American Government Chapter 7 Section 3.

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Presentation transcript:

American Government Chapter 7 Section 3

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

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

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

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

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

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

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

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

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

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