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.

Presidential Third Quarter Fundraising Overview

It seems like when reviewing the third quarter fundraising dollars for the Republican party, who gave is just as important as how much was given.

Rick Perry is in the lead bringing in $17 million this quarter. $9.7 million came from his donors in Texas and 4% came from small donors who gave less than $200 (a much smaller percent than his other candidates). Governor Perry is hot with the oil & gas industry, agriculture, doctors and lawyers.

T.W. Farnam shared this insight about Perry written in the Washington Post: “Perry’s total puts him at the top of the Republican field in fundraising, but his reliance on maxed-out donors who are legally prohibited from contributing more means it will require a lot of work to continue raising money in light of the candidate’s recent collapse in the polls.”

Farman also states that, “Perry’s biggest source of cash was the employees of Ryan, a Texas tax and accounting firm run by G. Brint Ryan, a supporter of the governor. The company’s employees gave $158,000 to Perry’s campaign.”

Mitt Romney follows Perry with third quarter totals amounting to $14 million. Mitt’s supporters come from a broader base then Perry’s and supporters include finance, Hollywood, high technology, and media folks.
Don’t read too much into the fact that Perry’s numbers are higher than Romney’s for Q3. Remember that Perry started later than Romney so Perry has been going after his low-hanging local (Texas) gifts. Romney swept up his low-hanging donations much earlier this year.

In third place is Ron Paul who raised $3.8 million primarily from supporters who gave less than $200 each.
Herman Cain is gaining a surprising amount of support and raised $2.8 million this quarter, including a $175,000 personal loan. As his public presence and opinion increases, I’m sure his bank account will, too.
Even with all these impressive numbers, President Obama has raised $70 million for his campaign and the Democratic Party. Although our economy may be in shambles, the guy certainly knows how to raise a buck or two.

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Romney Continues to Lead GOP in Political Fundraising

How many dollars does it take to win the Oval Office? That seems to be the billion dollar question of the hour. In a capitalist society, supporters plus donations can’t be entered into a well formulated calculation to determine the outcome of an election.  However, if money makes the world go round, than campaign season must have the earth ready to spin off of its axis.

It’s clear that running for president must be one of the most expensive investments anyone could make. Time, money, energy and emotional stamina are all high costs for the candidates to imbue into any campaign to have even the slightest chance for victory. Mitt Romney is certainly paying his dues as his commitment to being a contender in the 2012 presidential is paying off as he leads the pack of GOP hopefuls.

Romney is currently at the top of the list of the six Republican presidential candidates and boasts of raising over $56 million dollars for his campaign, according to the New York Times ($24 million came in during the last three months of 2011). GooglePost.com states that, “Romney drew in $24 million in the fourth quarter of 2011 alone and is going into the new year with more than $19 million cash on hand. Romney’s fundraising figures dwarfs the other Republican presidential candidates in comparison… Rivals Texas Rep. Ron Paul collected $13 million in the fourth quarter while former House speaker Newt Gingrich raised $9 million.”
So with an unrivaled amount of fundraising numbers from other GOP contenders, it seems like Romney’s biggest obstacle to the White House would be the incumbent who has currently raised approximately $88 million according to opensecrets.com.

How does Romney’s fundraising savvy compete with recent history candidates? “Romney’s fourth quarter total is competitive with what then-Sens. Hillary Clinton ($27 million) and Barack Obama ($23.5 million) brought in over the final three months of 2007 and dwarfs the amount that eventual GOP nominee John McCain raised during that period ($10 million). Romney also raised more in the final quarter of 2011 than then-Texas Gov. George W. Bush did in the final three months of 1999 ($11 million),” explains a report in The Washington Post.

While Barrack Obama still may lead the pack in political fundraising, it seems that Romney is up to the challenge for competing for funds. Both are mastering the skills it takes to garner online support and both are using social media in the political realm like never before.

Is the Middle Class the Battlefield for the 2012 Presidential Election?

I’ve read countless articles proclaiming that the Latino voters, swing states, Baby Boomers and many other factions will be the group for the 2012 presidential candidates to win over in order to control the Oval Office. Now, the newest members of society to be targeted are the middle class. Is there any truth to this latest claim?

On ABCNews.go.com, Associated Press reporter Erica Werner explains the important role that the middle class will play in the upcoming election come November 2012. “Highlighted by the Occupy movement and fanned by record profits on Wall Street at a time of stubborn unemployment, economic inequality is now taking center stage in the 2012 presidential campaign, emphasized by Obama and offering opportunities and risks for him and his GOP opponents as both sides battle for the allegiance of the angst-ridden electorate.”

Just for argument’s sake I looked up on Wikipedia who makes up the middle class and how many people are included in this broad, loosely used term. There are several models and definitions being used which can include anywhere between 25% to 66% of American households. Generically speaking, it’s anyone who makes an individual income equal to or greater than the national median of $32,000 or a $46,000 income for a household. On the high side it includes incomes varying from the low six figures. Clear as mud, right?

So, now that we know who is in the middle class (um, sort of), why is this group of voters so important for the candidates to earn their support, both financially and in the voting booth? Werner explains that, “Obama is viewed as more likely to help the middle class than is the GOP, so he can capitalize on this by playing on concerns about inequality and contrasting his positions and the GOP’s on issues like tax cuts for the wealthy,’ John Sides, political science professor at George Washington University, said by email. ‘However,’ Sides added, ‘it’s an open question whether that strategy would enable him to overcome a weak economy and win.’”

With unemployment reaching 8%, social security dwindling and the weakening of the value of the dollar, the middle class are taking the brunt of the economic downturn. With the broadening gap between the rich and the poor, the middle class seems to be in the crossfire of a precarious future. Whether the Democrats or Republicans can restore confidence to this cautious group will very likely have a major impact on who the future leader of this country will be.

Is the Middle Class the Battlefield for the 2012 Presidential Election?

I’ve read countless articles proclaiming that the Latino voters, swing states, Baby Boomers and many other factions will be the group for the 2012 presidential candidates to win over in order to control the Oval Office. Now, the newest members of society to be targeted are the middle class. Is there any truth to this latest claim?

On ABCNews.go.com, Associated Press reporter Erica Werner explains the important role that the middle class will play in the upcoming election come November 2012. “Highlighted by the Occupy movement and fanned by record profits on Wall Street at a time of stubborn unemployment, economic inequality is now taking center stage in the 2012 presidential campaign, emphasized by Obama and offering opportunities and risks for him and his GOP opponents as both sides battle for the allegiance of the angst-ridden electorate.”

Just for argument’s sake I looked up on Wikipedia who makes up the middle class and how many people are included in this broad, loosely used term. There are several models and definitions being used which can include anywhere between 25% to 66% of American households. Generically speaking, it’s anyone who makes an individual income equal to or greater than the national median of $32,000 or a $46,000 income for a household. On the high side it includes incomes varying from the low six figures. Clear as mud, right?

So, now that we know who is in the middle class (um, sort of), why is this group of voters so important for the candidates to earn their support, both financially and in the voting booth? Werner explains that, “Obama is viewed as more likely to help the middle class than is the GOP, so he can capitalize on this by playing on concerns about inequality and contrasting his positions and the GOP’s on issues like tax cuts for the wealthy,’ John Sides, political science professor at George Washington University, said by email. ‘However,’ Sides added, ‘it’s an open question whether that strategy would enable him to overcome a weak economy and win.’”

With unemployment reaching 8%, social security dwindling and the weakening of the value of the dollar, the middle class are taking the brunt of the economic downturn. With the broadening gap between the rich and the poor, the middle class seems to be in the crossfire of a precarious future. Whether the Democrats or Republicans can restore confidence to this cautious group will very likely have a major impact on who the future leader of this country will be.

As the political fundraising for candidates on both sides heats up to fund more ads and build support, online platforms like Fundly make fundraising easy for candidates and their supporters to raise money fast via social media.