This help file is for Joint Fundraising Committees (JFCs) and JFC Participants and how to report the return of funds sent from JFCs to participants back to the JFC, if the transaction was already reported to the FEC. See related help files regarding JFCs and how they report the funds they send to participants and regarding JFC Participants and how they report the funds received from a JFC.
When a JFC transfers net proceeds to joint fundraising participants, it is reported as a Transfer to Affiliated Committees on Line 22 if your committee files the FEC Form 3X or, if your committee files the FEC Form 3, it would be reported as a Transfer to Other Authorized Committee on Line 18 of that report.
When a committee receives a transfer from a JFC, the portion the filing committee receives will be less than the total of all original contributions. When this is entered into ISP, the total of the splits entered will be greater than the whole amount – the FEC expects this. The transfer from the JFC will be recorded as a Transfer From Other Authorized Committee on Line 12 of the FEC Form 3.
In order to properly record the partial return of funds back to the JFC, the following needs to be done.
- On the participant side, an expense from the participant to the JFC for the amount of the transaction that is attributable to the donor(s) being returned needs to be entered. This will need to be calculated based on the portion of the donation split(s) to the net proceeds of the transfer that was made. This is typically a set percentage based on the JFC agreement. The election and any other information from the original transfer should match what is recorded on this expense.
- Additionally, a reversed memo contribution will also need to be entered on the participant account from each split of the original transfer being returned. This should be entered for the full amount of the split from the original transfer. Again, the election and any other information from the original transfer should match what is recorded on this reversed memo contribution.
- On the JFC side, a monetary contribution from the participant committee should be entered for the amount attributable to the portion being returned. This should match the total of what is calculated in step 1 above. Then, a split(s) to the donor(s) whose funds are being returned should be added on that contribution for the amount of the donation being returned. This should match the amount on step 2 above and the original transfer. The whole and split on step 3 should have the same elections and other information listed as the transactions in steps 1 and 2 above.
- Once steps 1-3 are completed, the JFC can either refund the original contribution to the donor or process another allocation transfer to a different JFC participant, depending on the action to be taken with the funds.
