Well, here we are, NAEDA, not even two years on since the merger in 2022, and we have a Political Action Committee (PAC). For some, that may not mean a lot; for others, it may seem like we are joining the “Dark Side”. But from our perspective, it’s a sign that the Association is reaching a new level of maturity. I suspect it’s like the first time you send your kid off to college. We are proud of the work done so far and excited for the opportunity the future holds, but we know the real work is only beginning.
This article will explain our reasoning behind our optimistic view on how and why a PAC benefits dealers, how the Association has formed this one, and a little history behind why these organizations exist in the first place. In the end, hopefully, you will have learned more about what NAEDA’s advocacy mission and efforts look like and why they benefit dealers.
So, what is a Political Action Committee, and why did NAEDA establish one? When several regional associations decided to merge and form NAEDA in 2022, they did so with the goal and expectation that this national Association would have primary responsibility for federal issues and advocacy efforts. And, of course, a critical element of being the industry leader at the federal level is mobilizing people and resources in a unified effort.
Being able to mobilize people is largely driven by membership and communication. Anytime a dealer responds to a NAEDA request for participation in legislative hearings, D.C. fly-in, dealer demonstration, etc., it’s a form of mobilization. Dealers are expressing their positions and opinions to their elected officials – civic engagement at its finest – facilitated through NAEDA’s coordination.
The other half of the equation is the mobilization of resources – specifically money – and this is where PACs come into the picture. A quick Google search for the definition of a PAC comes up with “An organization that raises money privately to influence elections or legislation, especially at the federal level.” So, as this definition implies, these are tailor-made organizations to mobilize money for civic engagement. This is the reason NAEDA decided to form one. It affords the Association a key tool in accomplishing the advocacy mission of pursuing positive public policy outcomes for successful dealers.
I can hear the whispers now, “NAEDA is getting into political financing and Dark Money!” No, the Association is and will continue to do our absolute best to ensure this is an entirely legal and ethical endeavor. Political campaign finance is a heavily regulated and legislated area of law. The Federal Election Commission (FEC) was established in 1975 – after the Watergate scandal – to specifically monitor and regulate how money is raised and used in elections. NAEDA PAC is registered with the FEC and must make regular reports to them on all contributions and expenditures. We won’t bore you with the details, but the requirements are extensive.
In fact, the Supreme Court determined in 1976 – Buckley vs. Valeo – that giving and spending money for electoral advocacy implicates rights of political expression and association under the First Amendment. In layman’s terms, that money being given to a political candidate or being used on behalf of a political candidate is protected under the U.S. Constitution – this is a broad generalization of this case.
In addition to complying with federal and local laws, NAEDA wanted to ensure this extension of the Association upholds the philosophy that we are a dealer-driven, consensus organization. With that in mind, the Board of Directors has been crucial in acting as a guiding beacon, ensuring this undertaking is in the best interests of dealers. In March 2023, they authorized the Association to develop a proposal for forming a Political Action Committee. In June of that year, the Human Resources and Governance Committee authorized the gathering of proposals from multiple law firms to help establish the PAC and ensure compliance with federal laws and regulations. In July, the board reviewed the proposals and selected one for use. In November, the entire board reviewed and approved foundational documents of the PAC – bylaws – and authorized the staff to formally file a statement of organization with the FEC.
Continuing the dealer-driven, consensus organization motto, the PAC bylaws also require that a committee acts as the decision-making body for how funds are distributed. This committee comprises the PAC Chair – NAEDA’s VP of Government Affairs –the PAC Treasurer – NAEDA’s Director of Government Affairs – and three to five dealer members in good standing. So, dealers will make up a majority of the decision-making body that decides how the PAC spends money.
And that’s the story of how NAEDA PAC came to be – we are growing up so fast! The Association is very excited for the future and how this tool will help us facilitate opportunities for dealers to engage and build relationships with their elected officials. Again, we view this as a vital tool in accomplishing our mission to pursue positive public policy outcomes for successful dealers. The Association is committed to ensuring PAC funds are used in compliance with the most stringent legal and ethical standards, and that NAEDA PAC lives up to the motto set by the Association as a dealer-driven, consensus organization.
If you have any questions, concerns, or would like additional information, please contact Eric Wareham at Ewareham@naeda.com or Kipp McGuire at Kmcguire@naeda.com
Article Written By Kipp McGuire
Kipp Mcguire is the director of government affairs for NAEDA. He comes from the consulting world, where he was an advisor to the U.S. Navy’s Commander of Pacific Fleet as a member of the Commander’s Action Group and Government Affairs and Outreach teams. Prior to his time as a consultant, he was an Advance Officer for the Office of the Secretary of Defense, which took him across the globe coordinating nation-to-nation engagements. He has extensive experience in the legislative and policy fields, and has previously worked for state and federal legislators, as well as an advisor on several political campaigns. His military service includes five years enlisted with the Marine Corps and is presently an Intelligence Officer with the Navy Reserves. He has degrees from the University of Montana and the Institute of World Politics.
