HARMON CURRAN NONPROFIT LAW BLOG

House rules against accepting private subsidies for official business and using House resources for private activities generally bar members from co-sponsoring events with outside entities, including nonprofits. However, under new joint guidance from the House Committee on Ethics, Committee on House Administration, and Communications Standards Commission, qualifying nonprofits can now co-sponsor constituent service events with members of the U.S. House of Representatives in the limited circumstances described in the guidance. This is a small but significant change. According to its authors, this revised guidance “recognizes the beneficial purposes served by co-sponsored constituent service events while respecting the spirit and intent of the rules governing the use of official resources.”

For qualifying nonprofits, co-sponsoring constituent service events with House members can be an opportunity to reach new segments of the community, build relationships, and promote awareness of available services and information. But before planning any events, interested organizations and their counsel should review the new guidance carefully to make sure they can comply with its restrictions.

Importantly, the new exception applies only to constituent service events as defined in the guidance. To qualify, an event must be held in the member’s congressional district and provide “information or some other tangible assistance” directly to individual constituents. It should be free, open to the public, and advertised widely. It cannot include political campaigning, commercial endorsements, business transactions, or charitable solicitations or donations. As examples of permissible events, the guidance mentions information fairs for small business owners, town halls on the immigration process, financial aid seminars for high school seniors, and tax preparation events held in partnership with qualified organizations.

For any other official event involving House members—including briefings, award ceremonies, and district office open houses—the ban on outside co-sponsorship remains in effect. The guidance also excludes events that provide “any services that involve or establish a fiduciary relationship.” For that reason, the guidance notes, a legal services organization could not co-sponsor an event where its attorneys provided free legal advice to individual constituents.

Not all nonprofits can be co-sponsors. The guidance only permits co-sponsorship by entities that qualify under Section 170(c) of the Internal Revenue Code, such as Section 501(c)(3) organizations, certain war veterans’ organizations, and federal, state, or local governmental entities (including public universities). But even these entities can only co-sponsor a particular event if they and the House member share “a common core of interest” in the event’s subject matter. That means delivering the information the event will feature should be one of the organization’s “main purposes.” A co-sponsoring organization, the guidance adds, “should also have a history of providing information or services” in the relevant state. If the co-sponsoring organization has registered federal lobbyists on staff, these individuals cannot be involved in planning, organizing, or arranging any aspect of the event.

Co-sponsoring a constituent service event, under this guidance, means more than simply writing a check. The House member and the co-sponsoring organization should each pay “reasonably proportionate shares of the overall cost,” but neither party “may merely provide financial support.” Both members and co-sponsors must be involved in organizing, publicizing, paying for, and staffing co-sponsored event. Promotional materials for the event, among other requirements, must list both the member and the co-sponsor “in equal size and prominence.”

Further restrictions relate to timing—a qualifying event cannot be held within 60 days of a primary or general election in which the member is on the ballot—and funding. For example, donors may not earmark funds for a co-sponsored constituent service event. To cover their share of the costs, co-sponsoring organizations must draw from their general funds, while House members may use their Member’s Representational Allowance. Members may also use principal campaign funds to pay for food and room rentals (but not promotional materials).

As this discussion suggests, co-sponsoring a constituent service event will require careful planning and attention to the guidance. But the reward for doing so is potentially significant: a new way for qualifying nonprofits and House members to work together to serve their communities.

If you have any questions about the new guidance, please contact us.