Permissible Use of Corporate Funds in Ohio For
Electioneering Communications

Maria J. Armstrong
Bricker & Eckler LLP
August 2006

Corporations are generally prohibited from using corporate resources in aid of a political party, candidate for election, or for any partisan political purpose. However, Ohio law does contain several limited exceptions to the general rule. In addition to making gifts to certain political party funds and supporting ballot issue campaigns or PACs, for-profit corporations may also use corporate resources for “electioneering communications,” but only under very limited circumstances. Non-profit corporations should be particularly diligent before engaging in any political activity to protect their non-profit tax status.

“Electioneering communications” is defined in Ohio law as any broadcast, cable, or satellite communication that refers to a clearly identified candidate and that is made during specified periods of time under Ohio law. O.R.C. 3517.1011(A)(6)(a). “Electioneering Communications” does not include communications disseminated through a means other than broadcast, cable, or satellite television or radio.

“Refers to a clearly identified candidate” means that the candidate’s name, nickname, photograph, or drawing appears, or the identity of the candidate is otherwise apparent through an unambiguous reference to the person’s title, such as “the chief justice,” “county auditor,” etc., or through an unambiguous reference to the person’s status as a candidate.

Under Ohio’s electioneering communication laws, no corporation, individual, PAC, political organization, association, or other entity may make any electioneering communication that refers to a clearly identified candidate using any contributions received from a corporation or labor organization either 30 days preceding a primary election or 30 days preceding a general election.

Except for those timeframes, though, a corporation may make a payment for the direct costs of producing or airing electioneering communications so long as the communication is not coordinated with the candidate’s campaign in any manner. In addition, Ohio law requires that the proper disclosures be made prior to making the first payment and, under certain circumstances, within 24 hours of each disclosure date. As with any political communication, electioneering communications must include a conspicuous statement, or disclaimer, that complies with Ohio law.

Violation of the notice and filing requirements are severe. Failure to complete the required filing is subject to a fine of up to $10,000 plus one thousand $1,000 for each day of the violation. And making disbursements for electioneering communications from corporate or labor organization contributions thirty days prior to a primary or general election is subject to a fine of up to three times the amount disbursement for the direct costs of airing the electioneering communication.

Corporations, and particularly non-profit corporations, that wish to engage in electioneering communications, or are asked to contribute to another entity for the purpose of issuing an electioneering communication, should be careful to have a thorough understanding of these new laws before proceeding.

This information was prepared to assist our clients and friends of the firm in understanding the new electioneering communications law. However, this summary article is not a complete review of all applicable laws related to this topic and cannot address every situation or question. If you need any additional information about Ohio electioneering communications law, or other Ohio campaign finance provisions, please contact Maria J. Armstrong in the Government Relations Group.