The Federal Election Commission (FEC) allows for the matching of PAC contributions with corporate contributions to a charity based on the following guidelines:

A connected organization may encourage contributions to the PAC by pledging to match all or a portion of a contributor’s gift to the PAC with a donation to charity. The employee or member making the PAC contribution may designate a charity that is tax-exempt under 26 U.S.C. §501(c)(3) to receive the matching gift from the connected organization, but he or she may not personally receive any financial or tangible benefit (such as a tax deduction or a premium from the recipient charity) as a result of the connected organization’s gift.

While this is the only rule imposed by the FEC. Your organization may have other requirements related to offering a PAC match program and meeting all of those compliance requirements can be time consuming and cumbersome.

PAC Charity Match Compliance Services:

  • PASS will review employees’ charity selections to ensure they meet the PAC’s giving criteria. Does your PAC will match to any 501(c)(3) or just a select few? No matter, PASS will review each charitable organization using a nationally recognized charity database and ensure the organization has a current 501(c)(3) status.
  • PASS will undertake a review of an employee’s charity selection to ensure that their charity has not been placed on the IRS’ list of charities that have had their 501(c)(3) status revoked.
  • PASS will review of the employee’s charity selections to ensure they meet the your organization’s giving criteria.
  • PASS can open a bank account and hold funds in trust for the PAC match program. The bank account is reconciled on a monthly basis and financial reports are sent directly to the client contact.
  • PASS will assist with accounting for the PAC match program by providing a series of detailed reports each month. Standard reports include a list of employees with designated charities, the amount contributed to the PAC and to the charity, a summary of total funds contributed to each charity, and financial reports for the PAC charity match bank account.

For more information on additional PAC Match services, check out our Charity Match Administration services, providing a complete range of PAC Match services to assist organizations offering a charitable match to employees.