1. American Government
Chapter 7
Section 3

2. Money and Elections Elections Cost Money
Candidates Need Money to Keep Campaigning
Winning Candidates Raise More Money
Incumbents Raise Money for Candidates
People Contribute To The Candidate They Like

3. Sources of Funding Small Contributors Wealthy “Fat Cats”
Candidates Themselves
Political Action Committees
Temporary Organizations
Party Fundraisers
National/State Subsidies (Matching Funds)

4. Why People Give Belief In A Party Or Candidate Hope In Patronage
Support Of Specific Policy

5. Regulation of Campaign Finance
1907 – Banks And Corporations Banned From Making Money Contributions
1971 – Federal Election Campaign Act
FECA Amendments in 1974 and 1976

6. Federal Election Commission
1971 – Independent Agency
Six Members – Appointed by President, Confirmed by Senate
Timely Disclosure of Finance Data
Limits on Campaign Contributions
Limits on Campaign Expenditures
Provide Public Funding for Parts of Presidential Campaigns

7. Disclosure 1910 – Process Begins CPA Most Important Campaign Staffer
Cash Max - $100
All Ads Must Carry Name of Sponsor
All Contributions Made Through One Campaign Committee
Contribution or Loan of >$200 Identified
Expenditure >$200 Identified

8. Disclosure, Cont.
Contributions >$5,000 reported to FEC within 48 hours
Same for contributions >$1,000 in last 20 days of Campaign
Any Independent Group or Person Spending >$250 on a Candidate Must File With FEC
Corporations and Labor Unions Can Not Contribute

9. PAC’s Political Action Committee 1974 – 600 PAC’s
May Give No More Than $5K Per Individual Candidate
Hard Money vs. Soft Money Debate

10. Expenditures Limits
Congress Determines Limits On Campaign Expenditures For Federal Candidates
If Candidate Seeks Federal Campaign Funds, They Must Follow Limits
If Candidate Personally Bankrolls Campaign, No Limits

11. Qualifications For Federal Monies
5% Threshold
Candidates Must Win >5% Of Popular Vote
That Party Or Candidate Will Receive Federal Campaign Funds For The Next Election
Ross Perot – Reform Party, 1992 – 19%
1996 – Reform Party Eligible For Funds