Form 3x: Allocations

Applies To: Federal Election Commission – Political Action Committees (PACs), Party Committees

In this help file, we will address Allocations: what they are, how to do data entry, and what the resulting FEC Form 3x will look like.

Allocations are used when a Federal Committee also has a Non-Federal Committee that share expenses. These expenses fall one of 10 potential Allocation Types:
– Administrative
– Direct Candidate Support 
– Direct Fundraising
– Exempt
– Public Communications
– Voter Drive
(note: the following 4 types are only used by Party Committees that have Levin Accounts)
– Generic Campaign Activity (Levin)
– GOTV (Levin)
– Voter ID (Levin)
– Voter Registration (Levin)

Some of the above Allocation Types have fixed ratios, depending on the type of election year the Allocation is used for:
– If both a presidential candidate and a Senate candidate appear on the ballot: 36% 
– If a presidential candidate, but not a Senate candidate, appears on the ballot: 28%
– If a Senate candidate, but not a presidential candidate, appears on the ballot: 21%
– If neither a presidential candidate nor a Senate candidate appears on the ballot, then: 15%

Fixed Allocation Types are:
– Administrative
– Exempt
– Generic Campaign Activity (Levin)
– GOTV (Levin)
– Voter Drive
– Voter ID (Levin)
– Voter Registration (Levin)

The other 3 Allocation Types (Direct Candidate Support, Direct Fundraising & Public Communication) have a variable ratio, and can be set as appropriate.

To Add an Allocation
1. Ensure your database is set up for Joint State/Federal Filing. If you are unsure, please contact support.

2. Ensure both the State and Federal Committees have Filer Committees set, and each have at least one Financial Account.
Getting Started With ISPolitical

3. Under Accounting > Allocations, click on “+Add Allocation”.

4. Assign a Name. Each Allocation must have a unique identifying title or code. Examples are: “Memorial Day Dinner” or “Admin 2020”.

5. Select the appropriate Allocation Type.

6. Select Fixed Allocation Ratio -OR- define Federal Share Percentage Amount.

7. Add a start date. Typically the start date is the first of the year or election cycle (01/01/2019 for the 2019-2020 cycle, for example), unless the Allocation is for a Fundraiser or some other activity that does not encompass the full year.

To use an Allocation
Typically, Allocations are used only on expenses. (On rare occasions, they are used on inkind contributions. See Prohibited Inkind Contributions For Allocable Activities)

When you are adding an expense, ensure the expense is associated with the Federal filer, and that you select the appropriate allocation.

To Add an Allocation Transfer
A transfer is typically done from the Non-Federal Account to the Federal Account to cover the Non-Federal’s share of the Allocated Expense. (Once again, on rare occasions, there is a transfer from Federal > Non-Federal. See Prohibited Inkind Contributions For Allocable Activities).

Under Accounting > Allocations, locate the Allocation you wish to use for the Transfer. Click on “Add Allocation Transfer” on the left side of the Allocation.

In the new window that appears, enter the Non-Federal Share Amount. In the example shown above, 72% of $196.45 is $141.44.

NOTE: Be sure to select the Non-Federal Account for the “From Account”

How these transactions appear on the FEC Form 3x Report
Schedule H1
This schedule typically appears on the 1st report of the year (Feb Monthly or April Quarterly).

Schedule H2
This schedule only appears if there is a transaction with a new (or updated) “Direct Candidate Support” or “Direct Fundraising” allocation in the period.

Schedule H3
This schedule appears if there is a transfer from Non-Federal to Federal with any of the Non-Levin Allocation Types. In addition, Prohibited Inkind Contributions appear on this schedule.

Schedule H4
This schedule itemizes all expenses with the Non-Levin Allocation Types. The report will automatically create the Federal / Non-Federal Amounts as appropriate to the allocation.

Schedule H5
This schedule appears if there is a transfer from Non-Federal to Federal with any of the Levin Allocation Types. This schedule is only available to Party filers.

Schedule H6
This schedule itemizes all expenses with the Levin Allocation Types. This schedule is only available to Party filers.

Please do not hesitate to contact support if you have any additional questions.