Feb 21, 2023
We had take a break from the newsletters as the Super PAC spending has paused while all the infrastructure rebuilds for a new cycle....and 2024 Presidential is already underway and the Super PAC spending has begun. The spending will likely really begin in earnest in Q2 as the jockeying for the 2024 Republican primary begins in earnest. It is these next few months where the jockeying will happen as spending, debates, travel and all the workings crank up. To that end, Gov. Haley aligned Stand for America wins the prize for the first IE spend of 2024 presidential cycle.
Stand for America Inc spent Almost $258k last week as Gov. Haley announced her run for the Presidency.
Stand for America Inc spent $257,790.77 last week as Gov. Haley announced her run for the Presidency.
While we wait for the IE Spending to really kick up, Perspective Strategies will be putting out a few primers on increasing the effectiveness of advocacy. The first is on leveraging the simplicity, flexibility and power of 501(c)4s and Super PACs. See below or a pdf of the content can be found here.
Also, as a part of the updates, if you know of others who would like to receive these spending updates, they can now signup at www.getperspective.co/newsletter.
EFFECTIVE ADVOCACY BEGINS WITH A PERSUASIVE STORY
EFFECTIVE ADVOCACY BEGINS WITH A PERSUASIVE STORY, and 501(c)4s and Super PACs are quickly becoming the most effective storytelling vehicles in American politics. Everyone from advocacy organizations to corporations and candidates are forming one or the other (sometimes both) to take advantage of their agility and ability to raise unlimited, and sometimes anonymous, contributions. For this reason, these vehicles are now an essential tool in communications, advocacy, and influence programs; it is even becoming increasingly common for candidates to offshore their campaigns to the financial largess of these groups.
Properly leveraging these two types of organizations adds enormous capacity to create influence and communicate but they exist for different reasons, and it is very important to understand the different functionally, purpose, and limits of each type so that the entity can accomplish your organization’s objectives.
HERE ARE 9 BASIC QUESTIONS TO CONSIDER WHEN FORMING A NEW 501(C)4 OR SUPER PAC:
- What are the objectives and desired outcomes? Having a clear understanding of what the entity is intended to accomplish is a crucial first step in determining which type will be the best fit.
- How difficult and expensive are these groups to establish? These groups are incredibly easy and cheap to establish if some of the foundational questions below have already been answered. Often, they can be established within a day for a few thousand dollars.
- Are the desired outcomes primarily to affect a political campaign? If so, a Super PAC will be a better fit as a (c)4 has limits on how much of its activity can be political (endorsing and opposing candidates for office).
- Will the donors to this organization require anonymity? If so, a (c)4 will be necessary as donations remain anonymous, Super PAC donors are disclosed to the FEC.
- What are the donation limits, and can they accept corporate contributions? Both a (c)4 and a Super PAC can accept unlimited donations from individuals and corporations. Additionally, donations are not tax deductible to either organization.
- How do they raise money? Some of these groups have a single donor that funds the entire operation, some grow so large they can run their own small dollar fundraising program, and there is a mix of everything in between.
- Can the organization lobby and do other forms of issue advocacy? A (c)4 can lobby and do other activities that are considered issue advocacy (earned media, grassroots, grass tops, fundraising, even paid advertising) without it counting against the limit of political activities. Alternatively, there are very few limits on what a Super PAC can do because its donors are disclosed. But neither organization can coordinate with a candidate or make contributions to a candidate campaign.
- Is there ever a reason to set up both a (c)4 and a Super PAC? Yes! A (c)4 can carry out a lot of activity that is required for political outcomes (earned media, lobbying, grassroots, even paid advertising) without having to disclose its donors. A Super PAC is an effective accelerant to (c)4 activities as the Super PAC can engage in electoral politics. Additionally, (c)4’s can move their anonymous contributions to Super PAC’s (within limits) and Super PACs can move unlimited money to (c)4s as the donations have already been disclosed.
- What else can these vehicles do? Contact us to find out.
Forming a Super PAC or 501(c)4 doesn't have to be intimidating.
In short, these vehicles do not need to be as intimidating. With clear objectives, identified funding, and the proper strategy, a (c)4 or Super PAC can dramatically improve effectiveness and outcomes. These vehicles are no longer just for the largest federal campaigns, they are accessible to the smallest nuance issue group.
Reach out with any questions about formation, strategy, narrative, or execution.
