(1) Joint
fundraising events may take place as provided in 970 CMR 2.12.
(a) One or more candidates or candidate
committees may sponsor a joint fundraising event with other candidates or
candidate committees.
(b) One or
more political party committees may sponsor a joint fundraising event with
other political party committees.
(c) Committees participating in a joint
fundraising event, except for an event held in accordance with 970 CMR
2.12(1)(e), may designate an individual or entity to be a "joint fundraising
agent" to make expenditures, accept contributions, allocate proceeds and
maintain records in accordance with 970 CMR 2.12. If a joint fundraising agent
is not used, each participating committee and candidate must:
1. allocate costs according to the percent of
total contributions expected to be received by each candidate or
committee;
2. pay vendors
directly;
3. ensure that
contributors write checks directly to the participating committees;
and
4. maintain complete records,
consistent with M.G.L. c. 55, §§ 2 and 5, regarding the
event.
(d) If a joint
fundraising agent is used, contributors may contribute by check made payable to
the joint fundraising agent. All funds received by a joint fundraising agent,
for an event held in accordance with 970 CMR 2.12(1)(a) or (b), must be
deposited in a separate, segregated account designated for that
purpose.
(e) Where joint
fundraising events are held by candidates or candidate committees and political
party committees, joint fundraising agents may not be used. One or more state
or local committees of a political party may sponsor a joint fundraising event
with one or more candidates or candidate committees only if each participating
committee and candidate:
1. allocates costs
according to the percent of total contributions expected to be received by each
candidate or committee;
2. pays
vendors directly;
3. ensures that
contributors write checks directly to the participating committees; and 4.
maintains complete records, consistent with M.G.L. c. 55, §§ 2 and 5,
regarding the event.
(f)
Political action committees and people's committees may not sponsor joint
fundraising events with any candidate or committee.
(g) Ballot question committees may not
sponsor joint fundraising events with candidates or candidate
committees.
(2)
Expenditures incurred and contributions received by candidates and committees
participating in joint fundraising events held in accordance with 970 CMR
2.12(1)(a) or (b), and using a designated joint fundraising agent are subject
to the following restrictions.
(a)
Primary Purpose of Expenditure.
1. An expenditure by a participating
committee in connection with a fundraising event is permitted only if the
primary purpose of the expenditure is the enhancement of the political future
of the candidate or the enhancement of the political party for which the
committee was organized.
2. An
expenditure by a participating committee in connection with a joint fundraiser
which does not comply with the requirements of 970 CMR 2.12(2)(a)1., shall be
considered a contribution as defined by M.G.L. c. 55, § 1 from the
committee making the expenditure to the committee benefiting from the
expenditure and will be subject to the contribution limitations of M.G.L. c.
55, § 6.
(b)
Allocation of Expenditures and Liabilities.
1.
Funding of Joint Fundraising
Agent. To the extent the committees participating in an event held
in accordance with 970 CMR 2.12(1)(a) or (b) provides funds to a joint
fundraising agent to allow the joint fundraising agent to make expenditures in
connection with the event, each participating committee must provide funds and
incur liabilities equally.
2.
Expenditures by Joint Fundraising Agent. A joint
fundraising agent may make expenditures only to defray the costs of a joint
fundraising event held in accordance with 970 CMR 2.12(1)(a) or (b). Such
expenditures may be made from funds provided by sponsoring participating
committees or from proceeds received from contributors.
(c)
Attribution and Distribution
of Contributions. Contributions received at or in connection with
a joint fundraising event held, in accordance with 970 CMR 2.12(1)(a) or (b),
must be "attributed" to each participating committee in accordance with one of
the alternatives defined in 970 CMR 2.12(2)(c). Attribution is based on gross
proceeds received,
i.e., no deduction is made to reflect
expenditures by a joint fundraising agent. After attribution, net proceeds must
be distributed, in accordance with 970 CMR 2.12(2)(c), to each participating
committee.
1.
Pro
Rata
Attribution and Distribution.
Unless participating committees agree otherwise, and such agreement complies
with 970 CMR 2.12(2)(c)2. or 3., contributions will be attributed equally to
each participating committee and each committee will receive equal shares of
net proceeds. Prior to purchasing a ticket or making a contribution,
contributors must be informed that contributions are understood to be made to
each participating committee in equal shares.
a.
Attribution. Each
contributor shall be understood to be a contributor to each participating
committee, and the pro rata portion of an individual's
contribution, shall be attributed to each participating committee. For example,
if a person contributes $60, and three candidate committees participate in an
event, $20 is attributed to each committee, which amount is applied to the
maximum contribution allowed by M.G.L. c. 55, § 7A.
b.
Distribution. Net
proceeds shall be distributed to each participating committee in equal shares.
For example, if three candidate committees participate in a joint fundraising
event which receives $3,500 in contributions, but the joint fundraising agent
spends $500 in connection with the event, each committee is entitled to a 1/3
share ($1,000) of the $3,000 in net proceeds.
2.
Attribution and Distribution
Based on Committee Selling Ticket or Arranging for Contribution.
Prior to the event, participating committees may agree, in writing, to allocate
contributions and distribute net proceeds based on which committee sells a
particular ticket or arranges for a particular contribution. Contributors must
be informed, prior to making a contribution or buying a ticket, that the
contribution will be reported as a contribution to the committee which sold the
ticket and the proceeds will be given to that committee.
a.
Attribution. Each
contributor shall be understood to be a contributor to the committee which
sells the contributor a ticket or arranges for the contributor's contribution.
For example, if three committees hold a joint fundraising event and one
committee sells tickets to six individuals, but the other two committees do not
sell any tickets, the contributions would be attributed, in their entirety, to
the first committee.
b.
Distribution. Net proceeds shall be distributed to
each participating committee in proportion to the total amount of contributions
arranged by each committee. For example, if three candidate committees
participate in a joint fundraising event which receives $3,000 in
contributions, but the joint fundraising agent spends $1,000 in connection with
the event, distribution of the $2,000 in net proceeds will be determined by the
total contributions arranged by each participating committee. If one of the
three committees arranged for $ 1,500 (1/2 of the total contributions
received by the joint fundraising agent), that committee would receive a
distribution of 1/2 of the net proceeds, or $1,000. The remaining $1,000
of net proceeds would be distributed to the other two committees based on the
percentage of contributions arranged by each.
3.
Distribution Based on
Agreement of Participating Party Committees. Prior to the event,
if all participating committees are committees organized on behalf of state,
city, ward, or town political party committees, the participating committees
may agree in writing to distribute net proceeds and allocate contributions
based on various objective factors, including factors which objectively measure
the relative benefit which should be applied to each participant.
a.
Attribution.
Attribution of contributions shall be determined in accordance with the
committees' agreement. For example, if three town committees agree to attribute
contributions based on a contributor's residence, and 50% of the total of
$3,000 in contributions is from one town, 50% of total contributions ($1,500)
would be attributed to that town's committee.
b.
Distribution.
Distribution of net proceeds shall be determined in accordance with the
committees' agreement. In the above example, if $500 of the $3,000 total
contributed is used to pay expenses, the town committee, which is attributed
50% of the contributions, would receive $1,250 (the attributable amount less
the event's expenses multiplied by 50%).
c A committee participating in a joint
fundraising event must donate funds received to a charitable or other entity
specified in the residual funds clause of M.G.L. c. 55, § 18, if the joint
fundraising agent or participating committee has failed to maintain records
reflecting the allocation of contributions and
expenditures.
(d)
Limitation on Contributions
to Joint Fundraising Agents. Fundraising agents managing joint
fundraising events in accordance with 970 CMR 2.12(l)(a) or (b) must ensure
that contributions received on behalf of candidates and political committees
comply with M.G.L. c. 55's limitations on contributions.
1.
Contributions Received by
Joint Fundraising Agents. Such contributions are subject to the
combined limitation of those participating in the joint fundraising event. For
example, if three candidates hold an event, and they choose to attribute and
distribute contributions on
aprorata basis,
i.e., as defined in 970 CMR 2.12(2)(c) l., an individual could
contribute up to $3,000, assuming:
a. the
proceeds are divided equally among the candidates; and
b. the individual has given no other
contributions to any of the three candidates during the calendar year.
On the other hand, if the participating candidates choose to
attribute and distribute contributions based on which committee sells the
tickets, i.e., as defined in 970 CMR 2.12(2)(c)2., an
individual could contribute up to $1,000 to any one committee selling tickets,
assuming no other contributions are made to that committee during a calendar
year.
2.
Treatment of Excess Contributions. A contribution may
not be accepted by a joint fundraising agent to the extent the contribution
exceeds the limits imposed by M.G.L. c. 55. If a contribution is accepted by a
fundraising agent and then later determined to be, in whole or in part, in
excess of the amount permitted by M.G.L. c. 55, the excess amount must
immediately be refunded by the fundraising agent to the contributor.
(e)
Identification and
Distribution of Contributions Received at Joint Fundraising
Events.
1. Contributions over
$50.00 must be by check made payable to the joint fundraising agent.
2. All expenditures shall be paid and all
proceeds of an event shall be distributed to participating committees within 30
days of the event, pursuant to 970 CMR 2.12(2)(c), to each sponsor.
(3)
Reporting.
(a) Each
joint fundraising agent managing a joint fundraising event in accordance with
970 CMR 2.12(1)(a) or (b) must disclose to the participating candidates and
committees, on a form prescribed by the Director:
1. the date of the event;
2. the total contributions received by the
joint fundraising agent;
3. the
amount paid to the joint fundraising agent by each participating committee
(these amounts will also be reflected, as expenditures, in the campaign finance
report filed by a participating committee);
4. the name and address of each contributor,
regardless of the amount contributed;
5. the amount contributed by each
contributor;
6. the attribution
method used and the amount attributable to each participating
committee;
7. the occupation and
employer of each contributor making a contribution if a participating committee
would receive, in connection with the event, $200 or more;
8. a listing of all in-kind contributions
received by the joint fundraising agent reflecting the date received, the
contributor, the residential address of the contributor, the occupation and
employer of the contributor (if the value of the contribution, together with
any other contribution received from the contributor, would result in a
participating committee receiving $200 or more in connection with the event),
and a description of the contribution and its total value (which will be
allocated pro rata or as agreed prior to the event, among each
participating committee);
9. the
full name and address of each person to whom an expenditure is made by the
joint fundraising agent, the amount, date and purpose of each expenditure, and
a total of all such expenditures, whether from funds received from
participating committees or from proceeds of the event;
10. the date proceeds are distributed;
and
11. the share of proceeds
received by each committee (which will also appear as a receipt in a
participating committee's campaign finance report).
(b) The report shall be duplicated by the
joint fundraising agent who shall provide a copy of the report to each
participating committee. The report shall be provided to each sponsoring
committee within 30 days of the event.
(c) Participating committees not required to
designate a depository by M.G.L. c. 55, § 19 shall file, in paper format,
the joint fundraising report on the same day the committee files the campaign
finance report which reflects the distribution of proceeds from the joint
fundraising agent.
(d)
Participating committees required to designate a depository pursuant to M.G.L.
c. 55, § 19 shall deposit all funds received from the joint fundraising
agent within seven days of receipt from the joint fundraising agent.
Thereafter, such committees shall file the joint fundraising report with the
Director on or before the fifth day of the month following the deposit of the
proceeds.
(e) Participating
candidates and treasurers of participating committees shall review the joint
fundraising report, verify the determination of the share of contributions and
expenditures attributable to the sponsoring committee.
(f) Participating candidates and treasurers
of participating committees and joint fundraising agents are responsible for
ensuring the accuracy of the information contained in the joint fundraising
report.
(g) Participating
candidates and treasurers shall refund any contribution or portion thereof, of
contributions attributed to the candidate, or portion thereof, which, when
considered together with other contributions received from a contributor,
exceed the limitations of the campaign finance law, including the limitations
established in M.G.L. c. 55, § 7A, or is otherwise not consistent with the
requirements established by the campaign finance law.
(4)
Maintenance of
Records.
(a) A joint fundraising
agent managing a joint fundraising event, in accordance with 970 CMR 2.12(l)(b)
or (c), must make copies of all records pursuant to M.G.L. c. 55, §§
2 and 5 reflecting contributions received and expenditures made in connection
with the event and provide a set of copied records to each participating
committee.
(b) Each committee
participating in a joint fundraising event must maintain complete records
reflecting expenditures made and contributions received in connection with the
activity.
(c) A committee
participating in a joint fundraising event must donate funds received to a
charitable or other entity specified in the residual funds clause of M.G.L. c.
55, § 18, if the joint fundraising agent or participating committee has
failed to maintain records reflecting the allocation of contributions and
expenditures.
(5)
Joint Fundraising with Federal Candidates or
Committees. Massachusetts state and local political party
committees raising money with a federal candidate or committee, or involved in
any joint campaign activity with a federal candidate or committee (or the
federal account of a state party committee), must ensure compliance with both
federal and state campaign finance law, including
970 CMR
2.11(10).