President may play fund-raiser role, FEC rules

WASHINGTON -- The Federal Election Commission ruled yesterday that the president, vice president, members of Congress, and candidates for those offices may play a role in campaign fund-raising events even if those who come to the event are asked to give money that exceeds ceilings set by federal law.

So long as those officerholders or candidates do not themselves directly ask for money beyond those ceilings, they may appear as speakers or in other capacities at the events, the FEC ruled. The sponsors must tell the audience that the officeholders and candidates themselves are not there to raise money outside the limits, but others there may make such solicitations.

In yesterday's ruling, the FEC continued its policy of interpreting narrowly the ban imposed on unregulated campaign giving and spending under the McCain-Feingold campaign finance reform act, signed into law in 2001.

In a series of votes on proposals by the Republican Governors Association, the FEC laid down rules on participation by federal officials and candidates in activities of so-called "527 organizations," those set up to promote political candidates but operate outside party and candidate organizations.

Some of those "outside" organizations are expected to sponsor fund-raising events at the presidential nomination conventions this summer, and yesterday's ruling would apply to them, if they are formally designated as 527 groups.

Those groups, taking their name from a section of the federal tax code under which they are created as tax-exempt groups, are not directly covered by a federal law that sets strict curbs on raising and spending money on federal campaigns, and that flatly outlaws "soft money," or money raised beyond federal ceilings.

Advocates of strict regulation of campaign finances have denounced those organizations as "stealth political action committees," created expressly to get around existing federal law. The FEC is considering a series of requests for advice on what those organizations may do during federal campaigns.

Last year, it ruled that the ban on solicitations of such soft money by officeholders or candidates only if they specifically ask for that kind of donation, a ruling challenged in court by Representative Martin Meehan, Democrat of Lowell, and other finance regulation advocates.

Expanding on that yesterday, the agency said that those individuals may appear as featured guests, have their identities as speaker included on writing invitations, and may sign requests for donations at "527 organization" fund-raisers.

If such an individual makes a speech at such an event, but does not ask for money, the audience need not be told that the individual is not raising funds that the law forbids them to solicit, so long as the invitation includes such a disclaimer.