AP Syllabus focus:
‘Debates over free speech and fair elections include funding from individuals, political parties, and PACs; different types of PACs influence elections through fundraising and spending.’
Modern U.S. campaigns rely on multiple funding streams, each governed by distinct rules. Understanding funding sources and PACs helps explain how candidates build viable campaigns and how money shapes electoral competition.
Core Funding Sources in Federal Elections
Campaign money flows to candidates and parties through channels that raise recurring debates about political speech and electoral fairness.
This FEC chart summarizes federal contribution limits by donor type (individuals, PACs, party committees) and recipient type (candidate committees, party committees, and PACs) for the 2025–2026 cycle. It makes the key distinction between limited contributions (direct gifts to candidates/parties) and the separate world of outside spending, which frames many “free speech vs. fair elections” arguments. Source
Individuals
Individuals can donate directly to candidate committees and to party committees, typically subject to contribution limits and disclosure requirements. Small-dollar online giving has expanded the donor pool, while large donors often maximise influence by giving across multiple committees.
Political parties
National and state party committees raise and spend funds to support their candidates, including:
Co-ordinated spending with candidates (regulated, with limits)
Independent spending that is not co-ordinated with a candidate
Parties also use joint fundraising arrangements to collect contributions efficiently and distribute them across party and candidate committees under complex rules.
PACs and outside groups
PACs are a major channel for aggregating money, professionalising fundraising, and targeting spending—often through advertising and voter mobilisation.
What PACs Are and Why They Matter
Political Action Committee (PAC): An organisation that raises and spends money to support or oppose candidates, typically by making contributions to campaigns and/or funding political communications, under federal election law.
PACs matter because they can:
Pool resources from many donors (or a narrow set of donors)
Provide campaign cash and strategic support
Signal credibility to candidates and parties
Fund communications that shape candidate images and issue priorities
Different Types of PACs (and How They Operate)
The term “PAC” is used broadly in everyday politics, but AP Gov students should distinguish common types by what they can raise, how they can spend, and what rules apply.
Traditional PACs (connected or nonconnected)
Traditional PACs may be connected to a corporation, labour union, or membership group, or nonconnected (ideological or issue-focused). Common activities include:
Collecting donations from eligible donors
Contributing directly to candidate campaigns (subject to limits)
Funding certain political communications
Super PACs (independent-expenditure-only committees)
Super PAC: A political committee that can raise unlimited funds from individuals, corporations, and unions to pay for independent expenditures, but cannot donate directly to candidates or co-ordinate spending with them.
A key practical distinction is independence: Super PACs can spend heavily on ads and outreach, but rules prohibit co-ordination with campaigns (though critics argue the boundary can be hard to police).
This Congressional Research Service (CRS) explainer outlines how election law distinguishes independent expenditures from coordinated communications, and why coordination can convert spending into a regulated (and potentially limited) contribution. It supports the key exam concept that Super PAC power comes from unlimited independent spending paired with legal restrictions on coordination. Source
“Dark money” groups (commonly discussed in the PAC ecosystem)
Dark money: Political spending by certain nonprofit organisations that do not publicly disclose their donors, often used for issue ads or advocacy that can influence elections.
These groups are controversial because voters may not know who is funding persuasive messages, raising concerns about transparency and accountability.
How PACs Influence Elections: Fundraising and Spending
PAC influence is not only about persuading voters; it also shapes campaign capacity and political access.
This OpenSecrets visualization breaks down outside spending by group type (e.g., Super PACs, parties, and nonprofit categories) and also graphs outside spending trends across election cycles. It helps students connect PAC types to measurable spending patterns, illustrating why “independent expenditures” are such a powerful tool in modern campaigns. Source
Fundraising advantages
Bundling and networks: Groups can channel donor networks toward preferred candidates.
Early money: Early PAC support can deter challengers and signal viability.
Targeting: Donors and committees focus on competitive races where marginal spending may matter most.
Spending strategies
Candidate contributions (where permitted): Direct support helps campaigns pay for staff, turnout operations, and media.
Independent expenditures: Outside ads can amplify attacks or bolster name recognition without consuming candidate resources.
Issue advocacy: Groups can frame policy debates in ways that pressure candidates to adopt preferred positions.
The Central Tension: Free Speech vs Fair Elections
The syllabus emphasises that debates revolve around competing democratic values:
Arguments emphasising free speech view political spending as a form of participation and association.
Arguments emphasising fair elections focus on corruption risks, unequal influence, and whether large donors drown out ordinary citizens.
Policy disputes commonly centre on:
Contribution limits (preventing corruption vs restricting participation)
Disclosure rules (transparency vs privacy/association concerns)
Enforcement (clear lines on co-ordination and real accountability)
FAQ
They typically prioritise “marginal” contests where polling suggests a close outcome.
They also consider committee assignments, incumbents’ power, and whether a candidate supports the group’s policy agenda.
Co-ordination generally involves collaboration on messaging, timing, targeting, or strategy.
In practice, disputes arise over shared vendors, public signals, and former staff moving between organisations.
PACs can concentrate money on competitive races, fund independent adverts, and support multiple candidates aligned with a single issue.
They also provide a structured way to participate politically through an organisation.
Independent expenditure reports and ad disclaimers can reveal the spending entity.
However, if funds flow through nondisclosing nonprofits, the original donor may remain hidden, limiting transparency.
Issue ads focus on policy positions without directly telling people to vote for/against a candidate.
This distinction can affect which rules apply to funding sources, reporting, and the types of organisations that may sponsor the message.
Practice Questions
(2 marks) Define a Super PAC and state one legal restriction on its relationship with a candidate’s campaign.
1 mark: Accurate definition (raises/spends unlimited funds for independent expenditures; no direct candidate contributions).
1 mark: Restriction stated (must not co-ordinate spending/communications with a candidate or campaign).
(6 marks) Explain how different funding sources (individuals, political parties, and PACs) can influence federal election campaigns, and evaluate one concern about electoral fairness linked to PAC activity.
Up to 2 marks: Explains influence of individuals (direct donations, small-dollar vs large donor effects) and/or parties (co-ordinated and independent support).
Up to 2 marks: Explains PAC influence through fundraising/spending (direct contributions where allowed; independent expenditures/advertising; targeting competitive races).
Up to 2 marks: Evaluates one fairness concern (e.g., unequal influence, transparency/donor disclosure, corruption risk or appearance, co-ordination boundary), with a clear link to PAC activity.
