(1) Joint fundraising events may take place as provided in 970 CMR 2.12.

1. (a) One or more candidates or candidate committees may sponsor a joint fundraising event with other candidates or candidate committees.
2. (b) One or more political party committees may sponsor a joint fundraising event with other political party committees.

3. (c) Committees participating in a joint fundraising event, except for an event held in accordance with 970 CMR 2.12(1)(e), may designate an individual or entity to be a “joint fundraising agent” to make expenditures, accept contributions, allocate proceeds and maintain records in accordance with 970 CMR 2.12. If a joint fundraising agent is not used, each participating committee and candidate must:

   1. 1. allocate costs according to the percent of total contributions expected to be received by each candidate or committee;
   2. 2. pay vendors directly;
   3. 3. ensure that contributors write checks directly to the participating committees; and
   4. 4. maintain complete records, consistent with M.G.L. c. 55, §§ 2 and 5, regarding the event.
4. (d) If a joint fundraising agent is used, contributors may contribute by check made payable to the joint fundraising agent. All funds received by a joint fundraising agent, for an event held in accordance with 970 CMR 2.12(1)(a) or (b), must be deposited in a separate, segregated account designated for that purpose.

5. (e) Where joint fundraising events are held by candidates or candidate committees and political party committees, joint fundraising agents may not be used. One or more state or local committees of a political party may sponsor a joint fundraising event with one or more candidates or candidate committees only if each participating committee and candidate:

   1. 1. allocates costs according to the percent of total contributions expected to be received by each candidate or committee;
   2. 2. pays vendors directly;
   3. 3. ensures that contributors write checks directly to the participating committees; and
   4. 4. maintains complete records, consistent with M.G.L. c. 55, §§ 2 and 5, regarding the event.
6. (f) Political action committees and people’s committees may not sponsor joint fundraising events with any candidate or committee.
7. (g) Ballot question committees may not sponsor joint fundraising events with candidates or candidate committees.

(2) Expenditures incurred and contributions received by candidates and committees participating in joint fundraising events held in accordance with 970 CMR 2.12(1)(a) or (b), and using a designated joint fundraising agent are subject to the following restrictions.

1. (a) Primary Purpose of Expenditure.

   1. 1. An expenditure by a participating committee in connection with a fundraising event is permitted only if the primary purpose of the expenditure is the enhancement of the political future of the candidate or the enhancement of the political party for which the committee was organized.
   2. 2. An expenditure by a participating committee in connection with a joint fundraiser which does not comply with the requirements of 970 CMR 2.12(2)(a)1., shall be considered a contribution as defined by M.G.L. c. 55, § 1 from the committee making the expenditure to the committee benefiting from the expenditure and will be subject to the contribution limitations of M.G.L. c. 55, § 6.

2. (b) Allocation of Expenditures and Liabilities.

   1. 1. Funding of Joint Fundraising Agent. To the extent the committees participating in an event held in accordance with 970 CMR 2.12(1)(a) or (b) provides funds to a joint fundraising agent to allow the joint fundraising agent to make expenditures in connection with the event, each participating committee must provide funds and incur liabilities equally.
   2. 2. Expenditures by Joint Fundraising Agent. A joint fundraising agent may make expenditures only to defray the costs of a joint fundraising event held in accordance with 970 CMR 2.12(1)(a) or (b). Such expenditures may be made from funds provided by sponsoring participating committees or from proceeds received from contributors.

3. (c) Attribution and Distribution of Contributions. Contributions received at or in connection with a joint fundraising event held, in accordance with 970 CMR 2.12(1)(a) or (b), must be “attributed” to each participating committee in accordance with one of the alternatives defined in 970 CMR 2.12(2)(c). Attribution is based on gross proceeds received, i.e., no deduction is made to reflect expenditures by a joint fundraising agent. After attribution, net proceeds must be distributed, in accordance with 970 CMR 2.12(2)(c), to each participating committee.

   1. 1. Pro Rata Attribution and Distribution. Unless participating committees agree otherwise, and such agreement complies with 970 CMR 2.12(2)(c)2. or 3., contributions will be attributed equally to each participating committee and each committee will receive equal shares of net proceeds. Prior to purchasing a ticket or making a contribution, contributors must be informed that contributions are understood to be made to each participating committee in equal shares.

      1. a. Attribution. Each contributor shall be understood to be a contributor to each participating committee, and the pro rata portion of an individual’s contribution, shall be attributed to each participating committee. For example, if a person contributes $60, and three candidate committees participate in an event, $20 is attributed to each committee, which amount is applied to the maximum contribution allowed by M.G.L. c. 55, § 7A.
      2. b. Distribution. Net proceeds shall be distributed to each participating committee in equal shares. For example, if three candidate committees participate in a joint fundraising event which receives $3,500 in contributions, but the joint fundraising agent spends $500 in connection with the event, each committee is entitled to a ⅓ share ($1,000) of the $3,000 in net proceeds.

   2. 2. Attribution and Distribution Based on Committee Selling Ticket or Arranging for Contribution. Prior to the event, participating committees may agree, in writing, to allocate contributions and distribute net proceeds based on which committee sells a particular ticket or arranges for a particular contribution. Contributors must be informed, prior to making a contribution or buying a ticket, that the contribution will be reported as a contribution to the committee which sold the ticket and the proceeds will be given to that committee.

      1. a. Attribution. Each contributor shall be understood to be a contributor to the committee which sells the contributor a ticket or arranges for the contributor’s contribution. For example, if three committees hold a joint fundraising event and one committee sells tickets to six individuals, but the other two committees do not sell any tickets, the contributions would be attributed, in their entirety, to the first committee.
      2. b. Distribution. Net proceeds shall be distributed to each participating committee in proportion to the total amount of contributions arranged by each committee. For example, if three candidate committees participate in a joint fundraising event which receives $3,000 in contributions, but the joint fundraising agent spends $1,000 in connection with the event, distribution of the $2,000 in net proceeds will be determined by the total contributions arranged by each participating committee. If one of the three committees arranged for $1,500 (½ of the total contributions received by the joint fundraising agent), that committee would receive a distribution of ½ of the net proceeds, or $1,000. The remaining $1,000 of net proceeds would be distributed to the other two committees based on the percentage of contributions arranged by each.

   3. 3. Distribution Based on Agreement of Participating Party Committees. Prior to the event, if all participating committees are committees organized on behalf of state, city, ward, or town political party committees, the participating committees may agree in writing to distribute net proceeds and allocate contributions based on various objective factors, including factors which objectively measure the relative benefit which should be applied to each participant.

      1. a. Attribution. Attribution of contributions shall be determined in accordance with the committees’ agreement. For example, if three town committees agree to attribute contributions based on a contributor’s residence, and 50% of the total of $3,000 in contributions is from one town, 50% of total contributions ($1,500) would be attributed to that town’s committee.
      2. b. Distribution. Distribution of net proceeds shall be determined in accordance with the committees’ agreement. In the above example, if $500 of the $3,000 total contributed is used to pay expenses, the town committee, which is attributed 50% of the contributions, would receive $1,250 (the attributable amount less the event’s expenses multiplied by 50%).

4. (d) Limitation on Contributions to Joint Fundraising Agents. Fundraising agents managing joint fundraising events in accordance with 970 CMR 2.12(1)(a) or (b) must ensure that contributions received on behalf of candidates and political committees comply with M.G.L. c. 55's limitations on contributions.

   1. 1. Contributions Received by Joint Fundraising Agents. Such contributions are subject to the combined limitation of those participating in the joint fundraising event. For example, if three candidates hold an event, and they choose to attribute and distribute contributions on a pro rata basis, i.e., as defined in 970 CMR 2.12(2)(c)1., an individual could contribute up to $3,000, assuming:

      1. a. the proceeds are divided equally among the candidates; and
      2. b. the individual has given no other contributions to any of the three candidates during the calendar year. On the other hand, if the participating candidates choose to attribute and distribute contributions based on which committee sells the tickets, i.e., as defined in 970 CMR 2.12(2)(c)2., an individual could contribute up to $1,000 to any one committee selling tickets, assuming no other contributions are made to that committee during a calendar year.
   2. 2. Treatment of Excess Contributions. A contribution may not be accepted by a joint fundraising agent to the extent the contribution exceeds the limits imposed by M.G.L. c. 55. If a contribution is accepted by a fundraising agent and then later determined to be, in whole or in part, in excess of the amount permitted by M.G.L. c. 55, the excess amount must immediately be refunded by the fundraising agent to the contributor.

5. (e) Identification and Distribution of Contributions Received at Joint Fundraising Events.

   1. 1. Contributions over $50.00 must be by check made payable to the joint fundraising agent.
   2. 2. All expenditures shall be paid and all proceeds of an event shall be distributed to participating committees within 30 days of the event, pursuant to 970 CMR 2.12(2)(c), to each sponsor.

(3) Reporting.

1. (a) Each joint fundraising agent managing a joint fundraising event in accordance with 970 CMR 2.12(1)(a) or (b) must disclose to the participating candidates and committees, on a form prescribed by the Director:

   1. 1. the date of the event;
   2. 2. the total contributions received by the joint fundraising agent;
   3. 3. the amount paid to the joint fundraising agent by each participating committee (these amounts will also be reflected, as expenditures, in the campaign finance report filed by a participating committee);
   4. 4. the name and address of each contributor, regardless of the amount contributed;
   5. 5. the amount contributed by each contributor;
   6. 6. the attribution method used and the amount attributable to each participating committee;
   7. 7. the occupation and employer of each contributor making a contribution if a participating committee would receive, in connection with the event, $200 or more;
   8. 8. a listing of all in-kind contributions received by the joint fundraising agent reflecting the date received, the contributor, the residential address of the contributor, the occupation and employer of the contributor (if the value of the contribution, together with any other contribution received from the contributor, would result in a participating committee receiving $200 or more in connection with the event), and a description of the contribution and its total value (which will be allocated pro rata or as agreed prior to the event, among each participating committee);
   9. 9. the full name and address of each person to whom an expenditure is made by the joint fundraising agent, the amount, date and purpose of each expenditure, and a total of all such expenditures, whether from funds received from participating committees or from proceeds of the event;
   10. 10. the date proceeds are distributed; and
   11. 11. the share of proceeds received by each committee (which will also appear as a receipt in a participating committee’s campaign finance report).
2. (b) The report shall be duplicated by the joint fundraising agent who shall provide a copy of the report to each participating committee. The report shall be provided to each sponsoring committee within 30 days of the event.
3. (c) Participating committees not required to designate a depository by M.G.L. c. 55, § 19 shall file, in paper format, the joint fundraising report on the same day the committee files the campaign finance report which reflects the distribution of proceeds from the joint fundraising agent.
4. (d) Participating committees required to designate a depository pursuant to M.G.L. c. 55, § 19 shall deposit all funds received from the joint fundraising agent within seven days of receipt from the joint fundraising agent. Thereafter, such committees shall file the joint fundraising report with the Director on or before the fifth day of the month following the deposit of the proceeds.
5. (e) Participating candidates and treasurers of participating committees shall review the joint fundraising report, verify the determination of the share of contributions and expenditures attributable to the sponsoring committee.
6. (f) Participating candidates and treasurers of participating committees and joint fundraising agents are responsible for ensuring the accuracy of the information contained in the joint fundraising report.
7. (g) Participating candidates and treasurers shall refund any contribution or portion thereof, of contributions attributed to the candidate, or portion thereof, which, when considered together with other contributions received from a contributor, exceed the limitations of the campaign finance law, including the limitations established in M.G.L. c. 55, § 7A, or is otherwise not consistent with the requirements established by the campaign finance law.

(4) Maintenance of Records.

1. (a) A joint fundraising agent managing a joint fundraising event, in accordance with 970 CMR 2.12(1)(b) or (c), must make copies of all records pursuant to M.G.L. c. 55, §§ 2 and 5 reflecting contributions received and expenditures made in connection with the event and provide a set of copied records to each participating committee.
2. (b) Each committee participating in a joint fundraising event must maintain complete records reflecting expenditures made and contributions received in connection with the activity.
3. (c) A committee participating in a joint fundraising event must donate funds received to a charitable or other entity specified in the residual funds clause of M.G.L. c. 55, § 18, if the joint fundraising agent or participating committee has failed to maintain records reflecting the allocation of contributions and expenditures.