Protecting Your Organization in an Election Year
By: Robert Cohen
As the 2026 midterm election season gets underway, organizations that engage in political activity or government affairs should take stock of where they stand. The start of a new year is an ideal time to review policies, assess risk, and make sure the right safeguards are in place. The goal isn't to discourage civic engagement. It's to protect the organization and its people while encouraging them to be active participants in the democratic process.
Here are some practical steps to consider in the coming months:
Policies and Procedures. Do you have written policies governing the firm's and employees' interactions with government officials and political activity? If not, now is the time to create them. If you do, give them a fresh look to make sure they reflect current law and best practices. Consider whether pre-clearance and reporting controls are in place, and whether they need to be strengthened.
Government Contractors. If your organization holds state, or local government contracts, ensure that both the firm and its personnel are complying with all applicable restrictions on political contributions. Violations of so-called pay-to-play laws can carry serious civil and criminal consequences for both the organization and individuals.
Investment Advisers. If your organization is an SEC registered investment adviser, ensure that the firm and its "covered associates" are complying with pay-to-play rules applicable to this industry, including but not limited to, "look back" provisions. Violations of these pay-to-play rules can carry serious legal and reputational consequences for the organization and individuals.
Political Action Committees. If you have a PAC, this is a good time to review its policies, operations, past filings, solicitations, and bank records. If you don't have one, consider whether forming a PAC makes sense for your organization. Either way, remember that contributions from foreign nationals are prohibited, and a compliance review is always worthwhile.
Foreign Ownership or Influence. If your organization is a U.S. subsidiary of a foreign company, or if a foreign government has any degree of control, influence, or ownership over your operations, you may have obligations under the Foreign Agents Registration Act (FARA). A FARA review can help clarify your exposure and responsibilities.
Gift-Giving. Does your organization or its personnel provide gifts such as meals, travel, lodging, entertainment tickets and promotional items to government officials or employees? Gifting rules vary widely by jurisdiction and can be easy to run afoul of. Training and a recent gifts audit are both worth considering.
Lobbying Compliance. If your organization retains or employs lobbyists at any level of government, make sure they are registering and reporting accurately and on time. It's also worth reviewing recent filings for errors or omissions. One commonly overlooked area is that in many jurisdictions, seeking government contracts qualifies as lobbying under procurement lobbying laws and violations can be severe.
Holtzman Vogel's experienced political compliance team is ready to help your organization navigate the legal and political landscape this election season.
