THE IMPORTANCE OF POLITICAL ACTION COMMITTEES › practice › advocacy › ... · Leadership is...

1© Duarte, Inc. 2014

THE IMPORTANCE OF POLITICAL

ACTION COMMITTEES

Hannah WesolowskiAssociate Director, Political Engagement

Public Affairs Council

The Truth About PACs

Facts About PACs• PACs are an offensive measure in government affairs efforts• PACs help elect the right people to office• PACs are a tool to build relationships with candidates• PACs get more Americans engaged in the political process• PACs enable your company to be a visible player

PAC Myths• PACs buy elections/votes: Every PAC has the same $5,000 contribution limit• PACs are dirty: PACs are not only legal, but highly regulated• PACs are a slush fund: PACs go through a well-defined budgeting process

to allocate funds

Presenter

Presentation Notes

PACs are the only offensive measure in your toolkit. They are a tool to help elect the right people to office. Once they are elected, your other advocacy tools – lobbying, grassroots outreach, PR, etc. come into play. However, you can't change who's in office. PACs also show that you company is a visible player in the political arena and about the issues you care about the most. Other organizations have PACs, which Jill will share more information on, and they are out there engaging with candidates. No one is going to speak up for BoA and BoA's employees if you don't do it yourself. A PAC is one tool to build strong relationships with candidates for office, who may be future legislators. STORY: Corporate PAC member who contributed early. They had a facility in the district, and were an early contributor. 20 years later, the congressman still mentions it. STORY: Lobbyist couldn’t get in the door to share a powerful story. While fundraisers aren’t to discuss legislation and votes, the person who represents the PAC has a chance to speak and mingle with the candidate and their staff. They knew it was an issue the legislator would care about if they could get it in front of them. When they had a chance to speak to the candidate, they told the story of how their pharmeceutical helps, and why certain legislation would hinder them from producing it in the U.S. on a mass scale. Now, the legislator is a cosponsor on this issue. It all stemmed from getting the foot in the door to talk about what they do. Addressing the big misperceptions: Elections cost [insert current stats]. Every PAC is capped at giving $5,000 per candidate per election. So the playing field is level. It cost $11M for incumbent/$42M for challenger to win Senate seat in 2012. Hosue incumbents spent $1.5M (challengers $2.5M) in 2012. It costs a LOT to run for office. What the PAC offers is a way for employees to meet candidates, share their story and express their top concerns and issues. This does not mean that any legislator will support legislation based on a conversation. It is merely a way to have additional interactions about important issues. As I mentioned before, PACs are not only legal, but highly regulated. Everything your government affairs team does with the PAC is monitored by the FEC. In fact, PACs are a great way for millions of Americans to get engaged in the political process. Most PACs – including BoA PAC – go through a very thoughtful process to determine how best to spend money, looking at issues, footprint, key committees and likelihood of releection

Benefit of PACs

Build relationships with candidates

Increase audience’s

understanding of political process

Connect donors with candidates to educate them on

issues, org Provide election/political information to further good government

Advance organizational/

government affairs priorities

Why Have PACs?

PACs in 2016There are more than 4,000 connected PACs in the United States (connected to an association, labor

organization or corporation).

Nearly a third are association PACs (trade associations and professional societies).

PACs contributed $469.9 million to federal candidates in the 2014 election cycle ($453.3 million in the 2012 cycle).

Presenter

Presentation Notes

It costs a lot to run for office - $11M for Senate, $3.5M for House

Association PAC Benchmarking • 106 participating associations• Conducted at the end of every

election cycle• Comprehensive benchmarking report

covering trends and best practices in PACs, including:– Management and staffing– Governance– Executive engagement– Fundraising and recognition strategies– Participation and contribution rates– Disbursement strategies and political

engagement

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Presentation Notes

Association specific since 2009

Association PAC Size

9% 8%

19%

15%16%

18%

15%

0%

5%

10%

15%

20%

PAC Size

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Presentation Notes

Anesthesiologists Radiology

HOW DO WE GET THERE?

© 2015 Public Affairs Council

Key Strategy #1

Leadership is heavily involved in promoting the PAC:

– Staff executive– Member leader– PAC board– Association board– State executives

Presenter

Presentation Notes

Signals importance of the PAC Able to utilize existing relationships Feeling of pride/competitive spirit

Member Leader Engagement MattersMember Leader Involvement by Size of PAC Overall <$100,000 $100,000-

$499,999$500,000-

$1M >$1 million

Signs or sends solicitation letters and emails 67% 44% 61% 81% 79%

Makes presentation at or opens solicitation meetings 64% 44% 64% 63% 76%

Solicits the association’s board of directors 60% 38% 64% 50% 73%

Contributes below the maximum amount allowed to the PAC 51% 50% 67% 50% 36%

Contributes the maximum amount allowed to the PAC 46% 31% 24% 44% 76%

Signs or sends thank-you letters 42% 19% 30% 44% 64%Hosts PAC donor appreciation events 33% 6% 30% 25% 52%

N/A – no involvement 3% 6% 6% 0% 0%n = 98 16 33 16 33


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Presentation Notes

Top three solicitors: CEO/staff executive Member leader (e.g. board chair) PAC board members


PAC involvement tool for rising leadership (“see and be seen”)

Events are a must-attend

Board members:

Expected to give/raise certain amount of money

Serve as a resource for chapters they represent

Lead their chapters in achieving chapter goals

Leaders have personal ownership over PAC success

Case Study #1:National Association of Home BuildersTHE PAC IS SEEN AS A LEADERSHIP ACTIVITY

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Presentation Notes

Federation 800 state/local associations 140,000 members 80% of new home construction


Leadership Contributions Are Critical

Presenter

Presentation Notes

Targeting efforts is critical Board of directors are biggest segment – median of 10% of total contributions for the year; 92% participation rate


Culture is key.

Successful PACs connect with members where they are and talk about what they care about:

Annual meetings and other events

State-level activity

Leadership engagement

Every dollar matters

Issues that impact them

Key Strategy #2


Share the wealth

Each chapter required to do an event

Chapter chooses event that is interesting for membership

Connect it to other opportunities (board meetings, annualmeetings)

Form a committee (chair, hosts)

Case Study #2: National Apartment AssociationBUILDING THE PAC FROM THE GROUND UP

Presenter

Presentation Notes

Federation 170 state/local associations 67.000 members 7.6 million apartments


Champagne and Diamonds – or a variation

Auction

Treasure Box

Wine, beer or scotch tasting

Jail and bail

Celebrate association milestones

Late night receptions

Boat cruise

Golf outing

Special attractions:

What’s unique to your location? Special attractions

Example: Beach blanket bash (San Diego)

National Apartment Association

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Presentation Notes

Are your members social? Late night receptions Boat cruise Make it feel like a benefit Can you take advantage of the location? Golf outing Special attractions: What’s unique to your location? Special attractions Example: Beach blanket bash (San Diego) Auctions & Raffles Opportunity to raise a lot in a little time Must have a wide variety of prizes available One-third rule in effect Spur friendly competition Remind them that they aren’t there to get a bargain… Ideas: Travel vouchers/packages Wine/liquor Political items Keys to Success: Host committee/planning committee Set goals Find a fun theme Consider timing/competition at that time PROMOTE! Reach out often and early Advertise event widely (avoid solicitation)


Key Strategy #3

Peer-to-peer fundraising is king– Builds trust– Gives the feeling of “everyone else

is doing it”– Provides opportunity to dispel

myths– Gives a face to the PAC


Peer-to-Peer is King• The use of peer-to-peer solicitors increased from 34% in 2013 to

44% in 2015• One-third of associations rank them as among the three most

effective solicitors• When peer-to-peer meetings are used, participation rates increase:

PARTICIPATION RATESAssociation

board of directors

All other members

When peer-to-peer meetings are used 94% 21%

When peer-to-peer meetings are not used 78% 10%


Don’t assume anyone understands what a PAC is, what it does, or why it is important. They probably don’t.

Things to address:

Can’t the association contribute itself?

How does the PAC build relationships?

Where does the PAC fit with other government affairs activities?

Why shouldn’t I just give directly to candidates?

Peer Fundraiser Dos and Don’ts DON’T MAKE ANY ASSUMPTIONS

Presenter

Presentation Notes

PACs and supporting candidates are the only things a company cannot do for itself and for which it relies on its employees to support In 2010, the Supreme Court allowed super PACs to be created. These are issue or candidate-based. Super PACs can raise unlimited amounts of money, but they cannot contribute directly to candidates. Only individuals, and individuals through PACs like CignaPAC, can give directly to candidates. And even though companies can give to super PACs (and very few do) PACs remain the only way that companies can get directly involved in the political process and support candidates directly. Only 5 % of companies have given to super PACs. A traditional connected PAC remains the only vehicle a company may use to fund a candidate’s campaign


Always:Answer “what’s in it for me?”

Work with Government Affairs to maintain compliance

Be proud of what you are doing

Set a positive tone

Don’t apologize for asking!

Peer Fundraiser Dos and Don’tsDO MAKE YOUR ASK EFFECTIVE

PAC

Rec

eipt

s

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Presentation Notes

Answer “What’s in it for me?” Why should they join? Some people respond to gifts, others to recognition, while others want to ‘do the right thing.’ Cater to each group. Talk about why THEY matter Ask The biggest mistake fundraisers make is skipping the ‘ask.’ Try something new Host a fun event or give out random ice cream treats to PAC members. People love the unexpected, plus it creates an air of fun around the PAC.


Topics to talk about:

Mistrust in politics and politicians

Confusion over Super PACs

Nothing is happening in Washington

Buying votes/elections

“Slush fund”

Dark and mysterious

Peer Fundraiser Dos and Don’tsDON’T FORGET TO ADDRESS MYTHS


Match the method to your audienceIn-person vs. e-mailGive them the chance to ask questions Small group presentationsDon’t waste their time Have an elevator speech ready to goTalk about where the money goesEmphasize how decisions are made and why

Peer Fundraiser Dos and Don’tsDO KNOW THE BEST WAYS TO MAKE CONTACT


Pilots talking to pilots about ALPA-PAC

Recruit 3 pilots to be recognized

The 2 most successful pilots will win expense-paid trip to DC (for our Legislative Summit)

Pilot who recruits the most peoplePilot who raises the most money

Case Study #3: Air Line Pilots AssociationPROJECT WINGMAN

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Presentation Notes

31 airlines 52,000 pilots 80 year history Union


2014193 recruiters (58 Flight leads)1,592 recruits$17,921.27/month in new receipts

$215,055.20/year

Lifetime2,802 recruits$29,677/month in new receipts

$356,125/year

Air Line Pilots AssociationPROJECT WINGMAN


Use of pictures/visuals

Multiple PAC messengers

Targeted messages

Low ask, high participation

Education – short & sweet

Case Study #4: Northrop GrummanDIVERSIFY PAC MESSENGERS

Presenter

Presentation Notes

One of largest defense contractors Low participation, 50,000+ eligible employees

THE IMPORTANCE OF POLITICAL ACTION COMMITTEES › practice › advocacy › ... · Leadership is...

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