Frequently Asked Questions
Who is eligible for the Exempt Organization Communication Exclusion?
Must be an organization described in section 501(c) and exempt under 501(a) communicating specifically to its own members.
How does the Exempt Organization Communication Exclusion work?
Expenditures by 501(c) organizations for communicating the organization's views to its members regarding presidential candidates are excluded from the $1,000 expenditure limit.
What law authorizes the Exempt Organization Communication Exclusion?
The Exempt Organization Communication Exclusion is authorized under IRC §9012(f)(2)(B) of the Internal Revenue Code (Title 26, United States Code).
Statutory Text — IRC §9012
Source: Internal Revenue Code, Title 26, United States Code
§ 9012. Criminal penalties(a) Excess expenses(1) It shall be unlawful for an eligible candidate of a political party for President and Vice President in a presidential election or any of his authorized committees knowingly and willfully to incur qualified campaign expenses in excess of the aggregate payments to which the eligible candidates of a major party are entitled under section 9004 with respect to such election.
(2) Any person who violates paragraph (1) shall be fined not more than $5,000, or imprisoned not more than one year or both. In the case of a violation by an authorized committee, any officer or member of such committee who knowingly and willfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both.
(b) Contributions(1) It shall be unlawful for an eligible candidate of a major party in a presidential election or any of his authorized committees knowingly and willfully to accept any contribution to defray qualified campaign expenses, except to the extent necessary to make up any deficiency in payments received out of the fund on account of the application of section 9006(c), or to defray expenses which would be qualified campaign expenses but for subparagraph (C) of section 9002(11).
(2) It shall be unlawful for an eligible candidate of a political party (other than a major party) in a presidential election or any of his authorized committees knowingly and willfully to accept and expend or retain contributions to defray qualified campaign expenses in an amount which exceeds the qualified campaign expenses incurred with respect to such election by such eligible candidate and his authorized committees.
(3) Any person who violates paragraph (1) or (2) shall be fined not more than $5,000, or imprisoned not more than one year, or both. In the case of a violation by an authorized committee, any officer or member of such committee who knowingly and willfully consents to such violation shall be fined not more than $5,000, or imprisoned not more than one year, or both.
(c) Unlawful use of payments(1) It shall be unlawful for any person who receives any payment under section 9006, or to whom any portion of any payment received under such section is transferred, knowingly and willfully to use, or authorize the use of, such payment or such portion for any purpose other than—(A) to defray the qualified campaign expenses with respect to which such payment was made, or
(B) to repay loans the proceeds of which were used, or otherwise to restore funds (other than contributions to defray qualified campaign expenses which were received and expended) which were used, to defray such qualified campaign expenses.
(2) Any person who violates paragraph (1) shall be fined not more than $10,000, or imprisoned not more than five years, or both.
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