When an intermediary or conduit collects and transmits contributions to the campaign (sometimes referred to as “bundling”), the special
rules in Appendix A apply.
In-Kind Contributions
Definition
The donation of goods offered free or at less than the usual charge is called an in-kind contribution. Similarly, when a person pays for
services on the committee’s behalf, the payment is considered an in-kind contribution. An expenditure made by any person in cooperation,
consultation or concert with, or at the request or suggestion of, a candidate’s campaign is also considered an in-kind contribution to the
candidate.
Limits
The value of an in-kind contribution — the usual and normal charge — counts against the same contribution limit as a gift of money.
Additionally, like any other contribution, in-kind contributions count against the donor’s limit for the next election, unless they are
otherwise designated.
Value
Goods (such as facilities, equipment, supplies or mailing lists) are valued at the price the item or facility would cost if purchased or
rented at the time the contribution is made. For example, if someone donates a personal computer to the campaign, the contribution equals
the ordinary market price of the computer at the time of the contribution.
Services (such as advertising, printing or consultant services) are valued at the prevailing commercial rate at the time the services
are rendered.
Notifying Recipient
The donor needs to notify the recipient candidate committee of the value of an in-kind contribution. The recipient needs this information
in order to monitor the donor’s aggregate contributions and to report the correct amount.
In-Kind Contributions Designated for More Than One Election in an Election Cycle
In Advisory Opinion 1996-29, the Federal Election Commission determined that the value of an in-kind contribution of used computer
equipment, received before the primary and designated in writing by the donors for all elections in the cycle, could, in fact, be allocated
among all elections in the same election cycle. The contribution was distinguishable from the type of in-kind contribution that is used for
one particular election (such as printing or mailing costs related to a general election fundraiser). If the candidate had lost the primary
election, the committee would have had to refund the amount designated for the general election (in this case, the candidate was active in
each election within the election cycle). The total value of the contribution could not exceed the contributor’s combined limit for all the
elections in the cycle. The Commission did not address the issue of allocating an in-kind contribution over more than one election cycle.
Exceptions
Under limited exemptions in the law, persons may provide certain goods and services to a committee without making contributions. For
example, when services are volunteered — not paid for by anyone — the activity is not considered a contribution.
Loans
A loan, including a loan to the campaign from a member of the candidate’s family, is considered a contribution to the extent of the
outstanding balance of the loan. (Bank loans, however, are not considered contributions if made in the ordinary course of business.) An
unpaid loan, when added to other contributions from the same donor, may not exceed the contribution limit. Repayments made on the loan
reduce the amount of the contribution. Once repaid in full, a loan no longer counts against the donor’s contribution limit. However, a loan
exceeding the limit is unlawful even if it is repaid in full. Besides being reported as a contribution, a loan must be continuously
reported as a debt until fully repaid.
Endorsements and Guarantees of Loans
An endorsement or guarantee of a loan, including a loan derived from a candidate’s brokerage account or other line of credit, counts as a
contribution to the extent of the outstanding balance of the loan. Repayments made on the loan reduce the amount of the contribution. Once
the loan is repaid in full, the endorsement or guarantee no longer counts against the endorser’s or guarantor’s contribution limit. If a
written loan agreement does not stipulate the portion for which each endorser or guarantor is liable, then individual contributions are
calculated by dividing the amount of the loan by the number of persons who have endorsed or guaranteed it.
Candidate’s Use of Jointly Held Collateral
A limited exception to this rule is provided when a candidate is using property jointly held with the candidate’s spouse to guarantee a
bank loan to the campaign and the bank requires the spouse’s signature. Note that this exception applies only if the value of the
candidate’s share of the property exceeds or equals the amount of the loan. This exception also applies when the candidate’s spouse is the
endorser, guarantor or co-signer of a loan derived from a candidate’s brokerage account, credit card account or other line of credit. For
unsecured loans, the spouse would not be considered a contributor if the candidate uses, in connection with the campaign, only one-half of
the available credit.
Proceeds from Sales
The entire amount paid to attend a political fundraiser or to purchase a fundraising item is a contribution. For example, if a
contributor pays $100 to buy a ticket to a fundraising dinner, the entire $100 is considered a contribution to the committee, even though
the meal may have cost the committee $30. Similarly, if a contributor spends $20 to buy a campaign T-shirt that cost the campaign $5, the
contributor has made a $20 contribution.
Extensions of Credit
An extension of credit outside of a creditor’s ordinary course of business is considered a contribution. If the creditor is
incorporated, an extension of credit beyond the ordinary course of business would result in a prohibited contribution.
Contributions from the Candidate
Unlike the other types of contributions listed here, contributions made from the candidate’s personal funds to his or her campaign are not
subject to any limits, though they must still be reported.
Advances by Staff
General Rule
When an individual uses personal funds (or personal credit) to pay for a campaign expense, that payment is generally an in-kind
contribution from that individual. For example, an in-kind contribution results if a campaign staff member pays for postage,
office supplies or campaign materials with personal funds. This rule also applies to payments made by volunteers and by the candidate.
1 Travel expenses later reimbursed by the committee are treated differently.
Special reporting rules apply when individuals pay for campaign expenses and later receive reimbursement from the committee.
Travel Exception
When a campaign staff member, volunteer or the candidate uses personal funds to pay for that individual’s own travel expenses
(transportation, meals and lodging), the payments are not considered contributions if they fall under one of two exceptions:
Exempt Unreimbursed Travel: Any individual may spend up to $1,000 per candidate, per election, on transportation expenses without making
a contribution, and volunteers may spend unlimited amounts on meals and lodging in connection with volunteer activity.
Reimbursed Travel: Any other payments by individuals for travel expenses are not considered contributions if the committee reimburses
them within specified time limits.
1
Criminal law prohibits an employee of a member of Congress from making campaign contributions to his employing member.
See 18 U.S.C. §603. See also 18 U.S.C. §602 for information on solicitation of federal employees.
Copyright © Unity Party of America. All rights reserved. Any use of any material found on this site
requires the express the written permission of the Unity Party of America. The communications on
this site are not authorized by any candidate or any candidate's committee.
