- So you want to know more about political action committees or PACs?

Well, let's unpack the different ways money can influence elections.

(upbeat music) Campaigns are expensive, travel, consultants, events, and lots and lots of ads on TV, radio, and social media.

So where does all that money come from?

The short answer is campaign contributions.

For federal elections, there are limits to the amount of money an individual or party can contribute directly to a candidate's campaign.

And corporations, foreign nationals, and unions are prohibited from directly contributing at all.

Yet there is more than one way to influence an election.

Political action committees or PACs are non-profit organizations that combine the money from several donors in order to support or defeat a candidate or legislation.

These PACs are typically centered around an ideology or trade group.

There are three types of PACs.

First, separate segregated funds or connected committees.

These PACs are funded by individuals associated with an organization not technically the union or corporation itself.

Next are non-connected committees.

These are not represented by an organization, but instead, pull funds from the general public.

Both of these PACs give directly to a candidate's campaign so they are subject to limits just like individual donors.

But the final type of PAC is the aptly name Super PAC.

In 2010, the Supreme Court decided that corporations and unions had the right to free speech and therefore were allowed to create and distribute media about political campaigns independently without directly contributing to a candidate.

And thus, the Super PAC was born.

Because they do not give money directly to a candidate, Super PACs can accept unlimited contributions from individuals, unions, and corporations to spread their political message.

They don't even have to disclose the donor's identities and Super PAC managers sometimes even collaborate and discuss strategy with their favorite candidate.

Not exactly what Justice Anthony Kennedy had in mind when he specified, "Political speech presented to the electorate that is not coordinated with a candidate."

Through Super PACs, individuals and corporations can anonymously spend millions to influence voter, elections, and candidates outside of the norms of campaign finance laws and limits.

So next time you see a campaign video on TV or social media, look for the statement at the end to see just who paid for it.

Chances are, it was a PAC.

(upbeat music fades)