Federal Election Commission Main Page
AO 1988-47
The Honorable Bruce F. Vento
U.S. House of Representatives
2304 Rayburn House Office Building
Washington, D.C. 20515
November 8, 1988
Dear Congressman Vento:
This responds to your letter dated October 26, 1988,
in which you request an advisory opinion concerning the
application of the Federal Election Campaign Act of 1971, as
amended ('the Act'), and Commission regulations to the
proposed donation of 2,000 copies of a magazine to your 1988
campaign. You are seeking re-election as U.S.
Representative from the 4th Congressional District of
Minnesota.
People & Politics, Inc., a Minneapolis-based
corporation, publishes People & Politics, a new magazine
with a 'special first issue' (September 1988) that is
devoted to articles about and by candidates running in
Minnesota. Entitled '1988 Minnesota Voter's Guide,' this
special issue includes a section on you and your Republican
opponent: (1) a two-page article by a contributing
journalist about your personal life, your legislative
career, and your policy priorities; (2) a one-page
commentary that you wrote about certain legislation you
support; (3) a chart showing 'liberal' and 'conservative'
political ratings of your voting record; (4) a three-page
article by the same journalist about your opponent; (5) a
one-page commentary by the opponent; and (6) a three-page
comparison of your views on major issues with those of your
opponent.
The special issue bears a cover price of three
dollars. An order blank on an inside page lists varying
prices, however, depending on the quantity ordered. A
purchaser of 100 or more copies, for example, pays $2.10 per
copy.
In a letter dated October 5, 1988, the managing editor
of People & Politics has offered you '2,000 free copies' of
the special first issue. The letter states that People &
Politics, Inc., 'has decided to make free copies available
to every Minnesota candidate running for U.S. Congress or
U.S. Senate.' It also asserts that the offer 'is not a
campaign contribution and should not be earmarked as one.
This is part of our marketing campaign. That is why we do
not want to give the magazine directly to candidates.' The
letter proposes that one of your campaign volunteers pick up
the free copies at the publisher's Minneapolis office and
then organize people to distribute the magazine 'in your
area.' The letter closes by urging you to 'take advantage
of this opportunity to better inform your constituents.'
You ask the Commission whether the donation of 2,000
copies of People & Politics to your campaign would be a
'contribution' under the Act and regulations. If it would
be a contribution, you also wish to know whether the Act
imposes any limitations or restrictions on your acceptance
of the complimentary copies.
The Act prohibits any contribution or expenditure by a
corporation in connection with a Federal election. 2 U.S.C.
s 441b(a)9 For purposes of this prohibition the term
'contribution or expenditure' includes 'any direct or
indirect payment, distribution, loan, advance, deposit or
gift of money, or any services, or anything of value . . .
to any candidate, campaign committee, or political party or
organization, in connection with' any Federal election. 2
U.S.C. s 441b(b)(2). See also 11 CFR 114.1(a)(1).
Commission regulations define 'anything of value' as 'the
provision of any goods or services without charge or at a
charge which is less than the usual and normal charge for
such goods or services.' 11 CFR 100.7(a)(1)(iii) and
100.8(a)(1)(iv). People & Politics, Inc., has been selling
the September 1988 issue of its magazine to the public for
prices ranging from $3 to $2.10. The gift of 2,000 copies
of the magazine without charge would, therefore, be
something of value. It would also be made 'in connection
with' a Federal election. The articles concerning you
discuss and evaluate your candidacy, and the distribution of
the issue would occur during a campaign in which you are a
candidate.
In light of these facts, the Commission concludes that
People & Politics, Inc.'s proposed gift of 2,000 copies of
its magazine to your campaign would be a contribution under
the Act and the regulations. [FN1]
Candidates and their political committees are
prohibited from knowingly accepting or receiving illegal
corporate contributions. 2 U.S.C. s 441b(a); 11 CFR
114.2(c). Under the Act and the regulations, therefore,
People & Politics, Inc., may not provide without charge
2,000 copies of its September 1988 issue to your campaign,
and you may not lawfully accept those free issues. [FN2] Cf.
Advisory Opinion 1978-60. Contrast Advisory Opinions
1987-8, 1978-52, and 1978-18 (on permissible complimentary
copies).
This response constitutes an advisory opinion
concerning application of the Act or regulations prescribed
by the Commission to the specific transaction or activity
set forth in your request. See 2 U.S.C. s 437f.
Sincerely,
Thomas J. Josefiak
Chairman
Federal Election Commission
Enclosures (Advisory Opinions 1987-8, 1978-60, 1978-52, and
1978-18)
P.S. Commissioner Thomas voted to approve this opinion and
will file a concurring opinion at a later date.
FN1 The use of volunteers to pick up the free copies
and distribute them to the general public 'in your area'
does not save the donation from being a contribution.
First, the volunteers would, in this context, presumably be
agents of your campaign committee. Second, the definition
of 'contribution or expenditure' includes the indirect as
well as the direct distribution of 'anything of value.' 2
U.S.C. s 441b(b)(2). Contrast 11 CFR 100.7(b)(16) (the
'coattails' exception).
FN2 This advisory opinion concerns only those
provisions of the Act and the regulations that are directly
relevant to the questions you raise. The Commission
expresses no opinion about the possible application of other
provisions of the Act and the regulations to the activities
of People & Politics, Inc. See, e.g., Advisory Opinion
1987-8 (the 'news story' exemption) and 11 CFR 114.4(b)(5)
(permitting the publication and distribution of qualified
nonpartisan voter guides to the general public).