011, 1:6

800 Line

Testing the waters, 3:9