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By James Anderson•Last Updated May 6, 2025

Understanding Political Action Committees (PACs): Roles, Types, and Practical Guidance

Introduction to Political Action Committees

Political Action Committees, more commonly known as PACs , are organizations in the United States designed to collect and pool contributions from members, supporters, or affiliated groups and use those funds to support or oppose political candidates, legislation, or ballot initiatives. PACs serve as a bridge between citizens, corporations, labor unions, or other groups and the political process, providing a structured means to influence elections and public policy [4] .

What Is a PAC? Core Purpose and Function

At their core, PACs are tax-exempt organizations (often structured under section 527 of the Internal Revenue Code) that raise and spend money to elect or defeat political candidates. They may be created by businesses, labor unions, interest groups, or individuals and vary widely in their focus, ranging from broad ideological missions to single-issue advocacy [2] . While PACs cannot coordinate directly with candidates when making independent expenditures, they can run advertisements, send mailers, and mobilize voters in support of or opposition to candidates and policies [1] .

Types of PACs: Structure and Examples

There are several main types of PACs in the American political system. Understanding these distinctions is critical for anyone interested in campaign finance or considering forming or supporting a PAC:

1. Connected PACs (Separate Segregated Funds, or SSFs)

Connected PACs are established and administered by businesses, labor unions, membership organizations, or trade associations. These PACs may only solicit contributions from individuals associated with the sponsoring organization, such as employees or members. The funds can then be distributed to support candidates, parties, or other PACs, within strict contribution limits [3] .

2. Non-Connected PACs

Unlike connected PACs, non-connected PACs are not affiliated with a corporation, union, or trade association. They can accept donations from the general public, making them common vehicles for ideological or single-issue advocacy. Members of Congress or political leaders may also form non-connected PACs, often called “leadership PACs,” to support other candidates or causes (but not their own campaigns) [2] .

3. Super PACs (Independent Expenditure-Only Committees)

Created in response to the
Citizens United v. FEC
and
Speechnow v. FEC
court decisions, Super PACs can accept unlimited contributions from individuals, corporations, unions, and other groups for the purpose of making independent expenditures. While they cannot give money directly to candidates or parties, they play a major role in modern elections by funding advertising campaigns that advocate for or against candidates [4] .

4. Hybrid PACs

Hybrid PACs maintain two separate accounts: one that operates like a traditional PAC (with contribution limits and the ability to donate directly to candidates) and another for unlimited independent expenditures, similar to a Super PAC. This structure allows them to engage in both types of campaign finance activity, provided they keep funds strictly segregated [3] .

Real-World Examples and Case Studies

To illustrate how PACs operate in practice, consider the following scenarios:

Business PAC Example: A large company may create a connected PAC to collect voluntary contributions from executives and employees. This PAC then donates to candidates supportive of policies benefiting the industry.

Labor Union PAC Example: A national labor union may sponsor a PAC that gathers funds from union members. The PAC then supports candidates who prioritize workers’ rights and collective bargaining [1] .

Super PAC Example: In the 2020 U.S. presidential election, numerous Super PACs spent hundreds of millions of dollars on television and digital ads either promoting their preferred candidate or criticizing opponents. These expenditures, while not coordinated with campaigns, can significantly influence public perception and voter turnout [4] .

Regulation, Disclosure, and Compliance

PACs are subject to federal and state regulations governing their formation, fundraising, and spending. The Federal Election Commission (FEC) is the primary regulatory body at the federal level, requiring PACs to register, appoint a treasurer, and regularly disclose contributions and expenditures. All donations exceeding $200 must be reported, ensuring a degree of transparency [2] .

At the state level, requirements may include appointing a treasurer, filing a statement of organization, and paying a registration fee (such as in New Mexico). Failing to comply with these statutes can result in penalties. Entities interested in forming a PAC should read relevant laws and consider legal counsel for compliance guidance [5] .

Step-by-Step Guidance: How to Form or Engage with a PAC

For those interested in participating in or starting a PAC, the following practical steps and alternatives offer a roadmap:

1. Identify Purpose and Type: Determine whether you need a connected, non-connected, Super PAC, or hybrid structure based on your goals and affiliations.

2. Register with Appropriate Authorities: For federal PACs, this means registering with the Federal Election Commission. State-level PACs must follow the procedures of the respective Secretary of State or election authority. In New Mexico, for instance, forming a PAC involves submitting a statement of organization and paying a fee [5] .

3. Appoint a Treasurer: Every PAC must designate a responsible individual to maintain financial records and ensure compliance with reporting requirements.

4. Establish Bank Accounts: PACs must maintain separate bank accounts for contributions and expenditures. Hybrid PACs must keep accounts for direct contributions separate from those for independent expenditures [3] .

5. Fundraising and Contribution Limits: Connected PACs may only solicit from associated individuals, while non-connected and Super PACs can solicit from the general public or unlimited sources (with corresponding reporting obligations).

6. Ongoing Compliance: File regular reports documenting all contributions and expenditures, in accordance with FEC or state regulations. Transparency is enforced through these public filings, which may be searched on the FEC website or relevant state portals.

Alternative Engagement: If you do not wish to form a PAC yourself, you may participate by:

Donating to an existing PAC that aligns with your values
Volunteering or advocating for PAC-supported candidates or causes
Monitoring PAC activity via public databases and transparency portals
Consulting with legal or political professionals for specific compliance questions or campaign strategies

Common Challenges and Solutions

While PACs are powerful tools for influencing elections, they face several challenges:

Transparency Concerns: Critics argue that complex disclosure rules and the rise of Super PACs allow for undisclosed or “dark money” to flow into elections. To address this, individuals may consult the Federal Election Commission’s online database to track donations and expenditures [4] .

Regulatory Complexity: Navigating campaign finance law can be daunting. To ensure compliance, consult official FEC guidance or seek professional legal assistance. State-level resources are available through each Secretary of State’s office, which may also offer online registration and reporting portals [5] .

Public Perception: Some PACs and Super PACs may experience public skepticism regarding their influence over candidates. Transparency, ethical fundraising, and clear communication of mission can help build trust with supporters and the public.

Accessing PAC Services and Opportunities

To get involved with PACs, consider the following steps:

Research existing PACs using the Federal Election Commission’s official website-search for PAC filings, donation histories, and expenditure reports.
If interested in forming a PAC, visit your state’s Secretary of State website for official requirements and forms. For example, in New Mexico, the Secretary of State offers online registration and comprehensive guidance [5] .
Contact a legal or campaign finance professional for personalized advice.

For those seeking to support specific causes or candidates, you can donate to PACs through their official websites (always verify legitimacy) or engage with advocacy groups that maintain PACs aligned with your interests.

Key Takeaways and Further Research

PACs are an integral component of the U.S. electoral process, allowing individuals and groups to raise and spend money in pursuit of political goals. There are multiple types of PACs, each with distinct rules and purposes. By understanding their structure, regulation, and methods of engagement, you can participate effectively and responsibly in the political process. For additional guidance, consult the Federal Election Commission or your state’s official election authority.