2 Ways Money Comes into Caimpaigns
- Candidate’s Campaign- individuals, parties, traditional PACs, personal funds are given.
- Outside Spending- Parties, super PACs, nonprofits, corporations, unions, wealthy individuals donate. Not to campaign but independent ventures.
Independent Spending
- Own money spent to allocate voters/promote a candidate, but not coordinated with the candidate.
Express Advocacy Ads
Advertising that explicitly recommends the election or defeat of a candidate.
Issue Ads
Discusses broad political issues rather than specific candidates.
Federal Election Campaign Act (FECA) 1974
- Put limits on federal campaign contributions.
- System of Public funding for Presidential campaigns.
- Individuals only donate $1,000 per candidate.
Traditional PAC (Political Action Committee)
- Raise/spend money to influence elections.
2. $5,000 per candidate per election (FECA)
Leadership PACs
Created by members of parties to donate to their party’s congressional campaign committee.
Coordinated Spending
- Party spends money in coordination with candidate’s campaign, such as media ads or polling.
- Varies by state, more $ in California vs Wyoming.
Public Funding for Presidential Elections
Voluntary contributions from taxpayers. Comes with requirement to demonstrate broad public support.
Buckley v. Valeo (1976)- The Money Loophole
- No limits to candidate using personal funds.
- No limits on outside spending.
- No limits on advertising not associated with campaigns.
Soft Money
- Money not given directly to political candidate.
2. Allowed unlimited spending/fundraising of money for party building/voter mobilization.
Issue Advocacy Ads
Ads that didn’t include key terms in order to not be classified as campaign ads.
(Un)Intended Effects of 1970’s Reforms
- Limitation of hard money contributions.
- Loopholes to gaining massive soft-money.
- Most money from corporations/interest groups.
Bipartisan Campaign Reform Act (BCRA) 2002
- Banned soft-money to national parties..
2. Shrunk loophole ad issue.
Electioneering Communication
- Not funded by corporations/unions.
- Only funded by public/individual money.
- Increased individual contribution to $2,000.
527s
- 527 of tax code allows certain tax-exempt groups to accept unlimited soft money.
- Goes into elections, funds are disclosed.
501c4s
- Social nonprofit welfare groups that can accept unlimited donations and are undisclosed to public.
Dark Money
funds donated to nonprofit organizations that spend it to influence elections. They can receive an unlimited amount of donations, and donors are undisclosed.
Bundling
Individuals/Groups bundle contributions and deliver them to a campaign for a larger donation.
Citizen’s United v. FEC
- Allowed corporations/unions to spend unlimited at any time of an election on ads to advocate presidential/congressional elections.
- Created Super PACs.
Super PACs
Accept unlimited donations from corporations/unions.
