It’s All About Money Financing a Campaign
Spending • Laws limit the amount individuals and groups may contribute to federal, state, and local candidates. • Two sources of financing a campaign: • 1. Private Contributions • 2. Public Treasury
Federal Election Campaign Act • Provides for a system of financing based on three principles: • Public funding of presidential elections • Limitations on the amounts presidential and congressional candidates may receive from contributors • Public disclosure of the amount candidates spend to get elected.
Types of Financing • 1. Small Contributors: those who give $5 or $10 donations occasionally. • 2. Wealthy individuals: can afford a large donation and find it in their best interest to donate.
Types of Financing • 3. Candidates: The candidates and their families contribute their own campaign funds. • 4. PACs (Political Action Committees): are the political arms of special interest groups, which have a major stake in public policy.
Types of Financing • 5. Temporary Organizations: Temporarily formed for the immediate purpose to help finance a campaign.
Soft vs. Hard Money • In state and local campaigns, campaign contributions are unlimited but must be reported. • For this reason, many people get around the regulations on how much money one can spend on a candidate by donating to the political party at the local level. This is called soft money (used for “party-building activities”, get out the vote drives, party mailings, and advertisements).
Soft vs. Hard Money • Hard Money: campaign money that is regulated by the FEC (Federal Election Commission).