1. Interest Groups and Campaign Finance
Unit 3: American Political Process

2. Historical Background
Interest Groups were basically the “factions” (along with Political Parties) that Madison discussed in Federalist #10
Their number and influence has grown since the founding period in response to:
Changing Campaign Laws
Federalism
Government becoming more and more involved in different policy areas

3. The Primary Goal of Interest Groups
An interest group is an organization of people sharing a common interest or goal that seeks to influence public policy
Organization: Interest Groups are organized. There is a structure with a heirarchy.
Common Interest: Interest Groups can have one narrow interest (NRA) or a broader range (Sierra Club).
Influence Public Policy: Interest Groups attempt to get the government to pass (or not pass) laws that impact their interests.

4. Parties and Interest Groups
Both are linkage institutions (links average citizen with government activities)
But differ in fundamental goals
Parties: Elect members to government
Interest Groups: Influence policy of government
Interest Groups can often work as a support system to help parties achieve their goals

5. Functions of Interest Groups
Raise Awareness and Stimulate Interest
They seek to educate their members and the general public
Represent their Membership
Linkage institution between the public and government
Provide Information to the Government
Data and testimony that is useful in making public policy
Provide Channels for Political Participation
Enabling citizens to work together for a common goal (“magnifying voices”)

6. Interest Group Tactics/Strategy
Influencing Elections
Endorsing Candidates (Voter Guides)
Influencing Party Platforms
Influencing Party Nominations
Campaigning For
Donations through Political Action Committees (PACs)
Lobbying: Influencing policymakers, often by supplying data/information
Direct Lobbying: Using personal contacts between lobbyists and policy makers
Grassroots Lobbying: Interested group members and others outside the organization to write letters, send telegrams, s, faxes, and telephone calls to influence policymakers
Coalition Lobbying: Several interest groups with common goals join together to influence policymakers

7. Interest Group Tactics/Strategy
Litigation
Groups take an issue to court, if they could not find success in Congress. NAACP and segregation during the 1950s (Brown v. Board of Education)
Going Public
Appealing to the public for support by bringing attention to the issue or using public relations to gain support for the image of the interest group

8. Political Action Committees (PACs)
Organizations formed by special interest groups to donate money to political campaigns for candidates they support
Reaction to FECA’s ban on direct contributions from Unions and Corporations
Subject to spending limits and activities

9. Some terms to start FECA – Federal Election Commission
BCRA – Bipartisan Campaign Reform Act
Hard money = Federal money
Political donations raised from federally permissible sources within the limits established by BCRA
Soft money = Nonfederal money
Political donations made in such a way as to avoid federal regulations.

10. 1970s Rules on Finance
Attempt to regulate Campaign Finance in FEDERAL ELECTIONS
Provisions
Restricted the amount of money that can be spent on advertising
Required disclosure of campaign contributions and expenditures
Limited the amount of personal money a candidate and his/her family could spend
Established public (government) financing in primaries and the general election (provided the candidate follow rules)
Restricted contributions from foreign donors
Established limits on individual contributions
Banned direct contributions by Unions and Corporations (PACs created)

11. 1996: The Problem With Soft Money
“Soft Money” Questions Arise
Original intent of money was to be used for voter registration drives, national party conventions, and issue ads.
Because the money wasn’t going to be used for campaigning, it was not limited
Ultimately the money would be used to help individual candidates
By 2000 soft money donations exceeded $400 million between the two major parties.

12. 2000 Attempt to Fix Also referred to a McCain-Fiengold
Banned the use of “soft money” in federal campaigns
Restricted Independent Spending on Campaigns (groups spending money to campaign for a candidate but not officially affiliated)
Increased the 1974 limits on individual and group contributions to candidates

13. Citizens United v. FEC
2010: Citizens United v. FEC An advocacy group excepted money to make a move about Hilary Clinton. It was ruled an “attack funded by an outside group” and the FEC ruled it could not be shown 90 days prior to elections. Courts ruled that corporations have speech rights too. Result: lifted the prohibition on corporations, unions, trade/membership associations, and other entities from engaging in independent expenditures and electioneering communications, and from doing so with unlimited dollars

14. Impact of Citizens United
SuperPACs: A Political Action Committee that is an “independent- expenditure only” PAC. Meaning they do not donate money directly to candidates and campaigns. Because of Citizens United, these SuperPACs now have no limits on amount they can raise and spend, although they are required to disclose their donor list
527s: Refers to a IRS code number. Issue advocacy groups that, by law, does NOT have to reveal their donor list. Before however they could not “endorse” a candidate. After Citizens United that restriction was thrown out. 527s can donate to SuperPACs but the individuals who donated to the 527 do not have to be named (only the 527’s name is disclosed)

15. Spending in the 2016 Election

16. Spending in the 2016 Election