Project PACSmart

1. Project PACSmart A Program to Improve the Performance of AIA State Component PACs Dr. Steven Billet

2. What we will do • Describe the genesis and operation of PACSmart Program • What we have done and where we stand • Benchmarks • By-laws, values and strategies • Operational considerations • Two “Scenario Exercises”

3. “Honor the contributor and celebrate their contribution.”Dr. PAC

4. Project Description • Identify start-up and non-performing PACs among AIA state components • Establish a program of activity to enhance and/or establish their viability • Create benchmarks for on-going measurement • Build an organizational foundation to assure effective and efficient operation

5. Particulars so far . . . • Start up of PACs undertaken in Nebraska and New Mexico • Renewal of PACs in Georgia and Kentucky • Review of renewal of the North Carolina AIA PAC • Overview of the rest

6. What Done • Began with conversations with state directors • Review of legal and regulatory circumstances in the selected states • Subsequent discussion of individual state situations with directors and others • Establishment of benchmarks in each state • Creation of By-Laws tailored to the facts in each state • Recommendations for specific actions

7. Where do we stand? • Overview of AIA Component PACs – • 30 State components have PACs • Adding Nebraska and New Mexico • Of the 30, the average AIA component PAC raises $16,400 per 2006 cycle • The total for all state component PACs is just under $411K • A few of the state PACs are “respectable” – Texas, Florida, California, Illinois, New Jersey, Pennsylvania and Michigan • Even these are underperformers by most standards

8. Where do we stand (cont.) • The standard for participation rates for PACs is generally thought to be around 30%. • AIA Components do not reach this level of participation. • If ten of the largest component PACs increased their levels of participation to 20%, the total for all components would get close to $1 million per cycle.

9. Where do we need to be . . . and how do we get there? • One thing we have to realize is that the environments state-to-state are widely different. • Corporate contributions are legal in many places; severe limitations exist in many states on what a member can give to the PAC and what they can give to an individual campaign • How contributions are handled, when they can be made, how accounts are kept and reports made vary significantly • ALL OF THESE FACTORS CONDITION THE WAY YOUR PAC DOES BUSINESS AND MUST BE CONSIDERED WHEN YOU THINK ABOUT HOW TO MANAGE YOUR STATE PAC.

10. Identification of Benchmarks • The target in terms of solicitation results will depend on the state. • It should be “pegged” to: • Performance of likely competitors • Performance of top 10 or top 20 PACs • Adjusted for the membership totals in your state • Target a specific participation rate • Based on a calculation of contribution per member

11. Georgia has a robust PAC environment – lots of PACs with relatively high dollar receipts contributions No limits on corporate or individual contributions to a PAC; co-mingling is permitted I chose seven PACs, some similar in their agenda set, others simply because they were interesting membership organizations Georgia Benchmarks Amer. Council of Engineering Cos. of GA. Builders PAC GA Assn of Nurse Anesthetists GA Chiropractic Assn. GA Dental Assn. GA Optometric Assn. GA Credit Union PAC Benchmarks Example Georgia

12. Range from a high of $800K to a low of $26K per cycle Raised a total of $1,508 million Average was about $210K Question: How the AIA GA PAC get from where they are, essentially 0, to somewhere near the benchmark average? Try this If Georgia can get 25% of its members to contribute to the PAC; It has 2000 members. And that 25% gives a “dime a day” for a cycle = $364K More realistically, if they give the same amount per person, and just 10% contribute, they raise $146K Georgia Benchmark

13. What are the basics of PAC Management? • It’s always about the money, but raising cash is a tough proposition for most PACs • More than just asking • PACs have to establish a “foundation of credibility” with their membership based on trust, communication; confident that the PAC is advancing the interests of the sponsor organization and in the case of architects, the welfare of the profession

14. Establishment of “Values-Based”PAC Program • What does this mean? • A commitment to transparency in process and decision results • A pledge to communicate on a regular basis with AIA component members and contributors • A promise to run the PAC in accordance with the highest standards of financial integrity. • All driven by the following principle “Honor the contributor; celebrate their contribution.” • . . . .this is more than giving trinkets and a thank you note. It is making a commitment to maximize the impact of every dollar contributed to the PAC

15. By-Law and Foundation Building • Start with a statement of values commitment • Create an obligation to “open” the process and invite participation and comment • Establish an organization that is diverse and representative • Set up a PAC that responds • Use the guiding principle to give money intelligently. What do I mean?

16. Strategy for your PAC • As a practical matter not every PAC will be a monster – Realtors, NRA, Emily’s List • But every PAC needs a strategy consistent with its goals and capabilities. • Strategy should be driven by realistic assessment of the public policy goals of the organization and its resources. • Questions to ask?

17. Strategy options are as numerous as the number of PACs • Ticket Puncher • Just want to be in the arena and be able to answer “yes” to the question. Reactive and random. • Focused Reactor • Has a PAC that responds to threats on the immediate policy agenda (i.e. a bill pending before the legislature). Responds to fundraising opportunities. • Agenda Setter • Uses the PAC as an element in advancing a particular policy agenda. Establishes goals and has an idea where money needs to go.

18. Strategy options (cont.) • Change agent • Sponsor group uses the PAC as a way to change the composition of a policy making body in a way favorable to its interests. Budgets, plans and engages in specific campaigns. • Party Substitute • PAC is integral to a comprehensive program of support for candidates that will support and champion the agenda of the sponsoring organization. Often assume roles similar to political parties.

19. Ticket Puncher Focused Reactor Agenda Setter Change Agent Party Substitute On the continuum from Ticket Puncher to Party Substitute . . . More resources needed as you advance to more proactive postures More thought given to how you operate Most AIA State Components lie between the first and third options right now – basically a resource issue Implications

20. Operational components • In the final analysis, the proof of any PAC comes with its day-to-day operation • All of these activities should be covered • Building budgets that reflect and advance strategy • Deciding how to give money • Getting data to inform decisions • Rating and ranking • Communicating with members • Fundraising • Contribution guidelines

21. Forecasts and Budgets • This is a best guess exercise • How much do you expect/hope to receive for the year/cycle? • How do you expect to allocate the money? • How can you best reflect the mission, goals and objectives of the component PAC? • How do you connect to the values? • How do you accommodate the political reality of your own state?

22. Budget Exercise • Handout – The State of Confusion • Take about 10 minutes to read the handout • Make whatever other assumptions you like, but make certain you state these when we do the “readout” • Remember, there is no clearer statement of an organization’s priorities, values and strategies than their budget

23. Rating and ranking of votes • Measures of a public official’s support for your agenda. • Have you ever used these? • Are the scorecards of other groups of any use? • Rationales are simple • In the final analysis, it’s votes that count no matter what explanations are offered.

24. Decision-making • If you have done other things well, this should be easier. • Develop a budget • Have contribution criteria • You should have a policy agenda from which to work • Remember: your decisions should honor the contributions by making the most of every dollar raised by the PAC.

25. Interviewing • This is often overlooked as a tool available to PACs • Spend time with candidates; especially non-incumbents that you may not know or that are not widely known in the political arena. • Why? • Introduce your interests • Gauge the candidate’s receptivity to your agenda priorities • Identify problems • Don’t be afraid to ask tough questions. Remember: you are the “steward” of the PAC and you are looking after its integrity and the contributions of its members.

26. Contribution guidelines This exercise is intended to inform your efforts to determine who gets support and contributions from your component Options • Voting records • Sponsorship of legislation • Accessibility • Committee leadership • Committee assignment • Leadership • Public statements • Public Record • Past endorsement by AIA • Recommendation of staff/consultants • Member recommendations • Electability • Political Party • Political potential

27. Contact Dr. Steven Billet Director, Masters in Legislative Affairs Graduate School of Political Management The George Washington University 805 21st St., NW #463 Washington, DC 20052 (202) 994-1149 (W) (202) 256-5153 (C) sbillet@gwu.edu