ESOP Association Blog

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The ESOP Association
PAC 2023 - Jason Smith
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For over 30 years, The ESOP Association has maintained a federally registered Political Action Committee (PAC) to support the growth and strengthening of Employee Stock Ownership Plans (ESOPs) across the U.S. ESOP PAC allows employee owners and supporters to pool small contributions into larger donations, helping elect pro-employee ownership candidates to Congress. This collective effort ensures that employee ownership continues to thrive, but it relies on voluntary donations from our membership to succeed. By supporting the PAC, you actively contribute to the political process and help shape policies that protect and expand the benefits of ESOPs.

ESOP PAC is a non-partisan entity focused on promoting employee ownership, working across political lines to build broad support for ESOPs. To participate, we require a signed Prior Approval Form, which grants permission for communication about the PAC and enables employees to contribute. Signing the form does not obligate anyone to donate but allows those who wish to do so. Please return the form by February 21, 2025, so your employees can engage in this important political process. If you have any questions, please contact Leandra Wilder at lwilder@esopassociation.org or (770) 549-1955. Thank you for your consideration.

What is Prior Approval?

It is simply permission for TEA to ask select employees for PAC donations. The Federal Election Commission (FEC) requires trade associations, such as TEA, to obtain written authorization from our member companies before we can engage with you or your employees about ESOP PAC. A corporation may grant one trade association authorization per the calendar year.

Does granting Prior Approval require our employees to donate to the PAC?

No. Granting prior approval does not obligate you or anyone in your company to donate to ESOP PAC – it simply gives TEA permission to communicate in much greater detail about the PAC.

Who at my company can grant Prior Approval?

Prior Approval can be granted by anyone authorized by the company. Normally, the representative is the person who has decision making authorities in relation to TEA and conducts the Association’s activities for their company, such as the owner, CEO, COO, CFO, or Director of HR.

Will ESOP PAC directly solicit our employees? 

We leave that up to you. When signing our Prior Approval form, ESOP PAC will then work directly with you to tailor its outreach to whatever group or individuals you designate, or we can work with you to develop your own communications.

Can we withdraw our approval?

Absolutely. If you would no longer like your employees to receive ESOP PAC materials or invitations to ESOP PAC events, email Leandra Wilder at lwilder@esopassociation.org. All approvals expire on December 31st of the calendar year you designate.

Our company has its own Federal PAC; can we still participate?

Corporate approval for trade association solicitations in no way limits your company’s right to solicit contributions for your own company PAC. Again, the only limitation is that corporations can only authorize solicitation by one trade association per calendar year.

Who does ESOP PAC support?

ESOP PAC supports only office holders who have demonstrated a commitment to ESOPs and employee ownership – their party affiliation does not matter. 

Why doesn’t TEA just use its own funds or membership dues to make contributions?

Federal law prohibits the use of TEA membership dues to support political candidates. Therefore, ESOP PAC is funded through voluntary donations from TEA members.