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MBS

(9,688 posts)
Sun Oct 16, 2016, 09:32 AM Oct 2016

allowability of political contributions for federal contractors: FEC rules

There was a question on DU a month or so ago about the allowability of political contributions for federal contractors. I was puzzled by the implication that the restrictions on employees of federal contractors might be even more strict than for federal employees (who, per the Hatch Act, are allowed to attend rallies and fundraisers and also make political contributions. But they are NOT allowed to host rallies or fundraisers, or to collect money, or run for office, nor are they allowed to express their partisan preferences at work)

Here's what I found out today, courtesy of the Federal Election Commission. The bottom line is that the person who'd asked about this on DU (he/she was about to start a new contract job) IS allowed to make contributions, assuming that he/she is merely an employee of a contractor, and not the owner of the company).

I thought this might be useful information, not just for employees in this situation, but for any folks who are engaged in soliciting contributions to the presidential and senate campaigns.

http://www.fec.gov/pages/brochures/citizens.shtml

Prohibited Contributions
While most individuals are free to make political contributions, three categories of individuals are prohibited by law from making contributions: foreign nationals and Federal government contractors and, in some instances, minors.

These and other prohibitions on contributions are explained below.
Foreign Nationals
Foreign nationals may not make contributions in connection with any election--Federal, State or local. This prohibition does not apply to foreign citizens who are lawfully admitted for permanent residence in the United States (those who have "green cards&quot .
Federal Government Contractors
Federal government contractors may not make contributions to influence Federal elections. For example, if you are a consultant under contract to a Federal agency, you may not contribute to Federal candidates or political committees. Or, if you are the sole proprietor of a business with a Federal government contract, you may not make contributions from personal or business funds. But, if you are merely employed by a company (or partnership) with Federal government contracts, you are permitted to make contributions from your personal funds.
Corporations and Unions
The law also prohibits contributions from corporations and labor unions. This prohibition applies to any incorporated organization, profit or nonprofit. For example, the owner of an incorporated "mom and pop" grocery store is not permitted to use a business account to make contributions. Instead, the owner would have to use a personal account. A corporate employee may make contributions through a nonrepayable corporate drawing account, which allows the individual to draw personal funds against salary, profits or other compensation.
Contributions in the Name of Another
Contributions made in the name ofanother are prohibited. For example, an individual who has already contributed up to the limit for a candidate's election may not give money to another person to make a contribution to the same candidate. Similarly, a corporation is prohibited from using bonuses or other methods of reimbursing employees for their contributions.
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