Frequently Asked Questions

Q: How many PACs are currently using outsourcing services? A: There are no available statistics that can be relied upon. Our best estimate is that there are around 650 federal PACs using outsourcing services. The trend appears to be the retention of a professional services firm because of the complexity of PAC administration.

Q: Will your firm provide FEC report preparation only while my staff manages all other aspects of the PAC administration? A: We have not entered into a services agreement for only FEC report preparation. Outsourcing typically involves assuming responsibility for a set of processes that result in a finished product such as the FEC report. With limited or no control over the receipts and disbursements administration, it would be impossible to provide our guarantee as to the integrity of the information. Involving PAC Services isn’t the same as surrendering control of your PAC to an outsider; it’s much more a situation where you add a knowledgeable assistant to your program.

Q: How so I know if outsourcing is the solution for my PAC? A: We encourage anyone considering the outsourcing option to speak with other PAC managers who currently use our services or those of our competitors. Those individuals are in the best position to “tell it like it is”. Along the way you’re bound to ask questions about what they like about the particular provider. There are a number of things to consider. Pricing is obviously an important concern and you need to clearly understand what services you are going to receive and how much it will cost. PAC Services offers an annual retainer so our clients know precisely what they will pay for the service up front. In addition, we provide consulting about PAC-related matters as well as assistance in management reporting. Timeliness is another important consideration. Will checks for candidates be ready when you need them? Will my FEC reports be filed on time? Will I be able to reach my administrator when I need to speak to him/her? These are all important questions you should ask of others who are using an outsourcing service.

Q: You offer an annual retainer in your PAC outsourcing agreement. Others bill monthly or quarterly based on work performed on an hourly rate. How do I compare the approaches? A: PAC Services has always provided outsourcing services on an annul retainer. We’ve heard of situations where the fee for base services was set very low and then within a short time, hourly charges were billed based on additional needs of the PAC not addressed in the base service. If a service provider understands the needs of the PAC and has competent trained administrators, it should be able to determine what it costs to provide the necessary services. Comparing these pricing structures is difficult. If a proposed fee for a set number of hours or services seems to good to be true, it probably is. If you know that it takes your staff 12 hours a month for PAC activities and a service provider says they can do it in 3, you should be skeptical.

In most situations the connected organization bears the cost of PAC operations, and providing a finite number for compliance costs is welcomed. Adjustments are only made for additional services such as registration in additional states. Those adjustments are planned and agreed to by both parties in advance. With a fixed fee contract there are no surprises.

Q: Our PAC makes contributions to federal candidates and we also make contributions to candidates in several states. Does your service extend beyond federal reporting? A: Yes. Many of our current clients are in that same situation. In the initial discussions we will go over your PAC activity and determine what state reporting services you require. We currently have clients who make contributions in every state. We keep in regular contact with the state election agencies and clients are provided with calendars of report due dates.

Q: Our PAC Board is considering a charitable match program for contributors. Can you help us with the recordkeeping and management aspects? A: Yes, we provide PAC match services. This includes administrative tasks such as identifying participants, providing reports on qualifying amounts, assuring selected charities are qualified by the IRS, recordation of matches made and follow-up with the program participants.

Q: Our association members like to make their contributions using a credit card. Is that something you can handle? A: Yes. We work with several merchant service programs and can either work with your existing merchant service or help establish a merchant account and online contribution processing.

Q: We need some help with our solicitation efforts. Can you help us? A: PAC Services is first and foremost a compliance and reporting service. As part of our consultative service, we offer practical advice on fundraising and we review client solicitation materials upon request to ensure they meet FEC and state law requirements. However, fundraising is not our expertise and there are several professional firms that provide fundraising services.

Q: You mentioned that you use a software product to perform the recordkeeping and disclosure reports. Is that included in your service agreement? A: All of our clients are managed on Vocus systems. Some clients opt to purchase the software directly from Vocus; others prefer to have us purchase it and keep it all within one contract. It’s each client’s decision how this will be handled. The important point is that this is unquestionably the most secure and the most robust software designed specifically for PAC activity. Client information is maintained on systems that reside on servers located in secured Qwest hosting facilities. Vocus it is the only PAC software company that can provide a SAS70 report, an accounting profession standard. Personal data security is of paramount concern and we want to provide our clients with software that meets these security challenges.

Q: My PAC requires the use of a FTP site for data transmission and PGP encryption for data security. Can you accommodate this? A: Yes, PAC Services maintains a FTP website for our clients use. Upon request, your PAC will be assigned an account and password. The site can be used for the exchange of data files as well as providing reports for your review. We also use PGP encryption and will work with your internal security to establish the secure exchange of data such as contributor payroll files and demographic information.