January 2008 - Guidelines for TDs, Senators and MEPs on donations and prohibited donations

Appendix 1 - 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 Act, a donation includes the net value of a contribution to a fund-raising event. A contribution to a fund-raising event is deemed to have been made on the date the fund-raising event is held (and not the date on which the contribution is actually received).

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 a party's elected representatives or candidates at an election.

Fund-raisers organised by a member/MEP

• The member/MEP will not be required to disclose in a Donation Statement the total value of the proceeds of the fund-raising event.
• The member/MEP 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 members/MEPs 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 member/MEP exceeds €126.97, the member/MEP, 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 an individual monetary donation to the event does not exceed €126.97, the member/MEP will not be required to open a political donations account.
• If the member/MEP 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 member/MEP by a person or group other than the member/MEP or his/her political party

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

If the funds are handed over to the member/MEP the fund-raising person/group is regarded as an intermediary accepting donations on the member's/MEP's behalf and the donations are deemed to have been received by the member/MEP. The rules as set out under "Fund-raisers organised by a member/MEP" above apply.

If the funds are not handed over to the member/MEP the fund-raising person/group is not regarded as an intermediary accepting donations on the member's/MEP's behalf. In such circumstances the following rules will apply:

• 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. These requirements are set out in a separate explanatory note which is available on the website of the Standards Commission.
• any election expenses incurred, or payments made, by the fund-raising group on behalf of the member/MEP are regarded as donations to the member/MEP;
• if the aggregate value of donations from the fund-raising group to the member/MEP exceeds €634.87, the member/MEP will be required to disclose details of same in his/her Donation Statement;
• The maximum value of donations which the member/MEP 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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