Federal Election Commission v. National Conservative Political Action Committee

Politicians finance their election campaigns with their own money and donations. As of 1998, individuals are limited by law to donating $1,000 per candidate per election, and $25,000 to all candidates per year. Primary, general, and run-off elections count separately for application of the limit.

Political action committees, or PACs, collect and pool money from individuals for donations to candidates above the individual limits. Individuals may contribute $5,000 per year to a PAC. PACs are limited to donating $5,000 per candidate per election, and an unlimited total amount per year.

The Federal Election Commission, which oversees campaign contributions and enforces the legal limits, places PACs into four categories: corporate, labor, trade-health-membership, and nonconnected. Nonconnected PACs are unaffiliated with any other organization, and usually are formed to raise contributions for candidates supporting a particular issue or political ideology. The other PACs are affiliated with an existing organization, such as a manufacturer or labor union, which funds the operation of the PAC and decides how to contribute the money it collects.