Contributor turns up prematurely dead
More details at The Fogbow.
In a nutshell, the story is that Orly Taitz procured advertising at a Los Angeles radio station. It was paid for by a contributor in the amount of $2,500. The problem is that the named contributor was deceased. One presumes that the contribution really came from the husband of the deceased person, who also donated $2,500 to pay for the ads. Since the limit for an individual contribution is $2,500, Orly was obligated to refund the excess contribution. The FEC notified Orly by certified letter of the problem, and allegedly Orly did nothing.
Some commenters elsewhere suggest that the reporting of the contributions looks fishy, but I disagree. The reporting is correct. The non-refunding is wrong.
FEC definition of “in-kind contributions”
Donated Items and Services
The donation of office machines, furniture, supplies–anything of value–is an in-kind contribution. The value of the donated item (the usual and normal charge) counts against the contribution limits. A donation of services is also considered an in-kind contribution. For example, if you pay a consultant’s fee or a printing bill for services provided to a campaign, you have made an in-kind contribution in the amount of the payment.
FEC instructions for reporting “in-kind contributions”
How do I report an in-kind contribution received by our committee from an individual?
In order to avoid inflating/deflating the cash on hand amount, the amount of an in-kind contribution from an individual should be disclosed as a receipt on Line 11(a)(i) of the Detailed Summary Page (Contributions from Individuals/Persons) and a disbursement on Line 21(b) of the Detailed Summary Page(Other Federal Operating Expenditures)
If the in-kind contribution must be itemized on Schedule A, supporting Line 11(a)(i) (i.e. individual’s aggregate contributions are greater than $200 during the calendar year), then it must also be itemized on Schedule B. (11 CFR §104.13(a))