Presidential Fundraising: Popularity Does Not Equal Dollars

While there is some time left to determine if Barack Obama will continue as president in a second term, he is undeniably the King of Fundraising. Many have determined that he will be the first presidential candidate to reach the $1 billion fundraising mark and it is obvious that his ability to stockpile a bank account far exceeds that of his Republican counterparts. With his approval rating at an all time low, how does he consistently increase his campaign worth?

Tom Hamburger, Washington Bureau, addresses this very issue in a Los Angeles Times article. Hamburger discusses that there is little correlation between an incumbent president’s popularity and his ability to raise campaign funds. Hamburger explains, “Donors are a small percentage of the electorate and they often are a candidate’s most loyal backers, getting fired up when their man (or woman) is under attack. Donors to an incumbent president also include what we at the Los Angeles Times/Tribune Washington Bureau call ‘investors’ — donors who make contributions as a very practical way of protecting their financial interests. It makes sense to back an administration that can still help or hurt with government-related decisions, grants and projects.”

Hamburger follows with this strong point: “incumbent presidents at this point in a reelection race have another advantage over all other candidates: Obama faces no primary fight and can raise money beyond his traditional campaign account by fundraising for the national political party, which is allowed to accept contributions in larger amounts. It’s a big advantage in the traditional world of candidate fundraising.
“For example, GOP presidential prospects can charge attendees only the maximum contribution that the Federal Election Commission allows individuals to contribute to an official candidate. The FEC has limited such contributions to $2,500 for the primary campaign and $2,500 for the general election. But an incumbent president can charge far more by raising additional funds through an account that is linked with the national party committee.”

Politics is a high stakes game and with Obama at the table, the stakes seem to be getting higher. It will be fascinating to see whether high dollars can equal a winning election or if the GOP will be able to unite to counteract their lower bankroll.