Malcolm Rivera
Political campaigns are often funded by donations, but the rules surrounding these donations are complex and vary by region. In the US, anonymous political donations are not allowed, and campaigns must track how much money they receive from each contributor. In the UK, anonymous donations over £500 are not allowed, and political parties must return unidentified donations within 30 days. However, there are concerns about the transparency of election campaigns and the increasing amount of money flowing anonymously into politics. The question of whether a donor can remain anonymous has implications for their privacy rights and the potential for scrutiny from the public and the press.
Characteristics and Values
| Characteristics | Values |
|---|---|
| Anonymous donations allowed | Yes, in the UK, but not in the US |
| Permissible donation amount | £500 or below in the UK; £11,180 in the UK without declaring the donor's name; varies in the US |
| Donor's details | Name of the donor and details of the donation are accessible to the public, opposition parties, and journalists in the UK |
| Donor's privacy | Privacy and reputation at risk in the UK; similar concerns in the US |
| Registration | Required in the UK |
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What You'll Learn
Anonymous donations over £500 are not allowed in the UK
In the United Kingdom, political parties may be funded through membership fees, party donations, or state funding. State funding is reserved for administrative costs. While anonymous donations are not outright banned, there are laws in place to ensure transparency.
Under the Political Parties, Elections and Referendums Act 2000 (PPERA), anonymous donations over £500 are not allowed. Donations of £500 or less are outside the scope of PPERA and do not need to be recorded or reported. However, it is an offence to attempt to evade the controls on donations. For example, if a number of donations of £400 are made from the same source in similar circumstances in an attempt to evade the permissibility rules.
If a donation is from an unidentified source, it must be returned within 30 days of receiving the donation to either the person who transferred the donation or the financial institution used to transfer the donation. If neither can be identified, the donation must be sent to the Electoral Commission, which will pay it into the Consolidated Fund managed by HM Treasury.
In recent years, there has been criticism of a loophole that allows certain bodies to anonymously fund political parties. Unincorporated associations, which can include local councillor groups and members-only clubs, are not required to provide the names of their members when making donations above £25,000 in a single year. While they are required to report all gifts they receive over £7,500 within a three-year period, no gifts have been declared by any unincorporated association since 2014. This lack of transparency has been criticised as a "real loophole in electoral law" that can be exploited by those seeking to influence politics without scrutiny.
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In the US, anonymous political donations are not allowed
In the United States, anonymous political donations are not allowed. Federal law requires the disclosure of most significant contributions over $200. This includes the names, addresses, occupations, and employers of donors, which then become a matter of public record, freely available and tracked by the FEC (Federal Elections Commission).
The FEC recommends that campaigns encourage contributors to designate their contributions for specific elections. This ensures that the contributor's intent is clear to the candidate's campaign. In the case of political committees, written designations also promote consistency in reporting, avoiding the appearance of excessive contributions. Designated contributions count against the donor's contribution limits for the named election, while undesignated contributions count against the donor's limit for the candidate's next election.
There are many restrictions on who can and cannot contribute to political campaigns. For example, campaigns may not accept or solicit contributions from federal government contractors or foreign nationals. Incorporated charitable organizations are also prohibited from making contributions in connection with federal elections, and charities face additional restrictions on political activity under the Internal Revenue Code.
There are also rules regarding contributions from trusts. A contribution from a living trust is allowed as long as the beneficial owner has control over the use of the funds and the contribution is reported as coming from the beneficial owner. Committees must disclose the name of the trust and the decedent on its report.
While anonymous donations are not allowed, it is worth noting that candidates and committees may retain anonymous contributions up to $500 or 1% of the total contributions received in a calendar year, whichever is greater. However, this is a very small amount in the context of political campaigns, and it is not a loophole that allows for truly anonymous large donations.
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Donors become aligned with the political party in the public eye
In the public eye, donors become aligned with the political party they support. The public often suspects that donations are made to gain access or influence, and this perception makes it easy for journalists to write about donors and their donations. As a result, donors' connections, business interests, and families may come under scrutiny.
In the UK, donations worth over £11,180 to national parties must be declared, as must donations of £2,230 or more to local associations. Donors' names and details of their donations are entered into the Electoral Commission register, which is accessible to the public, opposition parties, and journalists. This means that even if donors do not actively publicize their contributions, their names may still end up in the public domain and they may find themselves subjected to increased scrutiny.
For example, Mohamed Amersi, a Conservative Party donor, and Aaron Banks, a funder of the pro-Brexit Leave campaign, have both had libel battles that may have been fueled by their substantial donations. Similarly, Frank Hester, described by the Conservative Party as their "biggest ever donor," made comments in 2019 that went unreported at the time but later found their way onto the front pages of newspapers.
Once a donation is made, the press may argue that they have greater protection to publish defamatory allegations and private information about the donor as they become a "'public figure' and a subject of 'public interest.' This shift in status can impact the extent to which donors can reasonably expect privacy. However, even public figures have the right to a reasonable expectation of privacy, and not every detail of their private lives can be assumed to be open to public scrutiny simply because they have made a political donation.
While making a substantial donation to a political party can put one's privacy and reputation at risk, there are legal avenues and strategies available to donors to protect themselves. For instance, Northern Ireland political parties are exempt from revealing the identity of party donors due to security reasons. Additionally, there are other areas of law, such as harassment, breach of confidence, data processing, and malicious falsehood, that can offer protection from intrusion and speculation.
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Donors' privacy rights are impacted by their 'public figure' status
Donors' privacy rights are impacted by their public figure status. When an individual makes a substantial donation to a political party, their name and details of the donation become accessible to the public, opposition parties, and journalists. This information is published on the Electoral Commission register, which is regularly scanned by journalists for leads on stories. As a result, donors become aligned with the political party in the public perception, leading to increased scrutiny and a risk to their privacy and reputation.
The press may argue that they can publish defamatory allegations and private information about donors because they become 'public figures' and are considered a subject of 'public interest'. This status as a public figure impacts the extent to which donors can reasonably expect privacy. However, even public figures have the right to a reasonable expectation of privacy, and not all details of their private lives can be assumed to be publishable.
Donors may face various consequences due to their donations, including online harassment, canceled business deals, cyberattacks, economic reprisal, loss of employment, and physical coercion. Additionally, the donor's connections, business interests, and families may come under scrutiny. Therefore, it is essential for donors to consider the potential impact on their privacy and reputation before making a substantial donation to a political party.
To protect donors' privacy, some organizations, such as non-political charities, are not required to share the identities of their donors. Additionally, donors may have legal avenues and strategies to protect themselves from intrusion and speculation, such as laws related to harassment, breach of confidence, data processing, and malicious falsehood. Developing a donor privacy policy is also crucial for organizations to maintain trust with donors and ensure their short- and long-term success.
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The UK government raised the cap on anonymous donations
In the UK, political parties may be funded through membership fees, party donations, or state funding, which is reserved for administrative costs. The UK government is considering capping political donations to limit foreign influence. This comes after Elon Musk's statement that he would donate £79 million to Nigel Farage's Reform UK party.
Under the Political Parties, Elections, and Referendums Act 2000 (PPERA), any contribution of more than £500 must come from a UK-based individual or company. Transactions of £500 or less are not considered "donations", and political parties are not required to keep records of the names and addresses of people making such payments. However, it is an offence to attempt to evade donation controls by donating more than £500 through multiple small payments.
The UK government has not raised the cap on anonymous donations. On the contrary, it is considering implementing a cap on political donations to limit foreign influence. This is in response to concerns about the influence of ""dark money" in British politics and the potential for foreign money to infiltrate elections. The proposed cap on individual and corporate donations to political parties is £100,000 per year.
The UK has a history of regulating the financial aspects of political competition, with the Corrupt and Illegal Practices Prevention Act of 1883 being the first such legislation. The Honours (Prevention of Abuses) Act 1925 was another important step, aiming to end the selling of titles in exchange for political donations.
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Frequently asked questions
No, you cannot make anonymous political donations in the US. The campaign fund must track how much money they receive from each contributor.
Anonymous donations over £500 are not permissible in the UK. However, donations of £500 or below are not regulated and do not need to be reported.
Making a substantial donation to a political campaign can put your privacy and reputation at risk. Donors become aligned with the political party, and the public may become suspicious of the donor's intentions. As a result, the donor may be subject to increased scrutiny, with their connections, business interests, and families under the spotlight.
Yes, one alternative is to volunteer for the campaign. This can help to avoid unwanted spam texts and emails from the campaign and other political groups.
There are regulations on campaign spending and donations to political parties. During a "regulated period" before an election campaign, candidates can only spend a limited amount of money on certain activities. These regulations vary depending on the type of constituency.
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