1. 12.2 Campaign Funding and PACs
How do interest groups affect the political process?

2. Funding Election Campaigns is Pricey
Running for mayor of a medium-sized city can cost tens of thousands of dollars
Senate
2006: 10 different campaigns spent over $27 million each
Presidential Elections
2008 election: close to $1 billion

3. Where Campaign Money Comes From…
Individual Donations:
Largest source of contributions—many small, individual donations can add up to become large amounts of $$
Donations under $ are not required by law to be reported by PACs, political parties or campaigns
Fundraisers, soliciting donations online or through mail, or candidates may donate to their own campaign

4. Where Campaign Money Comes From…
Contributions from PACs (Political Action Committee)
2nd most important form of campaign funding
The amount of money that comes from PACs depends on the candidate and the interest groups that endorse him or her

5. Where Campaign Money Comes From
Political Party Contributions:
Committees within a political party that the candidate represents may contribute money, but there are laws limiting the amount of money a political party can donate to their candidate

6. Where Campaign Money Comes From
Public Funding—Presidential Campaigns ONLY
The $3.00 Tax Check-Off
Citizens filing taxes have the option of checking a box on their tax return that donates $3.00 to the Presidential Election Campaign Fund
The donation is voluntary for both tax payers and presidential candidates
If a candidate chooses to take the public funds, there are caps on other spending for the campaign
Barack Obama was the first major party candidate to refuse public fund

8. Group Discussion Question
If you were to eliminate ONE of these sources of income to cut down on corruption, which source of income would it be?
Individual Donations
Political Party Contributions
PAC Funding
Public Funding ($3.00 on tax returns)

9. Campaign Finance Laws
1907: Congress banned corporations and national banks from making campaign contributions (Tillman Act)
1940s: Labor unions were not allowed to contribute to election campaigns (Taft-Hartley Act)
1971: Federal Election Campaign Act (FECA)
Requires all candidates, PACs, and political parties to report contributions they receive that exceeds a specified amount

10. Campaign Finance Laws 1974: FECA was amended and strengthened
1.) Limits set on campaign contributions from individuals
2.) Creating the system of public funding for presidential elections
3.) Creating the Federal Election Commission (FEC) to enforce FECA and administer the public-funding program

12. FECA and “Soft Money”
Amendments to FECA allowed political parties to spend unlimited amounts of money on activities that did not support specific candidates
Instead, the money can be used on “party-building activities”
Voter registration drives, party bumper stickers, television ads supporting party principles
This money donated to a political party instead of a candidate’s campaign is called soft money

13. Using Soft Money to Create Issue Ads
Issue Ads- advertisements that support or oppose candidates’ views without specifically calling for their election or defeat
Issue advertisements don’t use language such as “vote for,” “vote against,” “support” or “defeat” a candidate
Rather, they try to define the character, qualifications or record of a candidate

14. Bipartisan Campaign Reform Act
: $1.5 billion in soft money was spent on issue ads in election campaigns
The BCRA was passed and the legislation banned soft-money contributions to political parties for advertising and limited the ability of interest groups to air issue ads of their own

15. PACs Find Loopholes in Campaign Finance Laws
PACs (Political Action Committees) were originally created to get around the Taft-Hartley Act—The act that banned labor unions from donating to political campaigns
Individual contributions to national PACs are limited to $5,000 per donor, per year
However, PACs organized in individual states often have no donation limits

16. Influence of PACs
Supporters of PACs claim that they give interest groups and their members a greater voice than they would have if PACs did not exist
While this is true, a $5,000 donation from a PAC usually has much more influence on a candidate’s campaign and the office they hold than a $5,000 individual donation
Many believe PACs hold too much power, but PACs are likely here to stay as long as campaigns continue to be so expensive

17. 527 Groups
527 Group- Tax exempt organization created to influence an election
Named after a section of U.S. tax code that allows certain kinds of groups to pay no taxes
If 527 groups are connected to a political party or a campaign and they must obey campaign finance laws
HOWEVER, some 527 groups operate independently and do not make contributions to a party or candidate, they are not bound by any spending restrictions
Swiftboat Veteran’s for Truth was a 527 Group

18. Impact of 527 Groups
527 groups are often blamed for the increasing amount of negative campaign ads attacking candidates
The wisdom of these wealthy, small groups is often questioned as well
Supporters of 527 groups promotes freedom of speech and limiting funds to 527 groups violates donor’s right to express their views

20. Activity-Government Honors
Review the information in 12.2 about campaigning finances, its abuses and attempts at reform
Create your own campaign finance reform proposal
Work individually or in groups to draft a bill that would in some way change the current system of campaign financing
Should be a bill that is Constitutional—Would pass Supreme Court judicial review
Will have to present to classmates on your next block day (10/12/2017)

21. Activity: U.S Government
Work in your groups to come up with 3 problems in campaign finance today. Then come up with 4 ideas for campaign finance reform using the notes you took in class today, and pgs in your book. The changes can be in the form of laws, or the formation of other groups to combat campaign corruption or anything else you can think of…
We will be going over your answers in class