What Happens to Campaign Money Once a Bid Ends?

I found an excellent article on The Street that explains what happens to the debt, surplus and future campaign donations when someone runs a political campaign.

I think it is a topic many of us would have interest in so I am sharing it with my friends at ATS. I have included a small excerpt, but I recommend you read the entire article.

Enjoy!

"Someone like Scott Walker, the reason that he's out there still trying to raise money to pay his federal campaign debt is because he doesn't really have much of a choice," said Paul S. Ryan, deputy executive director of the Campaign Legal Center, a Washington, D.C.-based nonprofit organization focused on campaign finance laws.

Candidates are prohibited from accepting more than $2,700 from individual donors, and they cannot take funds from corporations at all. The Federal Election Commission considers unpaid debt as a contribution, so when funds are owed to a corporate vendor, it is essentially an illegal, in-kind corporate contribution until it is paid off.

There is no requirement that federal candidates close down their political committees once they've dropped out of a race, and they are free to continue to raise money, which is presumed to be for some federal election in the future. But if a candidate does wish to close up shop, debt makes the task difficult.

"It's really, really tough to raise money as a candidate who has dropped out of a race or has lost a race," said Ryan.

Failed candidates often enlist the help of others to close the funding gap.

Source

a reply to: Metallicus

Quite interesting indeed, I'm glad you shared Metallicus. Great info.

"It's really, really tough to raise money as a candidate who has dropped out of a race or has lost a race,"

My thoughts on this: You've made your bed, now you have to sleep in it. If you're already at the point where you have the resources (credentials, relationships, endorsements, etc.), then I say you are pathetic to not be able to pay off a campaign debt YOU racked up. Screw these bureaucrats... 99.9% of them want to be elected for the power and money, and once there they certainly aren't going to have a change of heart and want to "give back" to everyone. Nope, I bet most of them would Much more likely just go on into their position to go on to become MORE corrupt, without losing a second of sleep about it at night.

Yes, you could say I have a lot of disdain for these soulless politicians.

H00kers and bl0w?

originally posted by: RoadCourse
H00kers and bl0w?

Really.. thats disgusting and shameful behaviour.. So er if someone.. i er.. knew was interested in getting involved... how would one go about signing up..

Double post

originally posted by: Misterlondon

originally posted by: RoadCourse
H00kers and bl0w?

Really.. thats disgusting and shameful behaviour.. So er if someone.. i er.. knew was interested in getting involved... how would one go about signing up..

If you can go one full day without telling the truth you already passed 99% of the exam.

You call call Jonathan Edwards. He would be able to tell you.

Excerpting from the excerpt in the OP:

originally posted by: Metallicus

Candidates are prohibited from accepting more than $2,700 from individual donors, and they cannot take funds from corporations at all.

Source

I thought campaign spending was unlimited now (the so-called Citizens United decision.) Does that only apply to direct spending, and not contributions to campaigns?

a reply to: Metallicus

Jessie Ventura has a good video on that

originally posted by: dogstar23
I thought campaign spending was unlimited now (the so-called Citizens United decision.) Does that only apply to direct spending, and not contributions to campaigns?

PAC's don't give money to a campaign, they coordinate with a campaign (or in some cases not, since it's illegal for many of them), and promote a candidate. Listen to the ad's sometime, most of them aren't actually endorsed by the candidate, it's actually just some group supporting that candidate and those are the groups the unlimited contributions go to.

For example, because Ted Cruz can't campaign with the PAC's that support him, he puts out this, and mentions that it's there for his supporters to use.

www.youtube.com...

And since it was made available in a public place it doesn't count as privately coordinating with anyone.