An electoral donation comprises a donation of money, goods or services for use inthe candidate’s campaign. A donation includes goods and services provided free ofcharge that have a reasonable market value greater than $300, and the differencebetween actual value and reasonable market value when goods are supplied or sold.Volunteer labour, and goods or services provided free of charge but having areasonable market value of $300 or less, are not deemed to be a donation.Electoral donations of more than $1,500 (GST inclusive) are required to be declaredby the candidate. This includes a series of donations by one person that total morethan $1,500.In some cases, a candidate may be required to declare the same item both as anelectoral expense and as a donation, such as where goods and services are providedto a candidate for which would otherwise be paid for.Where donations are made up of contributions, the candidate is required to beadvised that the donation is funded from contributions, the total amount of individualcontributions of $1500 or less, and in the case of individual contributions of greaterthan $1500, the name, address, and contribution of each contributor. If a candidateis aware that the donor has failed to supply information about contributions, the entiredonation must be returned to the donor. This provision does not, however, apply toanonymous donations. Examples of donations made up of contributions includesituations where donations are made through a trust, or where a fundraisingcollection has been used as part of a candidate’s campaign. In these circumstances,the person who collects the money would normally be the donor, with the individualswho contribute to the campaign being the contributors.Where a donation is transmitted to the candidate through someone else, thetransmitter must disclose to the candidate the fact that the donation is transmitted onbehalf of the donor, together with the name and address of the donor. If thetransmitted donation is funded from contributions, then the candidate must also beadvised of the total amount of individual contributions of $1500 or less, and in thecase of individual contributions of greater than $1500, the name, address, andcontribution of each contributor. If the transmitter does not disclose or is unable todisclose this information, then the donation must be treated as an anonymousdonation.<strong>Candidates</strong> are not permitted to retain those parts of anonymous donations thatexceed $1,500. An anonymous donation is a donation that is made in such a waythat the candidate who receives it does not know the identity of the donor, and couldnot, in the circumstances, reasonably be expected to know the identity of the donor.If a candidate receives an anonymous donation of $1,500, the candidate may retain$1,500, but must pay the balance to the Electoral Officer, for payment into thegeneral fund of the <strong>Palmerston</strong> <strong>North</strong> <strong>City</strong> <strong>Council</strong>.Electoral ExpensesFor Part B of the Return of Electoral Donations and Expenses form, candidates arerequired to submit information on all electoral expenses incurred during the electoralperiod.<strong>Palmerston</strong> <strong>North</strong> <strong>City</strong> <strong>Council</strong> Elections 201327
Where electoral expenses are incurred or paid prior to the three month electionperiod, but relate to activity within that period, the costs are to be included in theexpenses return. For example, if a candidate pays to reserve advertising space priorto the election, but the advertisements appear within the election period, these costsare included. However, if a candidate pays to have 1,000 brochures produced beforethe election period commences, and then distributes 500 before the election periodstarts and the remaining 500 within the election period, only 50% of the cost of thosebrochures is included.Where two or more candidates run a joint campaign, those electoral expenses mustbe apportioned equally. There are also requirements for apportioning electoralexpenses that fall outside the applicable period.Electoral expenses includes the reasonable market value of any materials applied inrespect of any electoral activity that are given to the candidate or are provided to thecandidate free of charge or below reasonable market value.Electoral expenses also include in the cost of any printing or postage in respect ofany electoral activity, whether or not the expenses are incurred by or on behalf of thecandidate.Electoral expenses do not include:The expense of operating a vehicle on which election advertising appears if thatvehicle is used in good faith by the candidate as their personal means oftransport;Expenses incurred by the candidate in preparing a candidate profile statement;The labour of any person that is provided to the candidate free of charge;The nomination deposit fee; andThe cost of any framework, other than a commercial framework, that supports ahoarding on which an advertisement is displayed.ELECTORAL DONATIONS AND EXPENSESSECTIONS 103A-112F OF THE LOCAL ELECTORAL ACT 2001Subpart 1—Electoral Donations103AInterpretationIn this subpart and subpart 3, unless the context otherwise requires,—anonymous, in relation to an electoral donation, means a donation that is made in such away that the candidate who receives the donation—(a) does not know the identity of the donor; and(b) could not, in the circumstances, reasonably be expected to know the identity of the donor28 <strong>Palmerston</strong> <strong>North</strong> <strong>City</strong> <strong>Council</strong> Elections 2013