Campaign Finance Humor
Milestones in Campaign Finance
• 1971 Watergate: “Hush Money” Burglers
hired by CREP. FEC created and spending
limits.
• 1979 – 2002: Soft Money Era . Lincoln
Bedroom visits. Ends with McCain-Feingold
Act
• 2007 onward – Whittling begins. Soft money
returns: 527s, “issue ads” and others grow.
Citizens United v. FEC 2010
• Corporations and unions
can spend unlimited
amounts from their
treasuries on vote
for/vote against
independent ads.
• Cannot coord with
candidates nor donate
directly. Must disclose.
• Before: Only through
PACS
• Opened era of Super Pacs
and explosion of “Dark
Money.”
• More big money
influence
Citizens United
• President Obama called the Citizens United
decision: “a major victory for big oil, Wall
Street banks, health insurance companies and
the other powerful interests that marshal
their power every day in Washington to drown
out the voices of everyday Americans
Hard Money is the Best
• Under federal law, an individual in the 2016 election
cycle may contribute:
– $2,700 to a candidate per election (primary and general
are considered two different elections)
– $33,400 to a national political party committee per year
– $5,000 to a PAC per year
•
A PAC may contribute:
– $5,000 to a candidate per election (primary and general)
– $15,000 to a political party per year
– $5,000 to another PAC per year
Bigger and Darker Money
• 501 C’s NON PROFITS
• tax exempt
• IRS code
• varying political
involvement
• 527’s tax exempt
under IRS rules
• SUPER Pacs
Campaign Money with No Fingerprints
• https://www.youtube.com/watch?v=vVe7galMGu
c
• http://www.nytimes.com/2015/06/03/us/politics
/poll-shows-americans-favor-overhaul-of-
campaign-
financing.html?hpw&rref=politics&action=click&
pgtype=Homepage&module=well-
region&region=bottom-well&WT.nav=bottom-
well
Levels of Giving
• http://www.nytimes.com/imagepages/2010/0
9/21/us/politics/21money-graphic.html
Other terms
• Bundlers
• PACS and Leadership
PACS
• Party Committees
• Public Matching
Funds
2012: The Most Expensive in History
• $6.3
billion
• ($300 million from
outside groups)
The Big Givers
2012 Presidential: $1 Billion candidate
spending
• https://www.opensecrets.org/pres12/#out
• Candidate $540.8 $336.2
• Party $292.2 $386.2
• Outside $131.3 $418.6
• Total $964.3 $1.141 billion
million
2016: Outside money (top)
Candidate money (bottom)
Jeb Bush (R)
$103,222,384
$24,814,730
Hillary Clinton (D)
$20,291,679
$77,471,604
Ted Cruz (R)
$38,655,257
$26,567,298
Bernie Sanders (D)
$25,044
$41,463,784
Ben Carson (R)
$7,295,668
$31,409,509
Marco Rubio (R)
$17,315,782
$15,515,638
And what about Donald Trump?
Donald Trump (R)
$0
$5,828,922
Outside groups
Candidate
Outside spending so far – incomplete
disclosure
Not coordinated with candidate -- issue ads – not
full disclosure
Type of Group Total Spent
# of Groups
Registered
# of Groups
Spending to date
Super PACs $95,079,020 1,702 65
Social Welfare 501(c)(4) $1,991,529 N/A 6
Trade Assns 501(c)(6) $2,965,477 N/A 1
Unions 501(c)(5) $0 N/A 0
Parties $570,166 72 4
Other (corporations, individual people, other groups,
etc)
$2,822,556 185 38
Grand Total: $103,428,748 2,026 114
Super Pacs 2016: Spent and Raised
Right To Rise
USA
supports Bush $52,247,651 Conservative $103,167,845
America Leads
supports
Christie
$10,734,898 Conservative $11,003,304
Conservative
Solutions PAC
supports Rubio $8,685,534 Conservative $16,057,755
New Day For
America
supports Kasich $4,371,997 Conservative $0
Club for
Growth Action
$3,759,266 Conservative $2,844,708
Security is
Strength
supports
Graham
$3,504,375 Conservative $2,897,435
Believe Again supports Jindal $2,634,873 Conservative $3,685,918
New Day
Independent
Media Cmte
supports Kasich $2,489,336 Conservative $0
Families funding the race
• The 158 families each contributed $250,00 or
more in the campaign through June 30,
according to the most recent available FEC
filings and other date, while an additional 200
families gave more than $100,000.
• Together the two groups contributed well over
half the money in the presidential election –
the vast majority of it supporting Republicans.
Families Mostly Backing Republicans
• Republicans: 138 Democrats: 20
What to look for: Giving and Spending
• GIVING
• Patterns: regions,
industries, issue groups
• Outliers, and oddities
• Big v Small donors
• Bundlers
• Fed/State/Local races
• New techniques and
colorful events (lavish
excess)
• Periodic reports
• SPENDING
• Air war v. ground war
• Who’s getting rich
(consultants, ad buyers,
pollsters)
• In what states
• Big Data
• Conventions,
Inaugurations
• Burn Rate
SOURCES
• http://www.fec.gov/index.shtml
• https://www.opensecrets.org/
• http://sunlightfoundation.com/
• http://www.followthemoney.org/
handouts
• http://www.nytimes.com/imagepages/2010/0
9/21/us/politics/21money-graphic.html
• Also john edwards story and political
consultants stories in gmail.
Super Givers So Far
Organization Total View*
Independent
Expenditures
Elec
Comm
Comm
Costs
Super
PAC
527s† 501c
Right To Rise USA $44,541,053 C $44,541,053 $0 $0 x
America Leads $10,716,610 C $10,716,610 $0 $0 x
Conservative Solutions PAC $5,391,895 C $5,391,895 $0 $0 x
New Day For America $3,972,097 C $3,972,097 $0 $0 x
Club for Growth $3,834,726 C $3,834,726 $0 $0 x
VIEW ALL GROUPS

“Covering Campaign Finance” by Leslie Wayne

  • 2.
  • 3.
    Milestones in CampaignFinance • 1971 Watergate: “Hush Money” Burglers hired by CREP. FEC created and spending limits. • 1979 – 2002: Soft Money Era . Lincoln Bedroom visits. Ends with McCain-Feingold Act • 2007 onward – Whittling begins. Soft money returns: 527s, “issue ads” and others grow.
  • 4.
    Citizens United v.FEC 2010 • Corporations and unions can spend unlimited amounts from their treasuries on vote for/vote against independent ads. • Cannot coord with candidates nor donate directly. Must disclose. • Before: Only through PACS • Opened era of Super Pacs and explosion of “Dark Money.” • More big money influence
  • 5.
    Citizens United • PresidentObama called the Citizens United decision: “a major victory for big oil, Wall Street banks, health insurance companies and the other powerful interests that marshal their power every day in Washington to drown out the voices of everyday Americans
  • 6.
    Hard Money isthe Best • Under federal law, an individual in the 2016 election cycle may contribute: – $2,700 to a candidate per election (primary and general are considered two different elections) – $33,400 to a national political party committee per year – $5,000 to a PAC per year • A PAC may contribute: – $5,000 to a candidate per election (primary and general) – $15,000 to a political party per year – $5,000 to another PAC per year
  • 7.
    Bigger and DarkerMoney • 501 C’s NON PROFITS • tax exempt • IRS code • varying political involvement • 527’s tax exempt under IRS rules • SUPER Pacs
  • 8.
    Campaign Money withNo Fingerprints • https://www.youtube.com/watch?v=vVe7galMGu c • http://www.nytimes.com/2015/06/03/us/politics /poll-shows-americans-favor-overhaul-of- campaign- financing.html?hpw&rref=politics&action=click& pgtype=Homepage&module=well- region&region=bottom-well&WT.nav=bottom- well
  • 9.
    Levels of Giving •http://www.nytimes.com/imagepages/2010/0 9/21/us/politics/21money-graphic.html
  • 10.
    Other terms • Bundlers •PACS and Leadership PACS • Party Committees • Public Matching Funds
  • 11.
    2012: The MostExpensive in History • $6.3 billion • ($300 million from outside groups)
  • 12.
  • 13.
    2012 Presidential: $1Billion candidate spending • https://www.opensecrets.org/pres12/#out • Candidate $540.8 $336.2 • Party $292.2 $386.2 • Outside $131.3 $418.6 • Total $964.3 $1.141 billion million
  • 14.
    2016: Outside money(top) Candidate money (bottom) Jeb Bush (R) $103,222,384 $24,814,730 Hillary Clinton (D) $20,291,679 $77,471,604 Ted Cruz (R) $38,655,257 $26,567,298 Bernie Sanders (D) $25,044 $41,463,784 Ben Carson (R) $7,295,668 $31,409,509 Marco Rubio (R) $17,315,782 $15,515,638
  • 15.
    And what aboutDonald Trump? Donald Trump (R) $0 $5,828,922 Outside groups Candidate
  • 16.
    Outside spending sofar – incomplete disclosure Not coordinated with candidate -- issue ads – not full disclosure Type of Group Total Spent # of Groups Registered # of Groups Spending to date Super PACs $95,079,020 1,702 65 Social Welfare 501(c)(4) $1,991,529 N/A 6 Trade Assns 501(c)(6) $2,965,477 N/A 1 Unions 501(c)(5) $0 N/A 0 Parties $570,166 72 4 Other (corporations, individual people, other groups, etc) $2,822,556 185 38 Grand Total: $103,428,748 2,026 114
  • 17.
    Super Pacs 2016:Spent and Raised Right To Rise USA supports Bush $52,247,651 Conservative $103,167,845 America Leads supports Christie $10,734,898 Conservative $11,003,304 Conservative Solutions PAC supports Rubio $8,685,534 Conservative $16,057,755 New Day For America supports Kasich $4,371,997 Conservative $0 Club for Growth Action $3,759,266 Conservative $2,844,708 Security is Strength supports Graham $3,504,375 Conservative $2,897,435 Believe Again supports Jindal $2,634,873 Conservative $3,685,918 New Day Independent Media Cmte supports Kasich $2,489,336 Conservative $0
  • 18.
    Families funding therace • The 158 families each contributed $250,00 or more in the campaign through June 30, according to the most recent available FEC filings and other date, while an additional 200 families gave more than $100,000. • Together the two groups contributed well over half the money in the presidential election – the vast majority of it supporting Republicans.
  • 19.
    Families Mostly BackingRepublicans • Republicans: 138 Democrats: 20
  • 20.
    What to lookfor: Giving and Spending • GIVING • Patterns: regions, industries, issue groups • Outliers, and oddities • Big v Small donors • Bundlers • Fed/State/Local races • New techniques and colorful events (lavish excess) • Periodic reports • SPENDING • Air war v. ground war • Who’s getting rich (consultants, ad buyers, pollsters) • In what states • Big Data • Conventions, Inaugurations • Burn Rate
  • 21.
    SOURCES • http://www.fec.gov/index.shtml • https://www.opensecrets.org/ •http://sunlightfoundation.com/ • http://www.followthemoney.org/
  • 22.
  • 23.
    Super Givers SoFar Organization Total View* Independent Expenditures Elec Comm Comm Costs Super PAC 527s† 501c Right To Rise USA $44,541,053 C $44,541,053 $0 $0 x America Leads $10,716,610 C $10,716,610 $0 $0 x Conservative Solutions PAC $5,391,895 C $5,391,895 $0 $0 x New Day For America $3,972,097 C $3,972,097 $0 $0 x Club for Growth $3,834,726 C $3,834,726 $0 $0 x VIEW ALL GROUPS