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Public Affairs Council

FEC Decision May Open New Avenue for Donors


In a decision involving a consulting firm that wanted to work with individually financed LLCs to influence elections, the FEC may have opened up a new avenue for campaign donors.

The commission's decision involved the Black Rock Group, which asked whether it would violate campaign finance laws by working with individually financed LLCs "for the sole purpose of sponsoring independent expenditures that expressly advocate for the election or defeat of one or more federal candidates."

Typically under campaign finance laws, allied groups of people that raise or spend $1,000 per year are considered political actions committees, and thus must adhere to strict campaign contribution limits. In the 2009-10 election cycle, individuals can give up to $5,000 per year to PACs

But the FEC gave Black Rock Group permission to work with multiple LLCs, using the reasoning that limited liability companies are not political committees when they team with political consultants to run television ads or to make other independent expenditures.

Black Rock Group's attorney, William McGinley, said the decision would "open up an avenue for individuals who wish to support or oppose federal candidates."