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Federal Election Commission | United States of America

Building fund donations and lease payments

State, district and local party committees may accept unlimited funds donated specifically to defray the costs of constructing or purchasing a party office building (but not to influence any particular federal election). Such building fund donations are not considered contributions and are not subject to any limits or prohibitions, other than the prohibition against donations from foreign nationals. This exemption does not apply to national party committees because they are prohibited from raising or spending funds not subject to the limitations, prohibitions and reporting requirements of the Federal Election Campaign Act.

A party committee must deposit such donations in a nonfederal account, since they do not meet the requirements for deposit in a federal account. Federal funds may also be used to construct or purchase a party office building. If federal funds are used for this purpose, the limitations and prohibitions of the Act apply.

If nonfederal funds are used, they are subject to the limits and prohibitions of state law. State party committees may need to report such activity under state law.

Note that this exemption does not apply to funds used to pay rent, operating costs, property taxes or other administrative expenses of a party office building.

Leasing a portion of the office building

A state or local party committee may lease a portion of its office building at the usual and normal charge. If the building is purchased or constructed with any nonfederal funds, all rental income must be treated as nonfederal funds. If the building is purchased or constructed solely with federal funds, the income may be deposited in the federal account.

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Legal citations

Regulations

11 CFR 100.84
Office building for state, local, or district party committees or organizations

11 CFR 102.5(a)(2)
Deposits into a party's federal account

11 CFR 103.3(a)
Deposits of receipts and disbursements

11 CFR 114.1(a)(2)(ix)
Donations to state or local party committees for purchase or construction of party office building are not contributions or expenditures

11 CFR 300.35
Office buildings

Advisory opinions

AO 2004-28
Disclosure of donations to a state party committee's building fund

AO 2001-12
Preemption of state law governing contributions to building fund; use of building funds (superseded in part)

AO 2001-01
Use of political party's office building fund to pay building renovation costs and fundraising expenses of building fund (superseded in part)

This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public.

The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.