NADA PAC Basics

Friday, November 25, 2022 9:00 AM | Anonymous member (Administrator)
1.                   What is NADA PAC?

NADA PAC is the political action committee sponsored by NADA. NADA PAC raises funds from individuals at NADA/ATD member dealerships and contributes those funds to pro-dealer candidates for the U.S. House and Senate.

2.                   Who is the staff of NADA PAC that assists state teams?

NADA PAC is staffed by three full-time employees:

3.                   Where is NADA PAC located, and how can I contact it?

NADA PAC is located at NADA’s Capitol Hill Office
412 First St. SE, Washington, DC 20003

202.627.6755; f 202.627.6750; nadapac@nada.org; www.nada.org/nadapac

4.                   Who pays for the expenses of NADA PAC?

NADA PAC is a “connected PAC,” and all administrative and fundraising expenses incurred by NADA PAC are paid by NADA, not out of fundraising receipts. One hundred percent of every donation goes toward contributions to federal candidates.

5.                   Who is eligible to contribute to NADA PAC?

Dealers and managers, and their immediate families, of NADA member dealerships are eligible to contribute to NADA PAC. Additionally, the NADA member dealership must have a signed prior-approval form on file with NADA PAC for an individual to be eligible to contribute.

6.                   What types of contributions can NADA PAC accept?

NADA PAC can only accept contributions made by personal check or personal credit card. NADA PAC can manage auto renewal credit card payments or divide a contribution into equal increments to be paid over time. Corporate contributions to NADA PAC are prohibited by federal law.

7.                   What is the contribution limit to NADA PAC?

An individual may contribute up to $5,000 per year to NADA PAC.

8.                   Where should dealers send contributions to NADA PAC?
  • Personal checks. Personal checks are processed and deposited by NADA’s accounting department. Mail physical checks (with contribution forms) to NADA PAC, 8484 Westpark Drive, Suite 500, Tysons, VA 22102.
  • Personal credit card. If a dealer has indicated on a pledge form that the contribution is being made with a personal credit card, this form should be sent to NADA PAC, 412 First St. SE, Washington, DC 20003. The pledge form can be faxed to NADA PAC at 202.627.6750. Contribution forms with credit card numbers should not be sent to NADA PAC by email.
  • Online contributions. Dealers can also contribute to NADA PAC by personal credit card. Dealers should log in with their membership information at nada.org/NADAPAC. If they are eligible to contribute, they will be sent to a page with information on donating to NADA PAC, and can click “Contribute Now” to reach an online contribution page. Once donors have contributed, they will receive an email confirmation.
9.                   What is prior approval?

Because NADA’s members are corporations, federal election law requires that the dealership give “prior approval” to NADA PAC so that dealers and other eligible employees within the dealership can receive communications and invitations to participate in NADA PAC’s activities. The form can be signed only by the dealer principle or NADA authorized representative of the dealership, and may be granted for multiple years.

Each dealership can only grant prior approval to one federal trade association PAC each year. This does not prevent a dealer from contributing to a “non-connected PAC,” such as the Automotive Free International Trade PAC (AFIT-PAC). Contributions received from individuals whose dealerships do not have a prior-approval form on file will be returned to the contributor. A signed prior-approval form does not create an obligation to contribute to NADA PAC.

10.               Where do I find prior-approval forms, and where do I send completed ones?

Prior-approval forms are located on the NADA website and are included in this reference manual. After logging in with member credentials, authorized representatives can complete an online form to provide prior approval, which is then updated by NADA PAC staff in the NADA membership system. If the person logged in is not eligible to give prior approval, they are given the option to download and print the form.

NADA PAC staff can send you prior-approval forms (including electronic forms) and coordinate sending them to prospective dealer donors. Prior-approval forms should be returned to NADA PAC’s Washington, D.C., office by email (scan the form and then send to nadapac@nada.org}, by fax (202.627.6750) or by mail (NADA PAC, 412 First St. SE, Washington, DC 20003).

NADA PAC also solicits electronic prior approvals via DocuSign. These forms are sent via email to dealers with their information already included to be signed and returned electronically. DocuSigns are most effective as part of a larger campaign to reach out to dealers to urge them to sign the NADA PAC prior approval form. NADA PAC can prepare a DocuSign campaign in your state to increase prior approvals under the name of the NADA PAC team members.

11.               I want to do a solicitation campaign for my state. How do I begin?

First, contact the NADA PAC staff to obtain a list of NADA members in your state who have signed prior-approval forms on file with NADA PAC. Then, on your personal letterhead, or via email, contact those dealers to ask for support for NADA PAC. NADA PAC will provide sample letters and pledge forms to be sure that your solicitation meets all necessary federal legal requirements. NADA PAC can also send a solicitation letter on your behalf on NADA PAC letterhead.

12.               What are the NADA PAC state goals?

In addition to a national goal, the NADA PAC trustees set goals for each NADA district’s fundraising, based on the number of Congressional districts in the state or metro area. These state goals are designed to be challenging but attainable. In 2021, 50 of the 58 NADA districts surpassed their allotted goal.

13.               What are the NADA PAC state and metro award programs?

To recognize the role of the ATAEs and NADA PAC state teams in fundraising for NADA PAC, NADA has established three programs to reward states for surpassing their allotted state or metro association goal. These awards are paid directly to the general operating accounts of the state and metro associations. All the award money is paid by NADA, not by NADA PAC funds raised from dealers. A state of metro association’s annual participation in the NADA PAC award programs is authorized by each association’s elected chair.

  • 20 Percent Award Program. Twice yearly (in July and January), NADA pays the state association an amount equal to 20% of the funds raised to that date by that state. The state must surpass its end-of-year goal to receive the second payment. In lieu of participating in this program, a state may instead take a 20% goal reduction.
  • Recognition and Bonus Program. NADA pays the state association 8% of the state’s fundraising goal (or $2,000, whichever is greater), plus an amount equal to 10% on each dollar raised above the annual goal. A state association may participate in the Recognition and Bonus Program even if it has taken a goal reduction in lieu of participating in the 20 Percent Award Program.
  • Metro Association Program. To recognize the efforts that many metro associations make in fundraising for NADA PAC, NADA also makes payments to metro associations that sign up for the separate metro association program and meet their allotted goal. A metro association’s goal is calculated as a percentage of the state’s goal, based on the percentage of dealers the metro association represents. Associations receive from NADA a percentage of the funds raised based on the goal amount (capped at 200%), plus 5% of all funds raised above 200% of the goal.
14.               How are contributions to candidates determined?

Contributions to candidates are determined by each state’s NADA PAC team. This includes requests received directly from the candidates, through other dealers and from the NADA Legislative Office to attend Washington fundraising events. NADA Legislative and PAC staff are also available to assist with strategy in determining contributions and the most effective method of delivery.

15.               How much can a candidate receive from NADA PAC?

Candidates may receive up to $5,000 per election from NADA PAC; the primary election and general election are counted as separate elections. In a normal two-year (House) or six-year (Senate) election cycle, the total a candidate can receive is $10,000. NADA PAC has a policy of only contributing to Senate candidates’ re-election campaigns in the two-year cycle in which they are running. Runoff elections and special elections are treated as separate elections and are subject to the same per-election limit.

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