Corporate Involvement in Political Activity

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Corporations have traditionally been prohibited from participating in political activity except in limited and highly regulated circumstances. Ohio law, however, contains several notable, but narrow, exceptions that may allow your company the to participate in the November 2008 elections.

Issue Advocacy. Corporations may use its money or property to support or oppose a proposed or certified ballot issue or question. Although there are no contribution limitations, corporations are required under state law to report certain expenditures associated with such efforts.

Communicating Information. For-profit corporations may use their money or property to communicate information for or in aid of or in opposition to a political party or candidate for an election so long as: (a) the communication is sent exclusively to shareholders, employees, officers or directors of the corporation or to the immediate families of individuals and (b) the communication is not made by mass broadcast, such as by radio or television and is not made by advertising in a newspaper of general circulation.

Non-profit corporations may also use their money or property to communicate information if its members, donors, trustees, officers, and stockholders are the predominate recipients of the communication.

Non-Partisan Activities. Corporate funds may be used for non-partisan programs that do not promote a particular candidate, PAC or political party. Examples of non-partisan programs include voter registration drives, get-out-the vote drives, and non-partisan candidate debates.

Sponsoring a PAC. Corporations may sponsor a PAC and may also pay certain establishment, administrative and solicitation expenses on behalf of the sponsored PAC. Corporations intending to form a PAC must be aware of the registration and on-going reporting requirements, the solicitation rules and the applicable contributions limitations.

For more information about how your company can legally participate in any of these activities, please contact Maria Armstrong at 614.227.8821 or Miranda Motter at 614.227.4810.

Additional Resources

Ohio Campaign Finance Resource Guide for Corporations and Political Action Committees Available. Bricker & Eckler has prepared a comprehensive guide for corporations and PACs detailing compliance with H.B. 1 and how to establish, administer and operate a corporate-sponsored PAC. The guide also discusses permissible political activity by corporations, LLCs and sole-proprietorships that wish to engage in both partisan and non-partisan activities. To request a free copy of the guide, e-mail Maria Armstrong at marmstrong@bricker.com

Corporate Gifts To Ohio Political Parties
August 2006
Ohio law now allows a corporation or labor union to use its resources to assist a political party with certain non-partisan activities. Read about Levin Funds, Restricted Accounts and building funds.

Permissible Use of Corporate Funds in Ohio For Electioneering Communications
August 2006
Another new provision of Ohio law, and another vehicle for corporate involvement in the political arena, is found in the Ohio’s electioneering communications provisions.