7d (edited) • Submit Compliance Questions!
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.
1
0 comments
Restricted Use Account or All-Purpose Bank Account?
skool.com/treasury-training-program-9940
Experienced Compliance Support for California Campaign Committees & Treasurers
Powered by