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Food and beverage vendor discounts

A vendor of food or beverages (even if incorporated) may sell food and beverages to a party committee at a discount. The amount charged must at least equal the vendor’s cost for the items. If the value of the discount—the difference between the normal charge and the amount paid by the committee—does not exceed $2,000 per calendar year on behalf of all the committees of one political party, the discount is not considered a contribution. Discounts exceeding $2,000, however, must be reported as in-kind contributions by the party committee. A corporate vendor may not exceed the discount limit since corporate contributions are prohibited.

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