Welcome to RPAC Administration

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Welcome to RPAC Administration
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What is RPAC?Jane SaundersSenior Field
Representative
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Raising Money for Political Purposes Requires

• Imagination
• Determination
• Hard Work
• AND
• Understanding Legal Administrative Issues
• OR
• Thousand of Dollars Lost to RPAC
• Possible Civil Penalties of up to 50,000
• Possible Prison Time

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How RPAC Works

• RPAC Fuels NARs Government Affairs Activities
• Without a successful RPAC, REALTORS
• will be disadvantaged
• No Participation in Political Campaigns
• No Grassroots Programs
• No Presence in Washington, State Capitols or City
  Halls

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RPAC Structure

• RPAC is an Association of people who voluntarily
  pool financial resources to support candidates of
  office who understand and support the real estate
  industry
• RPAC is more than one Committee
• National RPAC
• RPAC in 50 States, DC, USVI, PR Guam
• 1,700 Local Boards

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RPAC Structure

• And its run by hundreds of people
• State/Local RPAC Chairmen/Trustees
• State/Local RPAC Treasurers/Bookeepers
• Political/Government/Legislative and Legal Staff

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RPAC Structure

• All RPACs Share the Same Goal, but have varying
  Responsibilities
• Local Boards Raise Money, Collect Reporting
  Information and Transmit to State
• State RPACs Transmit Funds to National, Forward
  Candidate Contribution Requests, Order Awards and
  Educational Materials
• National RPAC supports Federal Candidates,
  Maintains Relationships with Federal
  Officeholders and Manages Grassroots Programs

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RPAC Structure

• Despite this Multi-layer Structure, Federal Law
  Views RPAC as One Single Organization
• State and Local RPACs fund National RPAC, which
  contributes to Federal Campaigns
• A legal violation at any level can harm the
  entire effort

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State National RPAC Relationship

• State RPACs are Critical to Making the entire
  RPAC System Work
• The Conduit for funds from Local to National
• Ensure that contributions fall within legal
  requirements
• Recommend which Federal, State and (sometimes)
  Local Candidates to Support

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State National RPAC Relationship

• Five Broad Areas Define the State and National
  RPAC Relationship
• Cooperative Agreements
• 70/30 Split
• Stipulates that National RPAC will support
  Federal Candidates and States/Boards will support
  State and Local Candidates

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State National RPAC Relationship

• 2. Filing Requirements
• Closely scrutinized by authorities
• National RPAC files with Federal Election
  Commission State RPACs comply with State Board
  Elections
• National also files copies of RPAC FEC Reports
  with selected State Election Offices where
  Federal Candidates from those States have
  received RPAC Support
• All Filings are public information

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State National RPAC Relationship

• 3. State RPACs as Agents of National RPAC
• Most Important Duty Timely Transmittal of Funds
  to National RPAC
• 4. Paying for Fundraising Costs
• Fundraising Expenses (i.e. credit card charges)
  cannot be deducted before transmitting National
  RPACs share
• Some states allow PAC costs to be covered by
  State and Local association dues rather than from
  PAC dollars

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State National RPAC Relationship

• Transmittal of Funds
• Establishing transmittal account and regular
  transmittal dates every week solves the problem
• Major Donor contributions must be transmitted
  with a cover letter from State AE to RPACnot
  required on an electronic transfer. Send email
  to RPAC Coordinator, Patricia Tarhon

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Transmittals to RPAC

• Other Important Information
• All backup information must be sent to RPAC
  electronically
• You must have NRDS ID for all REALTORS, REALTOR
  Associates, Affiliates Staff
• Review the file to make sure it balances and make
  sure everyone has a NRDS ID
• Email to RPACBATCHES_at_realtors.org
• Contributions from family members

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• Compliance is in Everyones Best Interest!
• One violation can jeopardize the entire RPAC
  effort
• Civil and criminal penalties apply
• RPAC experiences huge annual losses

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Legal Issues in RPAC Fundraising

Ralph Holmen Associate General Counsel
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General RPACFundraising Legal Principles

• Who may be solicited for RPAC contributions
• Prohibited RPAC Contributors
• Time limits for transmitting RPAC contributions
  to State PAC/Association
• Dues Billing
• One-third rule
• Fundraising events

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Who May Be Solicited for RPAC Contributions

• Association members, and their families
• - including individual affiliate members
• Executive and administrative employees of
  association
• Other employees twice yearly, in writing, at
  home, must use custodial arrangement
• Restriction is imposed on the solicitation not
  acceptance - of the contribution
• Solicitation defined broadly Any mention of RPAC
  coupled with need for funds, how to make a
  contribution

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RPAC Solicitation Notice
Contributions are not deductible for Federal
income tax purposes. Contributions to RPAC are
voluntary and are used for political purposes.
The amount indicated is merely a guideline and
you may contribute more or less than the
suggested amount. The Association will not favor
or disadvantage anyone by reason of the amount of
their contribution, and you may refuse to
contribute without reprisal by the Association.
Until your state PAC reaches its RPAC goal 30 is
sent to National RPAC to support federal
candidates and is charged against your limits
under 2 U.S.C. 441a after the state PAC reaches
its RPAC goal it may elect to retain your entire
contribution for use in supporting state and
local candidates.

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Prohibited Contributors

• Corporations (LLCs OK)
• Anonymous contributors
• Federal contractors
• Foreign nationals (no green card)
• In the name of another
• Cash in excess of 100
• But corporate contributions by member
  corporations to offset fundraising expenses OK

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Time Limits

• Transmit contributions from contributor to State
  PAC/association within
• 10 days if greater than 50
• 30 days of 50 or less
• Time period begins when contributor makes
  contribution and ends when it reaches the State
  PAC/association
• Local associations must regularly and frequently
  (once/week) forward contributions received to the
  State PAC

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Dues Billing

• Federal law permits dues billing, including
  deposit of dues billing contributions into
  corporate account
• State law may prohibit or limit dues billing, but
  only for State PAC contributions
• May use local association bank account to
  separate dues/RPAC contribution amounts consider
  using a transmittal account for that purpose
• Always use proper solicitation notice on dues
  statement

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The One-Third Rule

• Applies to fundraising events where contributors
  receive something of more than nominal value
  for their contribution auctions, raffles,
  dinner-dances, etc.
• The value (not cost) of the items/entertainment
  provided may not exceed 1/3 of the contributions
  received at the event
• Applies in the aggregate (not item by item)
  value of FB excluded

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Fundraising Events

• Careful and thoughtful application of the rules
• above regarding
• Who is invited to the event
• How event costs are paid
• Timely transmittal of contributions made at
  event
• Entire price of ticket to event is a contribution

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RPAC Dues Billing Scott BrunnerAssociation
ExecutiveMississippi AOR

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Pointers on RPAC Dues Billing

• Requires PLANNING plus member education
• ALWAYS above the line
• Always FAIR SHARE
• Check YOUR states Fair Share amount
• Higher Fair Share for brokers?
• The verbiage is important
• recommended vs. voluntary
• Investment vs. contribution
• Tax deductibility disclaimer
• Expect some member phone calls and inquiries

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Pointers on RPAC Dues Billing

• Train your brokers to provide a paper trail
• If they send you a single check for all agents,
  they should also send you a breakdown of
• who gave how much to RPAC
• corporate v. non-corporate dollars
• Bill new members as they join
• AEs must be knowledgeable about RPAC because
  those phone calls will come to you!
• Technical/Legal aspects, of course
• The reason RPAC matters
• Victories, challenges, consequences

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RPAC Fundraising Pointers

• Institutionalize RPAC
• Tie to core purpose of your organization
• No hit and miss promotions
• Sustained, ongoing focus on benefits and value
• No bullyingjust sensible pitches, measurable
  results
• Localize RPAC
• Local/State impact often more compelling
• Closer to home

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RPAC Fundraising Pointers

• Focus your investment request on ISSUES, not
  dollars or goals
• Tell war stories, and RPACs role
• Urgent challenges
• Great wins / Stunning defeats
• Prospective (and very real) nightmare scenarios
• Investment, not contribution
• Make RPAC a prominent part of new member
  orientation

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How to get major investors

• Ask them.
• Forget gimmicks (IMHO)
• Have the right person ask them.
• The asker must have high local credibility
• If youre asking for 1000, make sure the asker
  has invested 1000
• If youre pitching a prominent broker, make sure
  the pitcher is a peer another prominent broker
• Dont send a salesperson to do a brokers job
• Provide abundant recognition!
• The Hattiesburg experiment

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FUNDRAISING IDEASSPECIAL EVENTS
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FUNDRAISING IDEASSPECIAL EVENTS

• Auctions
• Dinners
• Casino Nights
• Dances
• Games
• Cow Patty Poker
• Ms. RPAC Contest

• Pie in the Face
• Dunking Booth
• Drinking for Diamonds
• Karaoke
• Armadillo Race
• Triathlon (darts, bowling, golf)

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FUNDRAISING IDEASSPECIAL EVENTS

• Polar Plunge
• Pink Flamingos
• Banks RPAC Makes Cents
• Bad Car Day
• Murder Mystery Dinner
• Moonlight Bowling

• Water Pistol Contests Duels
• Jail Bail
• Chair Rotation
• Colored Balloons
• Ugly Ties
• Road Rally
• Chili Cook-Offs

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Q A

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• RPAC Resources
• RPAC Almanac
• http//www.realtor.org/rpacweb.nsf
• 2005 RPAC Fundraising Conference
• January 12-13, 2005
• Washington, D.C.