Restricted Use Account or All-Purpose Bank Account?
📌 Clarifying Restricted vs. All-Purpose Accounts (How They Really Work) When a committee has two accounts, the distinction is not about one being “more flexible” overall — each account is flexible in different ways. All-Purpose Account - Used to make contributions to both local and state candidates - Cannot accept any contributions over the state limit - All money in this account must always be under the current state limit(currently $9,800 per contributor) 👉 This makes the all-purpose account flexible in who it can give to, but limited in what it can accept. Restricted Use Account - Can accept all contributions, including over-the-limit contributions - Typically holds over-the-limit money - Commonly used for administrative and non-candidate expenses - Allows committees to preserve all-purpose funds for state candidates 👉 The restricted account is actually more flexible on intake, because it can receive unlimited contributions. How the Accounts Work Together - Over-the-limit contributions are deposited into restricted - Committees then transfer up to the state limit (currently $9,800) from restricted into all-purpose within the allowed timeframe - This ensures the all-purpose account always remains under the state limit 💡 Why this matters:Using the restricted account for admin expenses helps protect and maximize all-purpose funds so they are available when needed for state candidates. That’s why it’s common to see the restricted account depleted first — it’s strategic, not a mistake.