What is the process for getting state/local funds for independent expenditure campaigns?

Who determines the state and local candidates that are supported?

How does RPAC relate to the REALTOR® Party Political Survival Initiative? What happens with RPAC?

Federal election law still requires use of hard (personal) dollars for direct contributions to candidates and to political parties.  Many state election laws may also require PAC funds for direct candidate contributions. RPAC remains a crucial part of the political equation.

The original recommendation of the Presidential Advisory Group on Political Survival was that state and local associations, in order to access the independent expenditure funds available through the RPPSI, would have to meet their NAR RPAC goals for the previous year.  After the RPPSI was announced, grassroots feedback caused a reconsideration of this requirement by the REALTOR Party Coordinating Committee (RPCC), the governing body with oversight responsibilities for the State/local candidate Independent Expenditure program. As such, there is now NO linkage to state and local associations being able to access these funds and their RPAC goals.

What is the proposal?

A six-part Political Survival Initiative is designed to build on NAR programs already in place. Many of these are essential expansions of existing dues-based programs, while others were successfully pilot tested as part of the Second Century Initiatives, and others are identified as mission-crucial new initiatives. 

Four parts directly benefit state and local associations by providing direct financial support and/or services to enhance your advocacy effectiveness:

• REALTOR^® Mobilization – This includes additional resources for state and local associations for RPAC fundraising; on-line grassroots advocacy tools; RPAC management & on-line fundraising software and consultancy support; and the broker involvement program.


• State and Local Issues – This provides significantly increased direct financial investments and technical support to conduct cost-efficient and effective issue campaigns.


• Campaign Services - This provides state and local voter files to effectively target and get out the vote; survey research to identify voter attitudes and to shape campaign messaging and strategy; and consultancy support to develop and implement campaign plans.


• State and Local Candidates -- Each state will be allocated NAR dues funds based on a per-member formula to be used for state and local independent expenditure campaigns. State Associations will each work out arrangements with their local associations for how the local Independent expenditure funds would be shared.

The final two parts of the Political Survival Initiative provide additional financial and technical resources for NAR Federal Issues and Federal Independent Expenditure Candidates campaign activity. <See Presentation: The REALTOR® Party Political Survival Initiative, Explained>

What about issues at the state and local level?

How will it be paid for?

The funding would come from a proposed $40/member dedicated dues increase to begin in 2012.  The Finance Committee is recommending that the dues increase be in place for 2012 and 2013.  At that time, the initiative’s effectiveness would be evaluated and a decision would be made through the normal association committee process about whether or not to continue the dues increase into future years.  The $40 dues increase would be restricted in the NAR operations for only political survival activities.

Why now? Why can’t it wait a year so the economy can recover first?

The economic recovery depends on a real estate recovery.  With the current and immediate threats to real estate, there is no ability to wait to fight all of the regulatory, legislative and political battles.  For real estate and our members to thrive, serious political action is required at every level.  <See Presentation: The REALTOR® Party Political Survival Initiative, Explained>

What does the NAR Finance Committee mean when they say they are recommending a $40.00 dedicated dues increase for political survival?

The intent is for the dedicated dues revenue to be used exclusively for all of the Political Survival Initiatives.

Will all of the unused Political Survival funds roll over every year?

Yes, currently, that is the intent if the Political Survival Initiative is approved.

Will all of the unused State and Local Independent Expenditure Program funds annually allocated to each state association (and their Locals) based on a per member formula roll over to be used by each state association (and their Locals) the following year?

How much of the $194 million over the next 5 year Political Survival budget plan will be allocated to state and local associations?

Why don’t you charge the members annually for what you have identified as the specific financial needs of the Political Survival Initiative instead of billing them for all of this unused capacity in the 2012-2013 period?

This question was fully debated by the NAR Finance Committee. The recommendation was made that the proposed dues increase be a dedicated fund for the Political Survival Initiative and that it remain a constant amount from 2012-2016 to cover the total cost over that timeframe. This $40.00 annualized number over the five year period was deemed to be more manageable rather than having dues changing every year from one number to another as the needs of the Political Survival Initiative grow during the “ramp-up” period.  The NAR Executive Committee will convene on Tuesday, April 12 to review this Finance Committee proposal and will make their recommendation  to the NAR Board of Directors.

How long is the Political Survival Initiative funded? Will it go up to $50.00 or $60.00 in the future?

The recommendation of the NAR Finance Committee for the RPPSI is for the $40.00 dedicated dues increase to be in place for the remaining two years (2012 -2013) of the NAR three year budget period. The Political Survival Initiative proposed 2014-2016 proposed $40.00 dedicated dues increase budget will then be examined just like all other dues funded NAR programs as part of the 2014 -2016 NAR three year budget review.

Why is this in dues and not an assessment?

Association Executives communicated to the Finance Committee concern about explaining the difference between voluntary political contributions on a dues bill (PAC) versus mandatory political survival program amounts showing outside of a dues amount on a dues bill.  In addition, the political survival program is believed to be a fundamental and complete shift in advocacy efforts versus a short-term effort.

What does the REALTOR® Mobilization Program cover?

These are programs designed to assist NAR, the state, and the local REALTOR^® associations raise RPAC funds and increase their member’s ability to engage their members in grassroots advocacy. They include programs like:

• NAR’s “Call-for-Action” system used by the state and local associations
• RPAC Fundraising grants
• NAR’s PAC management and online fundraising software and support
• RPAC Major Donor Recognition
• The Broker Involvement Program

All of these programs provide resources back to the state and local associations to improve their fundraising and advocacy efforts locally.

What if my state cannot accept these funds?

Based on the US Supreme Court ruling ALL states must now allow the use of soft money (dues) in state and local candidate independent expenditure elections. NAR’s Legal Affairs Division believes the Supreme Court decision does override any prohibition in state independent expenditure rules, so all states may accept these funds.  

NAR is willing to help any state that had restrictions on the use of soft dollars work with their state legislative or regulatory entities to discuss options for them to obtain the clarity needed to proceed with using these funds.  Also note, that there is no requirement that any state or board participate in any particular area of funding that may be available. 

What changed?

In January 2010, the U.S. Supreme Court Ruling (Citizens United vs. Federal Election Commission) allowed corporate dollars (dues dollars) to be invested for candidate independent expenditure campaigns. Prior to this Supreme Court ruling only voluntary PAC contributions (hard dollars) could be used for federal candidate independent expenditures.  <See NAR’s Impact of Citizens United Analysis>

This game-changing Supreme Court Ruling immediately and significantly alters the political landscape for the REALTOR^® Family at the federal, state and local levels because it increases the amount of money we all will need to remain successful with candidate independent expenditure campaigns. Why? Because the Supreme Court ruling not only overturned federal law requiring the use of hard (personal) dollars for candidate independent expenditure campaigns, it also overturned laws in 23 states that had similar restrictions.

All federal, state and local elections can now use corporate (dues) dollars for candidate independent expenditure campaigns - -which has already resulted in an exponential growth of corporate money into the candidate electoral landscape. 

This new political reality, coupled with increased campaign costs and the significant public policy issues that threaten our future, required bold action by the REALTOR^® Family.  We must do all we can to advance REALTOR^® Champions who support public policies that promote home ownership and responsible housing finance. 

What is the difference between RPAC “hard dollars” (personal funds) and “soft money” (corporate dollars)?

RPAC hard dollar contributions are voluntary investments of personal dollars by individuals. They are referred to as "hard" because they are hard to raise.

Soft dollars are corporate funds – or in our REALTOR^® Organization, National, State and local Association dues funds are considered “soft money”. The Supreme Court Ruling now allows dues money to be used to fund candidate independent expenditure campaigns at the Federal, State and local levels. Federal law and many state laws still require the use of “hard money” to give directly to candidate -  -therefore it is essential we continue to raise voluntary RPAC funds.

Can corporate funds now be used for a state or local association to meet RPAC goals?

Yes, nothing has changed with respect to the fact that state association can meet their NAR RPAC Fair Share Goal with RPAC personal (“hard”) dollars or with voluntary corporate ("soft") contributions.

What does Campaign Services cover?

This is NAR’s program for the state-of-the art campaign tools to advance state and local REALTOR^® Association candidate and issue advocacy.  It includes consultant use, combined with voter data files, data storage and polling to provide customized and targeted communications to REALTORS^® and registered voters. NAR helps to maximize state and local association’s resources and put REALTORS^® on the winning team, whether fighting a new local tax on real estate or promoting a REALTOR^® candidate running for the state legislature. <See Our Montana Testimonial>

Why should NAR be involved in politics at all?

There are monumental issues that will affect REALTORS^® in their daily business, such as the future of mortgage finance and keeping housing affordable, coming before our national legislators in the coming months. In addition, local issues like zoning, taxes, and private property rights have a dramatic effect on REALTORS®. NAR and the state and local associations must have the power and resources to shape this pivotal moment for the American dream of home ownership. <See Realtor Party Vote, Act, Invest>

Does my state association have to approve the use of these funds for local issues or candidates?

State associations will have the ability to use these funds for statewide candidates or issues. Local associations will have the ability to use these funds for candidate or issues pertaining to their local areas. The request form for local associations will include a question asking if the state association is aware of the candidate/issue being supported and if the state association is supportive. It is NAR’s hope that state and local associations would coordinate their activities to make the most efficient use of these available funds from NAR.

Why can’t we just generate more funds through our regular voluntary political contribution process?

RPAC cannot raise this amount of money; nor can we continue to expect only our voluntary investors (30 percent in 2010) to fully fund programs that benefit the entire industry, when the Supreme Court changed the rules.  All members need to step up and move the agenda, because now all members can do that.

Doesn’t RPAC already give money to political candidates?

The dues increase is NOT going to be used to make direct contributions to candidates. RPAC dollars are what NAR uses to make contributions to candidates. REALTORS^® should continue to give to RPAC to maintain its support of REALTOR^®-friendly candidates. The dues increase will be dedicated to be used as independent expenditures by REALTOR^® organizations. Associations can engage in advocacy campaigns on issues like point-of-sale ordinances or realty transfer taxes.  <See RPAC FAQ>

Can a state or local association receive additional funding even if they use all of their independent expenditure allocation?

Yes, state and local associations can receive additional funds from the “NAR Reserve account” that will be established for the state and local candidate independent expenditure program. This “NAR Reserve fund”, established  by the REALTOR Party Coordinating Committee,  will annually set aside 25% of the total per member formula allocation for all states to provide to those associations (state or local) that need additional financial resources above and beyond their specific allocation.

Isn’t this going to take a significant amount of education?

Yes!  Nevertheless, the outcome is vital to the industry, so collectively we have to work to ensure extensive education.  The members expect us to protect their interests and they expect us to win advocacy efforts.  As political analyst Charlie Cook told attendees to the Association Executives Institute in Dallas, “You cannot afford not to take on this bold initiative.”  <See Learn More about the Initiative>

An association request for financial or campaign services support requires a "significant" investment from the association before NAR will show a commitment...what is "significant"?

The investment provided by a local or state association will be determined on a case-by-case basis. Among items  that the RPCC will consider when evaluating a state or local association request: funds to be contributed by the local or state in support of a campaign, informational resources, any coalition building activities, grassroots advocacy resources, and human resources provided. <See State/Local IE Candidate Program Governance Documentation>

What do the “State and Local Candidates” and “State and Local Issues” programs cover?

This is the new approach at the heart of the REALTOR^® Political Party Survival Initiative. This is the area where states or local associations that want to get involved in candidate or issue activity can come to NAR for help. NAR will have funds available so that local and state associations can support REALTOR^® Party candidates or engage in issues involving real estate or property rights.

What if NAR supports a candidate that I don’t agree with?

RPAC is bi-partisan, supporting REALTOR^® friendly candidates regardless of political party and the REALTOR^® Party Political Survival Initiative will operate in the same manner. Decisions about support of local and state candidates and issues will be made by the local and state REALTOR^® associations. Your input into those decisions as a REALTOR^® member is welcomed at all levels of the REALTOR^® family. <See RPAC FAQ>

What is NAR doing to cut costs and operate more efficiently?

Much of what NAR does, including all governance activities and meetings are NOT funded by dues dollars. Dues dollars are spent on products and services that directly benefit the members. With this proposed increase, more than 50 percent of NAR dues will be spent on the number one service that members want from NAR -- political advocacy. Additionally, recognizing the impact that the current economic environment has had on Realtor members across the country, beginning in 2011, NAR has instituted stringent cost cutting measures across all operational areas of the organization. In addition to a hiring freeze that will serve to reduce NAR's staffing levels by 10%, remaining staff are also impacted by salary freezes and reductions to benefits.  Every operating area of the organization has instituted austerity measures designed to trim up to 20% off their expenditures, resulting in an overall savings plan of $12 to $15 million per year for the next three years.  These cost savings are designed to be able to provide the most efficient and effective program services.

What is the timing?

The Board of Directors is expected to vote on the initiative and attached dues increase on May 14, 2011 in Washington, DC. If approved it would be part of 2012 dues.

Will this affect NAR's 501(c)(6) status?

No. Even taking into account the activities that will be conducted within the Realtor Party Political Survival Initiative, the amount of NAR expenditures for political activity will be well within the limits related to NAR’s qualification for 501(c)(6) tax-exempt status.

What are the specific costs for each part of the program?

It is sometimes said that a picture is worth a thousand words, and so to answer that question we like to use this picture of the REALTOR^® Party Power House.  Each room represents one of the six programs that comprise the REALTOR organization’s advocacy efforts.  The dollar figure in each room represents the annual cost over five years for each of those programs under the proposed initiative.  In the gable of the house is the total – or the annualized cost of the entire initiative.

When we put it all together, the Political Survival Initiative involves an investment of nearly $40 million per year.  It breaks down like this:

• About $5 million for REALTOR^® Mobilization;
• About $4 million in Campaign Services;
• Just about $10 million in State and Local Issues;
• About $7 million in State and Local Candidates;
• About $3.5 million in Federal Candidates; and
• About $9 million in Federal Issues.

The orange rooms represent programs with funding and services that come directly back to the state and local level.  The blue room --REALTOR® Mobilization--includes a blend of programs for state and local associations as well as NAR. The black rooms represent NAR federal-level programs.

Will there be money available so that local associations can hire a Government Affairs Director (GAD)?

At this point, the RPPSI does not include funds for a local REALTOR® association to hire a Government Affairs Director. However, NAR does have an existing program where local or state associations can use an NAR consultant to access some of the services of a government affairs director (Government Affairs Director Training and Consultation – GADTAC). NAR also has an existing program where local and state associations can develop a shared Government Affairs Director position working for several associations in order to use resources efficiently. <See GADTAC Program and Shared GAD Program> 

What do you mean by “federal-level spending”?

The federal level spending (shown in the Federal Issues and Federal Candidates of the house above) represents expenditures NAR would make supporting federally elected candidates and toward federal legislation and regulation advocacy efforts. This would include spending on candidate independent expenditures as well as ads supporting or opposing federal legislation in Washington, DC publications or in publications within the districts of Members of Congress.

How can I learn more?

NAR President Ron Phipps hosted a “Town Hall” on April 13. NAR has a wealth of background documents including a recording of the Town Hall as well as the PowerPoint presentation used by former NAR president Cathy Whatley that explains the initiative. You can find those links in our Resources and Documents Guide to RPPSI.

Will the additional dues be tax deductible?

The additional $40 in dues that members will pay if the RPPSI is approved will not be deductible by members. In 1993 Congress disallowed as a business deduction expenses for lobbying and other political activities, which include the activities that will conducted by NAR and state and local associations using these funds.  As a part of that action, Congress also made nondeductible that portion of member dues paid to association that is used by the association to conduct such political activities. In 2011, the portion of current NAR dues that is nondeductible for this reasons is $26.

My local or state association has never done independent expenditures for political issues. How do we get started with getting involved with independent expenditures and how do we show the value of this involvement to REALTORS®?

Getting involved in a political campaign and coordinating an independent expenditure campaign can be a daunting task for any organization. As part of the RPPSI, NAR will have our team of campaign consultants and NAR staff available to you at no charge. The NAR Campaign Services team will assist state and local associations in using these new resources in the most efficient way possible to show the value of this investment to your local REALTORS® while maximizing impact and success at the ballot box with REALTOR issues or on behalf of candidates who are REALTOR Champions (as determined by the state and/or local associations). Some of the key Campaign Services include:

• Getting REALTORS® registered to vote and then mobilizing our REALTORS to turn out on election day on behalf of your issue or candidates.
• Conducting surveys to determine the strength of a potential candidate or issue in your local area to ensure we invest our funds strategically.
• Identifying  and targeting our key voter groups to educate and mobilize them to turn out for your issue or candidate by using our state of the art national voter file that you can tap for your campaigns.
• Creating customized messages (based on the survey results) to the targeted voter groups that can be used in your campaign.
  Producing customized mailing pieces, email communications and print ads (based on the survey results). Create and produce radio ads and television commercials as required.

NAR will assist in any way you need to show the value of REALTORS® investing in the political process while we achieve the issue or candidate electoral results that have been identified by the state or local association utilizing the Campaign Services.

Who were the members of the Presidential Advisory Group that made this recommendation?

The members of the Presidential Advisory Group on Political Survival are:

• Cathy Whatley (FL) – Chair
• Steve Brown (OH) – REALTOR®
• Vicki Fullerton (TX) - REALTOR®
• John Gall (AZ) - REALTOR®
• Kit Hale (VA) - REALTOR®
• Jim Helsel (PA) - REALTOR®
• Bob Kulick (CA) - REALTOR®
• Lance Lacy (TX) - REALTOR®
• Vince Malta (CA) – REALTOR®
• Charlie Oppler (NJ) - REALTOR®
• Chris Polychron (AR) - REALTOR®
• Richard Rosenthal (CA) - REALTOR®
• Mike Schmelzer (NY) - REALTOR®
• Kevin Sears (MA) - REALTOR®
• John Smaby (MN) - REALTOR®
• Leslie Rouda Smith (TX) - REALTOR®
• Tom Farley (AZ)  - State REALTOR® Association Staff
• Bill Martin (MI) – State  REALTOR® Association Staff
• Joel Singer (CA) – State REALTOR® Association Staff
• Mike Theo (WI) – State REALTOR® Association Staff
• Christine Todd (VA) – Local REALTOR® Association Staff