Dictionary of Business Terms: Politic Action Committee (PAC)
Politic Action Committee (PAC)
separate and segregated fund established by an organization for making political contributions. These funds were authorized by the Federal Election Campaign Act of 1971 and clarified through subsequent court decisions. PACs allow organizations to contribute money to federal elections, control the disbursement of funds, solicit contributions from an organization's shareholders and employees, and accept contributions from any lawful source. PACs have been extremely important in financing elections.
