So, run for any office with no intent to win, collect donations, walk away a millionaire.
I have seen it speculated several times that the Orange Menace ran to bolster his brand and to grift some money, didn't really expect to win. The joke was on all of us, who knew there was such a niche for a whiny victim liar? Pander to the racists and the magical thinkers, and voila!
Considering a donation to a 2016 presidential contender?
Before you do, think on this: Your cash may actually be worth more to a candidate than your vote. That’s particularly true if your money goes toward increasing turnout in a contested state — and you aren’t registered to vote in one. related investing news
“Money is fungible in a way that votes aren’t,” said Harvard political scientist and government professor Stephen Ansolabehere.
A hard question is how much, exactly, a single donation is worth. Some very rough estimates suggest it takes $40 on average to get a person to vote using traditional methods like canvassing, Ansolabehere said.
The most valuable email domain for candidates is... watch now VIDEO 0 1:55 The most important factor for effective political ads .. watch now VIDE O01:55 THIS is Trump's big advantage in primaries .. watch now VIDEO 02:01
[First didn't play for me. Didn't try the others.]
“If I give $200, that translates in some sense to five votes,” he said, “But campaigns are like really inefficient nonprofits. A lot depends on how much they’re spending on overhead, and the effectiveness of their methods.”
Indeed, there’s no magic formula to predict how much your cash will help. On average, current presidential candidates have spent about $10 for every popular vote they’ve earned to date, based on Federal Election Commission data and reported primary election results.
Of course, different campaigns see different “returns” on spending.
[CHART]
While Democrat Bernie Sanders has spent nearly $20 for every vote he’s received in the primaries so far, Republican John Kasich has spent less than $4 per vote, according to FEC data.
But the relationship between campaign spending and success with voters can be loose — and unpredictable.
“How many votes a dollar buys will depend on all the myriad different ways in which that dollar can be spent,” said John Sides, a George Washington University political science professor.
Moreover, high voter turnout isn’t necessarily the sign of a well-run campaign, just as fewer votes per dollar spent isn’t the sign of a poor one.
Donald Trump’s success with voters, despite raising far less cash, and Jeb Bush’s failure (before he dropped out) are evidence that the calculus is complicated, said Erika Franklin Fowler, a government professor at Wesleyan University.
“Trump is having to spend a lot less than is typical for a front-runner, partly because he gets so much free media coverage,” Fowler said. “Jeb’s case shows that if voters don’t like what you’re selling, no amount of spending will bring them over.”
Campaigns don’t even necessarily have to spend funds they have raised in order to affect outcomes, said University of San Diego political science professor Casey Dominguez. At least in legislative races, if an incumbent raises enough money, he or she may simply scare off competition, she said.
One tricky part about drawing conclusions from existing research is that presidential races won’t necessarily follow the same patterns as congressional or senatorial ones.
“Research suggests money makes a bigger difference when there is less money involved overall,” said Brigham Young University political science professor Michael Jay Barber.
Spending in 2016 is expected to only keep growing: Estimates suggest political advertising costs this cycle could top $11 billion, more than 20 percent higher than in 2012.
Now, if you see a campaign donation more as a show of support and less as a means to an end, you wouldn’t be alone, Barber said. Millions of Americans have already contributed money to 2016 presidential campaigns, but few think about their gifts as a way to move the election.
“Generally the motive for individual voters donating is to support the candidate that shares their views,” he said. “It’s like going to a sporting event, where as a fan you won’t make or break the outcome, but you still want to come out and participate.”
But in a close election, every dollar can make a difference to a presidential hopeful, Dominguez said.
“You’re keeping them in the race and helping them buy TV ads, pay consultants, buy pizza for the staff, everything,” she said. “Money won’t necessarily determine the outcome, but it will keep them in the game. If they run out of cash, they’re out.”
The power of small donors is apparent in Sanders’ campaign, which has netted nearly $120 million, 80 percent of which has been from donations of less than $200.
One thing a donation won’t get you? A tax break. Contributions to 501(c)(3) groups are tax-deductible, but those nonprofits aren’t allowed to lobby for or support candidates for political office.
What Happens to Campaign Contributions After Elections?
"[...]And what about this concept of politics. Announce a campaign, collect 10 million like walker and if I read the rules about campaign donations correct, you get to keep most the money?"
LOLOL Too easy. You'd have every sleazy American running. Not just some.
By Deborah D'Souza Updated July 06, 2022 Reviewed by Robert C. Kelly
Running for office costs money—a lot of money. That's why candidates collect millions of dollars in contributions. And so, too, do the political action committees (PACs) established in their name.
According to the Center for Responsive Politics, candidates in the 2020 presidential cycle drew almost $4 billion in donations. The organization said more than $1 billion was raised by Joe Biden and an additional $580 million came from outside money. Donald Trump raised about $774 million in donations and another $314 million from outside money.1
* Candidates raise millions and billions for themselves and through political action committees during political campaigns. * There are rules in place for how money can be used after a campaign ends. * Permissible uses include charitable donations and donations to other candidates while personal use is prohibited. * Campaigns may refund money to donors or redistribute it with their permission if they drop out. * Super PACs may use leftover campaign cash to support the same candidate in other elections.
Candidate Campaign Committees
These are the official committees run by the candidate and their campaign team. The Federal Election Commission has rules in place to control how money is spent after a candidate bows out or after an election is officially over. Permissible Uses
The contributions can be used in the following ways:
* Donations to charities .. https://www.investopedia.com/terms/c/charitabledonation.asp .. as long as the candidate does not receive any compensation from the organizations before it is spent and the donation is not used by the charity to benefit the candidate.
* A donation of a maximum of $2,000 to another federal candidate, and donations to state or local candidates—all subject to state law.
* Unlimited transfers to a local, state, or national political party committee like the Democratic or Republican National Committees.
* Transfer to a future election campaign committee of the same candidate. For example, Bernie Sanders transferred $12.7 million from previous campaigns to his 2020 presidential committee.
* Create a Leadership PAC to back other candidates and a political agenda. Critics say these can be used as slush funds .. https://www.investopedia.com/terms/s/slushfund.asp .. since there are fewer restrictions.234 [3 other links]
Personal Use Is a No-No
Candidates are not allowed to use any remaining funds for personal use after all campaign-related debts are settled. Personal use is defined as “a commitment, obligation or expense of any person that would exist irrespective of the candidate’s campaign or responsibilities as a federal officeholder.”5
In other words, campaign funds may not be used for an expense that exists independent of the campaign. Expenses that are automatically considered personal use include:
Candidates who are unopposed are allowed to have a separate contribution limit.6
General Election Refunds
The amount of money any individual can donate to a single candidate is capped. The Federal Election Campaign Act limits contributions to $2,900 per election for the 2021-2022 federal election cycle.6
One important point to note is that the primary election and general election count as two separate elections. This means that it is possible for someone to contribute $5,800 to a federal candidate—once during the primary and another time during the presidential campaign.
But if your candidate drops out of the race before the general election or loses the primary race, $2,900 of your donation must be refunded to you within 60 days. Alternatively, the candidate can redesignate or redistribute their general election funds with the contributor's permission.
Fast Fact Political contribution limits are adjusted or indexed for inflation.6 The 2019-2020 contribution limit was capped at $2,800.7
Super PACs
Ideally, contributions should not be lying around and should be spent as quickly as they come in to maximize the chances of the candidate winning. However, a super PAC can have money left if those at the helm were reluctant or inept.
“Where you see a lot of money left over in the super PAC after the candidate drops out, that will probably tell you something about how seriously the super PAC took the race, to begin with,” according to Robert Kelner, chair of the Election and Political Law Practice Group at the law firm Covington & Burling.8
Super PACs cannot coordinate with a federal candidate or donate to a national political party committee.9 They can, however, continue to use the money to support the same candidate in other elections or another federal candidate in future elections. Although a super PAC's treasurer .. https://www.investopedia.com/articles/financial-advisors/121715/treasurer-career-path-qualifications.asp .. isn't legally obligated to refund any of the money to donors but often do. In 2016, the Jeb Bush super PAC Right to Rise said it would refund $12 million to donors.10
Can Politicians Keep Campaign Funds?
Politicians cannot keep any campaign funds for themselves. Contributions must be used during the campaign to pay for related expenses. They are not intended for personal use. Any money that is left over after a candidate drops out or once the election is over must be used to pay off debts. Funds can also be used for other purposes. For instance, a candidate may donate an unlimited amount to a federal, state, or local political committee or they may be refunded to donors.
Can Campaign Contributions Be Refunded?
Candidate campaign committees can be refunded to donors after the candidate drops out. This must be done within 60 days. They may also redirect the funds elsewhere with the donor's permission. Some candidates may also choose to refund contributions to donors for moral or ethical reasons, or for legal purposes if a donor has exceeded the maximum allowable contribution.
Are Campaign Contributions Subject to Taxes?
All political organizations are subject to taxation under section 527 of the Internal Revenue Code. As such, they may have filing requirements with the IRS.11 Donors who wish to make contributions to political campaigns should note that they do not count as charitable donations and, therefore, cannot be used to claim a tax deduction.12
Can You Deduct Campaign Expenses?
You cannot claim any campaign expenses for a political candidate as a deduction on your annual tax return. This means that anything you've spent out-of-pocket is not eligible from your gross income—even your time.13
The Bottom Line
Political campaigns can raise millions and even billions of dollars through personal and business donations. This money can be used to pay for travel, administration, salaries, and any other campaign-related expenses. Candidates must keep diligent records of where the money comes from and how much is spent. But if a campaign ends (for whatever reason), it must find ways to disperse the funds. This includes spreading it out to other candidates, gifts, and refunds to donors. But candidates are prohibited from using these funds for personal use.
Correction - July 6, 2022: A previous version of this article incorrectly specified the amount that Donald Trump raised during his 2020 campaign.
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