On July 11, 2024, the Libertarian National Committee (LNC) authorized the party to enter into a legally questionable joint fundraising agreement (Kennedy Victory Fund) with the Robert Kennedy Presidential campaign. Kenendy was not the party’s Presidential nominee.
Marketplace.org has an article that explains in greater detail how joint fundraising committees work.
You can think of them sort of as umbrella organizations. They can include a candidate’s committee, a PAC, national party committees, state party committees, convention committees — the list goes on. But the key thing is that while each of these groups has a limit to how much one person can donate to them, when they connect under that umbrella of the joint fundraising committee, they can combine all those limits together and ask donors for one big check.
Board member Pat Ford voted in favor of entering the party into the questionable joint fundraising agreement that his non-profit would soon benefit from financially benefit.
In June 2024, a nonprofit “Libertarian Mutual Aid, Inc” was established in Rhode Island with Ford listed as a Director.
On August 12, 2024, Ford filed a statement of organization with the Federal Election Commission (FEC) forming the Libertarian Mutual Aid PAC.
On September 6, 2024, the Kennedy Victory Fund added an additional group of participants including the Libertarian Mutual Aid PAC.
In August 2024, according to FEC reports, the joint fundraising committee made $46,700 in payments to the Libertarian Mutual Aid PAC. The joint fundraising agreement dictates that 90% of the money paid from the joint fundraising committee to the PAC must go back to the LNC.
The PAC lists $30,690 as debt owed back to the LNC and paid $11,340 back in the month of August. This would leave a little under $5,000 for the PAC.
The PAC moved $3,250 to Libertarian Mutual Aid, Inc., listed at the same address that Ford is listed at on the state of Rhode Island filings. The PAC had no other expenditures and no other contributions other than the Kennedy Victory Fund.
From October to November, the PAC brought in an additional $13,600 from the joint fundraising committee. They listed $12,240 as debt owed to the LNC and sent the $30,690 to the LNC.
Several small “contributions” were made to Libertarian Mutual Aid totaling $3,225. Other than money flowing in from the Kennedy Victory Fund to the PAC, no contributions were made and they made no other expenditures.
It is my understanding that a nonprofit cannot legally participate in a joint fundraising committee in which money flows back to a political party.
According to the FEC:
Incorporated charitable organizations—like other corporations—are prohibited from making contributions in connection with federal elections. Unlike most other corporations, charities face additional restrictions on political activity under provisions of the Internal Revenue Code.
The Libertarian Mutual Aid PAC has received two letters from the FEC for their failure to file the end of the year report and their late filing of their post-general election report, which showed the last payments made in October and November.
We do not know if Ford earns a salary from Libertarian Mutual Aid, Inc, but it might be a question other board members might consider asking. They may also want to find out if it influenced his vote for the joint fundraising committee or if he was given the idea to pay his non-profit from the joint fundraising committee by someone else.
This article is well done. Keep in mind the following facts – the most a PAC can receive from any FEC Committee regardless of type is $5K. You see the in/outs & reported liability. But it remains to be seen if the PAC ever pays back the remaining liability to either the LNC or back to the JFC. If not that is a clear violation of the law. Regardless they should have never ever received more than $5K in the first place. Jake is also correct that money can not flow from a PAC to a non-profit unless it was in support of related services or for purchase of an asset. It appears to be more of a “transfer” than a purchase of a service or asset. Thus this may be illegal as well. I like Pat Ford, found him easy to work with the years I was working for the LP & really hope he gets a very good FEC Advisor & Lawyer to help him avoid any more issues.
This was reported in the the major media several weeks ago (Boston Herald?).
From what I understand, all the money goes to direct aid.
Direct aid for what and to who?
Disaster relief, and things like that.
The receipts should be there then.
I heard he has a non-profit and a PAC. Why would disaster relief be a think for a political action committee to have any role. I can see a role for a non-profit in disaster relief but not a PAC.
The Libertarian Party has now become a part of the vast campaign financing shell game.
And another shoe drops.
How many feet does this monster have?