Virtual Fundraising
ETHICS TIP: VIRTUAL FUNDRAISING
"Since you in effect paid for the slot of time, you must be on guard so that your conversation benefits your client or your employer without asking for a commitment to act."
We have received a variety of questions regarding participating in Zoom-type fundraisers in light of the current COVID pandemic environment. While the Commission opined about lobby expenditures and Zoom-type presence (it's a NO), it has not formally opined with respect to any restrictions concerning online political fundraisers.
We have provided some general background and tips below regarding virtual fundraising.
- At its last meeting, the Commission adopted an advisory opinion stating that the requirement to be present for certain lobby expenditures cannot be met "via videoconference technology". A registrant must be physically present. See recent commission opinion about presence on a Zoom.
- While you must be physically present for lobby events, you may host or participate in a virtual fundraiser under the Election Code without worrying about the presence requirement. If you are helping to put it on, you need to report any costs associated with it to the candidate as an in-kind; and presumably the candidate/SPAC would report the costs to establish the fundraiser. The contributor may or may not have anything to report, depending on the circumstances.
- From what we understand, some of the current virtual fundraising events require a contribution to have a face to face discussion for a set number of minutes. This can be likened to fundraisers in person at which a candidate or PAC requires a contribution to attend or requires a contribution of a certain amount to attend a special (small) reception before the regular event or to be considered a host at a certain level.
- The Commission opined in EAO 467 that a corporation may pay a lobbyist's expenses to attend a fundraiser as long as the lobbyist did not act on behalf of the candidate at the fundraiser (don't park the cars or make the chili). Our advice has been to mail the check or make the donation otherwise ahead of time so that when the lobbyist attends the fundraiser, he/she goes only as a lobbyist and is not even involved in handing over a contribution to the candidate. In the world of virtual fundraising, our advice is similar. You should make your contribution to attend the virtual fundraiser ahead of time so that it is the equivalent of mailing a check. Then attend the virtual fundraiser as a lobbyist. An additional caveat: it doesn't seem like a good idea to pay for your spot and immediately enter the virtual fundraiser either because that could be the equivalent of handing over the check to the candidate at the fundraiser, thereby blowing apart the argument that you were just going to be there to lobby.
- In the world of being physically present for a fundraiser, the candidate may ask about the issues that are important to you or your employer or your client during your 1 minute of face time in the reception line. Our advice has always been to pay attention to your conversation and not to get yourself into a detailed discussion about your issues and accidentally ask the candidate for a commitment to act while you're handing over a contribution to him or her. The same advice applies with virtual fundraising. Only with virtual fundraising, you have the full attention of the candidate for a longer span of time. And it can be recorded. Since you in effect paid for the slot of time, you must be on guard so that your conversation benefits your client or your employer without asking for a commitment to act.
As always, this isn’t intended to be legal advice, but suggestions on how to ethically, and legally, face the many challenges and potential trap doors waiting for us as we move through this newest normal we’ve not had to deal with before.
