CAMPAIGN FINANCE
MONEY
Politicians need money to win elections.
2000 election cost over $1.1 billion!
TACTICS POLITICIANS USE
1. Direct mail/online donations
2. Dinners, speeches, rallies
FUNDRAISING TACTICS
3. Interest Groups
Organization of people with similar goals trying to influence legislation that affects
their interests
Campaign finance reform limits the direct impact Interest Groups can have financially
on elections, so PACs were formed.
POLITICAL ACTION COMMITTEE
•Main purpose: raise money and distribute funds to influence candidates and
advocate the goals of its members
•People often think they "buy votes" but they claim to be linkage institutions that
represent the needs of the people
•Discussion question: How much influence to PACs have? Do they buy votes? Why? Why
not?
FUNDRAISING TACTICS
Super PACs (Independent Expenditure Committees)
•Can raise unlimited sums of money from unlimited sources (individuals, corporations,
unions, etc.)
•Can advocate for election or defeat via TV, print, radio, online
FINANCE REFORM
FEDERAL ELECTION CAMPAIGN ACT (FECA) 1971
• Disclosure of contributions and expenditures
•Limits individual contributions ($1,000 at that time)
•Leads to creation of PACs
•Restricts amount spent on advertising
•Taxpayers can donate on tax returns
FEDERAL ELECTION COMMISSION (FEC)
•Created after Watergate (1974)
•Enforce FECA
•Establishes public financing for presidential candidates ($250 rule/$5,000 in 20
states)
•Prohibits foreign contributions
•Restrictions on PACs ($5,000 max to a candidate)
HARD MONEY
Funds that can be used for direct electioneering, but are limited by FEC
SOFT MONEY
•Donations to local and state political parties to be used for "general purposes" (not
campaigning)
•Virtually unregulated by the FEC
BUCKLEY V. VALEO (1976)
•Limits of individual and corporate contributions do not violate freedom of speech
because the law encourages representative democracy
•Limits on candidates spending their money on their own campaign did violate first
amendment (not enough harm in it to justify limiting their freedom of expression)
BIPARTISAN CAMPAIGN REFORM ACT/MCCAINFEINGOLD LAW (2002)
•Banned use of soft money in federal campaigns
•Increased limits on individual and group contributions to candidates
"MILLIONAIRE'S AMENDMENT"
•Part of McCain-Feingold (BCRA)
•Increased contribution limits for candidates who faced opponents that contributed
substantial funds to their own campaigns
•Intended to balance out money
527 ORGANIZATIONS
•Committees that are tax exempt in election campaign if they aren't affiliated with a
political party
•Take stance on issues, not candidates
•Regulated by the IRS, not FEC
•Used now because BCRA eliminated soft money
MCCONNELL V. FEC (2003)
•The government's interest in preventing corruption overrides free speech rights that
you would otherwise be entitled to
•BCRA restrictions do not violate free speecg
CITIZENS UNITED V. FEC (2010)
Government cannot ban political spending by corporations in a candidate's election