Prohibited Inkind Contributions for Allocable Activities

Applies To: Federal Election Commission – Political Action Committees (PACs), Party Committees
The FEC Form 3x allows for Prohibited Inkind Contributions for Allocable Activities. This is when an Inkind contribution, which typically would not be permissible due to FEC regulations, is accepted by the non-federal account, and the federal account pays for it’s share.

Prior to adding the transaction, if you haven’t already, first
create the appropriate allocation

Next, add an Inkind contribution associated with the non-federal filer using the appropriate allocation, then add an Allocation Transfer from the Federal Account to the Non-Federal Account in the appropriate allocated amount.

On the Form 3X, the inkind contribution is reported twice: once on the H3 as a Transfer From NonFederal Accounts and again on the H4 as the 100% Non-Federal Use of Prohibited Inkind Contribution. This is typical of all inkind contributions, that they are reported as both receipts and disbursements so as to not impact the cash on hand.

In addition, the transfer of the Federal share will appear on the H4.