An individual may spend personal funds to make contributions to influence federal elections subject to specific limits. For the 2005-2006 election cycle, an individual may give $2,100 per election to a federal candidate (primary and general elections count separately, for a total of $4,200 to a single congressional candidate in an election cycle). An individual may also contribute $26,700 per year to the national committee of a political party and $10,000 per year to the federal account of a state party committee. An individual may also give $5,000 per year to a political action committee or "PAC" (click here for additional discussion on the different types of PACs). In addition, a person may make contributions to the non-federal account of a state party which cannot be used by the state party for federal election activity. The limits and other rules for such contributions to state parties are governed by state law and vary from state to state. (Click here on the discussion on state party contributions.)

A contributor's spouse has his or her own separate limits as described above. The FEC is currently considering new regulations for contributions by a child (17 years or under), but in general, such contributions are only permissible if the child owns or controls the funds from which the contribution is made.

For all these types of federal contributions by individuals, there is an aggregate contribution limit of $101,400 per two-year election cycle. There are sub-limits within this aggregate limit: contributions to candidates are limited to $40,000 and contributions to all committees, including national party committees, are limited to an aggregate of $61,400.

Foreign nationals (individuals who are not citizens of the United States , except for green card holders who are lawfully admitted in the U.S. for permanent residence) are prohibited from making any contribution in connection with any election in the U.S. —federal, state or local—including a contribution to a political party. They are also prohibited from making an expenditure, including an independent expenditure, or any disbursement for an electioneering communication in connection with a federal election , or any contribution or donation of money in connection with any federal, state or local election.

According to a new advisory opinion issued by the FEC on August 19^th, 2004 , foreign nationals can, however, participate in candidate committee events by speaking or soliciting funds and support for a candidate or party committee so long as they do so as volunteers and do not pay to attend such events.

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The law provides a list of exceptions to individual contribution limits [(see Individual Volunteer Activities chart:iva)]. An individual, for example, may volunteer his or her services to a campaign without the value of the services being considered a contribution. Likewise, an individual may provide the use of his or her home to a candidate for a fundraising event and spend up to $1,000 per candidate on food or beverages, all without making a contribution. If the campaign activity is jointly sponsored by a husband and wife, then the limit is increased to $2,000 (i.e., $1,000 for the husband and $1,000 for the wife). Likewise, an individual may spend up to $1,000 per election for his or her own travel expenses related to services as a campaign volunteer. Finally, campaign work by a company employee during normal working hours does not constitute a corporate contribution if that time is made up by the employee. Generally, a person is allowed to volunteer one hour per week or four hours per month for campaign work during normal working hours.

Individuals may spend as much of their own time and money as they like in creating and maintaining a personal website devoted to political issues without incurring any reporting requirements by the FEC, so long as the content does not involve expressly advocating the election or defeat of a federal candidate.

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If an individual wants to engage in express advocacy (such as newspaper or television ads), or otherwise influence a federal election, he or she may do so without limit so long as the activity is not coordinated with a candidate or a candidate's committee, but must report costs above $250 to the FEC. If an individual does choose to coordinate with a candidate or a candidate's committee, the expenditures count against the individual's contribution limits toward that candidate.

The FEC has issued rules defining coordination in order to determine the applicability of federal contribution limits to particular expenditures. Under these rules, a communication is coordinated if it meets both a content test and a conduct test.

• The content test requires that the communication either expressly advocate the election or defeat of a candidate, mention the name of a candidate within 120 days of the election, or republish a candidate's campaign literature .
• The conduct test examines whether the communication is made at the request or suggestion of the candidate, whether the candidate has had material involvement in decisions about the communication, whether there has been substantial discussion about the communication with the candidate, and whether the spender is using vendors also used by the candidate.

This definition appears to allow extensive candidate involvement in any independent communications appearing more than 120 days before an election. Congressmen Shays and Meehan, two of BCRA's sponsors, have criticized this regulation and are suing to overturn it in court (see materials on Shays v. FEC litigation).

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Independent expenditures made by individuals for certain public communications, while unlimited, do trigger disclosure requirements. If the communication contains express advocacy—words such as "vote for," "defeat," and "vote against," which advocate the election or defeat of an identifiable federal candidate—or if it is an electioneering communication (a cable, satellite, or broadcast ad that refers to a federal candidate, is aired within 60 days before a general or 30 days before a primary election, and is targeted to the electorate of the candidate), spending for it must be publicly disclosed if it exceeds certain thresholds. Independent expenditures by individuals, including funds spent on ads containing express advocacy, must be disclosed by the individual spender as soon as the expenditure exceeds $250. Every expenditure thereafter must be reported to the FEC. An individual also must disclose to the FEC if he or she spends more than $10,000 for the direct costs of producing and airing electioneering communications within a calendar year. Such reporting must take place within 48 hours after each expenditure over $10,000 or more.

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