Barack Obama's Political Campaign: Where Did The Money Come From?

Barack Obama's 2008 presidential campaign was a landmark one for several reasons. It was the first to decline public funding, allowing Obama to spend more than the $84.1 million limit. This decision marked the beginning of the end for the public funding of democracy in the US. Obama's campaign was also the first to raise so much money, with over 3 million grassroots donors, and it was fined $375,000 by the Federal Election Commission for campaign reporting violations. Obama's campaign strategy included a focus on young voters and an unprecedented online communication strategy, making him the most technologically savvy candidate to date.

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Obama's 2008 campaign was the first to give up public funding

In 2008, Barack Obama became the first presidential candidate to give up public funding for his campaign. This decision marked the beginning of the end for the public funding of democracy in the United States.

Previously, candidates in the general presidential election had opted for public funding and reimbursement of their campaign expenses. This came with a ceiling on expenditure and a ban on private donations. Obama's decision to opt out of this system meant that he could spend more than the $84.1 million limit that his opponent, John McCain, adhered to.

Obama's campaign raised money from individual donors, and by the general election, the campaign committee had raised more than $650 million. This was a record-breaking amount, and it changed expectations for future presidential elections. Obama's campaign also coordinated with the Democratic National Committee (DNC) and state-level Democratic committees to raise and split even more money.

Obama's decision to decline public funding was criticised as it contradicted his earlier statements about attempting to reach an agreement with McCain to obtain public financing. However, Obama defended his decision by saying that "public financing of presidential elections as it exists today is broken, and we face opponents who've become masters at gaming this broken system."

Obama's campaign had 1.7 million donors

Barack Obama's 2008 presidential campaign was groundbreaking in many ways, not least because it had 1.7 million donors. This was a vast base of donors, and it enabled Obama to raise unprecedented sums of money for his campaign. In fact, Obama's campaign fundraising broke previous records for presidential primary and general campaigns, and changed expectations for future elections.

Obama's campaign raised much of its money in small donations over the internet, with about half of its intake coming in increments of less than $200. This meant that the campaign had a deep well of donors to draw from, and it also meant that Obama was not reliant on large donations from a small number of individuals or organisations. This gave him a degree of independence and allowed him to focus on his message of change.

The large number of donors also meant that Obama had a strong base of support from ordinary people, rather than just a few wealthy individuals or special interest groups. This was important because it showed that Obama's campaign was resonating with a wide range of people and that he had a mandate to govern. It also helped him to get his message out, as many of his donors would also have been supporters who would have volunteered their time and energy to help get him elected.

Obama's decision to opt out of public funding for his campaign was controversial, as it meant that he was able to spend more than the limit of $84.1 million. This was the first time that a major-party presidential candidate had turned down public financing since the system was created in the aftermath of Watergate. Obama's decision marked the beginning of the end for the public funding of democracy in the United States.

Obama's campaign was fined $375,000 by the FEC

In 2013, it was reported that Barack Obama's 2008 presidential campaign was fined $375,000 by the Federal Election Commission (FEC). This was one of the largest fees ever levied on a presidential campaign by the FEC. The fine was a result of reporting violations related to a set of donations received during the final days of the campaign. Campaigns are required to file reports within 48 hours of receiving donations of $1,000 or more during the last 20 days of the campaign. In this case, there were nearly 1,200 to 1,300 such contributions, totalling nearly $1.9 million, for which the required notices were missing.

The fine was detailed in a conciliation agreement sent to Sean Cairncross, chief counsel for the Republican National Committee (RNC), one of the groups that filed complaints about the campaign's FEC reporting. The Obama campaign paid $230,000 of the total fine, with the remainder paid by the Democratic National Committee (DNC), which ran a joint fundraising committee with the campaign.

The 2008 Obama campaign was record-breaking, with over 3 million grassroots donors contributing nearly $750 million from 2007 to 2008. The campaign also had 1.7 million donors who gave the maximum permitted by law: $2,300. This large number of donors may have contributed to the challenges in accurately reporting all donations.

The fine stood in contrast to the relatively minor infractions identified by independent experts, including former FEC commissioner Michael Toner, who noted that the campaign had tried to correct the reporting errors in real time. Nevertheless, the FEC took the matter seriously, and the fine served as a reminder of the importance of transparent and accurate campaign finance reporting.

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Obama's online strategy was key to his success

Obama's online strategy was integral to this. In 2007, his campaign launched a social networking site called my.barackobama.com, or MyBO for short. This site was developed with the help of Facebook co-founder, Chris Hughes, and became the hub of the campaign's online efforts. It provided tools such as the Neighbor-to-Neighbor tool, which allowed supporters to reach a large number of people in their community, leading to increased support for Obama.

Obama's campaign also made effective use of email and text messaging to communicate with supporters. All of his policies were made available online, and updates were sent to subscribers via email and text. This made him the most technologically savvy candidate to date and increased his popularity among young voters.

Obama's online strategy was so successful that it even influenced how much money he was able to spend on his campaign. By opting out of the federal programme that provided funding for presidential campaigns, Obama was able to spend more than the $84 million limit. This was a risky move, but it paid off, as Obama raised a record-breaking amount of money and became the first billion-dollar presidential campaign.

Obama's campaign spent over $1 billion

Barack Obama's 2008 presidential campaign was the first to give up public funding, allowing him to spend more than the $84.1 million limit that his opponent, John McCain, adhered to. Obama's campaign spent over $1 billion, with the candidate becoming a fundraising phenomenon. Obama's campaign had 1.7 million donors, more than any past presidential candidate, and he relied heavily on the internet to mobilise grassroots support.

Obama's decision to opt out of public funding marked the beginning of the end for publicly funded democracy in the United States. This decision allowed him to raise and spend unprecedented amounts of money, with no ceiling on expenditure and no ban on private donations. The campaign was fined $375,000 for reporting errors, with the FEC taking issue with a series of missing 48-hour notices for nearly 1,300 contributions totalling more than $1.8 million.

Obama's campaign spending had a significant impact on the US political landscape. It contributed to the end of the federal system of publicly funded democracy, with no presidential candidates after 2004 opting for public funding and reimbursement of campaign expenses. This created a climate where campaign funding rules were relaxed, and individual donations were no longer capped.

Obama's campaign spending also set a precedent for future elections, with candidates seeking to match or exceed his level of financial support. This has resulted in increasingly expensive campaigns, with more money flowing into American politics from various sources, including corporations, unions, and private individuals.

Obama's campaign spending had both immediate and long-term impacts on US politics. It contributed to the end of publicly funded democracy and set a new standard for campaign financing, with candidates seeking to raise and spend ever-larger sums of money.

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