The door has been opened for political parties to make money from the sale of mailing lists.
Under the Bipartisan Campaign Reform Act of 2002 (BCRA), list rental income was classified as a contribution or donation (soft money) and therefore prohibited under the new rules, which took effect last Nov. 5.
But the Libertarian National Committee Inc. (LNC) requested in writing that the Federal Election Commission (FEC) allow the organization to consider list rental revenue as income received in return for goods and services provided at customary market rates. Such money does not fall under the BCRA.
The FEC voted unanimously in favor of the LNC’s request in January, said FEC spokesman Bob Biersack.
However, the FEC said certain conditions must be met. For example, the list must be sold at fair market value and it must be used in a commercially reasonable manner.
Exchanges of equal value also are permitted, and do not have to be reported.
Right now it’s unclear what effect this change may have on the mailing list industry. But the move is likely to open up a source of income for political parties looking to compensate for the loss of millions of dollars in corporate and union soft money banned by the campaign finance law.
Whether or not other parties would make a similar request is unknown. Each case would be handled on a individual basis, according to Biersack.
However, the FEC ruled against the LNC on the question of advertising revenue generated by the party paper LP News. The commission said that in most cases ad revenue must be considered “a contribution in its full amount and subject to the limitations…and prohibitions of the Act.”
The FEC explained that the sale of advertising space in the newsletter is “inherently susceptible to use for political fundraising rather than commercial purposes.”
However, the FEC will permit the purchase of space and trademarks by political campaign committees of federal candidates.
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