Understanding Political Action Committees

Political Action Committees (PACs) have become an integral part of the political landscape in the United States, significantly impacting electoral campaigns. PACs can generate a substantial amount of funds to support candidates who align with their interests. However, the influence of PACs is often debated regarding its implications for democratic processes and electoral fairness. One key characteristic that differentiates PACs is how they are funded. Understanding these nuances is essential for evaluating their role in American politics.

Which of the following statements best describes a fundamental characteristic of Political Action Committees (PACs)?