Frequently Asked Questions Related to Basic Campaign Finance for Local Candidates (From Webinar(s) on April 18, 2011)

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1 Q: Is it necessary to set up a bank account in a case where TOTAL contributions will be very small, say under $50? Could the Treasurer just cash one or two checks and keep the cash in an envelope, separate from all other funds, making sure it is accounted for? A: The key to when you have to open a bank account is whether the candidate accepts any contributions from someone other than the candidate. Any funds received from someone other than the candidate must be placed in a separate bank account. A candidate who is spending only their own funds would not have to open a separate bank account. Q: The committee has received one check for $25 so far, and will probably not receive much more (we are not concentrating on fundraising). Some of that will go towards bank fees if I have to set up a bank account for it. Do I have to get checks printed too, in order to be able to spend the money, or can I withdraw it from the bank (as cash) and spend the cash on campaign expenses, making sure of course that I receive an appropriate receipt? A: If the committee received a $25 check from someone other the candidate, it must be placed in a bank account separate from a personal or business account of the candidate. The law does not have a minimum threshold. Monetary contributions received from persons other than the candidate must not be co-mingled with the candidate s personal or business accounts. Further, all expenditures must be made by check or similar draft, so the Committee would need to purchase checks or use cashier s checks from the financial institution to make any disbursements. Q: It was my understanding that Pre-election Form 30-A can be filed anytime, and does not have to meet the 12th-day-before deadline, if the total monetary activity (contributions/expenditures) for the committee will never be more than $1000. Is this correct? A: A Pre-Election report can be filed earlier than the 12 th day before deadline. However, since the Pre-election report is required to cover activity through the 20 th day before the election, the filing of the Pre-election report should not occur any earlier than the 19 th day before the election. Separately, if a Pre-election report is not required based on the level of financial activity but the Committee wishes to file the report anyway, it should be filed by the deadline for that reporting period. Q: Can the spouse or other relative of an employee contribute funds or make an In-kind contribution? Can they volunteer at a fundraiser event? A: Spouses and other relatives of a public employee are not covered by the contribution solicitation restrictions otherwise applicable to the employee.

2 Q: I am currently a County employee and also serve in a non-partisan City Council position. I have staff persons who keep offering to help organize a fund raising event for me. I know they can't contribute money to my campaign, but are they allowed to help with an event? A: Unless otherwise restricted or prohibited by a city charter provision, public employees may make voluntary contributions to your city council campaign committee and may voluntarily participate on their own time with the city council campaign committee. Q: The previous officer holder in my position had numerous contributions from his employees (now my employees). Is this prohibited at the county level? A: Voluntary, unsolicited, contributions from public employees are permitted at the county level. If contributions are received from individuals the officeholder employs, they should be disclosed on form 31-G. Q: Relative to the permitted expenditures as part of duties of public office Is it ok to use the candidate's personal funds to update an office décor? A: Yes, the use of an officeholder s personal funds for the decoration or other improvement of that officeholder s public office is permitted. Such use of the officeholder s personal funds is not necessarily a contribution to the officeholder s campaign committee and is not subject to disclosure within a campaign finance report. Q: Is the repayment of a loan from a local PAC to the person who extended the loan reported on the expenditure form? A: The filing entity should make use of form 31-C, Statement of Loans Received, to disclose the receipt and repayment of the loan. The sum of all payments made on loans received is transferred to the Statement of Expenditures, form 31-B, for the purpose inclusion on total report expenditures. Q: Can a county political party building fund money be used for rent? A: No. A Building Fund may only be used for the construction, renovation, or purchase of any office facility. Q: Are door prizes paid for by the candidate considered an In-kind contribution? A: If they are items distributed as part of the campaign committee s effort to support the election of the candidate, then yes, the door prizes are In-kind contributions and will need to be disclosed. Q: When you say account transfers can take place, are you saying when I change Treasurers and the new Treasurer wants to open a new account that is more

3 convenient to where they bank I don't need to report the closing of and opening of accounts and the transfer of funds? A: Correct. The new Treasurer should write a final check from the prior bank to the new bank to move the money. This transaction is not required to be disclosed, though documentation should be retained to memorialize the movement of the money. Q: The candidate ran for office eight years ago. They have signs from that campaign. How do I report their usage or charge? In-kind? A. The re-use of previously purchased and disclosed items does not need to be disclosed. Q: We ordered signs from a local graphics company. They discounted the signs for us. Our bill says: Discount: SPECIAL DONATION DISCOUNT $ Do we count this in the report as "in kind" contribution? A: Yes, I would disclose a $50 In-kind as coming from the owner. Q: Does a candidate for local office that spends under $2000 and takes less than $100 from anyone have to file a Treasurer s form? A: Yes. They still need to have a committee formed before raising or spending money. Q: If we are not on a primary ballot but only on the ballot in the general election do we need to submit a primary pre-primary report? A: If the candidate's name is not on the primary ballot, then no Pre or Post Primary report is due. Q: Can the candidate themselves put more than $100 into the campaign described in my last question? A: Yes. The $100 limit does not apply to the candidate's personal funds. Q: If you are finishing your office for ward council and now are running for at large council, do you need to designate a Treasurer again and can you keep the same checking account? A: Unless the candidate changes "office sought' to either a judicial office or federal office, there is no need to close the campaign committee - just update the designation of Treasurer for the new office sought whenever it changes. Q: How long would it take to answer an exemption request?

4 A: Requests for an exemption from the disclaimer requirement are usually answered within a week. Q: Form 31-G Officer Holder s Employee. Are voluntary contributions accepted? A: At the county and local level, voluntary contributions are acceptable and the 31-G should be used. Q: What is the individual limit for a contribution to a local candidate? A: Unless otherwise regulated by a local charter provision, individuals are not limited in the amount of contributions they may make to a local candidate. Q: Other than the waiver, what do candidates have to file? A: If a candidate is eligible for and files the Local Candidate Waiver and then operates within the conditions of the Waiver during that election year, there are no filings needed throughout that election year. If that candidate does not terminate his/her campaign committee by the end of that election year, subsequent Annual reports will be necessary until the candidate files to run for an office eligible for the Waiver in a future election. Q: What is the largest amount that an individual can write a check to your campaign for? A: State law only limits contributions from individuals to campaign committees of candidates running for statewide office or member of the general assembly. For example, an individual may write a contribution check for any amount when the campaign committee s candidate is running for county commissioner. Q: Question about Public Employee Solicitation: Can a current Mayor invite employees to a fund raising event? A. Since an invitation could easily be perceived as a solicitation to make a contribution, public employees should not be invited to the fundraising event of a candidate who will be their supervising or appointing authority if elected. Q: If I give my daughter $5 cash for campaign help, how do I report that? Do I have to make her sign a receipt? A: The campaign committee should only make expenditures by check or similar draft rather than by cash. However, if an expenditure is made by cash, the campaign committee needs to obtain a receipt for the purpose of verifying the transaction.

5 Q: Does any committee of citizens who agree to advocate on behalf of an issue have to register? Even if there is no money expended? A: The requirement to register as a PAC is triggered by the receipt of contributions or the spending of money. If your group is going to raise or spend money in support of or in opposition to an issue then they should file the Designation of Treasurer to establish a Political Action Committee. For clarification, an issue is a question that will appear on the ballot at an election. Q: If you purchase checks, do you need to do so with campaign funds? A: No, but if not then it should be reported as an In-kind contribution. Q: I used my personal credit card to purchase campaign signs, is that OK? A: Yes. If you expect the committee to reimburse you for that expense, it should be disclosed as an outstanding debt owed to you by the campaign committee until the amount is repaid. If no payment is expected, the value of the purchase should be disclosed as an In-kind contribution from you to the campaign committee. Q: Do I need to open a bank account for election purposes? A: Only if you are going to receive monetary contributions from others. If all campaign committee expenditures are paid out of the candidate s personal funds and no money is received from any other source, no bank account is necessary and all transactions are disclosed as In-kind contributions received. Q: Our bank did not require a Tax ID number. Is it required? A: No. Q: Can we use our SS# for the purpose of establishing the campaign committee bank account? A: If the bank will let you yes. However, if the account earns any interest, it will be reported as if you received it personally. We recommend the Tax ID just to be safe. Q: Re: expenditures, how do you handle a check written in March that as of today still hasn't been cashed? Should that be included on this report? A: The expenditure should be reported in the period the check is written and issued, not when the check is processed. If an expenditure check remains uncashed for an extended period and the committee eventually deems it stale, the value of the check is reported at that time as Other Income so that the account balances reconcile.

6 Q: What if you don't have the date physically received of every check documented. Can you use the check date? A: The risk of using the date on the check is that, in the reporting schedule, the entry may appear to be reported in the wrong campaign finance filing. If the date of receipt is unknown, it would be more preferable to use the date the check was deposited into the campaign committee bank account. Q: If I am filing pre and post primary and pre and post election reports, must I also file semi-annual and annual reports? A: Generally speaking, no. Many entities choose to file the Pre & Post Primary and the Pre & Post General reports every year whether required or not. This is completely acceptable and, if followed consistently, would alleviate any need of the filing entity to file any Annual or Semiannual campaign finance report. Q: Is the $100 limit for cash per fundraiser or is that total for the campaign for that person? A: The $100 limit is per person, per election. Q: What is the benefit of the local candidate waiver? A: The Local Candidate Waiver lifts the reporting requirements of certain local candidates during an election year when the campaign committees of those candidates adhere to certain conditions. The Local Candidate Waiver does not absolve a campaign committee from obtaining and retaining all records and information related to contributions received and expenditures made. Q: Is it legal to hold a 50/50 raffle at a campaign fund-raiser? A: Ohio s campaign finance statute does not address the use of raffles for campaign finance purposes. Questions related to raffles and other games of chance should be directed to the local county prosecutor or the office of the attorney general. However, if a campaign committee holds a raffle at a fundraising event, it must keep complete records of every participant and the eventual winner of the raffle. The name, address, date, and amount of every raffle-related purchase must be obtained. Also, the name, address, date, and amount related to the expenditure to the winner are required. Q: Do you have to count refreshments for committee meetings as an In-kind contribution if a committee member donates? A: It is a best practice to value and disclose the provision of refreshments purchased for an event or meeting. However, in some circumstances, the provision of refreshments

7 could be categorized as ordinary home hospitality and not subject to disclosure. Q: If I purchased yard signs for my election, I would complete the In-kind report but do I also need to complete the expenditure report? A: If you do not intend to be repaid for the value of the signs, then the purchase should be disclosed only as an In-kind contribution received. A campaign committee only has an expenditure when money is drawn from a campaign committee account at a financial institution. Q: In-kind contributions used to be listed as both a contribution and expenditure. Is that still the case? A: No. In-kind contributions are only disclosed as In-kind contributions. Q: I paid my filing fee with the BOE before my committee was created. So it was paid for out of my own pocket. Does this require disclosure and if so how? A: Great question. No, the payment of the filing fee is not considered a reportable transaction UNLESS it is paid out of the campaign committee account OR paid by a person or entity other than the candidate. Q: Do you have to provide a receipt for contributions received? A: No. Q: Does form 31-E need to be filed for tickets to a fundraiser purchased before the fundraiser or does that form only apply to contributions received AT the fundraiser and a pre-pay would be considered a normal contribution? A: All contributions related to a fundraising event whether received prior to, at, or after the event, should be reported on form 31-E for that event. Q: Campaign consultants: What documents do I need to keep on that person for public records or for recording purposes? A: For campaign finance purposes, the only necessary documentation would be any invoices received from and all records of checks or other payments made to the consultant. Q: If the campaign will not be on the ballot until November, has not yet received contributions, and will not receive more than $10,000, would we not need to file a campaign finance report until October? A: If the campaign committee s candidate is a candidate for a county office, the

8 semiannual filing will be required irrespective of the amount of contributions received. If the candidate is running for a local/municipal/township office, and if the total contributions received by the campaign committee do not exceed $10,000, the Semiannual filing will not be required. The next possible filing would be the Pre-General report due Thursday, 27 October Q: How does one dispose of stuff' from a campaign when the committee is terminated? Donate? A: There is no expectation that a campaign committee dispose of items having no value outside of the campaign itself e.g. signs, buttons, bumper stickers, etc with the candidate s name or committee logo on them. Assets such as computers, telephones, unused postage, or blank paper should be disposed of prior to termination. If the disposal generates any income, it must be deposited into the campaign committee bank account. If the committee disposes of those assets to non-profit, tax-exempt charitable organizations, only a record and receipt of the disposal is necessary. Q: Does documentation have to be provided to establish the value of an In-kind contribution? A: The valuation of an In-kind contribution does not have to be documented beyond the assessment of a fair market value in the disclosure of the contribution in a campaign finance report. Separate, authoritative valuation is not necessary. Q: If I receive a $25 contribution through PayPal. PayPal charges $1.33 fee. Do I have to list the full $25 contribution and a $1.33 expense? A: Yes. An electronically processed contribution as from PayPal, Visa, etc. must be disclosed as a contribution for the full value authorized by the contributor. Any associated costs for the contribution must be disclosed as an offsetting expenditure. Q: Does the address have to be on all the disclaimers? A: The printed disclaimer of all campaign committee political communications must include the address. Q: Do copies of contribution checks need to be filed with the forms? A: No. However, making and retaining a copy of each contribution check would be a good practice to follow for the purpose of having full and complete records for the campaign committee internally. Q: Is it considered as a corporate contribution if a corporation allows a campaign committee to use its facility for a meeting or a fundraiser?

9 A: Generally, yes, unless the corporation regularly allows the use of its property for public purposes. Q: Does information need to be collected when someone buys a t-shirt? (Name, address, etc.) A: Yes. If a campaign committee sells t-shirts as opposed to simply giving them out then the funds received are contributions subject to full disclosure requirements. Q: I have 7 pages of expenditures, on the third page I have an item I need to remove (it was a fundraising expenditure), do I have to retype all 7 pages, or can I just white-out/delete the one entry? A: Just white-out or black-out the entry there is no need to retype the forms. Q: Is a tax ID number required for every campaign i.e. a local candidate? A: Ohio law does not require a tax ID at all. Most banks, however, will require a tax ID be obtained for use on the campaign committee bank account. The need or requirement for a tax ID is solely between the campaign committee and its financial institution.