FEC Candidate Using Personal Funds Of The Candidate

Definition of a candidate’s “personal funds”
The personal funds of a candidate include:

* Assets which the candidate has a legal right of access to or control over, and which he or she has legal title to or an equitable interest in, at the time of candidacy;
* Income from employment;
* Dividends and interest from, and proceeds from sale or liquidation of, stocks and other investments;
* Income from trusts, if established before the election cycle;
* Income from trusts established by bequests (even after candidacy);
* Bequests to the candidate;
* Personal gifts that had been customarily received by the candidate prior to the beginning of the election cycle; and
* Proceeds from lotteries and similar games of chance.

Assets jointly held with spouse
A candidate may also use, as personal funds, his or her portion of assets owned jointly with a spouse (for example, a checking account or jointly owned stock). If the candidate’s financial interest in an asset is not specified, then the candidate’s share is deemed to be half the value.

Unearned income and fringe benefits
A candidate’s salary or wages earned from bona fide employment are considered his or her personal funds. However, compensation paid to a candidate in excess of actual hours worked is generally considered a contribution from the employer. Moreover, under FEC regulations barring personal use of campaign funds, a third party’s payment of a candidate’s expenses is considered a contribution, unless the payment would have been made irrespective of the candidacy. To be paid “irrespective of the candidacy,” and thus not considered a contribution, compensation must:

* Result from bona fide employment that is genuinely independent of the candidacy;
* Be exclusively made in consideration for services provided by the employee; and
* Not exceed the amount paid to any other similarly qualified person for the same work over the same period of time.

Note that when a candidate is on leave without pay, the continued payment of fringe benefits (such as health insurance and retirement) may also result in contributions from the employer to the campaign. (The Commission has made an exception to this rule for employers who had pre-existing policies providing for a limited extension of benefits for individuals who take unpaid leave.)

Personal loans
If the candidate makes loans to the campaign (including advances or candidate-endorsed bank loans) that aggregate more than $250,000, special rules apply.