Elections in Brazil: virtual crowdfunding period started

As of yesterday (Apr. 15), pre-candidates who will contest the October elections are authorized to carry out a prior crowdfunding campaign.

According to the electoral rules, the collection shall be made by specialized companies that were previously registered with the Electoral Court.

Registration of candidacy, National Registry of Legal Entities number (CNPJ), and a bank account are required for the release of funds.

During the fundraising campaign, pre-candidates will not be able to request votes and make propaganda.

Who may donate

Only individuals may donate. According to the rules of the Superior Electoral Court (TSE), there is no limit to the amount to be received by the crowdfunding modality.

Donations of amounts equal to or greater than BRL 1,064.10 ($ 208 dollars) may only be received by electronic transfer or crossed nominal checks. This rule must be observed, even in the event of successive contributions made by the same donor on the same day.

Provision of accounts

The issuance of receipts is mandatory for any type of contribution received, whether in cash or card. This is done to enable control by the Public Prosecution and the Judiciary.

The collecting company must also make available on its website the list with the identification of donors and the respective amounts donated, to be updated instantly with each new contribution, as well as inform candidates and voters about administrative fees to be charged for carrying out the service.

All donations received through crowdfunding must be registered individually for the gross amount in the rendering of electoral campaign accounts of candidates and political parties.

Regulation

The fundraising modality for electoral campaigns was regulated by the 2017 electoral reform, and used in the 2018 General Elections and 2020 Municipal Elections.

According to TSE data, in the 2018 elections, the first time the crowdfunding was held, approximately  BRL 19.7 million ($ 3.8 million dollars) were collected through crowdfunding. In the 2020 elections, BRL 15.8 million ($ 3 million dollars) were raised.

The first round of elections in Brazil will be held on October 2, when voters go to the polls to elect the president, governors, senators, and federal, state, and district deputies. An eventual second round for the presidential and the governors´ races will take place on October 30.