Club Marconi has dismissed allegations it donated $41,000 to political parties during the state election.

Fairfield councillor Thang Ngo, who has called for a ban on all political donations, said the club donated more than $41,000 to the major parties at the 2007 state election.

"It's shocking to think that a registered club would syphon funds to political parties rather than its members," he said.

Club boss Debbie Feening said the figure related to a function the club held when former PM John Howard visited and not during the state election.

"Club Marconi sponsored long-distance runners for the Olympics and when we attended a thank-you function our club president met the prime minister and invited him to dinner...which he accepted there and then and surprised us all," she said.

"The [Liberal] party paid the raw price for the evening's catering. We didn't charge them retail because we offered members the chance to attend the evening.

"This is exactly the same as we might do for a netball club or other community group booking a function with us.

"We didn't see it as political at the time but have since been accused of it."

Cr Frank Oliveri (Liberal), a director on the club's board, said the evening was a fund-raiser for Macarthur MP Pat Farmer.

"As a key organiser of the event, I can confirm 100per cent there was no political donation, full stop. While Pat is not a local MP, he's been very vocal on issues relating to youth and sport around western Sydney and he decided Marconi would be a great venue."