A joint fundraising committee (JFC) allows a single entity to raise funds on behalf of:
- National campaign committees
- State campaign committees
- National political party committees
- State political party committees
- Multiple candidates
Rather than a donor giving the legal individual maximum to those groups individually, the donor can write a single check for the combined legal maximum values to a JFC. For donors, this doesn’t change the possible total amount that could be donated, but it greatly simplifies the process by allowing them to give large amounts of money at once. For the committees that make up the JFC, it allows them to combine fundraising costs and then split the proceeds.
Use of JFCs:
Individual total giving was limited — the more committees there were in a JFC meant each committee got a smaller amount of the money given, as the total amount of money from an individual cannot change. Therefore, there was less incentive to band together.
Individual total giving is not limited — more committees in a JFC means a larger single check an individual can write, enabling wealthy individuals to easily give massive donations.
Example: Jane wants to run for President. Rather than asking her wealthy donor to give to her party, her national campaign, and 50 different individual state campaigns, Jane can ask for one very large donation to her joint fundraising committee. This committee will then do the work of dispersing the money appropriately according to individual contribution limits for each group in the committee.