For many years, supporters of a candidate or a cause simply wrote a check and asked friends and colleagues to do the same. But the opportunities to influence elections and public policy have evolved significantly, allowing today’s high-net-worth individuals and family offices to better maximize political influence, while balancing those gains with financial goals and reputational interests. Yet with new opportunities come new risks. Laws vary significantly from one jurisdiction to another, and as some regulators make frequent changes, others work from arcane laws that do not speak to modern practices in business, wealth planning, philanthropy, or campaigning. Violations, even if inadvertent, can result in financial penalties, legal liability, reputational risk, and loss of business. This advisory describes some of the important considerations for donors before engaging in the electoral process and steps they can take to help ensure they stay compliant.
