Campaigns

Fund Raising How much money does to take to run for President? In 2000 Republicans spent $94.5 million and Democrats spent $53.7 million during the Presidential election (Federal Election commission data) Over $1 billion was spent to support both President Bush and John Kerry during the 2004 election Where does it come from?

Individual Donors Big individual donations go to both parties, but mostly to Republicans because of their support from the most wealthy individuals Money is often collected at “fundraisers” where donors pay high prices to get into dinner parties where the candidate will attend and speak. The biggest donors get to speak to the candidate and get their picture taken with them

PAC-Men Republicans usually rely more on individual donors, while Democrats often rely more on PACs. Both parties use both sources however Political Action Committees (PACs) are organizations that raise money for candidates that agree with their point of view There are over 4000 in the U.S. today They raise millions of dollars for the candidates they support Why would people or PACs want to give so much?

Types of PACs Issue PACs promotes a view on an issue Labor Union PACs promotes needs of workers Industry PACs promotes needs of a type of business Professional PACs promotes needs of a specialized profession Corporate PACs promotes the needs of a company Political PACs promotes a political party

#1 National Rifle Association (NRA) In the election cycle they spent $16,821,436 They mostly support Republicans They support candidates who are in favor of protecting gun rights It is a good example of a PAC that promotes an issue

#2 Emily’s List In the election cycle they spent $14,746,248 They mostly support Democrats They are most interested in women's issues

#3 Democrat Republican Independent Voter Education PAC In the election cycle they spent $9,000,564 Despite its confusing name, this PAC gives mostly to Democrats It is the PAC of the Teamsters Union, which represents truck drivers and other industrial workers It supports issues of organized labor.

#6 NEA Fund for Education In the election cycle they spent $6,108,964 They are also a union, representing many public school teachers (Yes, I am a member) They also tend to support Democratic candidates

#9 New Republican Majority Fund In the election cycle they spent $4,692,690 It was created by Mississippi Senator, and former Majority Leader, Trent Lott It gives to conservative Republican candidates only. It is the largest political PAC

#10 American Medical Association During the Obama/McCain election they spent $4,496,150 They are an organization made up of doctors and medical professionals It is one of many PACs that represent the interest of a particular profession It gives to both parties, but mostly Republicans

#20 National Automobile Dealers Association (NADA) During the Obama/McCain election, they gave $3,576,539 They represent car dealers They give money to both parties, but slightly more to Republicans

#23 United Parcel Service (UPS) During the Obama/McCain election they donated $3,317,743 UPS is an example of a PAC that represents only one corporation They support both parties, in order to promote their business

Campaign Finance Reform Under old laws, and PACs and individuals were limited to how much they could give a candidate. They got around this by giving unlimited “soft money” to political parties, rather than the candidate directly. In 2002, Senators John McCain (AZ) and Russ Feingold (WI) got a law passed to attempt to control the influence created by all that money in politics It became known as the McCain- Feingold Act, the most recent attempt at campaign finance reform

McCain - Feingold The law limits the amount of money you can give to a candidate per election. Individuals can give only $5000, PACs only $10,000 It totally bans all soft money used for campaign ads All campaign advertising must be followed by a statement of who paid for it There is a loophole however “527” groups can raise unlimited money to run “issue ads”. They are supposed to be only about educating voters on the issues, but have been used to attack candidates on both sides

Where does the money go? It costs a lot of money to put on a presidential campaign Hundreds of staff members must be paid Rent must be paid on headquarters in most major cities The candidate and dozens of staff members and security must be flown around the country, usually in more than one state per day Signs, banners, bumper stickers, etc. need to be printed The biggest expense by far though is… advertising!

TV Advertising Television advertising is the biggest expense of Presidential campaigns It costs an average of $343,000 to produce a :30 TV commercial – and that’s before anyone sees it! (American Association of Adverting Agencies 11/2005) To run an ad during a popular show is expensive. Here are costs to show a :30 ad – once! American Idol (FOX) - $658,333 Survivor (CBS) - $412,833 The Apprentice (NBC) - $410,000 Monday Night Football (ESPN) - $323,000 Smallville (WB) - $111,700 America’s Next Top Model (UPN) - $92,045 (According to the Boston Globe 9/29/2004)

Is it worth it? Yes, they wouldn't spend millions on it if it didn’t have an effect It is used for several purposes Promote their beliefs Help create their public image Attack their opponent Defend themselves against an opponent’s attack