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10 3 Civics


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  • 1. Section 3 Financing a Campaign Chapter 10 Paying For Election Campaigns
  • 2. OUTLINE
    • Financing a Campaign
        • Raising Money
      • Federal Election Campaign Act
        • Federal Election Committee
        • Limiting Contributions
        • Public Funding
      • PACs and Soft Money
        • Spending on Media
        • A Reluctance to Reform
      • Campaign Reform
        • New Law Upheld and The Future
  • 3. Raising Money
    • It has been so shady in the past, that now there is federal legislation enacted to regulate how and where candidates get money
    • We have seen many changes in these laws over the past few years in an effort to reform the system
    • Namely the FEC and Buckley v. Valeo
  • 4. Federal Election Campaign Act (FECA)
    • An effort to control/regulate campaign financing (est. 1971; amend. 1974, 1976, 1979)
    • What did it do?
      • Required public disclosure of each candidate’s spending
      • Limited the amount of money that individuals or groups could donate directly to a candidate or political party (HARD MONEY)
      • Set up the FEC
  • 5. The FEC
    • Their job is to administer all federal election laws and to monitor campaign spending
    • All contributions to a candidate or political party over 200 dollars needs to be reported to the FEC
    • “ political watchdog”
  • 6. Buckley v. Valeo
    • “ Set the precedent”
    • The Supreme Court decided that it IS constitutional to set limits on campaign contributions bc of its need to keep corruption out of elections.
    • HOWEVER…….
  • 7. C.R.E.A.M!!!!
    • You are allowed to spend as much as you want on the entire campaign (no “cap”) and you can spend as much of your own money as you want!!!!!
  • 8.  
  • 9. Public Funding
    • FECA – wanted to give us an opportunity to help these candidates get elected. How?
    • The Presidential Election Campaign Fund
    • Check a box on your Tax Returns…and you can donate three of your dollars to this fund that, if they qualify, can benefit candidates.
  • 10. Public vs. Private
    • Most money comes from Private Sources and not Public (Pres. Camp. Elec. Fund)
      • Examples of Private Sources
        • Individual citizens
        • Corporations
        • Labor unions
        • Interest groups
        • Political Action Committes (PACs)
  • 11. Political Action Committees (PACs)
    • Organizations set up by interest groups specifically to collect money to support favored candidates.
    • Amounts limited by FECA
  • 12. Soft money
    • Political Parties can also raise “soft money” – which is unlimited amounts of money used for general purposes.
    • According to FECA - This money could come from anyone and anywhere – and there was no limit
  • 13. Spending on Media
    • FECA put no limits on any media spending, TV, print, radio, etc
  • 14. A Reluctance to Reform
    • Because it was getting sloppy and shady – there was talks of “reform” in Congress….
    • However, incumbents were reluctant to give up their advantage
  • 15. Campaign Reform
    • In 2002 – Change came….
    • Congress passed the The Bipartisan Campaign Reform Act (aka the McCain-Feingold Act)
    • A prohibition of national political parties, federal officeholders, and federal candidates from raising soft money
  • 16. The Bipartisan Campaign Reform Act
    • It also put restrictions on Corporations, interest group, and unions running ads for (or against) candidates.
    • Limited Hard Money contributions
      • individual candidate – 2,000
      • Political Party – 25,000
  • 17. New Law Upheld
    • McConnell v. Federal Elections Committee
    • “ these limits are a violation of my free speech”
    • McCain-Feingold Act - UPHELD
    • Why?Without limits big donors could influence the policy makers – unfair and undemocratic
  • 18. The Future?
    • Candidates need to now focus on a larger amount of smaller donations
    • How do we do that? THE INTERNET
    • Cheap, reaches millions