Why PAC banking fees may be a silent budget killer and what you can do about it
When a supporter writes a check to your PAC, they’re investing in your mission. They’re not thinking about monthly maintenance fees, wire transfer charges or account analysis costs.
Yet without the right banking relationship, that’s exactly where some of their contribution goes. Excessive banking fees are donor money that never reaches its intended purpose – creating political impact. The solution? Partner with a bank that understands PAC operations and structures relationships to minimize these costs.
The Real Cost of “Standard” Banking Fees
Let’s put this in perspective. If your PAC is paying $200 monthly in banking fees (a conservative estimate for many corporate and trade association PACs), that’s $2,400 annually. For a [TM2] PAC with $200K in deposits, those fees represent more than 1% of your entire budget—gone before you even begin your real work.
But here’s what makes this truly painful: those fees compound over time. That $2,400 could have funded direct mail campaigns, event sponsorships, or additional advocacy efforts. Instead, it’s padding your bank’s revenue while your actual political objectives compete for increasingly scarce resources.
Why This Matters More for PACs Than Anyone Else
Corporate treasury departments negotiate banking relationships with leverage—they bring massive deposits, complex cash management needs, and long-term partnerships. Your PAC? You’re often an afterthought, stuck with whatever fee structure the corporate relationship dictates.
The irony is stark: while your parent organization may have negotiated favorable terms for their operational banking, your PAC—with its unique compliance requirements and specialized needs—gets treated like a standard commercial account. You’re paying premium prices for basic service.
The Fee Trap That’s Costing You More Than Money
Beyond the direct financial impact, excessive banking fees create a dangerous cycle:
· Limited budgets get squeezed tighter. Every dollar lost to fees means less money for your core mission—whether that’s supporting candidates, driving policy initiatives, or engaging stakeholders.
· Planning becomes harder. When you can’t predict your actual banking costs, budgeting for campaigns and advocacy becomes a guessing game.
· Donor trust erodes. Contributors expect their money to fund political action, not administrative overhead. High banking fees force you to redirect donor dollars away from visible impact.
Breaking Free From the Fee Cycle
The solution isn’t complex—it’s strategic. PACs that prioritize banking relationships specifically designed for their needs consistently spend less on fees and more on their missions.
Consider this: if restructuring your banking relationship could save your PAC $1,500 annually, what could you accomplish with that money? An additional direct mail piece? Extended digital advertising? More comprehensive compliance tools?
What Donors Really Want
Your supporters aren’t writing checks so you can pay bank fees. They’re investing in outcomes—policy changes, candidate support, issue advocacy. When excessive fees eat into that investment, you’re not just losing money; you’re undermining the very reason your PAC exists.
Smart PAC managers ask themselves: “Is this expense moving us closer to our political objectives?” Banking fees rarely pass that test.
The Path Forward
Every PAC faces budget constraints. But not every PAC has to accept unnecessary banking fees as an inevitable cost of doing business. The most effective PACs—regardless of size—treat banking relationships as strategic decisions, not inherited obligations.
Your donors believe in your mission. Partner with a bank that shares that commitment by keeping more dollars working toward your goals.
