Jonah Patel
Foreign involvement in political campaigns is a highly scrutinized topic. In the United States, federal election law prohibits campaign donations from foreign nationals, or any individual who is not a US citizen or a green card holder. This includes contributions and donations to committees of political parties, expenditures, independent expenditures, and disbursements for electioneering communications. The Federal Election Commission (FEC) enforces this statute by imposing civil fines and, in some cases, referring matters to the Department of Justice (DOJ) for criminal prosecution. However, there are exceptions and loopholes, such as the exemption for Social Welfare Organizations (SWOs) to disclose their donors, allowing for indirect foreign contributions. This topic is further complicated when considering the involvement of PACs, which have specific rules regarding foreign contributions.
Characteristics and Values
| Characteristics | Values |
|---|---|
| Foreign citizens allowed to donate to political campaigns? | No |
| Who is considered a foreign national? | Any person that is not a U.S. citizen or a green card holder |
| What is the penalty for accepting foreign contributions? | Civil fines, criminal liability, criminal prosecution |
| Can foreign nationals donate to PACs? | No, but they can donate to 501(c)(4)s |
| Can foreign corporations donate to PACs? | Yes, if they are U.S. subsidiaries and meet strict funding and citizenship guidelines |
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What You'll Learn
Foreign donations to US campaigns are illegal
Foreign donations to US political campaigns are illegal. Federal law prohibits any foreign national from making contributions, donations, expenditures, independent expenditures, or disbursements in connection with any federal, state, or local election. This includes not only monetary donations but also gifts, subscriptions, loans, advances, or deposits of value intended to influence a federal election. The Federal Election Commission (FEC) is responsible for examining donation records and verifying their legitimacy, and campaigns found to have accepted foreign donations may be required to return the funds.
The term "foreign national" refers to a foreign principal or an individual who is not a citizen of the United States or a national of the United States as defined by law. This means that only US citizens or green card holders are legally permitted to donate to political campaigns. Foreign nationals who wish to support a political cause in the US must be careful not to make any contributions that could be construed as influencing an election.
While it is illegal for foreign nationals to donate directly to political campaigns, there are loopholes that allow them to indirectly influence US politics through donations to certain organizations. Social Welfare Organizations (SWOs), for example, are exempt from disclosing their donors as long as at least half of their activities are non-political. As a result, SWOs can accept donations from foreign nationals and then donate to political organizations, such as Super PACs, which are required to disclose the SWO as a donor but not the SWO's foreign donors. Similarly, 501(c)(4) organizations are not required to publicly name their donors, and it is not illegal for them to accept donations from foreign citizens.
Despite these loopholes, it is important for foreign nationals to be aware of the restrictions on their involvement in US political campaigns. Foreign nationals who wish to volunteer for a federal candidate or political committee must also be careful not to make any contributions, as this could violate the law.
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Foreign nationals include non-US citizens and non-permanent residents
Foreign nationals are prohibited from contributing to political campaigns in the United States. This includes donations to candidates, committees of political parties, and expenditures for electioneering communications. The term "foreign national" refers to any individual who is not a citizen of the United States or a lawful permanent resident, also known as a green card holder.
Federal law prohibits foreign nationals from making contributions, donations, expenditures, independent expenditures, and disbursements in connection with any federal, state, or local election. This means that foreign citizens who do not have permanent resident status in the US are not allowed to donate money or other things of value to political campaigns or candidates. It is also illegal for campaigns to accept or solicit such contributions from foreign nationals.
The Federal Election Commission (FEC) is responsible for enforcing these statutes and may impose civil fines or refer cases to the Department of Justice (DOJ) for criminal prosecution if violations occur. Despite these measures, it can be challenging to track and prevent all instances of foreign involvement in US political campaigns.
One notable exception to the prohibition on foreign national contributions is in the case of 501(c)(4) organizations, which are not required to publicly disclose their donors. While it is still illegal for these organizations to accept donations from foreign citizens, the anonymous nature of their funding sources makes it difficult to identify and prevent such occurrences.
In summary, foreign nationals who are not US citizens or permanent residents are generally prohibited from donating to political campaigns in the United States. The FEC enforces these laws to maintain the integrity of US elections and ensure that foreign influence does not impact the democratic process.
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Campaigns cannot accept donations from federal contractors
Political campaigns in the US are subject to a variety of regulations regarding the sources of funding they can accept. One such regulation is the prohibition on campaigns accepting donations from federal contractors. This includes both direct and indirect contributions, donations, expenditures, and disbursements.
Federal contractors are prohibited from making contributions or expenditures to any political party, committee, or candidate for federal office, or for any political purpose. This prohibition also extends to partnerships or LLCs that are negotiating or have not completed performance of a federal contract. However, an exception is made for individuals who are partners in such firms, allowing them to make contributions and expenditures from personal funds rather than from the partnership's account. Additionally, the spouses of individuals who are federal government contractors are permitted to make contributions from their personal funds.
The definition of a federal government contractor includes individuals or entities that have entered into or are bidding on a contract with any agency or department of the US government. This includes contracts for services, materials, equipment, supplies, land, or buildings that are funded by congressional appropriations. The prohibition on contributions from federal contractors aims to prevent the appearance or reality of corruption in the awarding of lucrative taxpayer-funded contracts.
Despite these regulations, there have been instances of federal contractors violating the law by making political contributions while performing on federal contracts. In one case, a company with active federal contracts donated a significant amount to a super PAC supporting a Republican presidential candidate, leading to a complaint being filed with the Federal Election Commission (FEC).
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Social welfare organisations are exempt from disclosing donors
In the United States, it is unlawful for foreign nationals to donate to political campaigns. Federal law prohibits contributions, donations, expenditures, independent expenditures, and disbursements solicited, directed, received, or made directly or indirectly by or from foreign nationals in connection with any federal, state, or local election.
Social welfare organizations, on the other hand, are a unique type of entity that can play a significant role in politics and public policy advocacy. These organizations, structured under Section 501(c)(4) of the Internal Revenue Code (IRC), are often used to engage in lobbying activities, issue advocacy, or political activities, such as making independent expenditures to support or oppose a candidate.
One of the key advantages of 501(c)(4) organizations is that they are not required to publicly disclose their donors in most jurisdictions. This provides a layer of privacy for donors that is not available through other types of organizations, such as private foundations. While they must file IRS Form 990, which is publicly available, they are not required to disclose Schedule B, which contains detailed donor information. This exemption from disclosing donors allows individuals and corporations to support social welfare organizations without their identities being made public.
However, it is important to note that a small minority of jurisdictions, such as New York and Connecticut, do require 501(c)(4) organizations to disclose their donors if they engage in political expenditures or lobbying. Additionally, there are concerns about "dark money" and potential fraud or misrepresentation if these organizations are used as a conduit to funnel contributions to entities like super PACs, which are required to disclose their donors. Therefore, while social welfare organizations offer donor privacy, it is crucial to comply with all legal and ethical requirements to avoid any misuse or prosecution.
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Foreign donors can contribute via shell corporations
Foreign citizens are prohibited from donating to political campaigns in the US. Federal law prohibits contributions, donations, expenditures, independent expenditures, and disbursements solicited, directed, received, or made directly or indirectly by or from foreign nationals in connection with any federal, state, or local election.
Despite this, foreign donors have been caught attempting to contribute to US elections. One way they can do this is by creating a shell company to contribute to US elections. Foreigners are allowed to set up limited liability companies (LLCs) in the US, and they could technically create a shell company to contribute to campaigns. This is illegal, but if the donor is not disclosed, there would be no way to determine the money's origin.
The number of LLC donations in US presidential elections has surged since the Supreme Court's 2010 Citizens United decision, which allowed companies to engage in political spending using their own funds. In 2012, 109 LLCs gave a combined $12 million to presidential candidates and super PACs. This number rose sharply in 2016, with 840 LLCs contributing a total of $21 million to the presidential election.
Super PACs are political committees that can freely raise and spend unlimited amounts, including money from corporations, labor unions, and wealthy individuals, as long as they don't coordinate with a candidate's campaign. While they must publicly disclose their donors, shell companies are often vaguely named, allowing donors to remain anonymous.
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Frequently asked questions
No, federal law prohibits campaign donations from any individual who is not a US citizen or a green card holder.
A foreign national is any person that is not a US citizen and does not have a green card.
The Federal Election Commission (FEC) enforces this statute by imposing civil fines on people who violate the law. Criminal liability is also possible. The FEC can refer the case to the Department of Justice (DOJ) for criminal prosecution.
Yes, federal law exempts Social Welfare Organizations (SWOs) from disclosing their donors, as long as at least half of the SWO's activities are non-political. As a result, an SWO could accept donations from foreign nationals and then donate to a political Super PAC.
A contribution includes donations of money or other things of value, or the express or implied promise to contribute, in connection with a federal, state, or local election.
