A group of people, such as a business, labor union, or ideological group, may create a PAC to raise and disburse voluntary donations directly to a political party or a political candidate’ s campaign. For example, PACs have been created by many corporations, unions, and special interest groups, such as the National Association of Realtors, AT&T, ExxonMobil, Sierra Club, Transport Workers Union, National Rifle Association, and Washington Women for Choice.
In 1944, the Congress of Industrial Organizations established the first PAC in response to the Smith-Connally Act of 1943 which disallowed contributions to federal political campaigns from union treasuries. The Federal Election Campaign Act Amendments (1974) set limits on donations to federal PACs, as well as spending limits which were later repealed (Buckley v. Valeo, 1976). Since the 1970s, campaign finance law has continued to evolve.
PACs are one of four sources of funds for candidates seeking federal office (the other three sources are individual donors, political parties, and the candidate’s own money). Continue reading