Post Election Analysis of 527s, Other Issues Begins

Now that the first election since passage of the Bipartisan Campaign Reform Act of 2002 (BCRA) is over, analysis of its impact on campaigns, parties, donors and independent groups is underway. Overall, there was a huge increase in the number of small donors to both campaigns and independent groups and elimination of soft money donations to parties and federal candidates. While much more needs to be learned before further reform efforts go forward, initial reports provide an indication of long-term trends. An overview of federal political committees from the Campaign Legal Center indicates that 69 of 97 federal political committees were created after passage of BCRA, raising nearly $290 million and spending $262 million. The analysis breaks the committees down by Democrat or Republican leaning groups, but there is no data on how many were membership-based or governed, or what proportion of their budgets came from small donors. CLC also provides a list of the Top 25 Individual Donors to Federal Oriented 527 Committees, 2004 Election Cycle that indicates $126.4 million of the total raised came from these donors. This represents 44 percent of all contributions. More research will be needed to identify characteristics of the remaining 56 percent of donors. Democracy 21 found "The most important long-term campaign finance development of the 2004 elections may turn out be the breakthrough made in Internet fundraising", in its report Campaign Finance Successes and Problems in the 2004 Elections. The Internet helped make the significant increase in small donations possible. For example, America Coming Together (ACT) raised $3.3 million online, $7 million by direct mail and $16 million from concerts. This represents 51.5 percent of its total receipts of $51 million (based on data from October 2004). The growth in small donors was most significant after the primaries were over. The Campaign Finance Institute's Wrap-Up Analysis of Primary Funding found that small donations quadrupled from 2000 levels. The report defines small donors as those giving under $200. However, the report found that donations of $1000 or more were the largest category of individual contributions. The controversial independent groups spent heavily on broadcast ads, with Republican-leaning groups outspending Democratic-leaning groups near the end of the campaigns, according to the Center for Public Integrity. The New York Times reported that corporate political committees gave to Republican candidates over Democrats at a rate of 10-1. The rise in small donors was a counterbalance to the breakdown of the Presidential public financing system. Both candidates rejected public financing. A task force of experts and reform advocates has called for a revamping of presidential primaries, with more realistic spending limits and a three-for-one match for donations of $100 to promote competition and participation.
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