Guidelines for the general election to the 30th Dáil

C. Keeping a record of donations received in relation to the election

1.11  It is the candidate who is required to comply with the requirements of the legislation regarding the disclosure of donations.  It is important, therefore, that candidates keep a record of donations received in relation to the election for the purposes of furnishing a Donation Statement to the Standards Commission after the election.

What is a donation?

1.12  A donation is defined in the legislation as meaning any contribution given for political purposes by any person, whether or not the person is a member of a political party.

There are a number of important words in this definition of a donation:

(a)   Donation

A donation includes:

1. a donation of money;
2. a donation of property or goods;
3. the free use of property or goods;
4. a free supply of services;
5. the difference between the commercial price and the (lower) price charged for property, goods or services;   (this can include a loan provided to a candidate by a financial institution at terms and conditions which are more favourable than that provided by the financial institution to other individuals.  Details of the Standards Commission's position with regard to the issuing and repayment of loans can be found at paragraph 1.19 below.)
6. a donation received by way of a contribution made to the net profit from a fund-raising event organised for the benefit of a candidate.  This is explained in greater detail in Appendix 2.

(b)   Political purposes

The contribution must be given for political purposes.  The definition of political purposes is given in Appendix 1.  Gifts from family members or from friends, which are given for purely personal reasons, are not donations for political purposes.

(c)   Person

A person can be:

1. an individual;
2. a body corporate (and any subsidiary thereof), e.g., a public or private company;
3. an unincorporated body of persons, e.g., a political party, a partnership, a residents association, a lobby group.

1.13  Only donations with a value, or an aggregate value from the same person, of more than €634.87 are required to be disclosed.  If the same person makes more than one donation to a candidate in relation to the election, the values of the donations must be aggregated and treated as a single donation for disclosure purposes.

1.14  If more than one member of the same family, or other group, make donations to the same candidate, including where donations of money are made from a joint account in a financial institution, it must be clear that these are separate donations from each of the individuals involved.  Otherwise, the values of the donations must be aggregated and treated as a single donation for disclosure purposes and for the purposes of observing the maximum limit applying to the acceptance of donations (see paragraphs 1.26 to 1.29 in relation to donations in excess of the prescribed limit).  Similarly, if a company and any of its directors makes a donation to the same candidate it must be clear that these are separate donations.  In such circumstances the Standards Commission may look for evidence that the donations are from separate legal entities.  In each case, the candidate must make whatever enquiries are necessary in order to be satisfied as to the position with regard to the donation.

1.15  A donation to a candidate also includes the following:

1. where another candidate ("running mate" or otherwise) includes in his/her election material an endorsement which solicits support for the candidate, the value of the reference to the candidate in the other candidate's election material is regarded as a donation to the candidate [In this regard see paragraph 2.10 on cross-canvassing];
2.  money given to the candidate by his/her political party.

1.16  A donation made to a candidate through an intermediary is deemed to be a donation made to the candidate.

1.17  A donation passed on to a party by a candidate is deemed to be a donation made to the party and not to the candidate.  The candidate must, however, ensure that he or she receives from the party a written acknowledgement of receipt of the donation.

What is not a donation?

1.18  Items not regarded as donations to a candidate include:

(i)   free post service provided to the candidate (i.e., Litir um Thoghcán);

(ii)   any payment, service or facility provided to the candidate out of public funds or moneys provided by an institution of the European Communities or other intergovernmental organisation to which the State is a party, pursuant to specified legislation, by virtue of the candidate being

• a representative in the European Parliament;
• a member of the Dáil or Senate;
• the holder of a qualifying office or position;
• the holder of an elective or other public office; or
• a member of, delegate to, or representative in a body established by or under an agreement or arrangement to which the State is a party;

It is important to note that this provision only applies where the candidate, by virtue of his/her position or office, is entitled to use the services/facilities provided.  For instance, if a candidate who is not a Member of the Houses of the Oireachtas is provided with the free use of Oireachtas facilities (e.g., envelopes, telephones) it is regarded as a donation from the Member allowing the candidate to avail of the facilities.

(iii)  a free service provided by an individual, including use of the individual's motor vehicle, private telephone, etc., where the service provided is not part of the individual's work or business;

(iv)  a service provided at an election by an employee of a political party, including use of the individual's motor vehicle, where the employee's remuneration is paid out of party resources or out of public funds and where the employee is not in receipt of any reward or benefit in kind other than his or her normal remuneration (including recoupment of expenses) for that service;

(v)  normal media coverage and the transmission on radio or television of a broadcast on behalf of the candidate. This does not cover any production or other costs associated with such a broadcast.

(vi)  expenses incurred or payments made by a political party on behalf of the candidate;

(vii)  the services of an accountant, or other person, who is engaged for the specific purpose of assisting compliance with the requirements of the legislation;

(viii)  the services of personation officers on polling day.

Loans to candidates

1.19  Where a loan is provided to a candidate by a financial institution and the normal rules attaching to such loans apply, the loan is not regarded as a donation to the candidate.  However, where a loan is provided to a candidate by a financial institution in circumstances where either the interest charged is less than the lowest rate available from the financial institution or the loan is not repaid in accordance with the terms and conditions under which the loan was issued or is only partially repaid, the benefit to the candidate may be regarded as a donation and may, therefore, be subject to the disclosure and maximum limits applying to the acceptance of donations.

Where an individual or body, who or which is not a financial institution, gives a loan to a candidate, it must be evident that the loan offered is a bona fide loan.  In that regard the following would apply:

1. As with a loan from a financial institution, the terms and conditions applying to the loan and its repayment must be stated clearly in writing.
2. Interest is chargeable on the loan at a rate (whether fixed or variable) which reflects the interest charged by financial institutions on loans of a similar amount and duration.  Where the interest charged is less than the lowest rate available from a financial institution, the benefit accruing from the difference in rates is regarded as a donation to the candidate.
3. The Standards Commission may require sight of the terms and conditions, including the interest charge, applying to the loan and may require confirmation that the loan has been repaid in accordance with these terms and conditions.  If the loan is not repaid in accordance with the terms and conditions, or is only partly repaid, the benefit of such non-repayment may be regarded as a donation to the candidate.

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