29/04/09 - Donations Disclosed by TDs, Senators and MEPs for 2008

Part 3 - Disclosure of Donations

3.1 Definition of a donation

A donation is defined as "any contribution given for political purposes by any person, whether or not a member of a political party ...". A person means an individual, a body corporate, or an unincorporated body of persons. An unincorporated body of persons includes a political party and any of its subsidiary organisations.

A donation can include:

1. a donation of money (including money given by a political party to a TD, Senator, MEP or candidate at an election);
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 may include a loan provided to a person by a financial institution at terms and conditions which are more favourable than that provided by the financial institution to other individuals. It may also include a loan provided by a person other than a financial institution where the interest charged is less than the lowest rate available from a financial institution);

3.2 Contributions to fund-raising events

A donation can also include the net value of a contribution to a fund-raising event organised for the benefit of a TD, Senator, MEP or candidate at an election. A significant amount of donations disclosed are in the form of contributions to fund-raising events. Where a TD, Senator, MEP or candidate organises a fund-raising event for his/her benefit, contributions to the event are deemed to be donations to the person concerned. A TD, Senator, MEP or a candidate at an election is only required to disclose the net value of such contributions. The costs of holding a fund-raising event can be deducted from the proceeds of the event for the purposes of calculating the net value of each person's contribution to the event. TDs, Senators, MEPs or candidates at elections are not required to disclose the total value of the proceeds of such fund-raising events.

Where a fund-raising event is organised by a political party for the purposes of raising funds for the party, the net contribution made by a person to the fund-raising event is regarded as a donation to the party. This applies even if the funds are subsequently used by the party for the purposes of paying expenses incurred on a TD, Senator, MEP or candidate(s) at an election. If, however, some or all of the proceeds of the event are given directly to a TD, Senator, MEP or candidate in the form of money it is regarded as a donation by the party to the person. Monetary donations from a political party are subject to the disclosure and maximum acceptance limits.

Where a political party (including a branch of a political party) organises a fund-raising event on behalf of a TD, Senator, MEP or candidate at an election and the proceeds of the event are passed to the person, the party is regarded as an intermediary accepting donations on the person's behalf. The contributions to the event are deemed to have been made to the TD, Senator, MEP or candidate concerned and he/she is responsible for ensuring that the legislative requirements are complied with. He/She is not required to disclose the total proceeds of the fund-raising event but is required to disclose any individual contribution to the event which exceeds a value of €634.87. If it is the case, however, that the party retains control of the proceeds, the donations may be regarded as having been made to the party and the party will be responsible for ensuring that the legislative requirements are complied with.

Where a fund-raising event is organised on behalf of a TD, Senator, MEP or candidate at an election by a person or group other than the individual or his/her political party (e.g., by "Friends of X groups") and the proceeds of the event are handed over to the TD, Senator, MEP or candidate, the fund-raising person/group is regarded as an intermediary accepting donations on the candidate's behalf. The donations are deemed to have been received by the TD, Senator, MEP or candidate and he/she is responsible for ensuring that the legislative requirements are complied with. He/She is not required to disclose the total proceeds of the fund-raising event but is required to disclose any individual contribution to the event which exceeds a value of €634.87. If, however, the proceeds of the event are not handed over to the candidate and are retained by the fund-raising group the group may be regarded as "a third party" and may be required to comply with the requirements attaching to "third parties" under the Act.

Section 22(2)(c)(ii) of the Act provides that where a donation is made to a TD, Senator, MEP or candidate at an election and is passed on to his/her political party and a written acknowledgement of the donation is received from the party, the donation will be deemed to have been made to the party and is not regarded as a donation to the TD, Senator, MEP or candidate.

3.3 Donation Statements received from TD, Senators and MEPs

The Standards Commission produced a Donation Statement/Statutory Declaration form (08/DS) for use in respect of 2008. In early January 2009 the Standards Commission wrote to each TD, Senator and MEP enclosing a Donation Statement/Statutory Declaration form for completion and return by 31 January 2009.

A reminder letter issued on 12 February 2009 to nine people whose Donation Statement had not been received. A second reminder letter issued on 24 February to two TDs, one Senator and one MEP whose Donation Statement was still outstanding. The reminder letters referred to the offence under section 25(1)(c) of the Act for failing to furnish a Donation Statement by the statutory deadline.

A total of 237 Donation Statements and Statutory Declarations in respect of 2008 were received as follows:

• 164 from members of Dáil Éireann
• 60 from members of Seanad Éireann
• 13 from representatives in the European Parliament

Donations with a total value of €109,135 were disclosed by 20 TDs. Donations with a total value of €54,259 were disclosed by six Senators (A refund of €2,500 was made to a donor by Senator Alan Kelly as the donation received exceeded the maximum prescribed limit. Senator Kelly also returned another donation of €2,500.) "Nil" Donation Statements were received from the remaining TDs and Senators. Each MEP furnished a "nil" Donation Statement. For each donation exceeding a value of €634.87, the person furnishing the Donation Statement must indicate the value and nature of the donation as well as the name, a description and postal address of the donor. Section 22(2)(d) of the Act provides that donations from the same person in the same year must be aggregated for the purposes of observing the disclosure threshold and the maximum acceptance limit.

Section 24(3) of the Act provides that the Donation Statement must be accompanied by a Statutory Declaration made by the person furnishing the Donation Statement, stating to the effect that, to the best of his/her knowledge and belief, the Donation Statement is correct in every material respect and he/she has taken all reasonable action in order to be satisfied as to the accuracy of the Donation Statement.

Details of the donations disclosed are contained in Appendix 1 of this report.

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