Can PAC funds be placed into investment accounts during non-election years and other periods of low or no activity?

Political committees may transfer funds from their primary depositories into accounts elsewhere for investment purposes. This can be particularly beneficial to committees with large sums of monies, but are expected to experience long periods of minimal activity.

One caveat is that prior to spending any of the investment principal or any investment income, the funds must be transferred back into the committees’ campaign depository.

PACs, candidate committees and party committees should be aware, however, that investment income is reported in a slightly different manner from contributions on campaign finance disclosure filings. Committees should also be aware of tax implications of investments.