A straw donor is a person who illegally uses another person's money to make a political contribution in their own name.[1] In the United States, making a political contribution in another person's name is illegal, as is agreeing to be the named donor with someone else's money.[2] For example, a straw donor may contribute to a political campaign before being reimbursed by another, who is using that person as a conduit to exceed the limits on campaign contributions under the laws of a jurisdiction.
In federal elections in the United States, straw donor schemes are illegal under 2 U.S.C. § 441f, which states:
No person shall make a contribution in the name of another person or knowingly permit his name to be used to effect such a contribution, and no person shall knowingly accept a contribution made by one person in the name of another person.[3]
This section was enacted as part of the Federal Election Campaign Act in 1971.