Political Contributions

Freddie Mac is legally prohibited from expending funds in connection with election-related activities, including contributions to political parties and to candidates for federal, state and local offices.  The company has strict procedures relating to contributions to non-profit organizations, including trade organizations, to prevent any Freddie Mac contribution to a third party being used to support political activities.

However, Freddie Mac is permitted to sponsor a political action committee, or PAC.  Accordingly, the company established FreddiePAC to give employees a collective voice in supporting candidates who believe in our mission and support our congressional charter.  Freddie Mac does not contribute directly to FreddiePAC, but does pay the costs of administering FreddiePAC, as is permitted by applicable law.  FreddiePAC's contributions are reported to the Federal Election Commission on a monthly basis.

Contributions to Section 527 Organizations

Entities organized under Section 527 of the Internal Revenue Code typically are involved in election-related activities that Freddie Mac is not permitted to support.  Accordingly, the corporation does not contribute to such organizations.

Other Corporate Contributions

Freddie Mac has a corporate procedure designed to reduce the risk that we will fail to comply with laws, rules and regulations restricting our ability to participate in political activities.  This procedure requires prior review and approval of corporate contributions to minimize the possibility that our support of tax-exempt entities might indirectly fund political activities we are not permitted to fund directly.  If our review identifies heightened risk that contributed Freddie Mac funds would be used to finance prohibited activities, the contribution would not be approved.  Additionally, approved payments typically are accompanied by a letter advising the recipient of Freddie Mac's expectation that its payment will not be used in connection with election-related activities.