Page 1, Federal Election Commission (Revised 2/2001)
INSTRUCTIONS FOR FEC FORM 7
FE1AN070
FEDERAL ELECTION COMMISSION
Instructions for Report of Communication Costs By Corporations and
Membership Organizations (FEC FORM 7)
52 U.S.C. § 30118 allows “commu-
nications by a corporation to its stock-
holders and executive or administrative
personnel and their families or by a
labor organization to its members and
their families on any subject,” including
the express advocacy of the election or
defeat of any Federal candidate. Further,
52 U.S.C. § 30101(9)(B)(iii) requires
that the costs of such communications
be reported to the Federal Election Com-
mission under certain circumstances.
This section states in pertinent part:
“…the costs incurred by a member-
ship organization (including a labor
organization) or by a corporation di-
rectly attributable to a communication
expressly advocating the election or
defeat of a clearly identied candidate
(other than a communication primarily
devoted to subjects other than the ex-
press advocacy of the election or defeat
of a clearly identied candidate), shall,
if those costs exceed $2,000 per election,
be reported to the Commission.”
For the purpose of interpreting these
provisions of law, the Commission’s
regulations provide the following de-
nitions:
(i) “Labor organization” means an
organization of any kind (any local, na-
tional, or international union, or any lo-
cal or State central body of a federation
of unions is each considered a separate
labor organization for purposes of this
section) or any agency or employee rep-
resentative committee or plan, in which
employees participate and which exists
for the purpose, in whole or in part,
of dealing with employers concerning
grievances, labor disputes, wages, rates
of pay, hours of employment or condi-
tions of work.
(ii) “Stockholder” means a person
who has a vested benecial interest in
stock, has the power to direct how that
stock shall be voted, if it is voting stock,
and has the right to receive dividends.
100.8(b)(4) and 114.3 of the Commis-
sion’s regulations shall report to the Fed-
eral Election Commission, 1050 First
Street, N.E., Washington, D.C. 20463
on FEC FORM 7 such costs which are
directly attributable to any communica-
tion expressly advocating the election or
defeat of a clearly identied candidate
(other than a communication primar-
ily devoted to subjects other than the
election or defeat of a clearly identied
candidate), if such costs exceed $2,000
for any election.
WHAT MUST BE REPORTED
Each report led under 11 CFR 104.6
of the Commission’s regulations must
include, for each communication:
(1) The type of communication
(such as direct mail, telephone or tele-
gram);
(2) The class or category commu-
nicated with (Executive/Administrative
Personnel, Stockholders, Members);
(3) The date(s) of the communica-
tion;
(4) Whether the communication
was in support of, or in opposition to, a
particular candidate;
(5) The name of the candidate, the
ofce sought (and the district and state
of the ofce, if applicable), and whether
the communication was for the primary
or general election; and
(6) The cost of the communication.
Generally, the total cost of a com-
munication which advocates the election
or defeat of more than one candidate
should be allocated to and reported for
each candidate in equal proportions. If,
however, one or more candidates are
emphasized, the cost should be allo-
cated and reported to reect the benet
reasonably expected to be derived by
each candidate.
(iii) “Executive or administrative per-
sonnel” means individuals employed by
a corporation who are paid on a salary
rather than hourly basis and who have
policy-making, managerial, professional
or supervisory responsibilities.
(iv) “Members” means all persons
who are currently satisfying the require-
ments for membership in a membership
organization, trade association, coopera-
tive or corporation without capital stock
and in the case of the labor organization,
persons who are currently satisfying
the requirements for membership in a
local, national or international labor
organization. Members of a local union
are considered to be members of any
national or international union of which
the local union is a part and of any fed-
eration with which the local, national or
international union is afliated. A person
is not considered a member under this
denition if the only requirement for
membership is a contribution to a sepa-
rate segregated fund.
(v) “Election” means two separate
processes in a calendar year, to each of
which the $2,000 threshold described
above applies separately. The rst pro-
cess is comprised of all primary elec-
tions for Federal ofce, wherever and
whenever held; the second process is
comprised of all general elections for
Federal ofce, wherever and whenever
held. The term “election” also includes
each special election held to ll a va-
cancy in a Federal ofce or each run-off
election.
(vi) “Corporation” means any sepa-
rately incorporated entity, whether or
not afliated.
WHO MUST FILE
Every membership organization
(including a labor organization) or cor-
poration which makes disbursements
for communications pursuant to 11 CFR
