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Getting the Biggest Bang for Their Buck: How Regulatory Policy Incentives Shape Nonprofit Political Advocacy
Unformatted Document Text:  18 total PAC disbursements may indicate that the PAC is more reliant on its own resources to fulfill its political goals (for example, Friends of the Earth PAC where for every one dollar spent on operating costs eleven dollars are spent on PAC disbursements). In this situation the PAC probably has a more autonomous relationship with the 501(c)(4). A low ratio of operating expenses to total PAC disbursements would mean the PAC is less self-reliant and more dependent on the 501(c)(4) for administrative resources (for example, American Lands Campaign PAC). Table 6: Ratio of PAC Operating Expenses to Total Political Disbursements for Five Environmental PACs Year 2000 Connected PACs Friends of the Earth PAC League of Conservation Voters PAC Sierra ClubPolitical Committee American LandsCampaign PAC Clean Water PAC[ Independent] Ratio of Operating Expenses to Total Political Disbursements 1 to 11 None 1 to 35 1 to 77 1 to 1.5 Source: FEC website, Forms 3X, 2000. Taking the two charts together we find there is a relationship between the data. When the PAC has a relatively high percentage of operating expenses in relation to available funds and a relatively low ratio of operating expenses to total political disbursements, we see they both indicate a more autonomous relationship between the 501(c)(4) and the PAC (for example, Friends of the Earth). This relationship is consistent as it becomes increasingly dependent. Where none of the PAC’s operating expenses are covered from its own funds, the 501(c)(4) and the PAC are most likely in a dependent relationship where the 501(c)(4) is providing for all of the PACs operating expenses (for example, League of Conservation Voters). As shown, data on the Clean Water PAC indicate that it is operating entirely autonomous of the Clean Water 501(c)(4). This is to be expected as the law requires that

Authors: Reid, Elizabeth. and Kerlin, Janelle.
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total PAC disbursements may indicate that the PAC is more reliant on its own resources to
fulfill its political goals (for example, Friends of the Earth PAC where for every one dollar spent
on operating costs eleven dollars are spent on PAC disbursements). In this situation the PAC
probably has a more autonomous relationship with the 501(c)(4). A low ratio of operating
expenses to total PAC disbursements would mean the PAC is less self-reliant and more
dependent on the 501(c)(4) for administrative resources (for example, American Lands
Campaign PAC).
Table 6: Ratio of PAC Operating Expenses to Total Political Disbursements for Five
Environmental PACs
Year 2000
Connected PACs
Friends of
the Earth
PAC
League of
Conservation
Voters PAC
Sierra Club
Political
Committee
American
Lands
Campaign
PAC
Clean Water
PAC
[ Independent]
Ratio of Operating
Expenses to Total
Political
Disbursements
1 to 11
None
1 to 35
1 to 77
1 to 1.5
Source: FEC website, Forms 3X, 2000.
Taking the two charts together we find there is a relationship between the data. When
the PAC has a relatively high percentage of operating expenses in relation to available funds
and a relatively low ratio of operating expenses to total political disbursements, we see they
both indicate a more autonomous relationship between the 501(c)(4) and the PAC (for example,
Friends of the Earth). This relationship is consistent as it becomes increasingly dependent.
Where none of the PAC’s operating expenses are covered from its own funds, the 501(c)(4) and
the PAC are most likely in a dependent relationship where the 501(c)(4) is providing for all of
the PACs operating expenses (for example, League of Conservation Voters).
As shown, data on the Clean Water PAC indicate that it is operating entirely
autonomous of the Clean Water 501(c)(4). This is to be expected as the law requires that


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