Understanding Political Action Committees (PACs)

Political Action Committees (PACs) are important players in the U.S. political system, especially in terms of funding campaigns and influencing elections. These organizations collect contributions from members and then distribute those funds to candidates and political parties. One key regulatory aspect of PACs is their contribution limits and the reporting requirements they must adhere to, which vary based on the type of PAC.

Which of the following statements accurately describes a Political Action Committee (PAC) as it operates within the framework of U.S. election laws?