Jonah Patel
Political campaigns can be costly affairs, with presidential candidates known to raise and spend hundreds of millions of dollars. In the US, the flow of money in politics is tracked by groups like OpenSecrets, which is an amalgamation of the National Institute on Money in Politics and the Center for Responsive Politics. OpenSecrets provides data on campaign contributions and lobbying activity from corporations, trade associations, labour unions, nonprofits, and advocacy groups. The Federal Election Commission (FEC) also maintains a database of individuals who have contributed to federally registered political committees. While credit cards are a popular way to donate to campaigns, especially among Gen Z and millennials, donors should be aware that a small portion of their donation goes towards card processing fees.
| Characteristics | Values |
|---|---|
| Organizations that track donations | OpenSecrets, FEC.gov, FollowTheMoney.org |
| Information available | Donors, donations, industries and organizations that donated, trends, statistics, outside spending, campaign expenditures, lobbying activity, etc. |
| Donation methods | Credit card, crowdfunding sites like Crowdpac |
| Donation fees | 2.9% + $0.30 per transaction (Crowdpac); 3-6% + $0.20-$0.30 (standard range) |
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What You'll Learn
Donors in your state
The public can access information on political donations made in their state. In the United States, the Federal Election Commission (FEC) maintains a database of individuals who have made contributions to federally registered political committees. This information can be searched by the donor's name, employer, occupation, location, date of contribution, amount of contribution, and the committee receiving the funds.
For example, if you are interested in donations made in New York, you can find out that business leaders and key industries have contributed significantly to political campaigns in the state.
It is worth noting that, since 2010, companies have been able to donate directly to super Political Action Committees (PACs), and these contributions are publicly available. PACs are private interest groups that raise and spend money to support candidates and influence elections. They can represent industry groups, labor unions, or individual companies.
Some of the biggest donors to political campaigns in the US include high-profile corporations and business leaders. For instance, major companies such as Chevron, ExxonMobil, and Coca-Cola have contributed to political campaigns or inauguration committees. Tech giants like Amazon and Meta have also made substantial donations.
In addition, individuals have also made significant contributions to campaigns. For instance, J. Joe Ricketts of TD Ameritrade donated $2 million.
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Industries and special interests
Industries and special interest groups can wield a lot of power and influence over political campaigns and their outcomes. This is achieved through lobbying and political donations, with corporations and business Political Action Committees (PACs) using donations to gain immediate access and favour with politicians.
PACs are the most traditional way for companies to support candidates and political parties, and their contributions are regulated, limited, and disclosed. In the 2022 midterms, corporate political donations from company PACs and business-related associations totalled almost $344 million, with around 45% going to Democrats and 55% to Republicans. In the House, where members face voters every two years, candidates who are heavily funded by corporate and business association PACs rely on these sources for at least half of their funding. In the Senate, where terms are six years, corporate donations make up a smaller percentage of the overall war chest.
The influence of industries and special interest groups is also seen in the way relatively unpopular industries, such as fossil fuels and banking, provide larger contributions to candidates. This is thought to be because candidates lose voter support when associated with these industries, so larger donations are used to compensate for this loss of support.
Furthermore, "dark money" groups spend millions of dollars on elections without revealing the source of their funding. This lack of transparency allows these groups to exert influence without public scrutiny, which can be detrimental to democratic principles.
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Political action committees (PACs)
There are several types of PACs, including connected PACs, non-connected PACs, and super PACs. Connected PACs, also known as corporate PACs, are established by businesses, non-profits, labour unions, trade groups, or health organisations. They receive and raise money from a restricted class, such as managers and shareholders in a corporation or members in the case of a non-profit. Non-connected PACs, on the other hand, are formed by groups with an ideological mission, single-issue groups, and members of Congress or other political leaders.
Super PACs, officially known as independent expenditure-only political action committees, differ from traditional PACs in that they can raise unlimited amounts from individuals, corporations, unions, and other groups. However, they are prohibited from coordinating with or contributing directly to candidate campaigns or political parties. Hybrid PACs are similar to super PACs but can give limited amounts of money directly to campaigns while still making independent expenditures in unlimited amounts.
PACs play a significant role in US politics, with hundreds of millions of dollars flowing into state and federal elections. They provide a way for various interests, such as businesses, labour unions, and ideological groups, to influence elections and shape policy. The impact of PACs has been a subject of interest and scrutiny, with organisations like OpenSecrets dedicated to tracking and analysing the flow of money in American politics to strengthen democracy and increase transparency.
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Dark money groups
In the context of US politics, "dark money" refers to funds used to influence elections, public policy, and political discourse, where the source of the money is not disclosed to the public. Dark money groups are organizations that spend money on political campaigns without revealing their donors. This lack of transparency makes it difficult for voters to make informed decisions, as they are unaware of who is trying to influence them.
The most common type of dark money group is the 501(c)(4), often referred to as a social welfare organization. These groups can receive unlimited donations from corporations, individuals, and unions, and are not required to disclose their donors. Dark money entered US politics following the 1976 Supreme Court case of Buckley v. Valeo, which established the difference between electioneering and issue advocacy, exempting the latter from election finance laws.
The 2010 Citizens United v. FEC case further increased the flow of dark money into politics by allowing unlimited spending in elections. Since then, powerful groups have poured more than $1 billion into federal elections, focusing on competitive races. Dark money has also seeped into executive, legislative, and judicial elections, threatening the impartiality of state supreme courts.
One notable example of a dark money group is the Kentucky Opportunity Coalition, which played a significant role in the 2014 Kentucky Senate election. The group raised over $21 million and ran television advertisements praising Mitch McConnell, the Republican candidate, while also launching attack ads against his Democratic opponent, Alison Lundergan Grimes. The group was criticized for its lack of transparency, with only one name, political operative J. Scott Jennings, formally associated with it.
Another example is Freedom Partners, which acted as a conduit for campaign spending in 2012, funneling $238 million to other groups while having no employees itself. This marked a shift in how high-revenue trade associations operated, as they typically devote only a small percentage of their spending to grants to outside groups. Freedom Partners was identified as a prominent enabler of dark money in 2014.
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Credit card fees
These fees can add up, especially for larger donations. For instance, a $500 donation could be reduced to $490 after the fees are deducted. This means that while credit cards are a popular and easy way to donate, they may not be the most cost-effective method for the donor or the campaign.
It's worth noting that the fees charged by credit card companies are standard for any business that accepts credit card payments. However, it's important for donors to be mindful of this when deciding how much to donate and which payment method to use.
To minimize the impact of credit card fees, some platforms, such as Crowdpac, pass the fees on to the donor. In this case, the donor pays the credit card fee of 2.9% plus $0.30 per transaction. This approach ensures that the campaign receives the full intended amount of the donation.
When donating to a political campaign using a credit card, it is recommended to use a trusted service like PayPal and to donate through the official website of the campaign or candidate. This helps to ensure the security of your credit card information and reduces the risk of fraud.
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Frequently asked questions
You can find out by using a donor lookup tool such as OpenSecrets, which is a research group that tracks money in U.S. politics.
Yes, it's important to note that contribution data on donor lookup tools may be limited to a certain date range. For example, OpenSecrets' data is currently limited for 2024.
You can find information on the industries and organizations that donated to political campaigns, as well as the amount of money raised and spent by candidates.
You can donate to a political campaign by using a credit card on a secure website. However, keep in mind that credit card processing fees will be deducted from your donation.
Reputable sources include OpenSecrets, FEC.gov, and FollowTheMoney.org. These websites provide data and insights into political donations and their impact on elections and policies.
