Sadaf's Campaign Finance
 
Understanding Our Campaign Finance Reports

~ Updated July 26, 2020

Whether at the federal, state or local level, campaign finance is confusing -- even for those of us in the middle of it. I support total transparency in all things related to campaign finance, and am happy to put our reports out there for easy dissemination and review. I encourage all candidates and office-holders to do the same; transparency is not just a responsibility of the government, but of those in government.

The reports for my campaign are a little more complicated than others because in addition to being a declared candidate, I also have a Special Purpose PAC (SPAC). Here's how that works:

 

  • When I decided in December 2019 to formally explore a run for Frisco City Council, I established a political action committee in order to receive campaign funds, and make political expenditures from those funds, while deciding which seat I would run in and when. This was the path recommended by the Texas Ethics Commission.

  • The "Sadaf Haq Exploratory Committee", an SPAC organized under state laws and filed with the Frisco City Secretary, had a reporting obligation from its day of formation, Dec 10, through Dec 31, 2019. 

  • That report was timely-filed and an official copy can be viewed here.  (You can also see it on the city's page for all campaign finance, in the section for PACs.)

  • The PAC received $9,550.00 in donations, and made $1,636.10 in expenditures, leaving a "Cash On Hand" balance of $7,663.90 on January 1, 2020.

  • The PAC continues to have a reporting obligation until such time as we file a Dissolution Report or "Close-Out Report", declaring that it does not plan to operate any longer.

  • From January 1 - January 22, 2020, the PAC received $16,930.44 in campaign donations, of which $15,117.44 was monetary. The PAC made $4,457.20 in expenditures during the same window. This creates a "Cash On Hand" balance of $10,660.24 on Jan 22, 2020.

  • When you roll in the PAC's December cash balance of $7,663.90, the PAC holds a total balance of $18,324.14 on Jan 22, 2020.

Sadaf the Candidate

  • On January 20, at my campaign kickoff party, I announced my intention to run for Frisco City Council, Place 6.

  • On January 21, 2020, with my dear friend Jamie Heit, I went to City Hall and filed an appointment of treasurer for my campaign

    • Now, with a place declared, I can campaign as an individual, and no longer need to utilize a PAC.  This is how everyone else operates on a local level, ordinarily -- as you can see on the city's campaign finance page.

    • Effective January 21, I can begin receiving campaign contributions and making campaign expenditures as a candidate, not a PAC. So my Exploratory PAC is no longer "exploring," and doesn't need to hold onto $18K+ in campaign contributions.

  • On January 23, the PAC makes a campaign donation of $18,000 to my candidate campaign, effectively leaving a de minimis balance of $324.14 on the PAC's ledger.

  • Now, from January 23 going forward, all contribution and expenditure transactions are conducted by me as an individual candidate.

  • The PAC still retains a reporting obligation, even if there is no activity for many months.

Semi-Annual Finance Reports

All candidates and officeholders (whether federal, state or local), as well as political committees, have a reporting requirement on January 15 and July 15, which are commonly called the "Semi-Annual Report".

  • On July 15, Jamie Heit filed the PAC's required Semi-Annual report, the official copy of which can be viewed here. You can also see it on the city's page for all campaign finance, in the section for PACs. The PAC's July 15 report reflects the numbers explained above.

  • Also on July 15, I filed my Candidate/Officeholder Semi-Annual report -- the filed copy of which can be viewed here.

  • On July 23, I filled a Corrected Version of the report above, which can be viewed here, and which is now considered the official copy of my semi-annual report. There were two items that were inadvertently missed (one donation, and one expenditure), and we discovered them quickly. The changes are outlined on the affidavit page of the corrected report.

  • Correcting a campaign finance report is fairly common in Texas, and the state ethics commission has a standard form and procedure for candidates to use.  The TEC considers a corrected semi-annual report to have been "timely filed" as long as necessary changes are updated and documented before the eighth day after which the report was originally due. You can see the state rules for this here.

  • This report reflects all campaign donations received and all expenditures made between January 21 and June 30.

    • It also reflects the $18,000 incoming donation from the Exploratory PAC. This money comes originally from individual donors supporting my campaign for City Council, as reflected in the PAC's semi-annual report.

    • From January 21 - June 30, 2020, I received $77,000.44 in campaign donations, of which $76,000.44 was monetary. The campaign made $27,588.71 in expenditures during the same window.

    • This creates a "Cash On Hand" balance of $53,411.73 on June 30, 2020.

 

The numbers above are a reflection of all the donors who have contributed to support me -- regardless of whether they donated to the PAC or me as an individual, since the intended destination (my race for Place 6) is the same.

I know this is a bit confusing but I'm happy to answer questions and clarify or explain where needed.  Please email me and let me know your questions, and I will compile the answers and add them to this page.

I am proud of the strength of our campaign, and of the sheer number of supporters who are eager to invest in a Frisco that is kinder, more transparent, more thoughtful, more inclusive, healthier, and better poised for success on the global stage. 

Thank you all for your support, prayers and love.

 

Pol. Adv. Paid for by Sadaf Haq for Frisco City Council.  Jamie Heit, Treasurer.