Understanding Subordinate or Auxilliary Committees (e.g., Democratic Men of Lenoir County or Republican Women of Carteret County...)

ElectaFile Short Summary: The are party executive committees and then there are subordinate or auxiliary committees. Think “Republican Rocket Scientists of Rutherford…” Keeping them straight is key to effective campaign finance compliance.

******

You need a baseball line up card to keep straight all of the different types of committees in NC Campaign Finance Land…and that’s setting aside candidate committees!

Today, we’re going to give you a lineup card to use and we’re going to focus on what our unscientific survey indicates is the most common type of party-related committee…

1. Party Executive Committee. Theoretically, there’s one and only one for each party in each county. There’s also only one for each statewide party in North Carolina.

2. Party Building Fund. Also, here, there’s only one for each county and each state party. Building Funds can accept more types of donations. They are different.

3. Affiliated Committee. This is the newest type of committee under NC law. Affiliated committees are entities that support the legislative caucuses and Council of State offices. In many ways, affiliated committees have most of the powers of the party executive committees, except they are controlled and governed by their own bylaws and law.

4. Subordinate Committees (also called “Auxiliary Committees”). Batting cleanup here is the category into which the Republican Rocket Scientists of Rutherford fit. Subordinate Committees are free to organize and identify however they like….rocket scientists, pro bowlers, encyclopedia salesman, men, women, youth, you name it…They are the most numerous types of party-related committees in North Carolina…

Key Features of Subordinate or Auxiliary Committees:

1. Independent Filing Obligation with the State Board. They have their own reporting obligations. They are party committees so we know they have to file with the State Board of Elections. They cannot piggyback off of the party executive committee’s reports.

2. Subordinate Committees are Subject to Contribution Limits (Incoming Money…). Unlike party executive committees, subordinate committees are limited in how much money they can receive from donors. This is a key distinction.

3. Subordinate Committees are Limited in How Much They Can Contribute (Outgoing Money…) Similarly with incoming money, subordinate committees can only contribute up to contribution limits to individual candidates.

4. Subordinate Committees Cannot Use Exempt Sales Plans. We’ve written before about Exempt Sales Plans—they are a helpful tool for party executive committees to raise money while minimizing paperwork. Important here for you to know that subordinate committees cannot use exempt sales plans. Even though they are “party committees” in a sense.

Let us know your feedback on this post. Stay sharp!

Check us out at ElectaFile.com 

What is ElectaFile.com? ElectaFile offers easy and affordable electronic "click to file" services with the NC State Board and County Boards. ElectaFile is web-based and accessible from Macs and PCs with an internet connection. You only pay a small fee if you file using ElectaFile. If you need a free consultation on your situation, please let us know. If ElectaFile can help, it will. We are not your treasurer or your lawyer. If you need a professional treasurer or an attorney, ElectaFile regularly refers folks to professionals on all sides of the aisle.