Political Action Committees (PACs) are also known as Separate Segregated Funds (SSFs). They are called SSFs because a separate bank account is required in which to keep PAC funds. The Federal Election Commission (FEC) does not allow for PAC funds to be commingled with Treasury funds and if they are commingled, the PAC funds would have to be returned to the contributor. SSFs fall under a different part of the tax code (1120-POL) and many banks do not understand how PACs are structured. Banking with an institution that understands the structure and separate tax status of PACs is important.
Eligible employees and members donate to the PAC with the understanding that their money will be pooled with other PAC donations and sent to political campaigns. You owe it to your PAC members to make smart use of their contributions. Don’t let bank fees diminish your spending power. Low cost banking ensures you are spending your PAC funds on campaigns and not on fees.
- PASS will handle PAC deposits from preparing the deposit to taking the deposit to the bank for you.
- PASS will reconcile the PAC account every month and send you the reconciled statement along with a number of financial reports detailing your banking activity for the month.
- PASS will handle lock box and caging services for organizations collecting personal checks and credit cards.
- PASS will work with you to set up merchant services if your PAC offers a credit card contribution option.
- PASS can also simplify banking for clients that do not have an existing banking relationship by opening a PAC account with Capital Bank headquartered in Reston, VA.
