What Happens with Unused Campaign Funds?

What happens to unused campaign funds/contributions. These people are soaking up 100's of millions of dollars.

Where does it all go once someone drops out, or the election is over? Does it go into political party coffers?

Here is some info that I have found:

Even when candidates for office lose, they win. Before 1993, the money contributed to a political campaign could be and often was diverted to a candidate’s bank account. Retiring and defeated candidates could and did keep unused campaign contributions. Nowadays, the candidate with excess funds can spend it in other ways such as winding down his office, contributing to party committees, and supporting other candidates.

But there are more creative uses for leftover campaign funds. The defeated candidate can donate the money to a nonprofit charity, such as a foundation headed by a close relative. He can form a public agency or a nonprofit agency and funnel the money to it. Large amounts can then be spent on parties, gifts, and dues. He can channel funds to companies he controls, or employ his spouse to work at a campaign committee. Before the campaign is over, he might buy a Mercedes.

Here is also some more info:
Where Do The Campaign Contributions Go When Candidates Drop Out??? Seriously!

[edit on 1/30/2008 by Choronzon]

i see no problem with the person spending how they wish. after all it is their money. they were given this cash by their followers then they should keep it.

o.O

You get people who run for office simply to soak up funds of honest american citizens who want to make a difference in their country.

In cases such as these, i would consider that fraud.

Especially if those funds are funnelled into completely non-related organizations, or are redirected to the war-chest of a completely different candidate. Classic bait-and-switch.

i dissagree if people want to pointless and aimlessly throw their money at a person, then that person should pointlessly spend that money how the want. it would only be fraud if the person said they were running for the presidency and didnt. they never lied the used the money for what it was for until they no longer had that burrden..

this is how you can compair it.

say you gave me 10 dollars to buy me some coffie cause i was thirsty but they no longer had it and i figured then i should just buy a coke. its the same thing.

the point is you gave them the cash it now belongs to them.

[edit on 15pmu22007 by DaleGribble]

i see where dale gribble's coming from----although i would be more than angry if i donated only to buy someone a mercedes---of course it takes a lot for me to donate so i hope to think if i'm donating the candidate is stand up enough to maybe donate the money or make good come of it

dale made me think-----when a homeless man asks for money for "food" i give it to him knowing no food is being bought but more than likely alcohol or crack----yet no less i give it to him for i know,,,it';s the fact i tried to help someone struggling or less fortunate---what he does is on him--i did my part---and just maybe 1 out of 10 times i may just be helping a mom feed her kid

Originally posted by Choronzon
o.O

You get people who run for office simply to soak up funds of honest american citizens who want to make a difference in their country.

In cases such as these, i would consider that fraud.

Especially if those funds are funnelled into completely non-related organizations, or are redirected to the war-chest of a completely different candidate. Classic bait-and-switch.

I agree 100%. Supporters donated that money to be used to pursue the office. If there is money left over it should either be properly tracked and returned to donor or it should be announced beforehand where any excess money will go.

In my experience, candidates will "bank" these monies and contribute heavily to other political candidates of their choosing. Candidates in the same political party will frequently request these funds and are very aware of the dollars held by any politician because of the required campaign contribution reports which must be filed. These reports are public and available on the local level from your County Clerk's office. The names, however, will be jumbled and not in alphabetical order making it difficult for another candidate to "borrow" a donor list from the filer although it happens all the time because volunteers are willing to re-key the data.

The dollars will generally be re-circulated in the political system with the assumption that if you trusted them with your money to run for office, then you trust them to determine which candidate now running deserves some of these left-over dollars. It is also customary and even expected for sitting elected officials to make contributions to candidates running on their party's ticket. The gift that keeps on giving. I'm not disputing the other "expenditures" which you have named above...that may happen...just sharing the customs as I have seen them work.

Peace.