Contributions to Inaugural Committees: What You Should Know

The 2024 elections are in the rearview mirror (mostly) and now your organization is looking to 2025 political giving. Likely, you or your organization will be approached by an inaugural committee asking for contributions to support the committee’s planned activities. 

As a lobbyist or lobbyist principal, you and your employer should exercise caution before pulling out the checkbook. Many jurisdictions limit what lobbyists and lobbyists principals are able to contribute to political candidates. Depending on the jurisdiction, you may be making a political contribution when you give to an inaugural committee. In other jurisdictions, you may be able to give freely even if there are limits on lobbyists and other restricted sources.

California is one of those jurisdictions that considers a contribution to an inaugural committee a contribution to the candidate. Therefore contribution limits and source restrictions would apply to contributions to California inaugural committees. Maryland, however, does not consider inaugural contributions to be campaign finance contributions. This becomes important for lobbyist principals and state contracts that are required to submit a semi-annual business contribution report with the Maryland State Board of Elections. These inaugural committee contributions, since they do not meet the state’s definition of a political contribution, are not required to be reported on this pay-to-play report.

While neither of these states had executive branch elections in 2024, they illustrate how each jurisdiction views these contributions differently. One of the most high-profile candidates from the 2024 elections will be inaugurated on January 20th and lobbyists and corporate entities should know whether they can give to the official inaugural committee or any of the numerous events sending out their own solicitations.

Each jurisdiction, whether federal, state, or local will treat these kinds of contributions differently and knowing the rules can mean the difference between a routine contribution and a scandal. Contact MultiState with your questions about political and non-political giving before committing to anything

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