PACbuilder eNews
 FEC / Industry News

...How Obama used social networking and online marketing techniques to mobilize, raise funds and spread his message…

This election cycle, no other major campaign put technology and the Internet at the heart of its operation the way President-elect Barack Obama’s presidential campaign did. The Web played a pivotal role in how Mr. Obama’s campaign raised money, communicated his message and, most importantly, recruited, energized and turned out his supporters to vote.

Collecting small dollar donations assisted Mr. Obama in successfully raising half a billion dollars online during his run for presidency. According to a Washington Post report:

3 million donors made a total of 6.5 million donations online adding up to more than $500 million. Of those 6.5million donations, 6 million were in increments of $100 or less.The average online donation was $80, and the average Obama donor gave more than once. (The Trail-Wahingtonpost.com 11/20/2008)

How did they do it?

The website: www.barackobama.com
Mr. Obama’s official website was filled with a variety of ways for supporters to share information and learn about speeches and gatherings in their area.With every piece of content came the opportunity to make a donation.

The tools: www.MyBarackObama.com 
Mr. Obama’s social networking site gave users several options for customization.The site provided tools for supporters to hold their own meetings and fundraisers—setting guidelines to help run the events, but allowing each individual to determine how much money they wish to ask for and the style of the event.

The email campaigns:
Mr. Obama’s email list contained upward of 13 million addresses. At organized events, supporters were only asked for an email address, not a donation. Those who signed up to be on the official “Obama for President” mailing list received smart, highly coordinated emails several times a week. On many occasions, these emails were geo-targeted to alert the individual about upcoming events in their area. To give the emails a more personal feel, a relaxed writing style was used and emails were often penned by the candidate, his chiefs of staff or even his wife Michelle.

The social networking sites:
Mr. Obama’s campaign had no fear of utilizing major social networking sites such as Facebook, Twitter, and MySpace to further his cause. If you checked into Facebook, you would have found the official “Barack Obama Group” and thousands of other supporting groups; moved to Twitter, and you were able to follow every move the candidate made. Even MySpace was filled with efforts to spread the word among voters who were most likely taking part in their first election. By understanding the limited resources of young Americans, the campaign would ask for only small donations on these sites.

The access:
Unlike his competitor, Mr. Obama was sure to play an active part in his online campaigns. He wrote his own emails and created exclusive videos just for his online supporters. The result was an immediacy and personal nature to his campaign that few candidates were able to match.

By combining each element, Mr. Obama was able to run the first 21st Century presidential campaign with a successful outcome. He changed the way politicians think about reaching out to the American public and generating funds for their campaign.He has set an example not only for future candidates, but businesses that want to target customers with pinpoint accuracy and build their brand online, via email, website or social networking.

...Business PACs gave more money to Democrats than Republicans in the 2008 Election Cycle...

For the first time since the 1994 election cycle when the Republicans gained the majority in the House, Democratic Congressional candidates received more funds from corporate Political Action Committees than their Republican counterparts. With the power shifting from Republicans to Democrats in Congress, PACs who exist in large part to support candidates who support their legislation had to make sure their interests are protected. According to a report by CQ Today dated 11/12/2008:

    Across the board, PAC donations to Democrats increased by more than 15 percent over 2006 contribution levels, helping them collect $62 million more than Republicans from these interest groups. Some of the PACs that shifted the most toward the Democrats this year are related to the manufacturing, health care and defense industries, all of which increased their donations to Democratic candidates by more than 50 percent compared to the 2006 election.

*Click here to see the 2008 election cycle PAC data which was put together by NABPAC using the data assembled from PoliticalMoneyLine.com. If you would like further detail on a PAC-by-PAC basis, please send an email to the NABPAC office (nabpac@nabpac.org)

...FEC’s Public Hearing on Bundling Disclosure Rules…

FEC held a hearing on how to implement the bundling disclosure rules mandated by the Honest Leadership and Open Government Act of 2007 (HLOGA). HLOGA required the FEC to create a rule for the disclosure of bundled lobbyist contributions worth $15,000 or more. The purpose of the FEC rulemaking would be to clarify some questions that will determine how much bundling activity will be disclosed, i.e.
  • Which contributions are properly credited to a fund-raising effort by a lobbyist?
  • How to report money donated at fund-raising events hosted by multiple lobbyists?
  • Whether money raised by an agent of a lobbying organization, who is not a lobbyist should be reported?
Neither the bundling provisions in HLOGA nor the proposed FEC regulations impose any affirmative obligations on lobbyists, their employers, or their PACs. Instead, the reporting obligations fall entirely upon the recipient committees. Nonetheless, lobbyists, lobbying employers, lobbying firms and their PACs may want to be cognizant of the fact that their contributions may be disclosed in this manner as they plan their political activity in the New Year and the new election.

...Supreme Court to Review “Hillary: the Movie...

The Supreme Court decided on Nov. 14 to accept a case that presents a major challenge to the FEC disclosure rules requiring advertisements identifying federal candidates before elections. Under the Bipartisan Campaign Reform Act of 2002 (BCRA), corporations, including non-profit advocacy groups and labor unions are barred from funding electioneering communications out of their treasury funds and are subject to disclosure and disclaimer requirements. The case revolves around “Hillary: the Movie,” a feature-length film produced by Citizens United, a conservative non-profit group, that is highly critical of Sen. Hillary Clinton (D-NY).

In a lawsuit, filed late last year when Clinton was still a frontrunner for the Democratic presidential nomination, Citizen United argued that it should not have to disclose the funders of the film or the 30-second television spots advertising the film’s release. But in July a three-judge panel of the U.S. District Court rejected the challenge against the FEC rules and ruled that the group must disclose the names of contributors who pay for the advertisements promoting the movie, and run disclaimers along with the ads. Now it is up to Supreme Court to rule on this electioneering communications!

 Best Practices/ PACbuilder Tips

End of Cycle PAC Audit

In preparing for the new cycle, now is the perfect opportunity for associations and corporations to conduct a variety of audits. Here is what we recommend:

Financial Audit:
You should close-out the financial year/cycle by reviewing all records. Make sure all bank accounts are fully reconciled and compare the FEC/Cash on Hand balances with your bank statement balances (adjusting for cash vs. accrual differences). Order stop payments on older/outstanding disbursements, and create a package of year-end reports for internal files, upper management and external audits. The external audit should be done by an independent party, whether it is your internal accounting department or an outside auditor well-versed in FEC rules.

Legal Process Audit: It would be helpful and beneficial for your PAC to undergo a legal process audit. This audit involves the review of the PAC bylaws, solicitation materials, communications and processes for compliance with applicable FEC rules, state laws, and tax laws. The results of this type of audit would provide additional reassurance to the core PAC constituencies—senior corporate management, the PAC board, and the PAC contributors themselves.

Evaluate your Solicitation process: The end of an election cycle is the perfect time to evaluate the PAC's solicitation process. Take time to ensure not only that those being solicited are in the restricted class, but also to decide whether the class of solicitees should be expanded or contracted to determine whether the messaging should be differentiated between different types of solicitees. Once the audit is completed make any additional changes to the PAC's solicitation materials.

pacmap

Introducing PACmap!

This new feature provides a geographical representation of your PAC Contributions and PAC Disbursements by state. Break down your financial information by contribution level, density of supporters, and disbursement reports mapped out and color coded by state.
  • Motivate and inform supporters if they're exceeding expectations or falling behind
  • Impress board members with detailed information of PAC performance by location
  • Enhance accountability and disbursement reports with geographical analysis
Get in touch with your Account Manager today for more information.

101 PACbuilder features to enhance your PAC productivity

Continuing from where our last eNewsletter left off, here are the next ten features of PACbuilder that will help boost your PAC productivity and ease compliance with the Federal Election Campaign Act. Send us an email and let us know what you would like to see in this section!

71: Identify groups of leadership
With your PAC or grassroots effort, you have a group of people who are your leadership: usually ranging from 10 to 100 people who may be part of a Fundraising group, key contacts, volunteer leaders, PAC board or other function. It is useful to have them properly noted in your database and assigned to categories and groups (Main Code) to easily communicate with them. In PACbuilder, you can create an unlimited number of Main Codes assigned to an unlimited numbers of groups and people.

70: Automate member record updates
Having a difficult time reconciling your members’ contact information between you contact management system and PACbuilder? You can solve this issue easily with the PACbuilder integration service. This feature allows you to automatically conduct a bi-directional transfer of information between PACbuilder and your CMS. Contact your Account Manager for more information.

69: Delegate PAC administration without fear of data corruption
With PACbuilder restrictions and authority settings you can grant PACbuilder access to other members of your office, or to contractors that will be temporarily going through your PAC records (such as auditors) while maintaining the integrity of your financial data. Log on today to review the different access controls available by going to File > Users > Templates.

68: Balance your checkbook
Have you ever used PACbuilder to balance your checkbook? It is so easy! Log on today and generate a disbursement report grouped by check number. This report not only provides you with all the checks that have been written out of your account and recorded in PACbuilder, but also gives you the purpose for each disbursement.

67: Customize communication based on member giving history
The broadcast email wizard in PACbuilder allows you to customize messages to your members based on their giving history, and then solicit future contributions based on the history. Send encouraging “keep it up” messages to your highest contributors and booster messages to contributors not meeting their maximum contributions. Contact your Account Manager if you need further assistance with this feature.

66: Get FREE help on building an Education/Admin fund
An education/admin fund can be used to support the efforts of your political action committee. With PACbuilder, you can easily manage these and other funds, in one database, while integrating your Fundraising and communicating efforts efficiently. Contact your Account Manager today to get free assistance on building your education/admin fund.

65: Update your default cycle and period
Now that the 2008 cycle is over, you should update your summary information calculation data to reflect the new election cycle. Get a jumpstart on updated reports with the new election cycle by logging on and going to File > Preferences > Campaign Preferences, and updating the Summary Information Calculation and Data Entry section.

64: Setup your election cycle dates
In addition to updating your default cycle and period, you should also setup your election cycle start and end dates to correspond to upcoming elections. This is used in calculating the contributions and disbursements that fall within the election cycle dates for your reports. Contact your Account Manager for more information.

63: Track and manage Prior Approvals
By using Main Codes and User Defined Fields in PACbuilder, you can easily manage each member’s prior approval and update it based on employer. Monitoring prior approvals in PACbuilder gives you the advantage to maximize compliance when soliciting approved members, and have a uniform resource to track upcoming prior approval expirations. Contact your Account Manager today if you need any assistance managing your prior approvals through PACbuilder.

62: Contributing toward election debt retirement for a particular candidates
Please remember debt retirement is not a separate election and “Contribution Limits” apply. Let’s assume that a candidate ended their General 2008 campaign with debt, and your committee is going to assist with helping to “retire the debt”. If you have already given $1000 for Primary, and $3000 for General, you can give only $2000 bringing you to the limit of $5000 for the General 2008 election.

 Enterprise News

KLWEBINAR
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This session will illustrate how to:

  • Connect with key policymakers and stay connected with critical legislation.
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  • Mobilize member-activists to take action on impending votes and bills.
  • And much more!

 PAC Jeopardy Answer

A political committee that is not a candidate committee, a party committee or a separate segregated fund.

Email the correct question to mkordestani@capitoladvantage.com. The first 3 people with correct question will receive a Starbucks gift card.

Question to last edition's PAC Jeopardy Answer: Who is a conduit?

The Winner of last edition’s PAC Jeopardy: Carla Lochiatto of ASAE, and Bethany Field of American Bus Association, and Ned Monroe of National Restaurant Association
703.289.4670 · www.pacbuilder.com