Candidates are restricted in how they may use their campaign funds. This page explains the primary rules that control the use of candidate campaign funds. Be sure to review FPPC Manual 2 for additional rules.
Spending Campaign Funds
A candidate may use funds in his or her campaign account for only two purposes:
- Running for City elective office; and
- If elected, paying for expenses associated with holding that office.
A candidate may not use campaign funds to support any other candidate, to support or oppose any ballot measure, or to contribute to any charitable organization.
Campaign funds may not be used to compensate a candidate’s spouse or domestic partner for any services rendered to the campaign.
In general, candidates may NOT use campaign funds for personal purposes.
Surplus Funds and End of Candidacy
Surplus Funds are funds that remain in a candidate’s campaign account at the time a successful candidate leaves City elective office, or at the end of the post-election reporting period following the defeat of an unsuccessful candidate, whichever occurs last. Once funds become surplus campaign funds, they may not be used for a future election. Surplus funds must be disposed of only by:
- returning the funds on a “last in, first out” basis to the candidate’s
contributors, - donating the funds to the City or a charitable organization,
- paying outstanding campaign debts, or
- paying expenses associated with terminating the committee, such as
bookkeeping, legal fees, preparation of campaign statements, and audits.
When a candidate has ceased to be a candidate prior to the election because they drop out of the race or fail to qualify for the ballot, the candidate must dispose of their unused campaign funds only by using one or more of the above methods.
Under state law, “campaign funds” include cash, cash equivalents, and other assets received or possessed by a committee. The above restrictions also apply to equipment or other physical assets purchased during a campaign or an officeholder’s incumbency.
Use of Remaining Funds for a Future Election
To use funds remaining in the campaign bank account for a future election, a candidate must take the following actions before the funds become surplus funds:
- File a new Candidate Intention Statement (Form 501),
- File a Declaration of Intention to Solicit/Accept Contributions with the Department of Elections,
- Open a new bank account, and
- File a new Statement of Organization (Form 410) for the future office (i.e., establish a new committee).
A candidate may use the same committee only if the funds will be used for a future election to the same office. If you decide to use your remaining funds for a future office, you must attribute the funds to contributors using a “first in, first out” or “last in, first out” accounting method. You must file a Form SFEC-122 with the Ethics Commission to disclose whether you used “first in, first out” or “last in, first out.” The statement must also include information regarding the contributions that were transferred, such as the date of the contribution, the contributor’s name and the contribution amount. You must also itemize such contributions on the first Form 460 that you file for your new committee.
Candidates for Mayor or the Board of Supervisors who receive public funding should consult the Public Financing Program webpage for additional requirements and restrictions that apply to funds that remain after the election.