Form 410 - Supplemental Instructions for Multipurpose Organizations Including Nonprofits

Qualifying as a Recipient Committee

Certain multipurpose organizations that make political expenditures in California must register as recipient committees. Pursuant to Government Code Section 84222, the following groups qualify as recipient committees and must file a Statement of Organization (Form 410):

Exceptions:

Nondonor Funds. A multipurpose organization that uses only “nondonor funds” (e.g., investment income, capital gains, income from providing goods or services) to make contributions or expenditures will not qualify as a recipient committee; however, the organization may qualify as a “major donor committee” or an “independent expenditure committee.” See Campaign Disclosure Manuals 5 and 6 for additional information.

Sponsored Committees. A membership organization that is the sponsor of a recipient committee is not required to register as a separate committee so long as the organization does not receive payments of $10,000 or more in a calendar year from a single source. Such organizations may report contributions and expenditures on their sponsored committee’s campaign statement.

Committee Name Requirements

A multipurpose organization’s committee name must be the full legal name of the organization. In addition, the following information must be included in the committee name:

Note: These descriptions must be included at the end of the committee’s name in parentheses on the Statement of Organization (Form 410) and all other campaign statements (i.e., Form 460); however, the description is not required to be included in the committee’s name on advertisements and communications.

Completing and Filing the Form 410

Example: The National Alliance of Widget Manufacturers used funds from its general membership dues account to make a single contribution of $100,000 to a committee primarily formed to oppose a state ballot measure. The Alliance does not plan to make any other contributions or expenditures in California this calendar year. The Alliance qualifies as a primarily formed ballot measure committee and must file the Form 410. Even though the organization is a primarily formed committee, it must also complete the Brief Description of Activity field in the General Purpose Committee section and indicate that it is a committee that will automatically terminate at the end of the calendar year by including “CY” after the brief description of the organization’s activities. If it elects to remain open instead of automatically terminating at the end of the calendar year, it may state that on the initial Form 410 or an amended Form 410 filed prior to the end of the calendar year. The organization must also file the applicable campaign reports and meet the specified filing deadlines

Committee Termination

Calendar Year Filers

A multipurpose organization that qualifies as a recipient committee because its political expenditures were more than $50,000 in a period of 12 months or more than $100,000 in a four consecutive calendar year period automatically terminates on December 31 of the year in which it qualified. If there are undisclosed contributions or expenditures to report, the committee must file a year-end semi-annual statement due by January 31. An organization may elect to remain registered as a committee instead of terminating automatically by stating its intent to remain registered on its initial Form 410 or on an amended Form 410 filed prior to the end of the calendar year. If the organization elects to remain registered, it will terminate in the same manner as other recipient committees.

Other Multipurpose Organizations

Any other multipurpose organization that qualifies as a recipient committee terminates in the same manner as other recipient committees. A final Form 460 must be filed and a Form 410 termination statement must also be filed. See the Form 410 instructions for the requirements that must be met in order for a committee to terminate.

FAQs

Q: Our trade association has never before made a political expenditure; however, this year the association made a single contribution of $45,000 to a committee primarily formed to support a county ballot measure. Is our association required to register as a recipient committee?

A: No. Since the contribution was not more than $50,000, the association does not qualify as a recipient committee so long as the funds were not raised for political purposes and there was no agreement with the donors that their payments may be used for political purposes. The association does, however, qualify as a major donor committee and must file the applicable campaign reports and meet the specified filing deadlines.

Q: Our organization provides a variety of services to its members, including insurance coverage which results in income to the organization. The organization makes its political expenditures from the income producing account (nondonor funds), not from its membership dues account. Is our organization required to register as a recipient committee? A

A: No. Since nondonor funds are used, the organization does not qualify as a recipient committee. If the organization makes contributions of $10,000 or more or independent expenditures of $1,000 or more in a single calendar year, the organization will qualify as a major donor committee or an independent expenditure committee and must file the applicable campaign reports and meet the specified filing deadlines.

Q: Our association receives its funds exclusively from its members. The members do not designate their funds for political purposes. This year, the association made a $55,000 contribution to a committee primarily formed to support a county ballot measure. The association will not make additional political expenditures this calendar year. Is our association required to register as a recipient committee?

A: Yes. The association must file the Form 410 and since its only contribution was to a county ballot measure committee, it must register as a county primarily formed ballot measure committee. In Part 4, the committee will note it is a calendar year filer (“CY”) and describe the organization’s mission or most significant activities and describe the organization’s political activities (a reference to where the organization’s IRS Return of Organization Exempt From Income tax form may be accessed, is permissible). The association must also file all applicable campaign reports and meet the specified filing deadlines. Unless the association elects to remain registered as a recipient committee, the committee will automatically terminate at the end of the calendar year.

Q: Our federal political action committee (PAC) made a $40,000 contribution to a state ballot measure. Since the contribution was not more than $50,000, is the PAC required to register as a California recipient committee?

A: Yes. A federal PAC that makes contributions or expenditures in California totaling $2,000 or more in a calendar year must file the Form 410 and register as a California recipient committee.

For additional guidance for multipurpose organizations, refer to the Multipurpose Organizations Reporting Political Spending fact sheet.

Form 410

End of Page, Form 410 Supplemental Instructions