Eleanor Finch
In the US, franking privilege is the ability of members of Congress to send official mail without postage, using their signature instead. This is also known as franked mail. The US House of Representatives has a Franking Manual, which contains regulations that govern the proper use of this privilege. Local party chapters rely on volunteers and cover telecommunication and mail charges, as well as rent and heating for storefront offices, which they use as their centres of political activity.
Characteristics and Values of Political Campaign Funding
| Characteristics | Values |
|---|---|
| Sources of Funding | Small donors or individual citizens ("grassroots fundraising"), wealthy individuals, organizations including businesses, interest groups, professional organizations, and trade unions |
| Methods of Raising Funds | Direct mail drives, peer-to-peer, neighborhood or internet solicitation, social events, nationwide lotteries, yard sales |
| Spending | Public relations, mass media (including billboards), consultants, telecommunication, mail charges, rent, and heating for offices |
| Types of Expenditures | Independent expenditures, campaign advertising, get-out-the-vote efforts, staff, offices, advertisements in print media, radio and TV |
| Franked Mail | Members of Congress can send mail using their signature instead of postage, with postage expenses reimbursable according to regulations |
| Self-Funding | Some candidates use their personal funds for campaigns, but self-funded candidates often lose, and it limits the ability for non-wealthy individuals to hold office |
| Super PACs | Groups, parties, and individuals can make independent expenditures for or against a candidate, without coordinating with them |
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What You'll Learn
Political Action Committees (PACs)
Political Action Committees, commonly known as PACs, are accounts referred to in federal election law as "separate segregated funds". This is because the money contributed to a PAC is kept in a bank account separate from the general corporate or union treasury. PACs have existed since 1944 when the Congress of Industrial Organizations (CIO) formed the first one to raise money for the re-election of President Franklin D. Roosevelt. The PAC's money came from voluntary contributions from union members, which did not violate the Smith-Connally Act of 1943, prohibiting unions from contributing to federal candidates.
Many politicians form Leadership PACs to raise money to fund other candidates' campaigns, often indicative of a politician's aspirations for leadership positions in Congress or for higher office. These Leadership PACs are also a way to raise money for one's own campaign to avoid appearing indebted to donors. For example, Florida Republican Gov. Rick Scott contributed $38.9 million to his U.S. Senate campaign, accounting for 71.3% of all funds raised.
PACs are required to register with the FEC within 10 days of their formation, providing the name and address of the PAC, its treasurer, and any connected organizations. Affiliated PACs are treated as one donor for contribution limit purposes. A new type of PAC was created after the U.S. Court of Appeals' decision in Speechnow v. FEC in 2010. These PACs do not contribute to candidates or parties but instead make independent expenditures in federal races, such as running ads or sending mail to advocate for or against a specific candidate.
Campaign finance laws vary depending on the office, with federal, state, and local candidates following different regulations. Federal candidates, for example, must file with the Federal Election Commission, while state and local candidates follow specific state statutes and file with their respective boards or local filing officers. These laws aim to increase transparency and protect the privacy of political preferences, ensuring that financial contributions are not used to buy access or influence.
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Campaign finance laws
At the federal level, the Federal Election Campaign Act (FECA) of 1971 sets limits on the amount of money individuals and political organizations can contribute to candidates running for federal office. The FEC also enforces contribution limits for individuals and groups, as well as overseeing public funding used in presidential elections. These laws aim to prevent the influence of large donors and promote transparency in campaign financing.
In addition to federal laws, individual states have their own campaign finance regulations. For example, in Minnesota, state candidates must follow the Minnesota Statutes Chapter 10A and file their financial information with the Campaign Finance and Public Disclosure Board. Local candidates and campaigns in Minnesota follow separate laws and file their information with their local filing officer. These laws ensure that candidates and campaigns at all levels disclose their financial activities to the public.
To address these concerns, reformers have proposed various solutions. These include encouraging "small donor public financing," where public funds match and multiply small donations, and calling for full disclosure of all political spending, including online advertising. By increasing transparency and reducing the influence of large donors, these proposals aim to create a more equitable campaign finance system.
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Fundraising methods
Political campaigns require a lot of money to be successful. Besides a good candidate, a campaign manager, and a well-executed marketing strategy, a solid fundraising strategy is also essential. Political fundraising is highly regulated, with laws about campaign finance varying according to the office. Federal candidates follow federal laws and file with the Federal Election Commission (FEC), while state and local candidates follow state laws and file with their respective state agencies.
Political revenue may be collected from small donors or individual citizens ("grassroots fundraising"), who make small contributions or pay party membership fees. Wealthy individuals, organizations such as businesses and trade unions, government subsidies, and illegal activities such as buying access to politicians are also sources of political funds.
Grassroots fundraising methods have evolved over time, from personal (door-to-door or peer group) solicitation in the 1950s to computerized mass mailings and telethons in the 1960s. In recent years, the internet has become a major platform for political fundraising, with crowdfunding being one of the most effective ways to raise money. Social media and peer-to-peer fundraising tools can also be utilized to spread the word about the campaign and raise donations.
Contribution request letters can also be effective, especially if they are personalized and handwritten. These letters should express gratitude and can include suggested donation amounts to help meet campaign goals.
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Influence of money in elections
Money has a significant influence on elections, and this has been a topic of concern and debate. In the 2022 US elections, a total of $16.7 billion was spent on campaigning by the candidates. This money goes towards paying for an army of campaign workers, legal counsellors, specialized consultants, polling experts, and media and internet advertising.
The sources of these funds vary and include small donors or individual citizens ("grassroots fundraising"), wealthy individuals, organizations such as businesses and trade unions, government subsidies, and illegal activities. In the 2020 election, small donors contributed $200 on average, giving Democratic candidates $1.8 billion, while the Republicans raised $1.1 billion. The top 100 contributors were corporate executives and business leaders, who donated $1.6 billion. Political Action Committees (PACs) have also become influential, with Donald Trump's America First Action PAC raising over $150 million, and Joe Biden's Priorities USA Action PAC raising over $100 million.
The role of money in elections has led to concerns about corruption and influence-peddling. Large corporations and special interest groups can sway policy positions and gain access to politicians through their financial contributions. This has resulted in a perception that the views and votes of the people are secondary to the money spent to advance these special interests.
To address these issues, some countries have implemented strict public financing systems with spending limits and free or inexpensive advertising. In the US, the Bipartisan Campaign Reform Act of 2002 aimed to reduce the influence of money by eliminating soft money donations to national party committees and setting limits on certain communications. However, these measures have had limited success, and the influence of money in elections remains a significant challenge.
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Transparency and disclosure of political funds
Political funds are often raised through political action committees (PACs), which are commonly used to raise money for political campaigns and candidates. PACs are required to register with the FEC and disclose their financial activities, including donations from various sources such as small donors, wealthy individuals, businesses, and unions. This transparency is crucial for maintaining integrity in democratic processes and preventing conflicts of interest, state capture, and corruption.
In the United States, for instance, campaigns and candidates are mandated to disclose information about the funds they raise and spend. These requirements vary depending on the office being sought, with federal, state, and local candidates adhering to different laws and filing procedures. For instance, federal candidates follow federal laws and file with the Federal Election Commission, while state candidates in Minnesota adhere to specific statutes and file with the Campaign Finance and Public Disclosure Board.
The sources of political funds can be diverse, ranging from grassroots fundraising to donations from wealthy individuals and organizations. Grassroots fundraising involves collecting small donations from individual citizens, which has become less common in recent years, with traditional mass-membership parties raising less than a quarter of their funds in this manner. Direct mail drives, peer-to-peer solicitation, neighborhood events, and internet solicitation are all strategies used in grassroots fundraising.
On the other hand, organizations such as businesses, interest groups, and trade unions can also contribute significant sums of money to political funds. Additionally, government subsidies, which are common in western democracies, play a role in political financing. However, these subsidies are controversial, as they can influence the degree of transparency required in political funding.
To enhance transparency and disclosure, organizations like OpenSecrets track money in U.S. politics and provide data on political contributions, expenditures, and lobbying activities. They rely on grants, individual contributions, and revenue from research fees to maintain their nonpartisan mission of shedding light on the influence of money in politics.
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Frequently asked questions
Politicians' money for mailing is called "franked mail".
Franking is the ability to send mail by signature rather than postage.
The US Treasury pays for franking.
The cost of franking is calculated using the formula: the dollar equivalent of 2,500 square feet multiplied by the applicable General Services Administration (GSA) rental rate.
Yes, politicians can use their own money for mailing, but it is reimbursed according to the regulations in the Members' Congressional Handbook.
