AO 2015-14: Internship stipend and academic credit do not constitute campaign contributions

A university may provide a stipend and academic credit for a student’s campaign internship without making a prohibited contribution, under the Federal Election Campaign Act (the Act) and Commission regulations.

Background

DePauw University is an accredited institution of higher learning and a 501(c)(3) nonprofit organization. The university administers the Hubbard Center Summer Internship Grant Program (Grant Program) as a way to help students gain practical experience to supplement their academic studies.

The Grant Program provides stipends of up to $3,000 to DePauw students who accept unpaid internships with non-profits, the government or start-ups. The stipends are intended to offset students’ basic living expenses during the internship, and not to pay them for the work they perform. The Hubbard Center grants stipends based on how well the internships “relate and connect to [students''] academic, personal, and professional goals.” Participating students must document their experience with weekly blog entries and enroll in a summer internship symposium the following fall. Some students use these summer internships to fulfill DePauw’s requirement for two “Extended Studies” experiences, in which students "intensely focus on a particular topic, problem, or skill-set."

In 2015, DePauw student Victoria Houghtalen participated in an eight-week, unpaid summer internship with Hillary for America, the principal campaign committee for presidential candidate Hillary Clinton (the Committee). Ms. Houghtalen earned "Extended Studies" credit for the internship and received a $3,000 stipend from the Hubbard Center. The Committee asks if Ms. Houghtalen’s receiving the academic credit and stipend would constitute a prohibited corporate contribution to the campaign.

Legal analysis and conclusions

The Act and Commission regulations prohibit a corporation from making any contribution to a candidate in connection with a federal election. 52 U.S.C. §30118(a), (b)(2); see also 11 CFR §114.2(b). This includes “the payment by any person of compensation for the personal services of another person which are rendered to a political committee without charge for any purpose.” 52 U.S.C. §30101(8)(A)(ii); 11 CFR §100.54 (emphasis added).

In this request, however, the Commission concluded that DePauw’s award of the stipend does not constitute a contribution because the stipends here are provided to students for bona fide educational objectives and not for the provision of personal services to federal campaigns. Additionally, because DePauw adheres to accepted accreditation standards generally applicable to institutions of higher education, and administers its Grant Program and Extended Studies requirement in a non-partisan manner, awarding Extended Studies credit to Ms. Houghtalen does not result in a prohibited corporate contribution to the Committee. See AO 1975-100 (Moss); Factual and Legal Analysis at 7, MUR 6620 (Friends of Brian Woodworth) (July 2, 2013).

Date Issued 02/11/2016; 5 pages

Resources:

• Advisory opinion 2015-14 [PDF]
• Commission discussion of Advisory Opinion 2015-14 [mp3]
• Concurring statement from Chairman Matthew S. Petersen and Commissioners Caroline C. Hunter and Lee E. Goodman [PDF]
• First concurring statement from Commissioner Ellen L. Weintraub [PDF]
• Second concurring statement from Commissioner Ellen L. Weintraub [PDF]