Closing a Campaign

What must be filed?

When the campaign is over, or a committee is ready to dissolve, there may be several steps to take before the campaign reporting responsibilities are officially over.

• Once all bills and loans are paid, and any excess balance is disposed of, a FINAL REPORT must be filed. Check both the current reporting period and the "Final Report" 
  
• Political Action Committees must also file a signed form: "Statement of Dissolution of a Political Action Committee" (Form F-6)
  

Closing a Candidate's Campaign

How may the campaign dispose of excess funds?

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 campaign may not just turn the money over to the candidate.

1. 

• 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); or
• The money may be contributed to other candidate's campaigns or to political action committees, (each contribution subject to normal contribution limits).

2. 

• If the number of contributors was reasonably small, the excess money may be returned on a pro-rata basis to the contributors.  To determine the amount to be returned to each contributor, use this formula:  Balance Remaining divided by Total Contributions = Percent of Each Contribution to be Returned 
  For example:  $2,500 Balance / $20,000 Total Contributions = 12.5% of Each Contribution to be Returned

3. 

• After the candidate files a precandidacy statement for a future election, the balance may be transferred to the new campaign.

What if there are unpaid bills and not enough money to pay them?

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 $1,000 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.

What if there are outstanding loans?

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.

Closing a Political Action Committee

The rules are not so different, except that:

• The committee must raise new lawful contributions enough to cover any unpaid bills or outstanding loans.
• Contributions of excess funds to candidates are subject to the total contribution limits for that candidate.  For example, if the committee contributed $500 in the general election to a candidate, and they want to contribute excess funds the following spring, they could only contribute $500 more to that candidate, providing the candidate also had outstanding debts or loans to repay.