Politics: It's Your Business

 

 

With the 2008 presidential campaign nearly in full swing and House and Senate candidates already positioning for next year's elections, it's time for businesses to start paying attention to politics. Business owners need to understand the rules regulating business involvement in elections. While state election laws vary, the rules governing federal election activity are uniform. Below are a few important things businesses should know about federal election laws.

 

Corporate Contributions-Corporations cannot give anything of value to a candidate, campaign, and, in most cases, a party or make cash contributions to federal candidates or their campaigns. If a corporation wants to donate to a federal candidate, campaign, or party, it can do so by forming a political action committee (PAC). The Federal Election Commission (www.fec.gov/) or an experienced election law attorney can provide information about PACs.

 

Noncorporate Contributions-Sole proprietors, individuals, and partners can make donations to federal candidates, campaigns, and national parties within the proscribed limits. These limits are indexed and change yearly. For 2007-2008, the limits are as follows: An individual can give $2,300 to each candidate or candidate committee (campaign) per election (primary or general), $28,500 to a national party each calendar year, and $5,000 to any political action committee each calendar year. There are also overall limits on total contributions to all candidates, PACs, and parties that generous contributors should review.

 

Candidate Appearances-Incorporated businesses may invite a candidate or the representative of a candidate or political party to appear on corporate premises before its so-called restricted class (shareholders, executives, administrators and their families). A limited number of persons from outside the restricted class also may attend these functions. At such meetings, corporations can endorse candidates or restrict appearances only to favored candidates or parties.

 

A corporation can invite a candidate to address all of its employees, including those outside the restricted class. While the candidate can expressly advocate his or her election, the corporation cannot express its preference for particular candidates or parties at these general attendance meetings. Such restrictions do not apply to nonincorporated entities.

 

While companies can and should encourage all their employees to vote, the corporation must ensure that it does not coerce or threaten any employee with regard to supporting particular
candidates, parties, or PACs.