05/28/2006

A look at Allen's different funds

Leadership Funds: An independent political action committee with no limit on how much money it can receive from individuals. Cannot accept contributions from corporations, unions or casino interests. Contributions to campaign committees are limited to $34,000 for statewide office, $5,000 for the House of Representatives and $10,000 for the state Senate. Individuals and organizations can form multiple PACs to bypass donation limits to campaign committees.

Candidate Committees: Used to cover a candidate's direct campaign costs. Contributions from individuals is limited to $500 for state representative, $1,000 for state Senate and $3,400 for statewide office. Corporate, union, and casino contributions are banned.

State 527 Accounts, a.k.a. corporate or administrative accounts: Set up under section 527 of the Internal Revenue Service code, they are used for office holder expenses such as meals, travel and gifts. No limit on contributions. No restrictions on contributors. Contributions and expenditures are not disclosed to the public. Funds cannot be used for direct political purposes.

501c(4): Not-for-profit organizations set up under section 501c(4) of the Internal Revenue Service code for social welfare purposes. Funds cannot be used for campaigns or political party activities but can be used to promote a political philosophy or purpose. There are no restrictions on donors or contributions. Organization must file a public tax return with the IRS if it spends or receives more than $25,000 a year. Donors and individual donations are not listed on tax returns.