AO 2007-17: Contributor signature not required on contributions made through online banking services

The Democratic Senatorial Campaign Committee (DSCC) may collect contributions from individuals using online banking services, which often take the form of electronic payments or bank-issued checks that are signed by bank officials. The DSCC is not required to collect a signature from the individual contributor as long as the check was executed by a bank official in accordance with the individual contributor's instructions and clearly indicates the personal account from which the check is drawn.

Background

The DSCC collects a number of contributions from individuals who use online banking services. This involves a bank customer registering his or her account online and scheduling payments to any person or entity he or she wishes to pay by transmitting this information to the bank via the Internet. The bank will either issue payment to the payee electronically or by means of a written check. Checks produced in this manner typically contain the account holder's name, checking account number and other identifying information.

Contribution checks issued to the DSCC by individual contributors through this method are frequently signed by a bank official rather than the account holder. The DSCC typically sends a follow-up letter to the contributor to obtain a written signature. The DSCC proposes to cease this follow-up procedure in cases where it has all of the necessary contributor information.Legal Analysis

The Federal Election Campaign Act (the Act) and Commission regulations require that all contributions be properly attributed to the actual contributor. Any contribution made by check, money order or other written instrument must be reported as a contribution by the last person signing it prior to delivery to the candidate or committee, "absent evidence to the contrary." 11 CFR 104.8(c).

In cases where the individual contributor directs a contribution to be made to a political committee, if the check is drawn from the contributor's account and signed by a bank official at the direction of the account holder, then the check itself would provide adequate evidence that the account holder is the actual contributor (and consequently the person to whom the contribution must be attributed).

Accordingly, the DSCC is not required to send a follow-up letter to obtain a written signature from the contributor, as long as the DSCC has received all necessary contributor information. In the event that the DSCC does not have all necessary contributor information, they must use "best efforts" to obtain, maintain and report such information. 11 CFR 102.9(d).

In the case of a check drawn on a joint checking account, the DSCC must contact the individuals to ascertain their intent if the account holders do not specify how the contribution is to be attributed. 11 CFR 110.1(k)(3)(ii)(A). However, if there is only one way to attribute the contribution consistent with the Act's contribution limits and prohibitions, then the DSCC may attribute the contribution according to the rules for "presumptive reattribution," and would not need to obtain a written attribution from the contributors. 11 CFR 110.1(k)(3)(ii)(B).

AO 2007-17: Date Issued: October 12, 2007; length: 5 pages.