Big political donors on the hook for $350,000, so what do they get in return?

Back in President Kennedy's days, the fat cats gave $1,000 each and scored White House invitations. The ante is much higher now, at the federal level and here in Washington state.

President Obama has appointed new military, CIA leadership.

White House photo

President Obama has appointed new military, CIA leadership.

Just before leaving for Brazil last week, President Barack Obama met with 450 political donors and asked each of them to raise $350,000 this year to help fund his 2012 reelection campaign. That would amount to $157 million — still far short of the $1 billion the 2012 presidential election is expected to cost each party nominee. Obama's pitch was neither an evil nor virtuous action but, simply, what any major candidate must do in order to be competitive in big-time politics.

Obama has an advantage that Republican presidential aspirants lack: Namely, he is the only Democratic candidate and he is the current occupant of the White House, where he is in a position to help or hurt just about any corporation, labor union, interest group, or individual through public policy. His potential GOP opponents — numbering at least 10 at this moment — must raise money individually and without any assurance that they will occupy the White House and be in a post-2012 position to equally help or hurt those who give political money.

Money is not the decisive factor in high-level politics — unless a candidate lacks it. Sen. Patty Murray has taken responsibility to help incumbent Democratic senators and non-incumbent Senate candidates raise the money they need to be competitive in 2012. It is a daunting task, since more than twice as many Democratic as Republican incumbents have their seats at stake next year. Her money-raising job is far more difficult than Obama's.

In 2008, Obama's campaign raised and spent $750 million, and the party's fat cats — nominally members of an "advisory committee" or "national finance committee" — were asked to pony up $250,000 apiece. As recently as Massachusetts Gov. Mike Dukakis' 1988 Democratic presidential campaign, the tariff was $100,000 each and the number of donors was much smaller. Way back in the 1960s, you could be a member of President Kennedy's and Johnson's "President's Club" for a mere $1,000. In return, you got invited to White House and party events and regular briefings by White House political staff.

What do donors get and expect for their money? The answer falls into several categories.

There are players such as the public-employee and teachers' unions, big financial houses, major industries, and companies that have straightforward economic interests at stake and buy a place at the table in order to be heard. (In 2008, Wall Street firms were the largest contributors to Obama's presidential campaign while defense contractors were the biggest to Sen. John McCain's).

The same is true at state and local level. The Building Industry Association of Washington (BIAW) traditionally has been a big backer of Republican candidates. Teachers, public employees, and Indian tribes back Democrats. Many states have tribal gaming, for instance. The states typically receive millions in tax revenues annually from casinos. The sole exception is Washington, where gaming receipts are exempt from taxation, thanks to a deal made by Gov. Chris Gregoire's office. The grateful tribes made six-figure contributions to Gregoire's gubernatorial campaign and the state Democratic Party.

Boeing, Microsoft, and other economic players in the state make contributions to officeholders and candidates of both political parties and, in return, get generous subsidies from state taxpayers. Sound Transit, which is publicly funded, cannot make direct contributions to candidates. But the network of contractors, sub-contractors, law firms, p.r. firms, consultants, and financial houses deriving revenue from Sound Transit are major donors to officeholders with decisionmaking power over Sound Transit funding.

Whether the donor is an Archer Daniels Midland seeking a useless but expensive federal ethanol subsidy, or a Boeing Co. demanding money to keep operations in-state, political money can generate tax breaks, subsidies, and direct public spending on behalf of directly affected economic interests.

Among Obama's 450, and their counterparts on the Republican side, many are not merely seeking economic benefits. Typically, these are people who raise political money so they can receive White House invitations, get VIP treatment at party conventions, and generally rub elbows with the politically powerful. "I am close to the president (senator, governor, mayor, and so on)," such donors often remark. Well, sometimes they really are close to the politicians whose names they drop. But often as not, their principal contacts are with the fundraising and other staff of those politicians. National committees of both political parties, Senate and House campaign committees, and key officeholders have fulltime staff who do nothing but massage the egos of big donors.

Finally, there are ideological donors — typically individuals rather than organizations. The Koch family is getting present notoriety for its contributions to conservative causes. Stewart Mott, in the 1960s and 1970s, was a generous donor to Democratic peace candidates.

Such donors may be for or against abortion, foreign interventions, gay rights, gun control, and other issues. Their focus is not self-interested financial gain. They believe strongly in their viewpoint and will help finance candidates who agree with them. Not only major donors, but rank-and-file small donors, respond to candidate appeals addressing these issues — most often in years past through direct-mail and phone appeals, now more frequently through Internet appeals.

How do the offcieholders themselves feel about political fundraising?

Most hate it. Campaigns are so expensive that incumbents can spend as much as a third of their waking hours hustling money. It is worst for members of Congress, who have two-year terms and are either paying off the previous campaign's debt or financing the one just ahead.

Imagine for a moment that you are a senator spending many hours daily in committee meetings, casting votes on the Senate floor, or meeting with constituents or groups petitioning you on a given issue. Perhaps half your luncheons or dinners, while in Washington, D.C., are spent in the company of present or prospective donors. When you return home on weekends, you also are seeking political money. Are you spending this time with friends and people you genuinely like? Most often the answer is no. You may pretend friendship but, really, you see this as time spent by necessity with people who are stealing time from your family or favorite leisure activity. The ordeal of fundraising is a principal reason that incumbents, sometimes unexpectedly, do not seek reelection.

Why degrade yourself, the thinking goes, when there is another, happier world where campaign fundraising does not exist?

A few candidates enjoy fundraising — Sen. Alan Cranston of California was one — but most despise it.
 
The greatest favor you can pay your favorite political candidate is to give him or her a campaign contribution without expecting anything in return — no economic favor, no face time, no allegiance to a rigid ideological position. Such contributions are valued and appreciated. But the big ones, regrettably, usually come with some price tag attached which the candidate must pay.


About the Author

Ted Van Dyk has been involved in, and written about, national policy and politics since 1961. His memoir of public life, Heroes, Hacks and Fools, was published by University of Washington Press. You can reach him in care of editor@crosscut.com.

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Comments:

Posted Tue, Mar 22, 11:46 a.m. Inappropriate

"The sole exception is Washington, where gaming receipts are exempt from taxation, thanks to a deal made by Gov. Chris Gregoire's office. The grateful tribes made six-figure contributions to Gregoire's gubernatorial campaign and the state Democratic Party."

It's called quid pro quo.

BlueLight

Posted Tue, Mar 22, 2:10 p.m. Inappropriate

A depressing thing to read and, I'm sure, accurate. You could have mentioned that the big spenders do not always win. I don't know the ratio but it seems that I fairly often read that "so and so" won in spite of being outspent. There is at least the glimmer of the death of conventional print and TV advertising; an ex advertising executive named (I think) Reis has written a book about diminishing effectiveness of traditional advertising. Who, after all, pays any attention? Google has seriously wounded print and TV advertising not because Google is so effective but because conventional advertising cannot prove any effect at all. Costco doesn't advertise and seems to do just fine without it.

kieth

Posted Tue, Mar 22, 8:34 p.m. Inappropriate

You discussed federal and state races, but the situation is getting out of control locally as well. Legislative and Seattle City Council races now run in the hundreds of thousands of dollars. If you want to be the next King County Executive, you will probably need to come up with at least a million.

Where does all the money go for the local races? Most candidates hire consultants to help them with messaging. These consultants are important for such things as designing mail pieces, developing phone pitches, etc. Candidates often contract with a consulting firm to manage PDC disclosures, which can be very complicated business. There are even consultants to help with fundraising, which raises some very interesting questions.

In addition to all these consultants, most candidates will do the traditional stuff. Run some ads in the print media or radio. Television ads are less expensive than you might think, since the cable market is very targeted now. A good consultant will, for example, figure out what the best ads are for the History Channel, the Home and Garden Channel, etc. They can be as inexpensive as a few hundred dollars per ad, though I remain skeptical of their effectiveness. I think a lot of candidates just like to see themselves on TV. Anyway, mail ads are really the bread and butter of a grassroots, local campaign. A high quality mail piece (or a piece that a candidate and/or volunteer delivers in person, passes out at the summer fair, etc.) is also fairly expensive. I'm not sure just how much they are, but it would cost tens of thousands to give one to every voter in Seattle. And those campaign calls you receive during dinner? A candidate often rents out the space for those calls from the consultant's office, or several candidates set up a common office to save money, but in any event that infrastructure has its price as well.

Money is also a form of status, and status is key in politics. In order to be taken seriously by the local party, endorsing agencies, the almighty press, and the movers and shakers on the local scene, a candidate must raise enough money to prove that s/he is serious and viable. Going to an endorsement interview with the Washington Conservation Voters, while having raised no money, is like going on your first date at the age of 35. The other person will naturally wonder what the problem is.

It is possible to win a campaign on a shoestring; ask Mike McGinn or Jerry Brown about that. But don't be fooled. These cases are the exception. The rule is that winner is at the top of the pack, or at least near the top, in fundraising. A candidate in a local race must spend at least a couple hours every day dialing for dollars. Those are hours not spent at local events, answering questions by ordinary voters, and studying the issues that the candidate will have to address once in office. In other words, the never-ending quest for money is a major distraction from what the candidate would much rather do and what constituents would much rather the candidate do.

Posted Wed, Mar 23, 9:30 a.m. Inappropriate

Pepper, part of what you are saying, "..those are hours not spent at local events, etc. " is what one would expect, namely that the time spent fund-raising is leveraged via big media into delivering a message to a great many people. OK, the message is manipulated to grab attention and appeal to the most superficial of considerations. I'm not sure there is anything new about that; I think that happens at "local events" also.

kieth

Posted Wed, Mar 23, 9:42 a.m. Inappropriate

I'll respond to some phone feedback I've received regarding this piece.

One question: Are not officeholders and candidates just as much the aggressors in fundraising as those who give the money? Well, in most cases, yes.

Another: What's wrong with spending time with those who finance your campaign? Nothing per se. But when the total time and energy devoted to fundraising becomes overwhelming, then things are out of balance. I could have mentioned in the piece that the same Senator or Member who lunches and has dinner with present or prospective donors also typically ends each workday going through a call list, provided by staff, of 8-10 money people.
Each call may consume 5 minutes or an hour, depending on how demanding the person being called may be. Over time this just plain wears down the officeholder.

What about money solicited for outright bribes or indirect bribes, such as contributions to an officeholder's favorite charity? These take place too but less than you might think, given the intense media coverage given to those who get caught in such practices.

Posted Wed, Mar 23, 10:15 a.m. Inappropriate

kieth: the main issue I was getting at it my post was access. When candidates come out to, say, the League of Women Voters debate or the neighborhood association's event, or meets with individual voters at the county fair, this creates the two-way relationship that a politician needs in order to do a good job. Mass media is one-way, in that the candidate gets his or her views out (generally in a distorted and superficial way, as you note), but there is no feedback. And, as someone who has talked with a lot of candidates for office, I can say that there is no substitute for forming a personal relationship.

There is also the factor of diminishing returns. Local candidates need to raise many times more money than they did a generation ago. But they do not get many times more information out to the public. It's because the process of hiring consultants and niche messaging has become much more expensive.

Posted Wed, Mar 23, 11:42 a.m. Inappropriate

It seems to me that we have reached the point where no rational and sane individual would want to run for major public office. So that basically leaves us with egomaniacs and ideologues -- sometimes, when we're real lucky, we get both in the same package. Politicians may hate fundraising, but they love the power and adulation of the limelight even more. Otherwise they wouldn't do what they do. The teabaggers may be off-base in their diagnosis of how to cure the malady, but their intuitive sense that the political game is now rigged is spot-on.

As for "buy a place at the table in order to be heard", I think that hackneyed euphemism needs to be put out to pasture. Big money is buying the table itself and dictating who gets to sit there. Money flows to both D's and R's to assure that everyone is bought. Anyone who believes that business executives spend tens of millions of dollars on politicians simply to have an opportunity to be heard is a hopeless pollyanna. It's an investment, pure and simple. If it didn't pay off, it wouldn't continue to be made. The fact that each year ever more money is flowing from private interests into political coffers tells us that the major players themselves deem the dividends overall to be very attractive.

woofer

Posted Wed, Mar 23, 5:14 p.m. Inappropriate

I don't want to sound like I am defending the sickening tide of political messaging that I see and hear. It's bad. What I am saying is that it's always been bad. Selling a political idea is a rough enterprise. I have shaken a (very) few politicians' hands and I have to say I do not feel that I made any connection to them or communicated any idea to them. They are busy. Ted and Pepper, you would apparently feel better if the pollticians had face contact with their constituents (to the extent possible). I am skeptical. What difference could that make? at most a candidate could maybe have meaningful conversations with a few hundred people in a two month election campaign. That is not going to get anyone elected. Even in a small city. The time the politician spends extracting money from donors is time spent away from the pressing of the flesh. Politicians everywhere make that choice quickly; they go after the money. A rational choice. The electorate has to be sophisticated enough to see through the crap and sometimes we are. In this state we are at least aware of where campaign money comes from. Those who are interested can find out.

kieth

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