September means back to school, earlier sunsets, no more white pants, and the unofficial start of general election season. It also means companies will start seeing more invitations to host, sponsor, attend, or contribute to political fundraisers.
On certain days, I feel more like a party planner than a lawyer. But political fundraisers are not ordinary business events. After 25 years of advising clients in this space, I can say with confidence that compliance needs to be part of the planning from the start.
A political fundraiser may look like a routine invitation, but the rules are anything but routine. The office, election, event details, and contributor’s status can all change the compliance analysis, so companies should pause, ask the right questions, and understand the rules before committing.
Before hosting or contributing
Whether the company is hosting or “just” contributing, the starting questions should include:
- Is the candidate running for federal, state, or local office?
- Is this a primary, general, special, or nonpartisan municipal election?
- Is the candidate’s committee properly registered and filing required campaign-finance reports?
- What contribution limits apply?
- Does the company hold government contracts?
- Do pay-to-play limits or disclosure obligations apply?
- Does the company have a system in place for reviewing, vetting, and tracking contributions?
- Can the company contribute directly?
- Will individuals affiliated with the company contribute personally?
- If so, does everyone understand that personal contributions must be made with personal funds and may not be reimbursed in any way, shape or form?
- Does the contributor understand that, depending on the amount, the contribution may appear on campaign-finance reports?
If you are hosting the event
If the company is hosting, there are a few more questions to answer before invitations go out:
- Who is paying for the food, venue, invitations, and other costs?
- Are company resources being used to help plan or run the event, and if so, will those costs be treated as in-kind contributions or reimbursable expenses?
- Who is soliciting contributions?
- Who is vetting contributions?
- Could employees, vendors, or other potential contributors feel pressured to contribute?
- Does the invitation include the required “paid for by” line or disclaimer?
- Who is responsible for follow-up compliance after the event?
Political fundraisers are not just another event on the calendar. Before a company RSVPs “yes,” clicks a contribution link, agrees to host, or ignores the invitation because the rules seem too confusing, it should ask the right questions. The answers may determine whether the event is permissible, whether disclosures are required, and whether participation creates legal or reputational risk.
No one wants to put a company at risk because a political fundraiser was treated like an ordinary social or business event. With early review and a clear compliance plan, companies can make informed decisions, avoid preventable problems, and then get back to the easier questions: who is attending, what to wear, and how to get there. If you are unsure how the rules apply, that is the right time to ask for guidance—before the invitation goes out, the check is written, or the contribution is made.
Rebecca Moll Freed is the Practice Group Leader of the Government & Regulatory Law Group at CSG Law. You can reach her at [email protected].
