Advisory Opinion 01-03

     This advisory opinion addresses the use of campaign contributions for charitable or educational funds or trusts in the candidate’s name. It is the opinion of the Commission that the applicable statutory provisions do not authorize the use of campaign contributions, surplus funds, or residual funds for establishing a charitable or educational fund or trust in the candidate’s name. In Advisory Opinion No. 99-06, the Commission considered a similar question regarding the establishment of a legal defense fund in a candidate’s name. The Commission answered in the negative.

Section 11-200(a)(1), Hawaii Revised Statutes ("HRS") provides in pertinent part as follows:

(a) A candidate, campaign treasurer, or candidate's committee shall not receive any contributions or receive or make any transfer of money or anything of value:
(1) For any purpose other than that directly related:

(A) In the case of the candidate, to the candidate's own campaign: or
(B) In the case of a campaign of the candidate, question, or issue with which they are directly associated;…

Section 11-206(c), HRS provides in pertinent part as follows:

(b) Such contributions may be used after a general or special election for any fundraising activity, for any other politically related activity sponsored by the candidate, for any ordinary and necessary expenses incurred in connection with the candidate's duties as a holder of an elected state or county office, or for any contribution to any community service, educational, youth, recreational, charitable, scientific, or literary organization, or any other organization which the commission by rules adopted pursuant to chapter 91, deems appropriate.

Hawaii Administrative Rules section 2-14.1-15, provides in pertinent part as follows:

(a) No candidate, committee, candidate committee, or noncandidate committee shall use any campaign contribution for any personal expense, including without limitation the following:

(9) Legal expenses not related to the nomination or election of a candidate.

Hawaii Administrative Rules section 2-14.1-16, provides in pertinent part as follows:

(a) A candidate, committee, or candidate committee may use campaign contributions to pay for necessary expenses that are predominantly and directly related to a candidate's campaign to influence the nomination or election to the candidate.

     The campaign spending statute and administrative rules do not allow a candidate to create a charitable fund or trust with campaign funds. The statutes specifically identify "organizations" as potential recipients of campaign funds. Therefore, the use of campaign contributions to establish a charitable or educational trust fund is not an "ordinary and necessary" expense in connection with the candidate’s duties as officeholder.

     A related question raised is whether a candidate may make contributions to a charitable organization that has been previously established in the name of the candidate or other family member. Generally, such donations would not be appropriate because it would run afoul of the prohibition against the candidate receiving a personal benefit from a contribution to a charity or community organization. However, some candidates may have previously established a charitable trust, entirely unrelated to any campaign or other candidate. Where it can be shown that the candidate, family or other members of the candidate’s campaign committee will not receive a current or future personal benefit, such donations may be allowed.

     This Advisory Opinion is provided by the Commission as a means of stating its current interpretation of the Hawaii Election Campaign Contributions and Expenditures laws provided under HRS section 11-191, et seq. and the administrative rules of the Commission provided in chapter 2-14, Hawaii Administrative Rules. The Commission may adopt, revise, or revoke this Advisory Opinion upon the enactment of amendments to the Hawaii Revised Statutes or the adoption of administrative rules by the Commission.

Dated: Honolulu, Hawaii, June 5, 2001.

CAMPAIGN SPENDING COMMISSION

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A. Duane Black
Chairperson

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Della Au
Commissioner

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Clifford Muraoka
Commissioner

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Mona Chock
Commissioner