Political Action Committees (PACs) are vital for engaging in the democratic process, but maintaining compliance isn’t optional, it’s existential. For PAC professionals, the challenge isn’t just understanding the ever-evolving rules, but embedding them into fast-paced, high-stakes workflows.
Mistakes aren’t just inconvenient, they’re costly, reputationally and financially. Below are five of the most common PAC compliance pitfalls, what causes them, and how to avoid them—with modern, easy-to-use tools like Quorum PAC supporting your team every step of the way. Quorum also offers PAC Compliance Services where our team of PAC experts ensures your PAC data is accurate, your transactions are reconciled, and your reports are filed correctly and on time.
Mistake 1 – Missing or Late Compliance Filings
The mistake: Failing to file a required compliance report with the FEC or a state agency is one of the most common and costly errors a PAC can make. This can result from disorganization, staff turnover, or simply not having access to the necessary data in time. Unfortunately, the consequences are serious. Late or missing reports can lead to fines, audits, and even reputational damage if the lapse draws public or media attention. In just the first quarter of 2025, the FEC assessed $329,500 in civil penalties, much of it tied to late or inaccurate filings.
How to avoid it:
- Build a filing calendar. Know your full compliance schedule for the year, including both FEC and any applicable state deadlines.
- Plan ahead. Estimate the time needed for prep work like entering receipts and disbursements or reconciling bank records, then work backward from the deadline.
- Set reminders. Use automated calendar alerts to keep your team on track and aware of upcoming due dates and prep milestones.
- Clarify roles. Ensure everyone involved in the compliance process knows their responsibilities and deadlines.
- Don’t skip reports. Even if there’s no financial activity, many jurisdictions still require a report. Not filing is always riskier than filing an incomplete or incorrect one. You can amend a report, but failing to submit one can lead to penalties.
Quorum PAC simplifies compliance with tools that automate receipt entry, streamline reconciliation, and support timely filing. Our dedicated PAC compliance team can handle the back-end work so you can focus on engaging donors and growing your PAC, not scrambling to meet filing deadlines.
Mistake 2 – Accepting Funds from Ineligible Donors
The mistake: Accepting contributions from prohibited sources such as foreign nationals, federal contractors, or ineligible employee types is a serious FEC violation. These mistakes are often unintentional but can carry significant consequences, including mandatory refunds, FEC enforcement actions, amended reports, and reputational risk.
Unique Challenges by PAC Type
Corporate and Association PACs: Corporate PACs may only solicit contributions from a restricted class, typically executives, senior administrative personnel, and shareholders, and must be voluntary. International corporations sometimes struggle with ensuring that solicitable employees and contributors’ identifications include citizenship and that the employees meet all FEC eligibility requirements.
How to avoid it:
- Work with your HR IT contact to ensure that you can easily identify who is and is not a U.S. citizen or green card holder and meets all other eligibility criteria, including your own organization’s guidelines, before you begin your solicitation.
- Ensure that your data has been updated recently to avoid missing or including employees.
- Automate data updates to ensure your records stay current throughout the year.
Membership Association PACs: PACs tied to membership-based organizations often face challenges in defining who is a “member” under FEC rules.
How to avoid it:
- Work with your membership team to determine how they can help you identify eligible members of the association.
- Verify that your PAC data is current, either through manual updates or automated syncing.
- Determine if your organization plans to solicit administrative employees.
Trade Association PACs: These PACs have the added responsibility of adhering to Federal prior approval guidelines.
How to avoid it:
- Ensure that potential donor records are associated with a member organization.
- Investigate internally what resources are available to update member organization information.
- Make sure that your PAC database includes the status of prior approval authorization for all records.
- Consider moving prior approval signing online to make it easier for executives to complete the approval.
Quorum’s PAC database offers multiple ways to store prior approval authorizations. The Outbox email tool makes it easy to segment only the contacts that are solicitable at any given time. Quorum’s PAC website enforces eligibility to ensure only authorized contacts may contribute to the PAC.
Mistake 3 – Lack of Real-Time Visibility into Fundraising and Budget
The mistake: PAC managers often have to make strategic decisions without access to current fundraising or budget data.
How to avoid it:
- Use real-time dashboards that provide up-to-date insights into contributions, disbursements, and overall PAC health.
- Connect your budget planning tools directly with your compliance workflows so that data flows seamlessly between fundraising, finance, and reporting.
- Conduct monthly budget reviews to ensure your team understands the PAC’s current financial position.
Quorum PAC provides real-time dashboards, detailed donor histories, and integrated expense tracking in a single platform.
Mistake 4 – Failing to Update Committee Information
The mistake: Not updating your PAC’s registration details—such as changes to your treasurer, address, bank account, or affiliated organization—is a common but avoidable compliance lapse.
How to avoid it:
- Establish an internal process that triggers a Form 1 update whenever leadership or contact roles change.
- Use reminders or PAC software to regularly review and confirm registration details.
- File Form 1 electronically within 10 days of any change through the FEC’s FECFile system.
Quorum’s compliance team monitors PAC contact and treasurer information to ensure it remains current. When changes occur, Quorum’s team of experts handles the FEC filing on your behalf.
Mistake 5 – Not Reconciling Bank Statements Regularly
The mistake: Failing to reconcile your PAC’s bank account with your compliance software on a monthly basis creates gaps in your financial reporting and increases the risk of error.
How to avoid it:
- Schedule monthly reconciliation as part of your compliance calendar, with automated reminders tied to filing cycles.
- Assign responsibility to a staff member or external resource who is not involved in disbursements, following a clear separation of duties.
- Include reconciliation status in staff check-ins or PAC team meetings to ensure accountability.
Quorum’s Compliance Services team helps implement strong separation of duties by acting as your external compliance arm.
Final Thought: Compliance is a System, Not a Checkbox
PAC compliance doesn’t just happen; it’s built into your operations, tech stack, and culture. Tools like Quorum PAC are designed not just to automate, but to give teams the clarity, accountability, and peace of mind they need to stay compliant with confidence.
Want to see how it works? See the Quorum PAC product walkthrough