Hosting A Federal Campaign Fundraiser On Association Property

Federal campaign finance law restricts incorporated associations' expenditure of association funds or resources to host a federal campaign-related event such as a fundraiser. This White Paper discusses four permissible means of hosting a fundraiser on association property.

PERMISSIBLE CAMPAIGN-RELATED EVENTS

1. Association-Paid "Restricted Class" Event Federal campaign finance law permits an incorporated association to host a candidate (or campaign or political party representative) "appearance" at its event, subject to the following restrictions:

   Permissible Attendees The association may invite its "restricted class."1 A small number of other employees may also attend if their participation is necessary to administer the event (e.g., non-restricted class catering staff or meeting planners) but they should not be solicited. Other guests of the corporation who are speaking or being honored at the event and representatives of the news media2 also may attend. Candidate Selection The association may invite any federal candidate or representative of a federal campaign or political party. It may refuse campaign or parties' requests and need not invite opposing candidates or parties to the same or a later event. Solicitations and Handling Contributions Campaigns and parties may solicit and receive contributions before, during, or after the event. Association representatives may suggest contributing but may not in any way accept or handle contributions before, during, or after the event. Federal Election Commission ("FEC") rules also permit candidate appearances at association events that involve employees who are not within the restricted class. Such events involve additional restrictions. For example, the association may not suggest that attendees make contributions, the candidate may not collect contributions at the event (although leaving behind contribution materials is permitted) and the association must honor requests by opposing candidates for similar appearances at association-paid events.

2. Campaign-Paid Event

   Some campaigns prefer to pay fundraiser costs directly as operating expenses. Asking the campaign's preference should be one of the first questions when planning the event.

   Some campaigns will not accept direct or in-kind contributions from PACs or individuals/entities registered under the Lobbying Disclosure Act ("LDA"). As a rule of thumb, most campaigns are comfortable paying five percent of the amount they expect to raise at the event. If the campaign agrees to pay the event's costs, the association should invoice the campaign and receive advance payment in full for (a) employees' compensation, benefits and overhead if the association asks subordinates to...