A political donation receipt is written documentation recording a contribution to a political campaign. Political donations can come in the form of money or property. Either way, they are never tax deductible, but campaigns must keep detailed records of all contributions they receive.
Table of Contents
- Information Required
- What Qualifies as a Political Donation?
- Political Donation Rules
- Sample Political Donation Receipt
Information Required
The Federal Election Commission requires all of the following information to be included in a political donation receipt:
- Description of the donation (monetary, in-kind);
- Donation date;
- Donation type;
- Donor name;
- Donor type (individual vs. entity);
- Political campaign’s name, address, and contact information;
- Receipt date;
- Statement that no goods or services were exchanged for the contribution; and
- Total dollar amount or fair market value of the donation.
What Qualifies as a Political Donation?
All of the following contribution methods are permissible for political donations:
- Bitcoin;
- Bundled contributions (from lobbyists/political action committees)
- In-kind contributions (non-monetary donations of goods or services);
- Individual monetary contributions (single written instrument such as cash, check, credit card);
- Joint contributions (made by multiple individuals with a single written instrument); and
- Loans (outstanding loan balances can be donated to political campaigns).
Political Donation Rules
Recording Donations
The Federal Election Commission (FEC) regulates political donations under the Federal Election Campaign Act. The FEC requires political campaigns to report all receipts and keep records of all donations. Campaigns must follow the following recordkeeping standards for all donations:
- Donation amount;
- Donation receipt date; and
- Donor name and address.
- All of the above; and
- A full-size copy of each written instrument with which a donation was made;
- A full-size copy of each written instrument with which a donation was made;
- Donation amount;
- Donation receipt date; and
- Donor’s name, address, occupation, and employer.
Contribution Limits
Every individual and entity that makes federal political donations are subject to contribution limits. Potential donors can find the FEC limits for the 2022 elections here. Once a donor reaches their contribution limit for a candidate’s election, any excess contributions must be refunded, redesignated, or reattributed.
Contribution limits reset for each new federal election a candidate participates in. Primary, general, runoff, and special elections are all considered separate campaigns.
Redesignation and Reattribution
A designated donation counts against a donor’s contribution limits for the applicable election and candidate. Donors can specify designations by writing them explicitly on physical donation instruments (like personal checks), submitting statements with contributions, and signing contribution forms provided by candidate recipients.
When a donation exceeds a donor’s contribution limits, the donor sometimes has the option to reassign the donation funds through redesignation or reattribution.
Redesignation and reattribution also come in handy if a political candidate loses a primary election but has already collected funds for the general election. Any funds not redesignated or reattributed are required to be refunded.
A donor can redesignate all or part of their donation from one campaign to another. To do this, they have to send a formal written approval to the receiving campaign stating that it has permission to conduct the redesignation. The only times a campaign can redesignate a donation without express consent from the donor are when:
- A donation is made before a candidate’s primary election;
- A donation isn’t initially designated for a specific election;
- A donation would push a donor over their donation limit for the initially designated election;
- The redesignation won’t push a donor over their donation limit for the redesignated election;
Even in these instances, the campaign is still required to send the donor a notice of the redesignation and offer a refund as an alternative. Donation redesignations are only permitted for single-candidate campaign committees within a single election cycle.
If a donor contributes to a campaign from an account they legally share with one or more other people, their contribution is open for reattribution. Say the contribution pushed the donor over their limit for a particular candidate for a specific election. With the written permission of a second individual on their shared account, the donor can reattribute part or all of the donation to the second person.
The only time a campaign can reattribute a donation without express permission from the secondary donor is when the reattribution doesn’t push that person over any campaign limits of their own. Within sixty (60) days of receiving the donation, the campaign committee must send all persons involved notice of the reattribution that offers a refund as an alternative.
Redesignations and reattributions are permitted when:
- A contribution exceeds the campaign’s net debts outstanding for the designated election;
- A contribution exceeds the donor’s limit;
- A donor contributes to an election the candidate isn’t participating in anymore, or
- The receiving campaign committee wants to use the contribution to fulfill debts from a previous election (this would retroactively count towards the donor’s limits for that election).
Campaign committees must keep detailed records of all redesignations and attributions for a minimum of three (3) years. Documentation must include at least one of the following items:
- Copy of a postmarked envelope that includes the donor’s name and address;
- Copy of a signed statement of redesignation or reattribution that also has the committee’s date of receipt; or
- Copy of a written redesignation or reattribution provided by the donor.
Illegal Contributions
The treasurer of a political campaign is responsible for confirming that all donations are legal (not prohibited or excessive). If a treasurer or campaign committee is suspicious of a contribution, it is required to keep a written record noting the concern. The campaign has thirty (30) days to obtain evidence of the donation’s legality from the donor or to refund the donation in full.
- Candidates (no limits to donating to their own campaigns);
- Individuals;
- LLCs;
- Minors;
- Native American tribes;
- Other federal political campaigns;
- Political party committees (up to $2,000 per campaign)
- State PACs, unregistered local party organizations, & nonfederal campaign committees (subject to limits for “individuals and other persons”); and
- Trusts.
- Corporations;
- Federal government contractors;
- Foreign nationals;
- Labor organizations; and
- Non-profit organizations.
There are special rules regarding LLC donations to political campaigns. Corporations are prohibited from making direct contributions to political campaigns, but they can create separate segregated funds, also known as political action committees (PACs). Partnerships are subject to partnership contribution limits, and their donations count proportionately to each partner’s contribution limits for the same candidate.
Table: Political Donation Rules (By State)
Sample Political Donation Receipt
POLITICAL CAMPAIGN DONATION RECEIPT
Date: July 27, 2022
Name of Committee: The People for Jane Smith
Mailing Address: 12345 Cherry Ln., Cherryville, FL, 12345
Donor Information:
Donor’s Name: Jerry Robinson
Donor’s Address: 12345 Peach Dr., Cherryville, FL 12345
Name of Employer: ABC Shipping Co. Occupation: Manager
Receipt For:
Primary X
General
Other (Specify) Year
Donation Information:
Thank you for your donation with a value of Fifty Dollars ($ $50.00), made to the above-mentioned political committee.
Donation Description: Personal check no. 0056
I, the undersigned donor, declare (or certify, verify, or state) under penalty of perjury under the laws of the United States of America that there were no goods or services provided by the above-mentioned political committee in exchange for this donation.
Donor’s Name Jerry Robinson
Title: Manager Date: July 27, 2022