Should We Form A Political Action Committee?
Participation in Ohio’s Political Environment

Maria J. Armstrong
Miranda C. Motter
Bricker & Eckler LLP
May 2006

In today’s term-limited and issue-focused environment, an “important Election Day” is always around the corner. It is in this new political environment that many individuals, organizations and corporations have become more involved in the political process in an attempt to have an impact on Ohio elections. One way to become more involved in the political process is to form a political action committee (PAC). Under Ohio law, a PAC is a combination of two or more persons, “the primary or incidental purpose of which is to support or oppose any candidate, political party, or issue, or to influence the result of any election, that is not a political party, campaign committee or a legislative campaign fund.”

As suggested by its definition, a PAC can be established by a number of different types of interested parties. Individuals and organizations can establish PACs. Corporations, although generally prohibited from using their money or property for partisan political purposes, may use corporate funds to establish, administer, and solicit contributions to a PAC so long as they comply with the restrictions in Ohio law. Moreover, PACs can be formed to accomplish a myriad of things. PACs can be formed to support or oppose individual candidates, or any number of candidates. PACs can also be formed to support or oppose ballot issues.

Whether you are a group of individuals, an organization, or a corporation intending to support or oppose a candidate or ballot issue, forming a PAC may be right for you. There are many benefits to establishing a PAC. However, it is important to keep in mind that operating a PAC requires: (1) a general understanding of the campaign finance regulations, (2) good bookkeeping skills, and (3) filing a number of reports and forms throughout the year. The administrative burdens of establishing and operating a PAC can be offset by the benefits, such as:

• A PAC allows the employees or officers of a profit or non-profit corporation to have a voice in politics that the corporation itself cannot have;

• While association dues or corporate dollars can pay for lobbying activities, Ohio election laws prohibit the use of such funds for political contributions;

• A PAC is a legal and ethical way to pool resources and support candidates who share common values and concerns;

• By pooling resources, the PAC can make a larger contribution focused on candidates or issues that align with its contributors' objectives;

• A PAC can have a greater impact on the candidate’s chances of success on Election Day, and can work to support those candidates who understand the PAC's position on issues affecting it;

• Establishing a PAC separates the corporation’s political activity from its business endeavors and can serve as a useful administrative tool, even when the direct use of corporate dollars is permitted.