Chambers and Political Engagement

Chambers of commerce in the US operate almost exclusively as non-profit entities known as 501(c)(6) corporations. Unlike charities, these 501(c)(6) non-profits have the authority under state and federal tax rules to represent their members in public policy debates. They may lobby and take positions on actual or proposed legislation, subject to local, state and federal laws. Chambers may legally endorse candidates for public office and/or ballot propositions (but most do not). The use of general fund revenues for chamber political and lobbying purposes is strictly regulated. The chief executive or another member of the staff is sometimes a state-registered lobbyist. The portion of any member’s dues investment allocated to direct lobbying is not deductible as a business expense.

Chambers must consider their positions on issues and candidates, as well as possible actions or positions. Should a chamber of commerce be nonpartisan? How involved can a chamber get in issues potentially affecting its members? Read on to learn how other chambers approach this issue.

Board Member or Employee Political Activity

QUESTION What are best practices for chambers of commerce when:

a board member wants to run for public office?
a chamber staff member or CEO wants to run for public office?

Is there a proper procedure if a board or staff member decides to run for public office?

The practice of allowing board members or employees to serve as an elected official vary greatly among chambers. Some chambers do not allow elected officials to be on their board, while others encourage board members or employees to run for office. Each chamber should decide if running for public office presents conflicts of interest or is acceptable based on their community needs. Best practice is to have a policy in place before the issue arises and to use a conflict of interest disclosure form if the decision is to allow board members and employees to run for public office.

ANSWERS Click here for CEO responses to this question.

Samples

The following samples include language regarding board members or employees running for public office, conflicts of interest, and serving as ex-officio.

See more Conflict of Interest samples in ACCE's Samples Library

See more Bylaws samples in ACCE's Samples Library

Articles

Best Practice Materials for Nonprofit Boards, 501 Commons, Aug 2011 - Discusses the role of a board and board policy, including conflict of interest. Example forms included.
Nonprofit Boards of Directors 101: What You Must Know!, American Bar Association, Annual Meeting, Aug 9, 2014 - A broad view of nonprofit regulations.
Nonprofit Conflict of Interest: A 3-Dimensional View, Blue Avocado, 2010 - A nuanced discussion of conflicts of interests, loyalties, and "benefit from interest."
Legal and Compliance Issues – FAQs, BoardSource, June 7, 2016 - Covers conflicts of interest, serving ex-officio, disclosure forms, and other topics.
Public Officials on Boards: Nonprofit Addresses Conflict Concerns, Nonprofit Quarterly, Jan 21, 2013 - Discusses a specific example of politicians serving on a nonprofit board.

Candidate Forums

See Candidate Forums samples in ACCE's Samples Library

2014 Fall Legislative Forums and 2012 Fall Legislative Forums - Ashland Chamber of Commerce; includes recordings of their professionally filmed forum sessions.
Guidelines for Candidate Forum Questions – Eau Claire Area Chamber of Commerce
Candidates Forum Guidelines – Greenville-Pitt County Chamber of Commerce
Westmoreland Speaks! A Jeopardy-Style Candidate Forum – Westmoreland County Chamber

Endorsements of Candidates or Issues

AVL Bonds Yes - Asheville Chamber helped to promote a successful 2016 bond referendum regarding revenue for parks and recreation, affordable housing, and transportation network projects.
Advocacy Flowchart - Des Moines Downtown Chamber. This chart helps the Chamber determine what to do when individuals and businesses contact them about an advocacy-related issue. It ensures that issues are filtered and addressed properly each time.
City Commission Candidate Endorsement Form - Helena Area Chamber of Commerce
Minnesota House of Representatives Candidate Endorsement Questionnaire - Minnesota Chamber of Commerce
Vote Yes on 1A: Affordable Workforce Housing - Keep Locals Local! - Vail Valley Partnership. Includes FAQs, discussion of the need for affordable housing, possible uses for the funds, and details on meet-ups.

See all samples related to Endorsements.

Event Contracts & Policies

Chambers are also working out the issue of whether to allow political materials or campaign activities at chamber-sponsored events. Do chambers have the right to tell a venue host to remove political signage?