Guidelines for the Seanad General Election 2007

Appendix 2 - Fund-raising events

Determining the net value of a contribution to a fund-raising event

In accordance with the provisions of sections 22(2)(a)(vi) & (vii) of the 1997 Act, as amended, a donation includes the net value of a contribution to a fund-raising event. The net value of a contribution to an event is arrived at by first calculating the net profit from the event (i.e., by deducting the cost of running the event from the total amount raised by the event). The net profit is then attributed to the number of people contributing to the event in proportion to the contribution made by each person. This gives the net value of each person's contribution to the fund-raising event.

If, for example, in relation to a fund-raising event, a person had paid €1,000 in respect of the entry fee for 10 people, his/her gross contribution to the event would be €1,000. If the cost of running the event was €20 per person attending, a sum of €200 would be deducted from his/her gross contribution, leaving a net contribution of €800. If the person made other contributions to the event (e.g., buying horses at a race night, sponsoring a hole at a golf classic) it would be necessary to add the value of such contributions to the net contribution of €800 for the purposes of determining the aggregate net value of his/her contribution to the fund-raising event.

Fund-raisers organised by a political party

• The net contribution made by a person to a fund-raising event organised by a political party is regarded as a donation to the political party, even if the funds are subsequently used for the purposes of supporting one or more of the party's candidates at the election.
• The party will not be required to disclose in a Donation Statement the total value of the proceeds of the fund-raising event.
• The party will be required to disclose any donation(s) from a person which exceeds a net value of €5,078.95.
• The maximum limit of €6,348.69 for acceptance by political parties of donations from the same person in the same year also applies to the net value of contributions to fund-raising events.
• Where the net value of any individual monetary donation to a fund-raising event exceeds €126.97, the accounting unit of the party (i.e., branch or head office) which organised the event will, if it does not already have one, be required to open a political donations account.
• If the net value of each individual monetary donation to the event does not exceed €126.97, the accounting unit of the party will not be required to open a political donations account.
• If the accounting unit already has a political donations account, all monetary donations, of whatever value, received in relation to the event must be lodged to the political donations account.

Fund-raisers organised by a candidate

• The candidate will not be required to disclose in a Donation Statement the total value of the proceeds of the fund-raising event.
• The candidate will be required to disclose any donations from a person contributing to the event which exceed a net value of €634.87.
• The maximum limit of €2,539.48 for acceptance by candidates of donations from any one person in the same year, also applies to the net value of contributions to fund-raising events.
• If the net value of any monetary donation to a fund-raising event organised by a candidate exceeds €126.97, the candidate, if he/she does not already have one, will be required to open a political donations account and lodge the donation and all subsequent monetary donations to the account.
• If the net value of each individual monetary donation to the event does not exceed €126.97, the candidate will not be required to open a political donations account.
• If the candidate already has opened a political donations account, all monetary donations, of whatever value, received in relation to the event must be lodged to the account.

Fund-raisers organised on behalf of a candidate by a person or group other than the candidate or the party

Funds raised at an event organised on behalf of a candidate by a person or group other than the candidate or the candidate's political party (e.g., "Friends of ...." groups) will be treated as follows:

If the funds are handed over to the candidate:

• the fund-raising person/group is regarded as an intermediary accepting donations on the candidate's behalf;
• the candidate will not be required to disclose in a Donation Statement the total value of the proceeds of the event received from the fund-raising person/group;
• the candidate will be required to disclose any donations from individual contributors to the fund-raising event which exceed a net value of €634.87;
• the maximum limit of €2,539.48 for acceptance by candidates of donations from any one person in the same year applies also to the net value of contributions to such fund-raising events;
• if the net value of any individual monetary donation to the event exceeds €126.97, and the candidate does not already have one, he/she will be required to open a political donations account and lodge the donation and all subsequent monetary donations to the account;
• if the net value of any individual monetary donation to the event does not exceed €126.97, the candidate will not be required to open a political donations account;
• if the candidate already has a political donations account all monetary donations, of whatever value, received in relation to the event must be lodged to the account.

If the funds are not handed over to the candidate;

• the fund-raising person/group is not regarded as an intermediary accepting donations on the candidate's behalf;
• If the net value of any donation to the fund-raising event exceeds €126.97 the person/group will be required to register as a "third party" with the Standards Commission and comply with the requirements of the legislation applying to third parties with regard to the opening of a political donations account and the acceptance of certain donations;
• any election expenses incurred, or payments made, by the fund-raising group on behalf of the candidate are regarded as donations to the candidate;
• if the aggregate value of donations from the fund-raising group to the candidate exceeds €634.87, the candidate will be required to disclose the details in his/her Donation Statement;
• The maximum value of donations which the candidate can accept in any year from a fund-raising person/group which is not regarded as an intermediary is €2,539.48.

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