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June 19th, 2014, 01:37 PM #1Making money off politics
Every time you see them in a forum, it either makes your blood boil or your stomach cringe, but think about how much money these super pacs are making?
My question to you is would you promote donations to a super pac for a political candidate and what commission rate would you expect?
I checked and the RNC tried this in 2004 with little success.
But a lot more people are doing this sort of thing on the internet now, so is it time?
Last edited by Chuck Hamrick; June 19th, 2014 at 07:09 PM.
June 19th, 2014, 02:00 PM #2
I think you are incorrectly characterizing the whole process.
First, by definition, "super-pacs" are non-profit and "they" are making no money. After legally allowed adm costs, all money received must be funneled into their non-profit, charitable endeavors, which current law and IRS regulations consider to include political campaign ads.
Thee were no "super" PACS in 2004 - the system was very different then.
Paying an affiliate commission might well be a violation of IRS regs. Even if not, it could further cause complications as that portion of any donation that is paid out to an affiliate would likely not then qualify as a "charitable donation" tax deduction for the donor.
Note: This is not a legal opinion and should not be relied upon for any purpose other than as part of a general discussion on affiliate marketing. Please consult your own attorney for a definite legal opinion.
June 19th, 2014, 03:08 PM #3
Let me clarify.
Political Action Committees have been around a long time, as have IRS Sec. 501(c)(4) "Social Welfare Organizations". But, prior to 2010, donations to PACS were very limited, individuals could contribute no more than $2500 and corporations were prohibited from making any such contributions. With the decision in Citizens United in 2010, corporations, and unions, were no longer limited, and could from then on make whatever contributions they want, and thus was the birth of the Super PAC as Social Welfare, tax exempt organizations, with unlimited fund raising ability.
Note: I believe that this discussion is appropriate under Forum Rule 1E. "Members further agree that as the Mission of the Forum is one dedicated to the furtherance of the affiliate marketing industry and the Forum community, that posts shall not include material of a political nature, unless directly related to and relevant to an understanding and/or explanation of affiliate marketing related issues, ..."
June 19th, 2014, 03:29 PM #4
You know, the more I think about this, the more I think I may have jumped to the wrong conclusion. I can see the possibility of an affiliate program, perhaps where the commission is a flat fee regardless of the amount of the contribution, with the donor being told that $X of your contribution is not deductible, as is done, for example, for college athletic fund donations that are made to obtain seating preferences - part is specifically marked as non-deductible.
June 19th, 2014, 03:41 PM #5
Thank You for your input
The legality of this has already worked out. This is something that I have been working on with a client as far as the affiliate side of it.
I'm going to launch soon with a new affiliate network and this will be our first offering.
I want to work with abw to get the word out when I'm ready. I have worked with Chuck in the past and was looking for some feedback on the idea as it stands right now.
The donation site is registered with the right people and has passed the regulations for this kind of venture.
I hope by offering this I can attract a lot of interest to our network and promote many other things, bringing in Affiliates and Merchants.
June 19th, 2014, 03:54 PM #6
Interesting. Are you working with one specific Super PAC or are you planning to have a variety of PACS with different political perspectives?
June 19th, 2014, 05:12 PM #7
We have a specific one, but if it works well, we will expand. we have a call center already working it and it's getting donations.
I've worked before with new items, the last was a psychic cam site