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.
QUESTION POSED
Can the costs of a PAC fundraising event, even if held jointly, be paid by the corporate, affiliated-sponsor of the PAC as an allowable solicitation expense under Iowa law?
OPINION
Iowa Code § 68A.503(3) allows a prohibited contributor to “use money, property, labor, or any other things of value of the entity for the purposes of soliciting its stockholders, administrative officers, professional employees, and members for contributions to a political committee sponsored by that entity and for financing the administration of a political committee sponsored by that entity.” Administrative regulations from the Ethics Board “do not prevent a corporate entity from soliciting eligible members to join or contribute to its own corporate-sponsored PAC.” 351 IAC 4.45. The allowable costs by a corporate, affiliated-sponsor for the administration of a political committee (PAC) have been outlined. See 351 IAC 4.52(3), but there has been no interpretation regarding what constitutes the costs of solicitation of the permitted employees, officers, or members of the corporation.
Corporate, affiliated-sponsors of PACs have sought clarity from the Board on what is included in the allowable costs of solicitation the sponsor may pay when conducting PAC fundraisers and joint solicitations that include donations to separate, segregated educational (non-express advocacy) funds.
The statutory language in Iowa Code § 68A.503(3) is very broad. It states the corporate, affiliated-sponsor may use money, labor, or “any other thing of value” for the purposes of soliciting donations from the designated employees, officers, and members of the corporate, affiliated-sponsor of the PAC. This language is similar to federal regulations regarding the use of corporate funds for solicitation to the corporation’s PAC. (1) The federal regulations, however, explicitly allow the PAC to utilize a raffle, dance, party or other fundraising device, if the prize is not disproportionately valuable, and if the corporation is reimbursed for costs exceeding one-third of the money contributed, which would not include the actual solicitation costs. 11 CFR § 114.5(b)(2).
Iowa’s broad statutory language allows the use of corporate funds to solicit members and employees to contribute to the corporate, affiliated-sponsored PAC. There is nothing within Iowa’s statutory language designating that a “fundraiser” is separate and distinct from a “solicitation.” (2) Rather, unlike the federal regulations, Iowa’s language is silent regarding fundraising devices or limits on potential PAC fundraising repayment requirements based on the relative cost of a fundraiser versus the amount collected. Based on this, it is reasonable to conclude, a corporate, affiliated-PAC sponsor may use its corporate resources to pay the affiliated PAC’s solicitation expenses, including fundraising devices, such as parties, entertainment, and golf events. (3)
While the cost of the PAC’s solicitation or portion of a fundraising event may be paid for by the corporate, affiliated-sponsor, the costs of the event and any prizes or experiences for the attendees should not be disproportionate to the donations received by the PAC. Corporations cannot funnel corporate funds to an individual in exchange for a PAC contribution. See Iowa Code § 68A.502. Providing an expensive prize or significant entertainment or experience disproportionate to an individual’s PAC contribution would raise concerns of impermissible corporate payment to the PAC.
Similarly, the costs of any joint fundraiser should be split equitably between the PAC and any other entity. In addition, the corporate affiliated-sponsor and PAC must ensure solicitation for any fundraising events are made only to appropriate stockholders, employees, and members. Iowa Code § 68A.503(3); see also AO 2015-07, Definition of Professional Employee.
(1) “Corporations, labor organizations, membership organizations, cooperatives, or corporations without capital stock may use general treasury monies, including monies obtained in commercial transactions and dues monies or membership fees, for the establishment, administration, and solicitation of contributions to its separate segregated fund. A corporation, labor organization, membership organization, cooperative, or corporation without capital stock may not use the establishment, administration, and solicitation process as a means of exchanging treasury monies for voluntary contributions.” 11 CFR § 114.5(b).
(2) The federal regulations include fundraising within the definition of the general, allowable establishment, administration, and solicitation costs of the PAC “Establishment, administration, and solicitation costs” means the cost of office space, phones, salaries, utilities, supplies, legal and accounting fees, fund-raising and other expenses incurred in setting up and running a separate segregated fund established by a corporation, labor organization, membership organization, cooperative, or corporation without capital stock. 11 CFR § 114.1(b).
(3) Under Iowa law, PACs are not eligible to obtain a gambling license.
BY DIRECTION AND VOTE OF THE BOARD:
James Albert, Chair
Elaine Olson, Vice Chair
Jonathan Roos
Daniel Jessop
Leah Rodenberg
SUBMITTED BY:
Erika Eckley, Executive Director and Legal 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.