Article
Federal and California political donation limitations and reporting requirements
Sept. 26, 2024 · Authored by David M. Sacarelos
With the 2024 elections less than two months away, donors have begun making political contributions. Anyone contributing to a campaign should keep in mind that specific activities that either support or oppose candidates for federal, state and local offices are generally subject to federal and state campaign finance limitations. These limitations generally restrict the sources and amounts of funds that can be used to finance elections. To avoid incurring penalties at both the California and federal levels, donors should evaluate the following guidelines and limitations.
Federal political contribution limits for 2024
Federal contribution limits vary based on the type of donor and the recipient. Some limits are based on the election cycle, while others are based on an annual total.
Individual donors are not required to file campaign reports for federal political contributions.
| Donors | Recipients | ||||
| Candidate committee | PAC (SSF and nonconnected) | State/district/local party committee | National party committee | Additional national party committee accounts | |
| Individual | $3,300 per election | $5,000 per year | $10,000 per year (combined) | $41,300 per year | $123,900 per account, per year |
| Candidate committee | $2,000 per election | $5,000 per year | Unlimited transfers | Unlimited transfers | |
| Political action committee (PAC): Multicandidate | $5,000 per election | $5,000 per year | $5,000 per year (combined) | $15,000 per year | $45,000 per account, per year |
| PAC: Non-multicandidate | $3,300 per election | $5,000 per year | $10,000 per year (combined) | $41,300 per year | $123,900 per account, per year |
| State/district/local party committee | $5,000 per election (combined) | $5,000 per year (combined) | Unlimited transfers | ||
| National party committee | $5,000 per election | $5,000 per year | |||
California major donor reporting
California imposes donor reporting requirements to ensure voters are aware of who is paying for political messages so they may evaluate and make informed decisions when voting. Specifically, California donors who meet the definition of a “major donor committee” (hereinafter referred to as “major donor”) and donate to California political campaigns are required to report their contributions to the California Secretary of State.
For California reporting purposes, a major donor is an individual or entity that makes one or more donations totaling $10,000 or more to political campaigns. A major donor includes any of the following:
- Individual
- Corporation
- Organization
- Business
- Partnership
The $10,000 threshold applies to any of the following types of contributions made in the aggregate in a single calendar year:
- California state and/or local candidates
- Ballot measure committees
- Political action committees (“PAC”)
- Political parties
Note that federal campaign contributions to candidates or national parties are not included in the $10,000 threshold.
California political contribution filing requirements for 2024
Reporting requirements for California political contributions vary based on the year. The reporting due date is dependent on when the donor makes the contribution and there are penalties if the state forms are not filed on time.
For even-numbered years, major donors are required to file a report one or two times during the year. If all your contributions are in one city, you may need to file more frequently.
In odd-numbered years, major donors may need to file up to four times throughout the year, and potentially more if contributions are in one city.
Contributions come in varying forms, including:
The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.
