Campaign Finance Frequently Asked Questions

A group must register as a PAC if their primary purpose is to support or oppose the nomination or election of one or more candidates.

To register as a Political Action Committee in West Virginia, you must file a Statement of Organization (PDF) with the Secretary of State's Office, County Clerk's Office, or the Municipal Clerk's Office, depending on the jurisdiction of the candidates or issues you oppose or support.

When organizing your committee, you must designate a treasurer to be responsible for the finances. Your organization may not receive or spend funds for political purposes if a treasurer has not been designated. The Statement of Organization must include the signatures of the chairperson and the treasurer of the committee. The treasurer who is designated will remain the treasurer until a new treasurer is designated.

No, but PACs must file a Statement of Organization (PDF) before the election in which the PAC will be active.

PACs are subject to the same campaign finance filing requirements as candidates.

• Although corporations may not make direct political contributions, they may set up a separate, segregated fund for political purposes, and it will be considered a political action committee (PAC) under the law.
• A corporate PAC may only solicit political contributions from officers, directors, stockholders, and administrative personnel.
• It may only receive administrative support from the corporation, such as use of property or facilities. However, a corporate PAC formed solely for the support or opposition of a ballot issue may receive corporate contributions.
• Corporate PACs may contribute up to $2,800 per candidate, per election.
• There are no limitations on spending on the support or opposition of a ballot issue.

W. Va. Code § 3-8-9(b) provides: "A political action committee may not contribute to another political action committee or receive contributions from another political action committee: Provided, That a political action committee may receive contributions from its national affiliate, if any."

No, but it is highly recommended that you set up a bank account for your campaign funds separate from your personal bank account for the following reasons:

• A separate bank account for campaign funds is the best way to track and show that you do not spend your funds on personal expenses.
• You will be more prepared for audits.
• It gives a better public image about the handling of campaign finances.

Our office cannot answer questions about IRS filing requirements. Please call the IRS at 1-800-829-4933 or visit www.irs.gov if you have any questions.

To obtain an EIN, you may apply online. Please call the IRS at 1-800-829-4933 or visit www.irs.gov if you have any questions.

• You must report the full name of the person or group that contributed money and the amount. All money must be reported.
• When a contribution comes in the form of a check drawn on a joint account, the person signing the check is the contributor, unless the parties specifically tell you otherwise.
• If the contribution is more than $50.00 ($50.01 and up), the contribution cannot be cash. The contribution may be made by check, money order, credit card, or electronic fund transfer. You cannot accept foreign currency.
• If contributions received from an individual or committee relating to an election total more than $250.00 ($250.01 and up), you must also report the residence or mailing address of the individual or committee.
• If the contributor is a person, you must also report what the contributor does to earn a living (occupation) and the individual's primary employer or business association (business affiliation).
• If the contributor is a committee, you must report the committee's affiliation.

• The maximum contribution allowed to any campaign for nomination or election to any office is $2,800 ($2,800 for the primary election and $2,800 for the general election). However, a candidate may contribute any amount to his or her individual campaign committee.
• The maximum allowed contribution to any political action committee which supports or opposes candidates is $5,000 for the primary election and $5,000 for the general election. Committees which support or oppose only ballot issues are not subject to contribution limits.
• The maximum allowed contribution to any state party executive committee or caucus campaign committee is $10,000 for one calendar year. Persons contributing to these committees may not earmark or designate any portion of the contribution to be used in support or opposition of a particular candidate.
• A candidate may not accept more contributions after all the bills and loans are paid. The candidate must first transfer any excess funds from a prior committee to the current committee for use in the current campaign.

Yes, but if you spend your own money on your campaign for office, you must treat it as a contribution or a loan. If you list that money as a contribution, you can never repay yourself with campaign funds. If you want to recover that money at the end of the campaign, you must write a loan agreement and record the loan on your financial report. Without a completed loan agreement, the candidate's money is a contribution.

No, if a donor requests to remain anonymous, you must either return the contribution or report their identity.

If you cannot identify the donor, you must turn the money over to the State of West Virginia General Fund.

On your campaign finance report, list each anonymous contribution and the amount and date on the contributions section. Then list the amount you sent from your campaign to the State of West Virginia General Fund in the expenditures section.

Send the amount equal to the total of the anonymous contribution(s) for the reporting period to:

• A corporation may not make direct political contributions, either of money or in-kind support, to candidates or candidate committees. However, a corporation may make direct political contributions to committees who only make expenditures independently of candidates or political parties.
• The organizations listed below are permitted to contribute to a candidate at a limit of $2,800 per partnership/membership and per election: Sole Proprietorship, Partnership, and LLC.

A contribution from one of the above organizations to a candidate must be equally distributed among the partners, and the candidate must list each partner individually on their campaign finance report. The sum of an individual's partnership contribution may not be more than the $2,800.00 limit per candidate, per election.

A membership organization is a group that grants certain rights and privileges to its members, such as the right to vote or hold an office within that organization, or uses a majority of its membership dues for purposes other than political purposes. Some political action committees may be considered "membership organizations" under state law.

Contributions to membership organizations often take the form of payroll deductions. If the deduction (or portion of dues) which goes to the PAC or is used for political purposes equals $25.00 or less per member during a calendar year, it can be reported by showing the amount each member paid and the number of members. For example: "25 employees @ $3.00 each = $75.00".

If the payroll deductions or dues exceed $25.00 per member, the contributions are reported individually, the same as any other contribution.

A fund-raising event is "an event such as a dinner, reception, testimonial, cocktail party, auction, or similar affair through which contributions are solicited or received." (WV Code §3-8-1a(20)). This definition also covers sales of food at bake sales or fair booths, memorabilia, T-shirts, and other items.

Raffles

Although raffles are commonly thought of as fund-raisers, candidates are prohibited by WV Code §47-21-2 from holding raffles. Other organizations must have a license to conduct raffles, but among political organizations, only political party executive committees are eligible to obtain a license.

Pass the Hat

"Passing the hat" at meet-the-candidate dinners or other types of fund-raisers usually brings in money anonymously. If the contributor can't be identified, the money will have to be turned over to the state.

Exception for Political Party Executive Committees

In 1994, the West Virginia Legislature passed a law that would allow political party executive committees to hold certain fund-raisers without necessarily reporting individual contributions of monies received at those fund-raisers. Only fund-raisers that involve the sale of food, beverages, services, novelty items, raffle tickets, or memorabilia may take advantage of this exception, as long as the total profits from such fund-raisers do not exceed $5,000 in a calendar year. The names of individuals who spend less than $50.00 a year do not need to be reported. If individuals or organizations make purchases of more than $50.00, or if the total profits from all such fund-raisers exceed $5,000, the normal reporting requirements apply.

Joint Fund-Raising

Political committees may engage in joint fund-raising efforts with other political committees or with committees registered with the Federal Elections Commission. Prior to joint fund-raising efforts, a written agreement must be filed with the Secretary of State and provide terms of fund allocation between participants.

• The event summary required by law (W. Va. Code §3-8-5a).
• Date of the event, the type of event (reception, dinner, etc.), place, address.
• After the contributions and expenditures are completed, enter the total contributions and total expenditures. To get the net receipt, subtract total expenditures from total receipts.
• All contributors' names and amounts received through the fund-raiser. If a contribution is more than $250.00, or if that person or committee's total contributions for the election are more than $250.00, you must also list the contributor's address and, in the case of a person, occupation and business affiliation. Contributions of more than $50.00 cannot be cash. Foreign currency cannot be used.
• All things of value contributed by a person or committee, such as food, entertainment, or other non-cash items for use in the fund-raiser. Report those as in-kind contributions.
• List all itemized expenses (such as invitations, food, hall rentals) relating to the fund-raising event in the expenditure section.

Yes, and you will report them as in-kind contributions. Examples of in-kind contributions include:

• Use of a car, an office, or building
• Services of an employee who is paid by another person
• Use of office equipment or telephones for campaign purposes
• Material for campaign signs
• Food for a fund-raising reception

"Other income" is any money you receive in your campaign account which is not a contribution. This includes refunds on bills paid, interest on investments, checking accounts or savings accounts, or sale of equipment.

• A candidate's committee may only accept a loan from the candidate, the candidate's spouse, or a lending institution.
• A political action committee may only accept a loan from a lending institution.
• The treasurer of a candidate's committee or political action committee may not accept money as a loan unless the loan agreement is executed and delivered at the time the money is transferred.

The loan agreement must include the following information:

• The names, addresses, and signatures of both parties to the loan
• The amount of the loan
• The date of the loan
• The terms of the loan, including interest rate and repayment schedule

• A copy of the loan agreement must be filed in writing with the appropriate filing officer no later than the deadline for filing the campaign finance report next following the date of the loan.
• Enter the amount received as a loan and the date of the receipt for the period in which it was received.
• Carry the balance forward to each successive reporting period until the loan is repaid.
• In each reporting period, enter any repayments of principal with the corresponding loan. Enter all interest amounts as itemized expenditures. When all repayments of principal are complete, the loan balance will appear as zero.
• The campaign cannot close out or file a final report until all loans are repaid.

WV Code 3-8-9 lists specific categories of expenditures which are permitted. The W. Va. Supreme Court has ruled that expenditure types not specifically authorized by law are not allowed. (Rogers v. Hechler, 1986)

This section of code also specifies that payment must be made "at a rate and for a total amount which is proper and reasonable and fairly commensurate with the services rendered."

Permitted expenditure categories include: headquarters rent and employees; office expenses; printing and advertising; meetings; travel and communications; nominating petitions; voter registration lists; voter turnout; advertising; opinion polls (but no push polling); advertising agency services; memorials and citations; appreciation gifts after the election; party dues; party committee contributions; transfers; legal and accounting services; food and drink for campaign-related purposes; and required filing fees.

Enter each expenditure during the reporting period in which the expense was incurred, even if the campaign has not paid the bill or has paid only a portion of the bill.

Paid bills

If the expense is both incurred and paid in the same reporting period: enter the date payment was made, the amount, the name of the business or person paid, and a description of the purpose.

Unpaid bills

If the expense is incurred in the filing period but not yet paid: enter the date the expense was incurred, the amount owed, the name of the business or person owed, and a description of the purpose.

Paying unpaid bills from previous reporting periods

If the expense was incurred in a previous filing period and listed as an unpaid debt, and has now been paid: list the name and purpose as with an unpaid bill, then enter the date payment was made and the amount of the payment.

Regular Campaign Staff

A person who works for the campaign may be classified as regular campaign staff only if he or she works on a regular and continuing basis (minimum 20 hours per week for at least four weeks) and the campaign withholds employee taxes including FICA and federal withholding tax. Regular campaign staff are not subject to limits on time worked or pay, except that the pay must correspond reasonably to salaries for similar work in the commercial world.

Election Workers

• An election worker is someone employed by a campaign committee on a temporary or irregular basis.
• An election worker's pay, including direct or indirect payments for expenses, shall not exceed $9.00 per hour up to a maximum of $75 per day.
• A candidate's committee may employ no more than one paid election worker per precinct in the area the candidate is seeking to represent.
• A PAC may not employ more than one election worker per precinct in a county where the candidate or issues they support is on the ballot.

Contract Workers

A contract worker is not an employee. A contract worker must have a business license with the WV Department of Tax and Revenue and must handle his or her own self-employment taxes.

Volunteers

A volunteer election worker is an individual who provides services to a candidate or committee without pay or other compensation. Out-of-pocket expenses may be fully reimbursed if a receipt is provided.

• Election workers must be paid by check.
• Separate, individual reports must be completed and turned in by all temporary workers and volunteers before they can be paid.
• For employee and volunteer forms, visit our campaign finance forms page.
• For more detailed rules, see CSR §146-4-1 (PDF).

A campaign may only reimburse travel expenses incurred for campaign purposes. It may not reimburse for personal travel, business travel, or perks such as entertainment.

Reimbursement Limits

• Candidate or regular campaign staff: no daily limit
• Volunteers: up to $15 per day; however, the campaign may directly pay lawful travel expenses such as a hotel for a campaign-related trip
• Temporary election workers: may not be reimbursed for travel expenses

Transportation Expenses

Transportation expenses are either direct costs for public transportation or reimbursement for mileage, tolls, and parking.

Meal Reimbursements

Meal reimbursements should reflect actual meal costs related to campaign travel for the person traveling only, not for entertaining others. Ordinary day-to-day meal costs should not be reimbursed just because the person happens to campaign that day.

Lodging

Hotel bills are campaign expenses only when the lodging is essential to campaign activities, such as out-of-town meetings attended to influence voters.

Political Rallies

It is permissible for a candidate to pay for a ticket to a political rally out of campaign funds if the purpose of attending is to influence voters.

You may use the state mileage reimbursement rate, or you may base the expense on mileage receipts.

The person driving should keep detailed records of the following for audit purposes (you do not have to include these details in your campaign finance report):

• Date
• Destination
• Mileage
• Receipts for tolls and parking

When a person spends money for the campaign out of his or her own funds, the cost may be reimbursed if all of the following criteria are met:

• The payment was a lawful expenditure authorized by the candidate or committee treasurer.
• The person presents a receipt for the goods or services.
• The goods or services are turned over to the campaign or used in a campaign event or activity.

Examples: supplies such as envelopes, paper, postage, sign-making materials, and other things needed for daily campaign activities.

When a candidate or candidate's committee has money remaining and all bills and loans are paid, the candidate's treasurer or financial agent, with the candidate's consent, may dispose of the excess money in the ways listed below:

• The money may be donated to one or more charitable organizations (in any amount).
• The money may be contributed to a party executive committee (subject to contribution limitations).
• The money may be contributed to other candidate campaigns or to political action committees (each contribution subject to normal contribution limits).
• If the number of contributors was reasonably small, the excess money may be returned on a pro-rata basis to the contributors. Formula: Balance Remaining ÷ Total Contributions = Percent of Each Contribution to be Returned. Example: $2,500 ÷ $20,000 = 12.5% of each contribution to be returned.
• After the candidate files a pre-candidacy statement for a future election, the balance may be transferred to the new campaign.

If this occurs, the candidate must either raise more money to pay all bills owed or contribute the amount needed to the campaign and pay the bills.

Some Cautions:

• A corporation may not lawfully waive a campaign debt, because the value becomes an illegal corporate contribution.
• A person may not waive the debt unless the amount would be a legal contribution, and if so, the contribution would have to be reported.
• Another person cannot pay off the debts outside the campaign fund, although they could make a contribution of money to the campaign (subject to the $2,800 limit) and let the campaign pay the debt.
• If bills remain unpaid too long, a legal question may arise about whether the company or person owed is making a contribution by deferring demand for payment.

As long as loans remain unpaid, a candidate's campaign must continue to report. Additional money can be raised from persons still eligible to contribute, or the candidate may decide to take responsibility for the loans. For a candidate to do that, he or she must report the amount of the loan as a contribution from the candidate, and then pay off the loan and report that payment under the loans section.

When the campaign is over, or a committee is ready to dissolve, you must make sure that all the following criteria are met:

• All bills are paid
• All loans are paid or forgiven
• All excess funds are dispersed
• Your campaign account balance is zero

Once this criteria is met, you must file a final campaign finance report — check the box for the current election cycle reporting period and the box for "Final Report." Unlike your other finance reports, you may file a Final Report at any time. Download forms at our campaign finance forms page.

Political Action Committees must also file: Dissolution of Campaign or Committee.