# Candidates can only loan, not gift their campaigns, money? **URL:** \ **Category:** Factual Questions\ **Created:** [December 21, 2019, 8:20pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192 "2019-12-21T20:20:11Z")\ **Posts on this page:** 10\ **Page:** 1
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [December 21, 2019, 8:20pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/1 "2019-12-21T20:20:11Z")
Under U.S. election law, is it the case that presidential candidates can only loan money to their own campaigns, but cannot just outright gift money? (Otherwise, presumably, Jeff Bezos could wage a $20 billion presidential campaign for himself.) Bonus/extra question: How much of Trump’s own money did Trump use for his own 2016 and 2020 campaigns? Is there any public record? ---
**Author:** ![Velocity](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/velocity/32/18006_2.png) [@Velocity](https://boards.straightdope.com/u/Velocity)\ **Post date:** [December 21, 2019, 8:24pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/2 "2019-12-21T20:24:09Z")
Bonus-bonus question: How much “financial distance” is required to exist between the DNC/RNC and a candidate, or between candidates? Could the DNC give as much of its money as it wanted directly to the Biden campaign? If Trump decided tomorrow morning, “I don’t want to run for reelection after all,” could he legally tell Mike Pence “Here’s the $100 million I raised up to this point, it’s all yours for your own campaign now?” ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [December 21, 2019, 8:27pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/3 "2019-12-21T20:27:42Z")
> [@Velocity](#): > > Under U.S. election law, is it the case that presidential candidates can only loan money to their own campaigns, but cannot just outright gift money? No. > **[Using the personal funds of the candidate - FEC.gov](https://www.fec.gov/help-candidates-and-committees/candidate-taking-receipts/using-personal-funds-candidate/)** > > Federal Election Commission rules defining the personal funds of a candidate. Learn how the candidate may spend, contribute or loan unlimited personal funds to the candidate's campaign for federal office, and how this is reported. > [@](#): > > (Otherwise, presumably, Jeff Bezos could wage a $20 billion presidential campaign for himself.) He can. > [@](#): > > Bonus/extra question: How much of Trump’s own money did Trump use for his own 2016 and 2020 campaigns? Is there any public record? Yes. [https://www.opensecrets.org/pres16/candidate?id=n00023864](https://www.opensecrets.org/pres16/candidate?id=n00023864) ---
**Author:** ![Ravenman](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ravenman/32/2929_2.png) [@Ravenman](https://boards.straightdope.com/u/Ravenman)\ **Post date:** [December 21, 2019, 8:30pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/4 "2019-12-21T20:30:37Z")
> [@Velocity](#): > > Bonus-bonus question: How much “financial distance” is required to exist between the DNC/RNC and a candidate, or between candidates? > > Could the DNC give as much of its money as it wanted directly to the Biden campaign? No. But the party can undertake activities on behalf of candidates. > **[Understanding ways to support federal candidates - FEC.gov](https://www.fec.gov/introduction-campaign-finance/understanding-ways-support-federal-candidates/)** > > Information for U.S. citizens on campaign finance law topics of particular interest to individuals who want to support or oppose federal candidates for the House, Senate and President, including making contributions to federal candidates and... ---
**Author:** ![DinoR](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/dinor/32/2821_2.png) [@DinoR](https://boards.straightdope.com/u/DinoR)\ **Post date:** [December 21, 2019, 8:34pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/5 "2019-12-21T20:34:12Z")
It is not the case that only loans are legal for federal campaigns. From the [FEC](https://www.fec.gov/help-candidates-and-committees/candidate-taking-receipts/using-personal-funds-candidate/) (Federal Elections Commission) > [@](#): > > When candidates use their personal funds for campaign purposes, they are making contributions to their campaigns. Unlike other contributions, these candidate contributions are not subject to any limits. They must, however, be reported. Loans are subject to special rules; from the same link > [@](#): > > If the candidate makes loans to the campaign (including advances or candidate-endorsed bank loans) that aggregate more than $250,000, special rules apply. There is a link on that page to the special rules if you are interested. Loans, for all the rules constraints, are pretty common instead of direct funding. Loans offer at least the prospect of getting paid back at least some of the money if they find an audience and start getting donations. State campaigns are a whole different issue and fall under state law. I would assume there is not one simple answer. ---
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [December 22, 2019, 12:24pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/6 "2019-12-22T12:24:48Z")
If I may ask a follow-up question: If a candidate is loaning personal funds to his or her campaign, who is the money loaned to? Is it common to incorporate a separate legal person which would act as the borrower to these funds and which would be the one running the campaign? ---
**Author:** ![rbroome](https://avatars.discourse-cdn.com/v4/letter/r/838e76/32.png) [@rbroome](https://boards.straightdope.com/u/rbroome)\ **Post date:** [December 22, 2019, 4:31pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/7 "2019-12-22T16:31:44Z")
> [@Schnitte](#): > > If I may ask a follow-up question: If a candidate is loaning personal funds to his or her campaign, who is the money loaned to? Is it common to incorporate a separate legal person which would act as the borrower to these funds and which would be the one running the campaign? I can only describe local election rules. One creates a separate bank account, “Campaign to Elect Mr. Smith”, find a volunteer willing to be the campaign treasurer, then write a check to the the campaign fund. Not all banks will handle such an account. Find a bank early. Incidentally, don’t make the mistake of naming the bank account “Committee to Elect Mr. Smith”-that will not go well. It looks like a PAC and certain people get far more interested in what is going on than is necessary or desirable. Identify the amount as a loan. The treasurer does this in the regular campaign finance reports. I am sure it would be a great idea to incorporate a separate legal entity for the election and for large elections that is done. For smaller ones, it isn’t necessary. After the election, if there is money left over, the loan is partially repaid. The rest of the loan is forgiven and listed as a campaign contribution. Everything is documented in the regular campaign finance reports filed with the state. The feds also get involved. There is a special IRS form, form 8872, that the feds want to have filed electronically to document that nothing tax related happened in the election. For instance, people were or weren’t hired, etc. If you end up doing things like that, plan on a lot more paperwork. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [December 22, 2019, 5:19pm UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/8 "2019-12-22T17:19:18Z")
> [@DinoR](#): > > Loans, for all the rules constraints, are pretty common instead of direct funding. Loans offer at least the prospect of getting paid back at least some of the money if they find an audience and start getting donations. This is why they lend the money to the campaigns, because they can get repaid if it’s a loan. ---
**Author:** ![Schnitte](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/schnitte/32/9033_2.png) [@Schnitte](https://boards.straightdope.com/u/Schnitte)\ **Post date:** [December 23, 2019, 9:26am UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/9 "2019-12-23T09:26:26Z")
> [@TriPolar](#): > > This is why they lend the money to the campaigns, because they can get repaid if it’s a loan. Assuming, of course, that the campaign has money to repay. ---
**Author:** ![Jonathan\_Chance](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/jonathan_chance/32/701_2.png) [@Jonathan\_Chance](https://boards.straightdope.com/u/Jonathan_Chance)\ **Post date:** [December 23, 2019, 11:05am UTC](https://boards.straightdope.com/t/candidates-can-only-loan-not-gift-their-campaigns-money/845192/10 "2019-12-23T11:05:27Z")
And if it doesn’t it can be written off a candidates taxes as bad debt.