Federal Election Commission Main Page
December 7, 1981
CERTIFIED MAIL
RETURN RECEIPT REQUESTED
ADVISORY OPINION 1981-48
Mr. John C. Ruck
Marcus, Ruck, Flynn & Wells, P.C.
Four West Walton Avenue
Box 599
Muskegon, Michigan 49443
Dear Mr. Ruck:
This responds to your letter of September 28, 1981, on
behalf of the Muskegon County Republican Party of Muskegon,
Michigan (the "Party"), concerning application of the
Federal Election Campaign Act of 1971, as amended ("the
Act"), to reporting requirements respecting bingo games
sponsored by the Party.
Your letter indicates that Michigan law provides that
certain organizations, including political parties, may hold
bingo games and retain the monies received over and above
costs and expenses tax free. The Party has a license to
hold such games and does so on a weekly basis. The Party
rents premises from an individual who owns a hall and pays a
set fee for the use of the hall and its facilities. The
Party advertises the existence of the game along with other
groups advertising similar games. There is no particular
appeal made to persons to attend the games because of their
connection with the Republican Party.
Persons attending the games purchase bingo cards at the
door and there is a minimum $1 admission charge. The
average card holder will spend about $12 in an evening.
Occasionally, one particular person will pay more than $20
for cards during one evening. It is estimated by the Party
that expenses run at approximately 80% of the gross revenues
received for each game. These expenses go to cover rent of
the building, payment to workers and security guards and the
prizes that are disbursed to participants. The remaining
monies are kept in the general fund of the Republican Party,
and at the present time, are used exclusively for the
election of state and local officials.
You assert that, as a practical matter, it would be
impossible for the Party to require those who play bingo to
disclose information required by the Act */ because those
participants would simply go elsewhere. In light of these
circumstances, you ask whether money earned in these bingo
games may be used for Federal election purposes if the Party
does not account for and record the names of persons playing
the games.
An initial issue presented in your request is whether
the Party is a "political committee," and, therefore,
subject to the reporting requirements of the Act. Section
431(4)(C) defines the term political committee to include:
any local committee of a political party which
receives contributions aggregating in excess of
$5,000 during a calendar year, or makes payments
exempted from the definition of contribution or
expenditure as defined in paragraphs (8) and (9)
[2 U.S.C. SS 431(8), and (9)] of this section
aggregating in excess of $5,000 during a calendar
year, or makes contributions aggregating in excess
of $1,000 during a calendar year or makes
expenditures aggregating in excess of $1,000
during a calendar year.
Thus, if the Party is not a political committee for purposes
of the Act, it would have no recordkeeping or reporting
requirements respecting the bingo proceeds. On the other
hand, if the Party is a political committee, Commission
regulations require that it establish a separate Federal
*/ Under the Act the treasurer of a political committee is
required to keep an account of "all contributions" received
by the committee. The accounting record must include the
name and address of any person who makes a contribution to
the committee in excess of $50 and the date and amount of
the contribution. Reports filed under the Act must itemize
the name and address of any person who makes contributions
aggregating in excess of $200 in any calendar year and must
give the person's occupation and employer. 2 U.S.C.
SS 432(c) and SS 434(b); 11 CFR 102.9, 104.3.
account, subject to the registration and reporting requirements
and the limitations and prohibitions of the Act; or
establish the Party itself as a political committee for both
state and, Federal election purposes. In the latter case all
activity by the Party (whether for Federal or non-Federal
purposes) is subject to the requirements of the Act. See 11
CFR 102.5 and Re: AOR 1976-22 (copy enclosed).
The Commission cannot, as your request seems to
suggest, waive the requirements set forth in the Act and
Commission regulations including those noted above that
require political committees to keep certain records and
file periodic reports. The Commission has, however,
previously considered what constitutes a reasonable
accounting procedure for a political committee in a
situation involving a large number of small contributions
(i.e. less than $50). In Advisory Opinion 1980-99 (see copy
enclosed), the Commission suggested at least two possible
accounting methods which would satisfy the recordkeeping
requirement for contributions under $50. An account could
be kept, as for contributions over $50, of the name and
address of each contributor and the date and amount of the
contribution. An alternative method would be to record the
name of the event, the date(s) contributions were received
for that event, and the total amount of contributions
received on each day for that event. The Commission did not
require the political committee to record the names and
address of individuals contributing less than $50 at a
single event, although it did state that if the political
committee retains information on the names of its
contributors, it should also track the amount donated by
such persons to the committee on a calendar year basis for
aggregation purposes in accordance with 2 U.S.C. SS 432(c)(3)
and 11 CFR 102.9(a)(2).
This response constitutes an advisory opinion
concerning application of the Act, or regulations prescribed
by the Commission, to the specific transaction or activity
set forth in your request.