AO 2007-18: Use of campaign, leadership PAC funds for official portrait

Representative Charles Rangel's principal campaign committee (the Committee) or his leadership PAC (National Leadership PAC) may use their respective funds to pay for the commissioning of an official portrait of Representative Charles Rangel that will be donated to the U.S. House of Representatives. Payment for the portrait by the National Leadership PAC will not be considered an in-kind contribution to the Committee.

Background

Representative Rangel is the Chairman of the U.S. House of Representatives Committee on Ways and Means. The U.S. House of Representatives traditionally honors committee chairs by placing their portraits in the committee hearing rooms. The House Committee on Ways and Means will commission the portrait for donation to the U.S. House of Representatives. Representative Rangel's principal campaign committee or the National Leadership PAC will pay $64,500 for the cost of the portrait and will not solicit or receive funds to pay for the portrait. The portrait, which will be donated to the House for public purposes, will become the official property of the House and will not be transferred or sold to any other person or organization.

Analysis

The Federal Election Campaign Act (the Act) provides that campaign funds may be donated to any organization described in 26 U.S.C. §170(c), but may not be “converted by any person to personal use.” 2 U.S.C. §§439a(a)(3) and (b)(1); 11 CFR 113.1(g)(2) and 113.2(b). Commission regulations provide that donations from campaign funds to section 170(c) organizations are not personal use, unless the candidate receives compensation from the organization before that organization has expended, for purposes unrelated to the candidate's personal benefit, the entire amount donated. 11 CFR 113.1(g)(2).

In this case, the Committee's use of campaign funds to pay for the cost of the portrait is permissible. The U.S. House of Representatives qualifies as an organization described in section 170(c) of Title 26, to the extent that the donation is made for exclusively public purposes. Moreover, the proposed payment for a portrait of Representative Rangel would not financially benefit Representative Rangel or a family member. While Representative Rangel is employed by the U.S. House of Representatives and receives compensation from the House for his services, no part of the payment for the portrait by the Committee or by the National Leadership PAC would benefit either Representative Rangel or his family financially.

The Commission also concluded that the National Leadership PAC may pay for the portrait commission. This payment would not be considered an in-kind contribution to the Committee because the payment would not be for the purpose of influencing an election for federal office. See U.S.C. §431(8)(A)(i); 11 CFR 100.52(a). Whichever committee pays for the painting must report all disbursements of funds, including any payment for a portrait and maintain appropriate documentation of disbursements. See 2 U.S.C. 434(b)(4) and (b)(5); 11 CFR 104.3(b).

AO 2007-18: Date Issued: October 12, 2007; length: 4 pages.