The Iowa Ethics and Campaign Disclosure Board issues this Advisory Opinion pursuant to Iowa Code section 68B.32A(12) and Iowa Administrative Code rule 351-1.2(1). This opinion offers guidance on the investment of campaign funds by candidate’s committees under Chapter 68A.
We note at the outset that the Board’s jurisdiction is limited to the application of Iowa Code chapters 68A, 68B, and rules in Iowa Administrative Code chapter 351. Advice in a Board advisory opinion, if followed, constitutes a defense of a subsequent complaint based on the same facts and circumstances.
BACKGROUND
The Board issues this advisory opinion sua sponte, to address investment activities by candidate’s committees using campaign funds.
QUESTION POSED
Does Chapter 68A allow candidate’s committees to invest campaign funds?
OPINION
Iowa Code § 68A.302(1) provides that a candidate’s committee “shall use campaign funds only for campaign purposes, educational and other expenses associated with the duties of office, or constituency services, and shall not use campaign funds for personal expenses or personal benefit.” See also Iowa Admin. Code r. 351–4.25 (listing legitimate expenditures of campaign funds allowed by this rule). The following subsection, Iowa Code § 68A.302(2), provides a non-exhaustive list of specific personal uses which are expressly prohibited.
Neither the Code nor the Board’s administrative rules directly address when committees are permitted to invest campaign funds. Nevertheless, Iowa Code § 68A.203(1)(b) stipulates that “[e]very candidate’s committee shall maintain all of the committee’s funds in bank accounts in a financial institution located in Iowa.” The Board understands this provision to be exclusive of other options which might otherwise be available to hold committee funds. See also Iowa Code § 68A.303 (identifying permissible transfers of campaign funds).
Even without this implied restriction, the purpose of Iowa Code § 68A.302(1) is to ensure that contributions given to a candidate’s committee are used solely to advance the candidacy of the recipient, or for other legitimate expenses related to the recipient’s duties of office or constituency services, rather than supporting unrelated economic ventures. Although Chapter 68A affords meaningful latitude to committees in deciding how best to allocate resources, speculative investment activities do not fit neatly into the statutory authorization, and it is not clear that these activities should be permitted simply because any revenue generated might later be used for “campaign purposes.” Absent clear statutory authorization, the Board defers to Iowa Code § 68A.203(1)(b).
Accordingly, the Board takes the position that Chapter 68A generally restricts the investment of campaign funds by candidate’s committees, though committees may still receive interest on committee funds maintained in bank accounts authorized by Iowa Code § 68A.203(1)(b), to include money market accounts and certificates of deposit.(1) Other forms of investment are prohibited, including stock trading, participation in mutual funds, or alternative investments in real estate, commodities trading, or cryptocurrency.
In reaching this conclusion, this opinion acknowledges reasonable arguments could be made to draw the line elsewhere, to permit low-risk investments (e.g. Treasury bonds) while barring higher risk activities (e.g. options trading). Such arguments, however, are more appropriately directed to the legislature.
Consistent with the Board’s opinion in AO 2022-01, Cryptocurrency Value and Reporting Requirements, nothing in this opinion is intended to preclude a committee from accepting cryptocurrency or other non-monetary assets as in-kind contributions and maintaining those assets separately until such time as they are liquidated and deposited into the committee’s bank account.
(1) A candidate’s committee which places campaign funds in an authorized money market account or purchases a certificate of deposit should amend their statement of organization (Form DR-1) to report the new account. The value of the account should be included in the committee’s cash on hand for the purposes of periodic disclosures (Form DR-2), with any interest generated as a monetary receipt.
BY DIRECTION AND VOTE OF THE BOARD:
James Albert, Chair
Elaine Olson, Vice Chair
Jonathan Roos
Daniel Jessop
Leah Rodenberg
SUBMITTED BY:
Alexander Lee, Ethics Counsel
ISSUED ON:
September 30, 2026
Pursuant to Iowa Administrative rule 351-1.3(3), a person who has received a board opinion may, within 30 days after the issuance of the opinion, request modification or reconsideration of the opinion. A request for modification or reconsideration shall be deemed denied unless the board acts upon the request within 60 days of receipt of the request. Pursuant to Iowa Administrative rule 351-1.3(6), a person who has received a board opinion or advice may petition for a declaratory order pursuant to Iowa Code section 17A.9. The Board will refuse to issue a declaratory order to a person who has previously received a board opinion on the same question, unless the requestor demonstrates a significant change in circumstances from those in the board opinion.