The Committee of Seventy
Eight Penn Center
1628 JFK Boulevard
Suite 1002
Philadelphia, PA 19103
p. 215-557-3600
f. 215-557-3608
info@seventy.org

How to Run for Political Office: A Campaign Manual for Pennsylvania Candidates
(PDF of this manual)

Regardless of the size of the campaign, almost all candidates will become involved with fundraising and campaign finances at some point during the race. For some candidates, expenditures may be limited to the filing fee and receipts for small donations collected from concerned neighbors. For others conducting a national campaign, money raised may be spent on television advertisements, mass mailings, and literature, while funds are solicited from every available source. Regardless of the scenario, candidates and their campaign organizations must be familiar with the finance provisions of the Election Code and take care to obey them. These provisions regulate five areas: (1) the organization of campaign finance; (2) the solicitation of money; (3) campaign expenditures; (4) the preparation of finance reports; and (5) audits of finance reports. These provisions apply to every candidate for public office with the exception of candidates for Judge or Inspector of Elections.210 These provisions also do not apply to candidates for party offices.211

Organizing Campaign Finances

Raising Money

Identifying Contributions

Prohibited Contributions

Accepting Contributions

Expenditures

Filing Finance Reports

Who Must File

What Form Must be Filed

The Campaign Finance Report and $250-Statement

Optional Affidavit for Some Local Candidates

When to File Optional Affidavit

How to File Out and File Financial Forms

Where to File

Information Required in Campaign Finance Reports

Review of Accounts: Audits and Penalties

Checklist

Organizing Campaign Finances

The first decision a candidate must make about campaign financing is whether or not there will be any money raised or spent on behalf of the candidacy. Obviously, candidates who neither spend nor raise campaign funds have little need to worry about the reporting requirements in this area and no need for a campaign finance organization. Most candidates, however, will choose to spend money to advance their cause. Candidates will invest in themselves at least to the extent of paying the filing fee for the nomination papers or petitions. Ordinarily, though, candidates spend as much as they raise, and raise as much as they can.

Candidates may either control their campaign finances or delegate that responsibility to a "Candidate's Political Committee," which is a specific group of persons formally authorized by the candidate to receive contributions and make disbursements on his or her behalf. 212

Candidates should consider two important factors in determining the control of their campaign finances. First, fundraising and spending must be conducted in accordance with the requirements of the Election Code. Second, the candidate's time and attention should be concentrated as much as possible on the campaign itself. If only a minimal amount of money is to be raised or spent, the candidate can personally meet the legal requirements without being too greatly distracted from campaigning, policy-making and public appearances. If, however, a candidate intends to conduct an elaborate campaign, he or she should seriously consider forming a political committee. Detailed reporting is required of any campaign which raises or spends more than $250.213 Some candidates consider this sum a useful cut-off point for deciding on the finance structure of their campaign; however, every candidate must consider the issue on the basis of his or her personal circumstances.

Although legal training is not a requirement for understanding the provisions governing campaign finances, some candidates may want to obtain the services of an experienced attorney in this field if the campaign expects to raise and spend substantial funds. The County Board of Elections and the Committee of Seventy can answer many finance questions. However, candidates can avoid most legal problems with detailed planning and the expert advice of an attorney, accountant, or political fundraiser familiar with Pennsylvania law.

If a candidate decides to establish a political committee, the candidate must first authorize a committee to receive and disburse funds.214 This authorization must be done in writing on a form available from the Bureau of Elections in Harrisburg or the local County Board.215 Until the form has been completed and authorization exists, the candidate's political committee is prohibited from receiving money on the candidate's behalf.216 Candidates for state office (such as Governor or State Senator) must file completed authorization forms with the Secretary of the Commonwealth (at the Bureau of Elections in Harrisburg) as well as with the county board in the county where the candidate resides.217 Candidates for City office (such as City Commissioner or Mayor) must file authorization forms with their local county board of elections.218 A Candidate is free to authorize as many political committees as he or she sees fit.219

(Note: This pattern of filing requirements -- two places for state candidates, one place for local candidates -- applies to all forms discussed throughout this chapter, whether they are prepared by the candidate or by his or her political committee.220 Here is another way to remember where to file campaign finance forms: if the candidate must file his or her nomination petition or paper with the Secretary of the Commonwealth, then the campaign finance forms filed by that candidate and his or her political committee(s) must be filed with both the Secretary and the candidate's local county board. If, on the other hand, the candidate must file his or her nomination papers or petition with the local county board, then the candidate and his or her committee's campaign finance forms need only be filed locally).

A candidate forming a political committee must also designate a "sole treasurer" as the individual responsible for receiving and disbursing the committee's funds.221The reference to "sole treasurer" signifies that regardless of the number of political committees a candidate forms, they must all have the same treasurer. This requirement assures that full responsibility for the financial affairs of a candidate's campaign rests with one person. Although the treasurer may delegate his or her authority in writing to any number of assistant treasurers, the treasurer alone retains legal responsibility for their actions.222 Note: the treasurer should be someone with experience in keeping books of account or in supervising data entry and processing, with competence in the use of computer software. Normally, the treasurer should not be the lawyer for the campaign.

A candidate must also designate a chairperson for each of his or her political committees. In contrast to the treasurer position, each political committee may have a different chairperson.223 If a vacancy exists in either position, chairperson or treasurer, the political committee is prohibited from receiving contributions or making expenditures. 224To prevent interruptions in a political committee's activities, a candidate should designate automatic successors to these positions to avoid complications in the event of an unexpected vacancy.225

Even if a candidate forms a political committee, he or she may still raise and spend money personally.226 Contributions and expenditures made to or by the candidate may be deposited in the candidate's private personal account.227 However, a better practice is for candidates to channel as many financial transactions as possible through their political committees. In this manner, although both candidates and political committees will be required to submit reports of their respective campaign finances,228 candidates can minimize the paperwork that they will personally have to manage by funneling transactions through their political committees. Additionally, this procedure will facilitate the evaluation of the financial condition of the campaign.

In addition to personal political committees, candidates should be familiar with two other types of political committees: (1) party committees of a political party or body, and (2) political action committees (PACs).229 Examples of party committees are the Democratic and Republican City Committees in Philadelphia. For primary elections, party committees cannot receive money on behalf of particular candidates without receiving written authorization from those candidates; such authorization is not required for November (or any special) elections.230

The second type of political committee, the "Political Action Committee" or PAC, is any political committee that receives contributions or makes expenditures on behalf of one or more candidates, but is neither a candidate's own political committee nor a regularly constituted party committee.231 For example, a local organization of individuals formed to provide financial support on an ongoing basis to candidates of their choice would constitute a PAC. Similarly, unincorporated associations (such as labor unions and social clubs) are required to establish separate funds in order to distribute campaign contributions. 232PACs cannot receive money on behalf of a particular candidate without written authorization from the candidate.233 However, a PAC does not require candidate authorization to receive money given in general support of its work, even though money provided as general support may ultimately be used by the PAC to promote the election of a particular candidate.234

Similar to candidates' own political committees, party committees and PACs must file campaign reports and observe legal restrictions on their campaign-related activities.235 The precise rules applicable to party committees and PACs exceed the scope of this manual. As a candidate, your primary responsibility rests with your personal finances and with those of your political committee(s).

Raising Money

Regardless of whether a candidate organizes a political committee, all campaign fundraising should be conducted in strict observance of the Election Code. The Election Code prohibits the acceptance of contributions of certain types and from certain sources, describes the proper procedure for accepting legal contributions, and requires detailed record-keeping of most contributions. These various provisions are discussed below. First, the candidate should have a clear understanding of what is and what is not a "contribution."

Identifying Contributions

The Election Code contains a lengthy definition of "contribution." As an introduction, candidates should realize that money is not the only form of a contribution. Valuable items such as equipment, supplies, advertising, and the services of personnel paid by others are also considered contributions.236 Furthermore, contributions include more than outright donations. Loans, forgiven debts, and other transactions which benefit a campaign also fall within the definition. 237Thus, a loan by a candidate to his or her political committee is considered a loan to the committee (and an expense for the candidate).

The following items are also contributions:

1. any payment, gift, subscription, assessment, contract, payment for services, dues, loan, forbearance, advance or deposit of money or any item of value that is made to a candidate or political committee for the purpose of: (a) influencing any election in Pennsylvania: or (b) paying debts which a candidate or political committee incurs before or after the election;

2. the purchase of tickets for fundraising events such as dinners, luncheons, and rallies;

3. the granting of discounts or rebates which are not available to the general public;

4. the granting of discounts or rebates by television and radio stations and by newspapers, which are not extended on an equal basis to all candidates for the same office;

5. payments provided for the benefit of the candidate (For example, if an employer makes his or her clerical staff available to a candidate's campaign, but continues to pay the staff's salary, those salary payments are "for the benefit of the candidate" and are contributions.), including toll charges and duplicating expenses.

6. the receipt or use of anything of value by one political committee from another political committee; and

7. any return on investments by a political committee.238

The following items are defined by the Election Code as not constituting contributions for the purpose of finance reporting requirements, even though they obviously benefit a candidate and the campaign. Because they are deemed not to be contributions, they can be given to and received by a campaign without there being any need to file reports:

1. the voluntary personal services provided by individuals who volunteer a portion or all of their time on behalf of a candidate or political committee;

2. the cost of operating a car owned or leased by the candidate or by his or her immediate family and the cost of food and beverages for the candidate and his or her immediate family;

3. the cost of invitations, food, and beverages donated by an individual in the course of voluntarily holding a political event for a candidate -- so long as the event is held in the individual's home, a religious building, or community room, and so long as the cumulative value of such invitations, food and beverages provided by such an individual on behalf of a single candidate does not exceed $250 for any single election.

4. the lost profits of an individual vendor -- not a corporation or unincorporated association -- selling food or drink to a campaign at cost, limited to $250 per vendor;

5. any unreimbursed expenses which an individual incurred on behalf of the candidate, limited to $250 per individual;

6. the use of the candidate's personal residence, business, or office space (unless the business or office is a corporation or unincorporated association) and the use of personal property which the candidate owns or leases, provided the value of using the personal property does not exceed $1,000; and

7. the use of the personal residence or business or office space of a volunteer -- other than a corporation or business association; the use of personal property owned or leased by a volunteer, provided the value of using the personal property does not exceed $250.239

Although these items are not "contributions" for the purpose of finance reporting requirements, there are restrictions on who can legally provide them to a campaign. Any organization which is prohibited from making a contribution to a campaign is also prohibited from furnishing these items.240 These organizations are described in the next subsection.

Prohibited Contributions

Understanding the definition of "contribution" enables candidates and political committees to comply with the reporting requirements of the Election Code. However, that understanding by itself is not enough because the law further provides that certain contributions are illegal.

The foremost target of the Election Code prohibition is the contribution whose true origin is impossible or difficult to determine. Thus, it is unlawful for any candidate or political committee to accept or disburse money received from an anonymous source; all such money must be turned over to the State Treasurer within twenty days of its receipt.241 Similarly, cash (but not checks) from any one person that total more than $100 are also forbidden.242 It is also unlawful for any person to contribute funds which were given to him or her by any other person, firm, or corporation.243 In other words, each person making a contribution must do so in his or her own name. 244

The second major Election Code prohibition is a ban on campaign contributions from banks, corporations (including corporations identified by the designations "P.C." or "P.A." or "Ltd. and non-profit organizations), and unincorporated associations (including churches and community associations).245 Unincorporated associations include such organizations as churches, labor unions, social clubs, partnerships and neighborhood civic associations.

There are two exceptions to this rule. First, corporations and unincorporated associations are permitted to establish separate political funds for the purpose of contributing to campaigns and soliciting voluntary donations from their members and other individuals.246 Organizations which form such funds may then contribute them to political campaigns.247 These funds are considered political committees and have their own separate reporting requirements to meet.248 A partnership or sole proprietor may contribute freely to political campaigns. Individuals residing inside or outside of Philadelphia may also contribute to political campaigns provided they are not officers of the Philadelphia Police or Fire departments; other City employees may contribute voluntarily. Second, corporations formed exclusively for political purposes or to act as a political committee may contribute or make expenditures on behalf of political campaigns. 249

Candidates should note that the Election Code does not prohibit banks, credit unions, or savings & loans from loaning money to candidates or their political committees as an ordinary business transaction.250 Similarly, interest or dividends which are paid upon investments of the campaign's money are legal.251 Such loans, interest payments, and dividends are considered "contributions" and must be reported by the campaign.252 As a note of caution, checks should be reviewed before deposit to ensure that they are not prohibited, and when deposited, the contribution must be reported (See "Filing Finance Reports," below) even if it is subsequently refunded.

Accepting Contributions

The acceptance of contributions by a candidate or his or her political committee triggers a number of record-keeping and reporting responsibilities. Candidates and political committees must maintain accurate records in order to produce and file legally required finance reports. The information which must be provided in those reports is described below, under "Filing Finance Reports." In addition, candidates must follow a number of procedural steps following the acceptance of a contribution.

First, candidates and their political committees must keep a record of the names and addresses of each person or organization contributing $10 or more.253 This requirement is distinct from the finance reporting requirements. The candidate or treasurer must maintain this record, and all other information that must be reported, for at least three years after the filing of the reports. 254

Second, if the candidate has established a political committee, that committee must file a registration statement within twenty days after receiving contributions totaling $250 or more.255 Political committees of candidates for state office (Governor or State Senator, for example) must file the statement with both the Secretary of the Commonwealth and the local county board of elections.256 Political committees of candidates for local office (Mayor or City Councilmember, for example) must file the statement with the local county board of elections. 257

The statement must provide the following information:

1. the name, address(es), and phone number(s) of the political committee;

2. the name, address, and phone number of the committee's treasurer;

3. the name, address, and phone number of the committee's chairperson;

4. the name, addresses, and relationships of any affiliated or connected organizations;

5. the name(s) and address(es) of the candidates supported by the committee;

6. the ballot question, if any, which the committee intends to support or oppose;

7. the bank(s), safety deposit box(es), and other repositories used by the committee and their addresses; and

8. the period during which the committee expects to operate.258

Changes in this information must be reported to the appropriate office(s) within thirty (30) days of the change.259

Third, particular care must be taken in handling "late" contributions. These are contributions received or pledged after the candidate or political committee has filed a final pre-election finance report, but prior to the date of the election. 260This pre-election report is due not later than the second Friday before the election and must include complete finance information as of fifteen days prior to the election (see "Filing Finance Reports" below). Every late contribution or pledge of $500 or more must be reported within twenty-four hours of its receipt to the Secretary of the Commonwealth and the candidate's local county board (for candidates for state office and their committees) or to the candidate's local county board (for candidates for local office and their committees). 261The report must be in the form of a telegram, overnight mail, or fax, and sent by the candidate or the political committee's chairperson or treasurer. 262 For example, the reporting requirement would apply to a political committee which received a "late" contribution of $500 or more from its candidate. Note that if the report is faxed, an original must also be sent by mail.

Finally, anyone accepting a contribution on behalf of a candidate or political committee (at any time during the campaign) has an obligation to turn it over to the candidate or the committee's treasurer within ten days of its receipt. 263 Note that campaign funds should generally not be deposited in savings or money market accounts because interest or other investment earnings on a campaign account are taxable for federal income tax purposes; the treasurer would then be responsible for reporting and paying the tax.

Expenditures

The Election Code provides that the following items are considered lawful expenditures of a political campaign:

1. 1. payment, distribution, loan, or advancement of money or any valuable item by a candidate or political committee for the purpose of influencing the outcome of an election (This includes the transfer of a candidate's own money to his or her committee: in that instance, the candidate has made an expenditure);

2. the payment, distribution, loan, advance, or transfer of money or other valuable item between or among political committees;

3. the providing of a service or other valuable item for the purpose of influencing the outcome of an election; and

4. the payment or providing of money or other valuable item by any person other than a candidate or political committee to compensate any person for services rendered to a candidate or political committee. 268

After a campaign ends and a candidate and his or her political committee(s) terminate their financial activities, remaining funds (called “residual funds”) may be used for any authorized expenditures listed above, or may be returned on a pro-rata basis to contributors by the candidate or the committee's treasurer. 269

As noted, copies of vouchers of every expenditure exceeding $329 25 must be retained by the candidate or committee treasurer. 270 Although these vouchers need not be filed along with the campaign reports, they must be kept available for public inspection and copying.271 Any person may have access to and copy those vouchers by filing a written request with the office or offices where the campaign reports are filed. 272The candidate or committee must either copy the vouchers for the appropriate office or make them available to the requesting person.273 The requesting person is responsible for paying the copy and delivery costs. 274

Filing Finance Reports

Most candidates and political committees that receive or expend substantial amounts of money in conducting their campaigns must provide detailed information concerning their financial activities. Even candidates and committees with minimal financial activity are subject to reporting requirements, although the requirements are less demanding. This section details who must file campaign finance forms, what forms must be filed, where and when they must be filed, and what information must be included in them. The forms and instructions for completing them are available from the Secretary of the Commonwealth and the local county boards of elections. Note that for forms to be timely filed they must be postmarked by the U.S. postal service on the day prior to the due date. Note that Federal Express or other courier services are not acceptable.

Who Must File

Under the present law, candidates for the position of Judge of Elections or Inspector of Elections, and candidates for party offices, which are not public offices, are exempt from the filing requirements discussed in this section.275 However, such candidates should contact their local county boards of election before running for office to ensure that they are still exempt. All other candidates for elected public office -- and their political committees -- must file documents pertaining to their campaign finances.276

What Form Must be Filed

There are two basic campaign finance forms: a long version requiring detailed information and a short version. One or the other must be filed on each filing deadline. The type of form that must be filed depends upon the level of financial activity of the candidate or his or her political committee(s). In addition, certain local candidates without political committees whose expenditures and contributions do not exceed $250 may file a third form requesting to be excused from filing the usual campaign finance forms.277

The Campaign Finance Report and $250-Statement

The first type of campaign finance form, the "Campaign Expense Report," is a comprehensive record of the financial activity of a candidate and his or her committees, providing detailed information concerning contributions received, expenditures made, and debts incurred. 278There is a minimum dollar threshold which must be reached before a candidate or candidate's political committee is required to file such a report. The threshold operates in the following manner and there are a number of reporting periods before and after the election.279If, during a particular period, a candidate or committee treasurer does not receive, expend, or incur liability in excess of $250, then he or she is not required to file a Campaign Expense Report for that period.280 Instead, the candidate or committee treasurer must file the second type of campaign finance form: a brief sworn statement ("$250-Statement") ating that the $250 threshold was not reached.281 No detailed financial information is required in a $250-Statement. Each reporting period is considered separately; it is entirely possible that a candidate or committee may file a $250-Statement one period, and file a "Campaign Expense Report" for the next.

Remember, both candidates and their political committees must file Campaign Expense Reports or $250-Statements, whichever is appropriate.282 In other words, even if a candidate establishes a political committee, he or she must file documents pertaining to his or her personal receipts, expenses, or liabilities. To simplify matters, a candidate should channel all financial activities through his or her political committee. In this manner, one detailed Campaign Expense Report is filed by the committee for each reporting period, and the candidate submits only a $250 Statement.

Optional Affidavit for Some Local Candidates

The Election Code excuses some candidates from filing Campaign Expense Reports or the $250-Statements. A local candidate (city or county candidates) who does not organize a political committee and who does not expect to receive, spend, or incur debts in excess of $250 during any reporting period may elect to file a single affidavit with his or her nomination petition or paper.283 The affidavit must state that: (1) the candidate does not intend to receive contributions or make expenditures in excess of $250 during any reporting period; (2) that the candidate will keep (without having to file) records of contributions and expenditures, and; (3) that the candidate will file Campaign Expense Reports for any reporting period during which he or she receives contributions or spends in excess of $250.284 Of course, if such a candidate does exceed the $250 limit, he or she must file the required Campaign Expense Report. No additional reports need be filed unless the candidate exceeds the $250 limit in a subsequent reporting period.285

When to File Optional Affidavit

Those candidates for city or county offices who are eligible to file the affidavit excusing them from having to submit Campaign Expense Reports or $250-Statements must file that affidavit along with their nomination papers or petitions.286 If they subsequently exceed the $250 limit in any reporting period applicable to other local candidates, they must file Campaign Expense Reports for that period by the filing deadline which applies to other local candidates.287 Subsequent reports are not required unless the $250 limit is exceeded once again. 288

Candidates filing Campaign Expense Reports or $250-Statements must observe the following deadlines:
No later than the sixth Tuesday before the election, statewide candidates and their political committees must file the first of two pre-election forms -- either the Campaign Expense Report or the $250-Statement, whichever is appropriate. 289The information filed on this date must be complete as of fifty days prior to the election.290

How to Fill Out and File Financial Forms

No later than the second Friday before the election, statewide candidates and their political committees must file their second pre-election forms.291 By the same deadline, all other candidates (those seeking election to the General Assembly and those seeking county or city offices) and their committees must file their first and only pre-election forms.292 All Campaign Expense Reports filed on this date must be complete as of fifteen days prior to the election.293 For statewide candidates and their political committees, the forms need only cover the period since the first filing.294 Since all other candidates and their committees will be filing for the first time, their forms must report on the entire period of activity up to the deadline. Any candidate or committee that does not exceed the $250 limit for the relevant time period should file a $250-Statement instead of a Campaign Expense Report.

No later than thirty days after the election, all candidates and their committees must file post-election Campaign Expense Reports or $250-Statements.295 These forms must be complete as of twenty days after the election, and must cover only that period since the last pre-election report.296

Finally, candidates and political committees that have not formally terminated their campaigns must file annual reports no later than January 31. These reports must be complete as of December 31 of the prior year.297 Termination requires the filing of a form; this is discussed immediately below. Similar to other reports, annual reports should cover only the period since the last filing.298 If the campaign accounts have changed since the previous period, but have not exceeded the $250-threshold described above, then a $250-Statement should be filed. 299Otherwise, the annual report must be a Campaign Expense Report for the relevant period. Annual reports must be filed each year until the last report indicates no balance or debt in the account.300

Instead of waiting to file an annual report, a candidate or political committee whose campaign has ended and whose account shows a zero balance and no outstanding debts may file a Termination Report.301 If the account reaches zero balance and zero debt before the thirty day post-election form has been filed, the filing candidate or committee can designate that form a "termination" report or statement by marking the appropriate box on that form.302 If the campaign achieves a zero balance and no debt after the thirty day post-election forms are filed (but before the Annual Report is due), the candidate or committee may file a Campaign Expense Report (or $250-Statement, whichever is appropriate) and designate the form as a termination filing.303 Once a Termination Report or Statement is filed, no annual report is required unless contributions are received or expenditures made after the time period covered by the termination form.304 There is one final restriction: a candidate or committee cannot terminate a campaign by filing a $250- Statement if Campaign Expense Reports were previously filed and the most recently filed report reveals debts in excess of $250. In this case, termination can only be completed with a Campaign Expense Report. 305

This exception applies separately to a candidate and his or her political committee. A candidate who has channeled all of his or her campaign finances through political committees may designate his or her thirty-day post-election form as a termination statement, and thus be excused from further filings. However, this process does not release his or her committee from its reporting responsibilities.

Candidates and political committees should be aware that there are penalties for failing to file the required campaign finance forms. Candidates or committees who do not meet the filing deadlines are subject to daily fines with a maximum total fine of $250 for any single late report.306 The fine is the personal responsibility of the candidate or committee's treasurer and cannot be paid from campaign funds.307 Furthermore, no candidate may be deemed elected, sworn into office, or compensated once in office, until all campaign finance reports and statements have been filed.308 This restriction includes any document which must be filed by the candidate and/or treasurer of any political committee(s) authorized by the candidate.309 To be timely filed, the documents must be post-marked by the U.S. Postal Service by the day prior to the date they are due for filing. 310

Where to File

Candidates for state offices (such as Governor or State Representative) and their political committees must file their completed forms in two places: one copy with the Secretary of the Commonwealth (Bureau of Elections, Room 304, North Office Building, Harrisburg 17120), and the second with the county board of elections in the county where the candidate resides (e.g., 520 North Delaware Avenue for candidates in Philadelphia).311 Candidates for local office (such as City Commissioner or Mayor) and their political committees must file one copy of the form with the candidate’s local county board of elections.312

Information Required in Campaign Finance Reports

Campaign Expense Reports must be very detailed. For this reason, candidates and committee treasurers should be extremely familiar with the requirements before they begin raising and spending money. The reports must include the following information:

1. the full name, mailing address, occupation, employer (if any) or the principal place of business (if self-employed) of each person whose contributions during the reporting period exceed $250 in value and the date and amount of these contributions;

2. the full name and mailing address of each person whose total contributions in the reporting period exceed $50 in value and the date and amount of these contributions;

3. the total sum of individual contributions made during the reporting period which are not reported under categories (1) or (2), above. (In other words, the sum of all contributions from individuals who contributed a total of $50 or less);

4. every expenditure made, the date, the full name and address of the person to whom the contribution was made, and its purpose;

5. any unpaid debts and liabilities, the nature and amount of each, the date incurred, and the full name and address of the person owed; and

6. any unexpended balance of contributions or other receipts carried forward from the previously filed report.313

Each Campaign Expense Report must also contain a summary of this required information on a separate page.314

The $250-Statements do not require detailed information concerning the candidate's or committee's campaign finances. Rather, they are sworn statements which provide that the candidate or committee did not receive, expend, or incur liabilities in excess of $250 for the reporting period.315

Before a Campaign finance report is submitted, it must be signed and sworn to by the individual submitting it (that is, the candidate or committee treasurer). 316Additionally, each political committee's report must include an affidavit by the candidate indicating that the committee did not violate any campaign finance law to the best of his or her knowledge.317 Any willfully false or misleading statement in a Campaign Expense Report or $250-Statement constitutes perjury, and any person convicted for that crime is disqualified from holding public office in Pennsylvania. 318

Review of Accounts: Audits and Penalties

Campaign finance reports are public records which must be retained by the offices where they are filed for at least five years.319 No later than the end of the second day after they are received by the appropriate office(s), any citizen may request to review the documents and purchase copies of them at cost. 320 If the documents do not appear to meet the requirements of the Election Code, they can and should be audited.

Audit proceedings are initiated by a petition of five voters from the election district in which the candidate seeks or sought office. 321 Petitions must be filed within ninety days of the last day for filing the campaign finance reports, although this limit may be waived for reports filed late.322 For finance reports filed with the Secretary of the Commonwealth (those concerning candidates for state office and their political committees), the petition should be presented in writing to the Commonwealth Court in Harrisburg.323 For finance reports filed with the candidate's local County Board of Elections (candidates for city and county office and their political committees), the petition should be presented to the Court of Common Pleas for the county in which the County Board is located.324

Campaign account audits are formal court proceedings intended to bring to public notice the information which should have been disclosed in the campaign finance reports and to determine the legality of suspicious items in the account. If, as a result of the audit, the court determines that violations of the law were committed by any person, whether a candidate or not, it must certify this decision to the appropriate prosecuting official so criminal proceedings against the violator can be initiated.325 Additionally, if the audit reveals that a finance report is false in any substantial manner, or that expenses were incurred in violation of the law, the filer of the report must pay the expenses of the audit; otherwise, the petitioners may be ordered to pay all or part of the audit's costs, at the discretion of the court.326

If, in the course of criminal proceedings, a court finds that a candidate willfully accepted contributions or made expenditures in violation of the law, the court must certify this fact to the Attorney General.327 If the candidate has not yet been elected, the Attorney General must institute judicial proceedings to have the candidate's name stricken from the ballot. If the candidate has been elected, the Attorney General must institute proceedings to have the candidate removed from office.328

The Election Code also provides for random audits of candidates' financial reports following each election.329 Forty days after each election, the Secretary of the Commonwealth must select for audit at a public lottery, three percent of all public offices for which candidates were required to file nomination petitions or papers with the Secretary.330 Thereafter, all candidates for the selected offices and their authorized political committees must be audited.331 The auditors must report their findings to the Secretary of the Commonwealth for public recording and the Attorney General for the possible institution of criminal proceedings.332

The penalties for improperly reporting accounts are extremely serious. They serve as a strong deterrent against illegal activities involving campaign finances.

Checklist

1. A candidate for office may designate a political committee to receive and disburse funds on his or her behalf. A candidate must also name a single Treasurer for his or her committee(s) who is responsible for receiving and disbursing the funds of the committee(s).

2. The forms for establishing a political committee are available from the Bureau of Elections, Department of State in Harrisburg (Room 304 North Office Building, 17120) and the local county board of elections (520 N Delaware Avenue in Philadelphia).

3. A candidate for State office must file a completed authorization form with the Secretary of Commonwealth and with his or her local County Board of Elections.

4. A candidate for City office must file his or her authorization form with the local County Board of Elections.

5. The treasurer of a political committee may delegate his or her authority to assistant treasurers; however, he or she retains legal responsibility for their actions.

6. If a candidate forms a political committee, he or she may still raise and spend money personally.

7. For primary elections, party committees (the Democratic and Republican Parities) cannot receive money on behalf of particular candidates without written authorization from those candidates. Authorization is not required for November or special elections.

8. Political Action Committees (PACs) may receive or disburse funds on behalf of one or more candidates. However, PACs cannot receive money on behalf of a particular candidate without written permission.

9. Contributions are specifically defined by the Election Code.

10. It is unlawful for any candidate or political committee to accept or disburse money from an anonymous source. All such anonymous contributions must be turned over to the State Treasurer within twenty days of receipt.

11. Banks, corporations, and unincorporated associations such as labor unions are prohibited from contributing to political campaigns.

12. Candidates must record the names and addresses of each person or organization that contributes more than $10. The candidate or treasurer must maintain this record for at least three years after filing the reports.

13. A political committee must file a registration statement within twenty days of receiving $250 or more in contributions. The statement must contain certain defined information.

14. The pre-election report is due not later than the second Friday before the election and must provide complete financial information for the period prior to fifteen days before the election.

15. A late contribution or pledge (one received after the candidate or political committee has filed its last pre-election report) of $500 or more must be reported within twenty-four hours of receipt.

16 Anyone accepting a contribution on behalf of a candidate or political committee has an obligation to turn it over to the candidate or the treasurer of the committee within ten days of its receipt.

17 The Election Code lists the items that are considered lawful expenditures of a political campaign.

18. After a campaign ends, and a candidate and his or her political committee(s) terminate financial activity, remaining funds may be used for any authorized expenditures or may be returned on a pro-rata basis to contributors.

19. During a political reporting period, should a candidate not receive, expend, or incur liability in excess of $250, the candidate or committee is not required to file a Campaign Expense Report. The candidate or committee treasurer must file a brief sworn statement ($250 Statement) that the $250 threshold was not reached.

20. A local candidate (city or county candidate) who does not form a political committee and who does not expect to receive, spend, or incur debts in excess of $250 in any reporting period, may file a single affidavit along with his or her nomination petitions or papers. The candidate will not have to file any other campaign finance reports unless he or she exceeds the $250 limit.

21. The deadlines for the Campaign Expense Reports and $250 Statements can be obtained from the State Bureau of Elections.

22. A candidate or political committee whose campaign has ended and whose account shows a zero balance and no outstanding debts may file a Termination Report.

23. Candidates or committees who do not meet the filing deadlines are subject to daily fines with a maximum total fine of $250 for any single late report.

24. Campaign finance reports must be signed and sworn by the candidate or treasurer of the committee and include an affidavit by the candidate indicating that to the best of his or her knowledge, the committee did not violate any campaign finance laws.

210 25 P.S. § 3241(a).
211 25 P.S. § 3241(a). The statute does not explicitly refer to party offices because they are not public offices and are therefore exempt from these financial reporting requirements.