Are you considering making a campaign contribution in Texas? It's essential to be aware of the rules and regulations that govern campaign contributions in the Lone Star State. In this article, we'll explore the limits imposed on contributions to a candidate's campaign, as well as the rules regarding LLCs, partnerships, and other forms of business entities. We'll also discuss the rules for additional elections, campaign funding reports, and what to do with leftover funds. Under the Federal Election Campaigns Act (the Act), contributions are subject to limits.
This applies to all types of contributions (except for contributions made from the candidate's personal funds). Primary, general, runoff, and special elections are considered separate elections with a different limit. In addition, the campaign of a candidate running for the general elections can use the contributions of the general elections to pay the debts of the primary elections; the contributions would continue to be counted to discount the limits set for the general elections. A limited liability company (LLC), partnership, limited partnership, or any other form of business entity cannot make a political contribution in connection with local and Texas elections if the entity has any corporate ownership. When running for office, candidates must submit a campaign funding report 30 days before the election and another eight days before election day.
Campaigns must adopt an accounting system to distinguish between contributions made for the primary elections and those made for the general elections. Under certain circumstances, additional elections may be called that impose additional contribution limits per election. Contributions to the presidential general election campaign of a major party (Republican or Democrat) are not allowed if the candidate decides to receive public funding for the general election. All presidential primary elections held during an election year are considered a single election for the purposes of contribution limits. A contribution earmarked for specific purposes is considered to be made during the electoral cycle in which the contribution is actually made, regardless of the year in which the election is held. If a candidate or elected leader decides to end his political career and he still has money in his campaign account, Texas explains how he can get rid of that money.
On the other hand, an undesignated contribution made after an election is discounted from the donor limit for the candidate's next election. In AO 1996-29, the Commission determined that the value of an in-kind contribution of used computer equipment, received before the primary elections and designated in writing by the taxpayers for all the elections of the cycle, could, in fact, be distributed among all the elections of the same electoral cycle. It's important to remember that even if a large company wants to donate directly to a candidate, it must adhere to these limits. Violating these rules is considered a crime. When making a campaign contribution in Texas, it's essential to understand these rules and regulations so you can stay within them.