Super PAC Compliance Firm

Federal Lawyers and Former Politicians Experienced in All Aspects of Super PAC Compliance

Attorney Nick Oberheiden
Political Campaign Donations
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Independent expenditure-only political action committees (commonly referred to as super PACs) are unique entities that play a major role in elections at all levels of government in the United States. While traditional PACs and super PACs are similar in certain respects, there are also several critical differences—and this raises unique challenges when it comes to super PAC compliance.

At Oberheiden P.C., we have extensive experience in this area. Not only does this include extensive experience advising super PACs, donors, and other private parties, but also extensive experience representing—and serving as—elected politicians. With a team that includes former House Speaker Kevin McCarthy and former congressman Trey Gowdy, as well as several former U.S. Department of Justice (DOJ) officials and former U.S. Secretary of State Mike Pompeo, we are extremely well-versed in this area of the law.

Understanding the Fundamental Aspects of Super PAC Compliance

Due to the intensive scrutiny that super PACs can face from both private watchdogs and federal authorities, it is essential for all super PACs to have effective compliance protocols in place. Our team of senior lawyers and advisors is available to assist with all aspects of super PAC compliance, including:

Formation and Governance

Properly forming a super PAC and establishing an appropriate governance structure are two critical early steps toward effectively managing compliance and mitigating potential liability exposure. We help super PAC founders choose the right corporate structure and jurisdiction in which to form their entities, and then we assist with establishing roles, fiduciary duties, and other necessary aspects of governance. We ensure that our clients have all of the documentation they need to manage their political committees on an ongoing basis, and we remain available to assist with preparing resolutions, amending bylaws, and dealing with other organizational matters as necessary.

FEC Registration

Similar to traditional PACs, super PACs must register with the Federal Election Commission (FEC). The obligation to register is triggered when a super PAC raises or expends more than $1,000 in a calendar year—and then it must register with the FEC within 10 days.

However, super PACs do not have to wait to register, and registering early can help them avoid potential issues with the FEC. Our lawyers can prepare your super PAC’s Statement of Organization (FEC Form 1) to file with the FEC, and then we can communicate with the FEC directly on your organization’s behalf.

Fundraising

Unlike traditional PACs that rely on separate segregated funds with strict contribution limits, super PACs are not limited in how much money they can raise from eligible donors. This is the primary benefit of forming a super PAC over forming a traditional PAC, and it makes ensuring strict compliance with the requirements that apply specifically to super PACs essential.

While super PACs can accept unlimited contributions from eligible donors, their fundraising efforts are still regulated in several key respects. For example, there are restrictions on eligible donors, and super PACs must adequately document all contributions as well. Here too, we guide our super PAC clients step-by-step, ensuring that they have a clear and comprehensive understanding of what is—and isn’t—permitted under the Federal Election Campaign Act (FECA) and other pertinent laws and federal regulations.

Operating Independently of Political Campaigns

Another key characteristic of super PACs is that they must operate independently of the political campaigns and federal candidates they support. Among other things, this means that super PACs may only make “independent expenditures,” which are defined as follows:

“An independent expenditure is an expenditure for a communication, such as an advertisement through a website, digital device, application, advertising platform, newspaper, TV or direct mail that: (i) Expressly advocates the election or defeat of a clearly identified candidate; and (ii) Is not made in consultation or cooperation with, or at the request or suggestion of any candidate, or his or her authorized committees or agents, or a political party committee or its agents.”

Allegations of “consultation” and “cooperation” are among the most common issues that trigger scrutiny from the FEC and other watchdogs. We help our clients avoid these allegations whenever possible, and we rely on our experience and our clients’ compliance documentation to defend against these allegations when necessary.

Political Advertising and Campaign Activities

Along with satisfying the “independent expenditure” requirement, super PACs must address various other compliance-related concerns when conducting political advertising and engaging in other campaign-related activities. These include avoiding impermissible “in-kind” donations to campaigns and candidates, including appropriate “Paid for by” disclaimers in their advertising content and materials, and complying with the federal robocall regulations, among others.

With our broad-based political law practice, we are able to efficiently assist our super PAC clients with these aspects of compliance as well. Our lawyers and advisors review proposed advertising materials, assist with structuring campaign events and other activities, and provide assistance in other areas to help ensure that our clients’ efforts do not result in unwanted scrutiny or negative publicity.

Super PAC Reporting

All political action committees—both traditional PACs and super PACs—must file reports with the FEC. This includes filing monthly or quarterly reports throughout election years as well as filing 24-hour or 48-hour reports as elections near. Strict compliance with these reporting requirements is extremely important, as both delinquent filings and obvious red flags are highly likely to raise questions at the FEC. We assist our super PAC clients with meeting their reporting obligations as well as generating and storing the supporting documentation needed to withstand FEC scrutiny if necessary.

Compliance Documentation and Risk Management

Thorough documentation is critical in all areas of super PAC compliance. Not only is documentation essential for being able to internally assess the efficacy of a super PAC’s compliance policies and procedures; but, as discussed above, it is essential for being prepared to withstand external scrutiny as well.

Along with taking a proactive approach to super PAC compliance, we also help our clients take a proactive approach to broader risk management. While super PAC compliance is critical, it is also just one of several potential areas of concern. At Oberheiden P.C., we focus on comprehensively protecting our clients through strategic planning, thorough documentation, and effective compliance program implementation. This is true not only with regard to super PAC compliance, but across the board.

Dr. Nick Oberheiden

Founder

Attorney-at-Law

Lynette S. Byrd

Former DOJ Trial Attorney

Partner

Brian J. Kuester

Former U.S. Attorney

Hon. Kevin McCarthy

55th Speaker, U.S. House of Representatives (ret.)

Government Consultant

Mike Pompeo

Of Counsel

Former U.S. Secretary of State

John W. Sellers

Former Senior DOJ Trial Attorney

Linda Julin McNamara

Federal Appeals Attorney

Nicholas B. Johnson

Former Prosecutor

Roger Bach

Former Special Agent (DOJ)

Chris J. Quick

Former Special Agent (FBI & IRS-CI)

Michael S. Koslow

Former Supervisory Special Agent (DOD-OIG)

Ray Yuen

Former Supervisory Special Agent (FBI)

FAQs: Effectively Managing Super PAC Compliance

Are Traditional PACs and Super PACs Subject to Different Compliance Requirements?

While certain federal compliance obligations apply equally to traditional PACs and super PACs (including, but not limited to, the election-year reporting requirements), many unique compliance obligations apply to super PACs as well. These additional obligations address the unique nature of super PACs and seek to ensure that their ability to raise unlimited funds from their donors does not allow them to sidestep the prohibitions against corruption, collusion, and the undue influence of dark money on U.S. elections.

How Aggressively Does the FEC Enforce Super PAC Compliance?

Each year, the FEC initiates dozens, and in some cases hundreds, of investigations and enforcement actions targeting super PACs and other parties. While publicly available data on FEC investigations and enforcement actions are limited—and while the FEC generally does not publicize the names of targeted entities and individuals—it is safe to assume that a significant percentage of the FEC’s enforcement efforts target super PACs, their owners and contributors, and the campaigns and candidates they support.

Is the FEC the Only Agency that Enforces Super PAC Compliance?

No, the FEC is not the only agency that enforces super PAC compliance. For example, even though super PACs are generally tax-exempt, they can still have federal income reporting and payment obligations in some cases; and, as a result, this means that they can face scrutiny from the Internal Revenue Service (IRS). The DOJ and other federal authorities will also target super PACs when targeting appears to be warranted.

What Are the Risks of Non-Compliance for Super PACs?

The risks of non-compliance for super PACs can be substantial. Along with federal enforcement actions, allegations of non-compliance can also lead to litigation involving private watchdogs and other entities. These enforcement actions and litigation proceedings can lead to fines and other financial penalties, and can even present the risk for federal prison time in some cases.

Can Campaigns and Candidates Get in Trouble for Coordinating with Super PACs?

Yes, if a super PAC is accused of coordinating with a political campaign or a particular political candidate, all parties involved can face scrutiny and possible enforcement action. This is yet another reason why it is critical for super PACs to duly prioritize compliance.

Schedule a Call with a Senior Super PAC Compliance Lawyer or Advisor at Oberheiden P.C.

If you would like to know more about our super PAC compliance practice, our team, or any other aspect of our practice, we invite you to get in touch. We work with organizations across the political spectrum nationwide. To schedule a call with a senior super PAC compliance lawyer or advisor at Oberheiden P.C., please call 888-680-1745 or tell us how we can reach you online today.