Super PACs are a type of political action committee that were formed following the outcome of a federal court case known as SpeechNow.org vs. Federal Election Commission. These Super PACs are allowed to raise unlimited sums of money from individuals, corporations, labor unions, and associations, but unlike regular PACs, they may not make direct contributions to candidates. The money raised may only be used on independent expenditures.
An independent expenditure is money spent to advocate for the election or defeat of a candidate, but the Super PAC may not coordinate that expenditure with a candidate or the candidate’s staff. In other words, it must be completely independent.
Funds contributed to the Super PAC are also reported to the Federal Election Commission on a regular basis (quarterly or monthly depending on the Super PAC’s registration), and none of the donors are hidden unless they do not meet the itemization threshold of $200.01 in a calendar year.