PACs and your business: why you should take an interest in political fundraising.Just because you do not take an interest in politics doesn't mean politics won't take an interest in you.--Pericles (430 B.C.) Pericles' lesson on politics was never truer than it is today. While many in business have distaste for politics, wise businesspeople recognize that participating in the political process can help ensure their interests are represented. As a former state legislator LEGISLATOR. One who makes laws. 2. In order to make good laws, it is necessary to understand those which are in force; the legislator ought therefore, to be thoroughly imbued with a knowledge of the laws of his country, their advantages and defects; to , I can attest To solemnly declare verbally or in writing that a particular document or testimony about an event is a true and accurate representation of the facts; to bear witness to. To formally certify by a signature that the signer has been present at the execution of a particular writing so as that those who are most satisfied with the political process are those who participate in supporting candidates who understand their issues. Campaign contributions are one of the best ways to express this support. Businesses deciding to make their voices heard through contributions to candidates for political office need to pay heed Verb 1. pay heed - give heed (to); "The children in the audience attended the recital quietly"; "She hung on his every word"; "They attended to everything he said" advert, give ear, attend, hang , however, to the host of requirements and limitations that exist under state and federal law. Understanding campaign finance law Contributions to federal candidates are subject to the Federal Election Campaign Act The Federal Election Campaign Act of 1971 (FECA, Pub.L. 92-225, 86 Stat. 3, enacted 1972-02-07, et seq.) is a United States federal law which increased disclosure of contributions for federal campaigns, and amended in 1974 to place legal limits on the (FECA FECA Federal Employees Compensation Act FECA Federal Election Campaign Act (USA) FECA Family Entertainment and Copyright Act of 2005 FECA Flower Export Council of Australia FECA Florida Electric Cooperatives Association, Inc. ). FECA requires reports to be filed with the Federal Election Commission disclosing funds raised and spent to influence federal elections. In addition, FECA imposes limits on contributions depending upon whether the contributor is an individual or political action committee (PAC PAC, see political action committee. (1) See perceptual audio coding. (2) (Programmable Automation Controller) A programmable microprocessor-based device that is used for discrete manufacturing, process control ) and the type of organization to which the contribution is made. FECA prohibits corporations from making direct campaign contributions. Like its federal counterpart, the Michigan Campaign Finance Act (MCFA MCFA Marie Curie Fellowship Association MCFA Medium-Chain Fatty Acid MCFA Mitsubishi Caterpillar Forklift America Inc. MCFA Ministry of Culture and Fine Arts (Cambodia) MCFA Minor Crop Farmer Alliance ) imposes disclosure requirements and limitations on contributions and expenditures made in support of or against the election of state candidates. MCFA also prohibits corporations from making direct contributions in state elections. Understanding Political Action Committees The method used to contribute to political candidates is largely driven by your type of business. Despite the ban on corporate contributions, both Michigan and federal law allow incorporated businesses to create PACs. PACs can solicit contributions from company directors, shareholders, officers and certain other employees with managerial responsibilities and can utilize automatic payroll deduction plans to finance its activities. These PACs are required to file disclosure reports showing contributions and expenditures. Unincorporated Adj. 1. unincorporated - not organized and maintained as a legal corporation unorganised, unorganized - not having or belonging to a structured whole; "unorganized territories lack a formal government" companies or organizations are not subject to the prohibition on direct corporate contributions under Michigan law. Partnerships, for example, may make contributions to candidates for political office directly from partnership accounts. Likewise, limited liability companies, including professional limited liability companies, are permitted to make political contributions written on company checks. Such contributions will be treated as being the contributions from individual partners or members, if the partnership or unincorporated company indicates so. Otherwise, the partnership or company may be required to register as a committee, thus subject to the reporting requirements and limitations applicable to PACs. Federal law also permits partnerships and certain limited liability companies to make direct campaign contributions, although the limits and attribution rules Attribution Rules A set of rules created by Canada Customs and Revenue Agency (CCRA) that prevents investors from transferring assets between family members with the intention of avoiding taxes. vary in some respects from state law. For those businesses that do not have the resources to create a PAC, individuals can financially support PACs of business associations and other likeminded organizations. This is an easy and cost-effective way to participate in politics. Whatever fundraising strategy you choose, remember Pericles' admonition--and take an interest in politics! For more detailed information, visit the Detroiter Online at www.detroitchamber.com/detroiter and go to: "Political Action Committees: PACs and your business." RELATED ARTICLE: Chamber PACs The Detroit Regional Chamber has three PACs to help elect pro-business candidates who share our mission of powering the economy for Southeast Michigan Southeast Michigan, also called Southeastern Michigan, is a region in the Lower Peninsula of the U.S. state of Michigan that is home to a majority of the state's businesses and industries, and is home to slightly over half the state's population. . Each year, hundreds of laws, rules and regulations are adopted that affect a business' bottom line. Chamber PAC dollars support those candidates who understand the importance of public policies that promote business and economic development. The following PACs reach all levels of the political process: 1. Detroit Regional Chamber PAC -- for state and local campaigns. 2. Detroit Regional Chamber PAC II -- for ballot initiatives. 3. Detroit Regional Chamber FedPAC -- for federal campaigns. For more information, visit www.detroitchamber.com. Andrew Richner is a member of the law firm Clark Hill PLC, a Silver-level member of the Detroit Regional Chamber. He served three terms in the Michigan House of Representatives The Michigan House of Representatives is the lower body of the Michigan Legislature. There are 110 Representatives, each of whom is elected from districts having approximately 77,000 to 91,000 residents, based on population figures from the U.S. Census. and is currently a member of the University of Michigan (body, education) University of Michigan - A large cosmopolitan university in the Midwest USA. Over 50000 students are enrolled at the University of Michigan's three campuses. The students come from 50 states and over 100 foreign countries. Board of Regents An independent governing body that oversees a state's public Colleges and Universities. All 50 states have governing bodies that oversee the administration of public education. . [ILLUSTRATION OMITTED] |
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