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.

This entry is easy in ISP, just take the following steps:

1. If it does not already exist, please create an appropriate allocation.
Form 3x: Allocations

2. Add an inkind contribution associated with the non-federal filer using the appropriate allocation.

3. Add an Allocation Transfer from the Federal Account to the Non-Federal Account in the appropriate allocated amount.

Using the example above, 28% of $1000 is $280.

That’s it. With this data entry, the Form 3x will take care of the rest.

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 – 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.

As always, we are here for you. Please let us know if you have any questions or concerns.