In the US, a political action committee, or PAC, is the name commonly given to a private group, regardless of size, organized to elect or defeat government officials or to promote legislation. Legally, what constitutes a "PAC" for purposes of regulation is a matter of state and federal law. Under the Federal Election Campaign Act, an organization becomes a "political committee" by receiving contributions or making expenditures in excess of $1,000 for the purpose of influencing a federal election.
When an interest group gets directly involved within the political process, a PAC is created. These PACs receive and raise money from the special group's constituents, and on behalf of the special interest, makes donations to political campaigns.
Contributions by individuals to federal PACs are limited to $5000. Corporations and unions may not contribute to federal PACs, though they may pay for the administrative costs of a PAC affiliated with the specific corporation or union. Corporate and union affiliated PACs may only solicit contributions from executives, shareholders and their families (in the case of corporations) or members (in the case of unions). "Independent" PACs not affiliated with a corporation or union may solicit contributions from the general public but must pay their operating costs from these regulated contributions.
Federal Multi-candidate PACs are limited in the amount of money they can contribute to other organizations:
Under federal law, PACs are not limited in their ability to spend money independently of a candidate campaign.
