Malcolm Rivera
In the US, buying from a campaign store is considered a donation to a political campaign and counts against the individual's contribution limit. For example, if a contributor spends $20 on a campaign t-shirt that cost the campaign $5, the buyer has made a $20 contribution. These purchases are considered in-kind contributions, which are anything of value given to influence a federal election. While these contributions are not tax-deductible, they are a great way to raise funds for a campaign and gain support from small-dollar donors.
| Characteristics | Values |
|---|---|
| Buying from campaign store | Counts as a donation |
| Donating time or effort to a political campaign | Not tax-deductible |
| Buying from campaign store for non-US citizens | Illegal |
| Buying from campaign store for US citizens | Legal |
| Buying from campaign store for green card holders | Legal |
| Buying from campaign store for foreigners | Illegal |
| Buying from campaign store for permanent US residents | Legal |
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What You'll Learn
- Buying from campaign stores is only legal for American citizens or green card holders
- Foreigners are barred from buying from campaign stores as political donations from non-US citizens are illegal
- Buying from campaign stores counts as a contribution and counts against the individual's contribution limit
- Buying from an online campaign store is a great way to amplify your campaign's fundraising efforts
- Buyers can choose to add an additional donation to their purchase, up to $100
Buying from campaign stores is only legal for American citizens or green card holders
Political campaigns require a lot of money, and candidates collect millions of dollars in contributions. In the 2020 presidential cycle, candidates drew $4.1 billion in donations. As a result, candidates have been tapping into grassroots fundraising and low-dollar amount donations, with merchandise sales being an essential part of their political campaign fundraising and marketing strategy.
Merchandise sales are a creative way to activate small-dollar donors. For example, a contributor who spends $20 on a campaign t-shirt that cost the campaign $5 has made a $20 contribution. This is because the entire amount paid to purchase a fundraising item sold by a political committee is a contribution and counts against the individual's contribution limit.
However, it is important to note that federal law prohibits individuals who are not citizens of the United States from making any direct or indirect donations to any local, state, or federal campaign. This means that buying from a campaign store is only legal for American citizens or green card holders. Foreigners are barred from buying campaign merchandise, as political donations from non-U.S. citizens are illegal.
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Foreigners are barred from buying from campaign stores as political donations from non-US citizens are illegal
Political campaigns require a lot of money, and candidates collect millions of dollars in contributions. Candidates in the 2020 presidential cycle drew $4.1 billion in donations. In addition to direct donations, proceeds from sales of campaign merchandise also count as political contributions. The entire amount paid to purchase a fundraising item sold by a political committee is a contribution and counts against the individual’s contribution limit. For example, if a contributor spends $20 to buy a campaign t-shirt that cost the campaign $5, the contributor has made a $20 contribution.
Federal law prohibits individuals who are not citizens of the United States from making any type of direct or indirect donation to any local, state, or federal campaign. This means that foreigners are barred from buying from campaign stores as political donations from non-US citizens are illegal. However, foreigners can still support a campaign by expressing their opinions, passing out campaign material, or volunteering for a campaign.
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Buying from campaign stores counts as a contribution and counts against the individual's contribution limit
Political campaigns require a lot of money, and candidates collect millions of dollars in contributions. The Federal Election Campaign Act caps individual contributions at $3,300 per election for the 2023-2024 federal election cycle. For example, an individual can contribute $6,600 to a federal candidate, once during the primary and another time during the presidential campaign.
Now, when it comes to buying from campaign stores, it is considered a contribution and counts against the individual's contribution limit. This means that if someone buys a $20 campaign t-shirt that cost the campaign $5 to produce, the buyer has made a $20 contribution. Similarly, if someone pays $100 for a ticket to a fundraising dinner that cost the committee $30, the entire $100 is considered a contribution.
It is important to note that only US citizens or permanent residents (green card holders) can legally purchase from campaign stores, as non-US citizens are prohibited from contributing to US political campaigns. Additionally, corporations, labour organizations, and national banks are prohibited from contributing to campaigns, and candidates cannot accept contributions from federal government contractors.
While political contributions are not tax-deductible, they are a significant source of campaign support. Candidates are finding creative ways to engage small-dollar donors, and selling merchandise is an effective strategy. Online merch stores, for instance, can help campaigns reach more supporters and make it easier for them to contribute while receiving promotional gear in return.
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Buying from an online campaign store is a great way to amplify your campaign's fundraising efforts
One of the key advantages of an online campaign store is its ability to reach a wider audience. With an online presence, your campaign can tap into the millennial marketplace and engage with supporters who may not typically participate in traditional fundraising methods. Additionally, an online store can save your campaign time and money. Instead of setting up a physical store and managing inventory and volunteer resources for shipping, an online store allows your volunteers to focus on canvassing and spreading the word about your campaign.
Another benefit of an online campaign store is the ease of compliance with election laws. Platforms like Bonfire offer exclusive political fundraising features that ensure your campaign collects all necessary information from buyers for proper reporting. These platforms can limit donations from individuals to specific amounts and provide downloadable spreadsheets of buyer information for record-keeping. This helps your campaign stay compliant with the Federal Election Campaign Act and avoid any legal issues.
Furthermore, an online campaign store provides valuable content for your social media and email marketing efforts. Capturing photos of your supporters in matching campaign merchandise creates a sense of community and cohesion. It helps to visually convey that your campaign is well-organized and intentional. This user-generated content can be shared across social media platforms and email newsletters, enhancing the visibility and reach of your campaign.
Lastly, an online campaign store offers flexibility in terms of additional donations. When supporters check out from your store, they can choose to add an extra donation to their purchase, providing your campaign with an opportunity to increase fundraising. By incorporating a marketing strategy that encourages supporters to add a small amount to their merchandise purchase, your campaign can maximize its fundraising potential.
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Buyers can choose to add an additional donation to their purchase, up to $100
In the United States, federal law prohibits individuals who are not citizens of the country from donating to any local, state, or federal campaign. Therefore, buying from a campaign store is only legal if you are an American citizen or a permanent resident with a green card.
When a supporter checks out from a campaign store, they can choose to add an additional donation to their purchase, up to $100 per supporter. This allows campaigns to make a little extra money per checkout, especially if they have a marketing strategy around asking supporters to add an extra $5-$10 on top of their merchandise purchase.
Campaign stores are an essential part of a political campaign's fundraising and marketing strategy. They are a great way to activate small-dollar donors, and selling apparel helps campaigns fundraise while giving supporters the gear they want. It is also a good way to capture content for social media and email newsletters, as a group photo of people in matching campaign t-shirts helps to create a cohesive, organized, and intentional image of the campaign.
Setting up a store with a law-compliant platform is important to save time and ensure that supporters can legally support the campaign.
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Frequently asked questions
Yes, proceeds from sales count as a political donation and go towards an individual's contribution limit. For example, if a contributor spends $20 on a campaign t-shirt, they have made a $20 contribution.
Only American citizens or permanent residents (green card holders) can buy from a campaign store as non-US citizens are prohibited from donating to political campaigns.
Yes, the Federal Election Campaign Act caps individual contributions at $3,300 per election.
No, donations to political organizations or candidates are not tax-deductible.
