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
- ›
      FEC Record: Advisory opinions
- ›
      Advisory Opinion 2006-33: association may compensate state affiliate collecting agents

FEC Record: Advisory opinionsAdvisory Opinion 2006-33: association may compensate state affiliate collecting agentsFebruary 1, 2007 The National Association of Realtors ("NAR"), may make payments from its corporate treasury fund to its state affiliates to increase their fundraising for the Realtors' Political Action Committee ("RPAC"), the SSF established and controlled by NAR. The Commission split on a rationale, with two commissioners concluding that the payments would be a permissible use of corporate treasury funds for the establishment, administration and solicitation costs of NAR's PAC, and with two other commissioners concluding that the payments would not be subject to the Act or Commission regulations. The payments would not be subject to the "one-third rule." Background NAR is an incorporated trade association engaged in activities intended to improve business conditions in the real estate industry. RPAC is its SSF. NAR has affiliated state associations in each state, and approximately 1,500 local affiliates. Together, NAR and its affiliates comprise a federation of trade associations. 11 CFR 114.8(g). Each state association operates its own nonfederal political committee, and simultaneously solicits funds for both its nonfederal PAC and RPAC. By agreement, the state PAC receives 70% of the fundraising proceeds and RPAC receives 30%. As an incentive to increase the percentage of funds given to RPAC, NAR proposes to pay the state associations NAR corporate treasury funds in amounts comparable to the increased contributions to RPAC. The funds given to the state associations by NAR would be used in connection with state and local elections or other activities as permitted by state law. Individual contributors would not receive any portion of the funds from NAR, nor would they receive any benefit as a result of the payments. Solicitations would inform the contributors of the new percentage of funds to be sent to RPAC. Analysis As an exception to the general ban on corporate contributions and expenditures, the Act and Commission regulations permit a corporation, including an incorporated trade association, to pay for the establishment, solicitation and administrative costs of its separate segregated fund. 11 CFR 114.1(b). As part of that exception, a corporation may use its treasury funds to pay for "a raffle or other fundraising device which involves a prize" to raise funds for the corporation's separate segregated fund, so long as State law permits and the prize is not disproportionately valuable. When using raffles or entertainment to raise funds, a reasonable practice to follow is for the separate segregated fund to reimburse the corporation for costs that exceed one third of the money contributed to the separate segregated fund. 11 CFR 114.5(b)(2). The Commission concluded that NAR's incentive payments to its state associations would not be subject to the one-third rule, because the payments would not be for a raffle or other fundraising device that involves a prize, or for entertainment. AO 2006-33: Date: December 19, 2006; length: 5 pages
 Author
          Gary Mullen


Read next: General Counsel and deputy resign
 Related: Explore campaign finance data »


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