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The Institute for Portfolio Alternatives has established a non-partisan Political Action Committee. IPA PAC is a special segregated fund, sponsored by the IPA, that accepts limited, voluntary contributions from certain eligible individuals, pools them into a common fund, and uses the funds to make contributions to support the campaigns of candidates and Members of Congress to understand our industry, share our values and support our success and prosperity.

Membership in IPA PAC is limited by federal law to the executive and senior administrative personnel of IPA member firms that have granted IPA prior solicitation approval.  Information about the PAC’s contributions and expenditures will be reported publicly and available on the FEC website at FEC.gov.

FREQUENTLY ASKED QUESTIONS

POLITICAL ACTION COMMITTEE

1

What is a Political Action Committee?

A Political Action Committee (PAC) accepts donations from multiple individuals, pools the donations into a common fund, and uses the funds to make contributions to candidates for elected office. In 1976, Congress authorized corporations, unions and associations to sponsor their own PACs as a legal and transparent means for their employees or members to join together and engage in the political process.
2

What is IPA PAC?

IPA PAC is the non-partisan Political Action Committee sponsored by the Institute for Portfolio Alternatives. It is funded through voluntary, limited contributions from eligible IPA members, and supports candidates for federal office who understand the Portfolio Diversifying Investments (PDI) industry, share our priorities and support our success and prosperity.
3

Why was IPA PAC established?

IPA PAC was established to be the only PAC dedicated to the unique issues of PDI products, including, REITs, BDCs, interval funds, closed-end funds and direct participation programs.
4

Who manages IPA PAC?

IPA PAC is overseen by a committee of the IPA Board of Directors, as well as the IPA President and the Senior Vice President of Government Affairs, and is advised by an external government affairs consulting firm
5

How will your contribution be used?

100% of each contribution to IPA PAC is used to make contributions to candidates for federal office. (Administrative costs associated with IPA PAC are paid by IPA, as permitted by law, so that PAC members realize a dollar-for-dollar return on their investment in the PAC.)
6

How does IPA PAC distribute funds?

IPA PAC is nonpartisan and supports candidates without regard to party affiliation. It contributes to candidates who are members of the House and Senate committees that focus on the policies critical to the PDI industry and our products, or who are in key leadership positions.
7

Who is eligible to participate in IPA PAC?

Federal law requires that each donor to IPA PAC must be a U.S. citizen or lawfully-admitted permanent resident alien (“Green Card” holder), and must also be either an individual member of IPA or an executive or senior administrative employee of an IPA member firm. Before soliciting any eligible employee of an IPA member firm, IPA PAC must receive prior solicitation approval from the member firm.
8

If I am subject to "pay-to-play" rules, can I give to IPA PAC?

Several IPA PAC donors are covered by “pay-to-play” regulations. The PAC accepts their contributions into a special segregated bank account, and uses it only to make contributions to candidates for federal office who are not also state or local candidates or officials. We gladly will provide your firm with an assurance letter upon request.
9

How can I receive more information about IPA PAC?

If you have questions about IPA PAC, or would like to receive a prior approval form for your company, please contact Gina Gombar at 202- 548-7185 or ggombar@ipa.com.
FREQUENTLY ASKED QUESTIONS

PRIOR APPROVAL

 

Granting Prior Approval to Solicit Your Eligible Employees is the Most Important Thing you can Do to Help us Grow IPA PAC.
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What is prior approval?

As a trade association, IPA must comply with a special legal requirement in order to ask your firm’s employee’s to make contributions to IPA PAC. We must obtain your prior written approval.

Why is prior approval important?

Most of IPA’s members are firms, not individuals. Most PAC contributions, however, are made by individuals.* In order to raise meaningful funds for IPA PAC, IPA must be able to ask eligible employees of member firms to contribute to the PAC—and we need your prior approval in order to do so. 

* Federal law prohibits PAC contributions from incorporated entities. In certain limited situations, a member firm that is organized as a partnership of LLC may be able to make a PAC contribution—without prior approval—that then would be attributed to one or more individual partners or members of the firm. Please contact IPA for more information.

Who can grant prior approval?

Any representative of your firm with whom IPA normally conducts business may sign the prior approval form. Depending on your firm and its relationship with IPA, this could be the CEO, President, or Vice President of Government Affairs.

How do I grant prior approval?

It’s easy! Just complete the enclosed form and send it back to us! There are important limitations and conditions of prior approval:

  • Prior approval must be granted in writing.
  • A firm may grant prior approval to only one trade association PAC, such as IPA PAC, per calendar year. If your firm already has granted prior approval to another trade association PAC for this calendar year, we would be happy to receive your prior approval for next year! (Some firms alternate between two or more PACs, granting one PAC prior approval in even-numbered years and another PAC prior approval in odd-numbered years.) 
  • A firm may grant prior approval for multiple years at a time, up to a maximum of five years, so that you do not have to complete a new prior approval form every year.
  • You may further restrict, in any manner you deem desirable, your prior approval—such as by limiting the approval to specific identified individuals within your company, by limiting the method by which we may make the solicitation, by limiting the number of times per year we may solicit, and by requiring review and pre-approval of any solicitation before we can send it.

What is a PAC?

A Political Action Committee (PAC) accepts donations from multiple individuals, pools the donations into a common fund, and uses the funds to make contributions to candidates for elected office. In 1976, Congress authorized corporations, unions and associations to sponsor their own PACs as a legal and transparent means for their employees or members to join together and engage in the political process.

What is IPA PAC?

Institute for Portfolio Alternatives Political Action Committee (“IPA PAC”) is a non-partisan Political Action Committee sponsored by IPA. It is funded through voluntary, limited contributions from eligible IPA members and the eligible employees of member firms, and supports candidates for federal office who understand the Portfolio Diversifying Investments (PDI) industry, share our values and priorities, and support our success and prosperity. IPA PAC is the only PAC dedicated to the unique issues of PDI products, including, REITs, BDCs, interval funds, closed-end funds and direct participation programs.

Who is eligible to be solicited for a contribution to IPA PAC?

Federal law limits the scope of individuals who IPA may solicit for a contribution to IPA PAC. First, IPA can solicit its individual members. Second, with the prior approval of a member firm, IPA may solicit certain of the member firm’s eligible personnel to contribute to IPA PAC. A member firm’s eligible personnel include its executive and senior administrative personnel, shareholders and their spouses.*

* Generally, a firm’s executive and senior administrative personnel include employees who devote the majority of their work to performing policymaking, managerial or supervisory responsibilities, as opposed to performing administrative or support tasks. In practice, there are several methods of determining who at your firm is eligible. Generally, but not always, employees who are classified as exempt under the Fair Labor Standards Act are eligible. The FEC has posted guidance on its website, and we encourage you to consult your firm’s counsel if you have any questions. Certainly, however, your firm’s C-level employees and VPs should be eligible, as are its shareholders and compensated members of your board of directors—and also their spouses or partners.

Can my firm just support IPA PAC directly?

IPA can use portions of membership dues and other general purposes donations to defray the overhead and administrative costs of operating IPA PAC, but the PAC generally cannot accept contributions from IPA member firms (except in certain limited situations*). This is why prior approval is so important. It is necessary so that we can raise funds from your firm’s eligible employees to be deposited into the PAC account, and then disbursed out as contributions from the PAC to candidates.

* Federal law prohibits PAC contributions from incorporated entities. In certain limited situations, a member firm that is organized as a partnership of LLC may be able to make a PAC contribution—without prior approval—that then would be attributed to one or more individual partners or members of the firm. Please contact IPA for more information.
IPA POLITICAL ACTION COMMITTEE

PRIOR APPROVAL FORM