Political Committee Status
In November 2004, the Federal Election Commission (``FEC'') adopted new regulations codifying when an organization's solicitations generate ``contributions'' under the Federal Election Campaign Act (``FECA'' or ``the Act''), and consequently, require that organization, regardless of tax status, to register as a political committee with the FEC. Additionally, the Commission substantially revised its allocation regulations to require the costs of voter drives, certain campaign advertisements, and a political committee's general administrative costs be paid for in whole or in substantial part with funds subject to FECA's limits, prohibitions, and reporting requirements. Pursuant to Shays v. FEC, 424 F. Supp. 2d 100 (D.D.C. 2006) (``Shays II''), the Commission is publishing a supplemental Explanation and Justification to provide a more detailed explanation of (a) The basis for the measures it adopted and (b) the reasons it declined to revise the regulatory definition of ``political committee'' to single out organizations exempt from Federal taxation under section 527 of the Internal Revenue Code (``527 organizations'') for increased regulation. This document also discusses several recently resolved administrative matters that provide considerable guidance to all organizations regarding the receipt of contributions, making of expenditures, and political committee status.