243:
disclosure and reporting as well as enforcement of rules and sanctions for infringements. Financing of political campaigns have become very controversial, particularly since the era of party reform in the late 1960s and early 1970s. Arguments for restricting the amount of, or banning certain sources for, campaign contributions are usually couched in terms of the public interest in clean politics, but the effects of such restrictions or bans almost invariably are to protect incumbent office holders from serious challenges from aspirants who lack their name recognition or official status. Also, Democrats in the U.S. typically inveigh against the financial advantages of the so-called "fat cats", while
Republicans are wary of the war chests possessed by public and private labor unions, especially the former. The Hatch Act was passed in 1940 to forbid political activity by federal government employees, but the rise of the public sector union since 1961 has cemented a tight financial tie between government employees and their primary benefactors, usually Democrats.
165:
election times many people abstain from voting. Likewise at all times the majority of citizens also abstains from donating to political coffers. Nonetheless, many believe that broad fundraising from small donors is the ideal form of funding. Political fundraisers should try "to exploit the latent giving power in the general population" and make every reasonable effort to raise "significant sums ... collected in small change." This is especially true for all democracies with a high standard of living for the majority of their citizens.
250:", "third party advertising") or media time paid for by political contestants. Both types of bans have to strike an adequate balance between two constitutional principles, the equality of opportunities (fairness) and the freedom of expression. Britain applies a spending limit for constituency candidates since 1883. Canada was the first democracy to add campaign limits for national party organizations in 1974 and spending limits for constituency nomination contestants in 2004. The U.S. Supreme Court (in
273:
between categories of donors and/ or define cut-off points for privacy, e.g. $ 100 or €10,000. Both ways serve to separate financial contributions as a means of participation from donations as means of buying access or peddling influence. Any disclosure regulation has to identify a person or an institution that is responsible for the transparent flow of funds to and from party coffers and the kind of information, which has to be disclosed timely and accessibly.
46:") in the United Kingdom. The annual budgets of such organizations will have to be considered as costs of political competition as well. In Europe the allied term "party finance" is frequently used. It refers only to funds that are raised and spent in order to influence the outcome of some sort of party competition. Whether to include other political purposes, e.g. public relation campaigns by
174:
neighborhood or internet solitication, social events at the local level, even yard sales) for grassroots fundraising. Personal (door-to-door or peer group) solicitation was quite frequent in the fifties. Since the 1960s it has been superseded by telethons and computerized mass mailings. In more recent years internet solicitation has played a major role.
277:
reporting by parties and candidates depends on the definition of useful categories for the funds raised and spent, the inclusion of data for all spending units as well as the procedure for examination and publication of financial reports. Currently no democracy provides for full transparency of all political funds.
293:. Alexander Heard contributed a groundbreaking analysis for the U.S. International comparison started with Arnold J. Heidenheimer, who also introduced the term 'political finance' to comprise campaign and party funding. Thus he was bridging the gap of perception between North America and Western Europe.
300:
authored publications on legal aspects of campaign finance. The most important early studies on non-US countries were written by
Khayyam Z. Paltiel (Canada) and Michael Pinto-Duschinsky (Britain). Between 1963 and 2001 Colin Hughes and Ernest Chaples produced the early articles that covered campaign
233:
Taxpayers in continental Europe and non-western democracies (like Israel and Japan) provide higher amounts towards party activity than their Anglo-Saxon counterparts. Many party headquarters in the high-subsidy countries cover between 40 and 60 per cent of their annual budget via public grants. Such
225:
Most modern democracies (in one way or the other) provide government subsidies for party activity, typically in cash and/or free access to public or private media. India and
Switzerland are the most notable exceptions. Public subsidies can be relatively small (as in the UK and USA) or quite generous
119:
Most frequently and in most countries the organizations that raise and spend money for political purposes are parties (headquarters, branches and chapters). Party headquarters spend on public relations, mass media (including billboards), the expertise of consultants and offices. Local party chapters
229:
Although government subsidies are now common in western democracies, such subsidies remain controversial. Because matching funds and tax credits depend on financial contributions by individual citizens such support is more compatible with participatory democracy than flat grants that do not require
242:
Many countries have regulated the flow of political funds. Such regulation, the political finance regime, may include bans and limits on certain kinds of income and expenditure, level and distribution of as well as access to direct and indirect public subsidies, transparency of political funds by
164:
Many believe that as a normative concept popular government (vulgo democracy) should require that the people at large cover the costs of their democracy. However, this can only be done on a voluntary basis, because all forms of political participation in a democracy are voluntary in principle. At
280:
All political finance regimes require authorities and agencies that are responsible for monitoring, control and enforcement. Legislation has to strike a balance between practical independence of the agency in charge, effective enforcement of the rules for the funding of political competition and
268:
are illegal. Quite frequently political finance regimes include contribution limits. The maximum donation allowed may differ either by type of donor (individual citizens, legal entities), by recipient (candidate or party) or by purpose to be funded (nomination contest, election campaign, routine
173:
or workers' parties) raise less than a quarter of their funds from the grassroots. Collection of small donations depends very much on the current mood of people's emotions towards politics, policies and politicians. A variety of ways are available (nationwide lotteries, direct mail drives, peer,
276:
The reporting' of political funds (to be submitted annually and/ or after elections) usually includes various sources of income and specified items of expenditure, e.g. staff and offices, advertisements in print media, radio and TV, campaign material, direct mailing, opinion polling. Effective
272:
If rules for transparency of political funds stipulate the disclosure of donors' identity, the public's right to know about financial backers may interfere with the need to protect the privacy of political preferences, the principle of the secret ballot. The practical solution will distinguish
182:
In the old days landed aristocrats and successful entrepreneurs of the ruling classes supplied the funds necessary for democratic politics. Later on, interest groups and others provided money. Although trade unions that funded left-of-center parties were among the suppliers of money, money for
168:
Popular financing of politics can be an important source of political revenue (as it is in the U.S. and Canada, the
Netherlands and Switzerland). However, it is not a constant and reliable source. The numbers of signed-up party members who pay their dues regularly fluctuates over time wherever
256:
424 U.S. 1 (1976) has struck down spending limits because they interfere with free speech rights under the First
Amendment to the U.S. Constitution. In order to be effective all limits require careful monitoring and serious enforcement backed up by adequate sanctions.
264:, incentives to stimulate specific fundraising activities (like tax benefits or matching grants) are still rare. More frequent are contribution limits or outright bans. Many countries ban anonymous donations or contributions from foreign sources. In some democracies
226:(as in Sweden, Germany, Israel and Japan), and usually exist side-by-side with private fundraising. Party organizations, parliamentary groups (party caucusses) and candidates are typically the recipients of public support (in cash or kind).
148:). G. M. Gidlund has classified the available options of fund-raising by three categories: Membership, plutocratic and public funding. As the relevance of signed-up party members and their dues can vary among the democracies the terms
120:(e.g. constituency or riding associations), which rely on volunteers (party activists), cover telecommunication and mail charges as well as rent and heating for storefront offices, which they use as their centers of political activity.
691:. Chapel Hill, NC: University of North Carolina Press, 1960. – On the face of it this catchy title highlights the expense side of the subject only. Heard's book, however, covers the full range of the subject.
281:
adequate implementation of legal stipulations. Global research shows that highly sophisticated rules, over-regulation of some issues and lax implementation of such rules do not lead to best practice.
198:(in Italy) for public procurement. In some times and places, officeholders (including MPs, legislators and councillors) have been expected to pay an 'assessment' on their salaries for political jobs.
309:'s comparative analysis of public funding with two case studies from Latin America. Recently, funding from foreign sources and governments has become a major concern of governments and scholars.
132:"), who make small contributions or pay party membership dues; wealthy individuals; organizations including businesses, interest groups, professional organizations and trade unions;
533:. Lanham, MD: University Press of America, 1996, pp. 31–53; Walter, Hanfried, "Staatliche Parteienfinasnzierung in Schweden seit dem Reichstagsbeschluss vom 15. Dezember 1965". In:
269:
operation). In some countries (e.g. Germany) there is no statutory limit on the amount of political contributions, which a person or corporation may give to a party or candidate.
971:
Falguera, Elin, Jones, Samuel, Öhman, Magnus, (eds.) "Funding of political parties and election campaigns: a handbook on political finance". Stockholm: International IDEA, 2014
296:
Herbert E. Alexander studied the U.S. situation for many decades and edited a couple of comparative volumes. Arthur B. Gunlicks concluded this cycle of comparative studies.
805:. Warsaw: Institute of Public Affairs, 2005 and Casas-Zamora, Kevin, Paying for democracy: political finance and state funding for parties. Colchester, UK: ECPR Press: 2005.
646:
1003:
Paltiel, Khayyam Z., "Campaign finance – contrasting practices and reforms" (pp. 138–172) and "Political finance" (pp. 454–456). In: Butler, David et al. (eds.),
461:. Cambridge, UK: Cambridge University Press: 1989, p. 206; Ruud Koole, 'Dutch political parties: Money and the message'. In: Herbert E., and Shiratori, Rei (eds.),
26:
for various public offices that are run by parties and candidates. Moreover, all modern democracies operate a variety of permanent party organizations, e.g. the
996:
Nassmacher, Karl-Heinz, "Campaign finance" (vol. 1, pp. 179–181) and "Party finance" (vol. 4, pp. 1187–1189). In: Kurian, George T. et al. (eds.,)
1076:
721:. Princeton, NJ: Citizens' Research Foundation, 1962, and ending with: Alexander, Herbert E.,'Spending in the 1996 elections'. In: Green, John C. (ed.),
22:
covers all funds that are raised and spent for political purposes. Such purposes include all political contests for voting by citizens, especially the
1204:
301:
finance in
Australia. More recent contributions to the literature include Marcin Walecki's monograph on Poland, the book by Daniel Smilov and
1216:
1209:
1157:
976:
965:
647:
http://www.idea.int/publications/funding-of-political-parties-and-election-campaigns/loader.cfm?csModule=security/getfile&pageID=64347
457:. Toronto: Dundurn Press, 1991, pp. 213–24, 536–40; Ruud Koole, 'The modesty of Dutch party finance'. In: Alexander, Herbert E. (ed.),
376:
Examples from the 1976–80 election cycle are given by
Adamany, David, 'Political parties in the 1980s'. In: Malbin, Michael J. (ed.),
950:
935:
916:
901:
886:
824:
593:
see
Nassmacher, Karl-Heinz, 'Citizens' cash in Canada and the United States'. In: Alexander, Herbert E., and Shiratori, Rei (eds.),
50:, is still an unresolved issue. Even a limited range of political purposes (campaign and party activity) indicates that the term "
1194:
1189:
1069:
297:
1147:
872:
858:
1008:
265:
31:
27:
419:. Oxford, UK: Oxford University Press, 2002, p. 127, is France. For details from other countries see Richard S. Katz and
1174:
39:
35:
1040:
169:
democratic parties care to recruit them. Today even the traditional mass-membership parties of the democratic left (
1236:
1184:
1167:
1062:
1121:
790:
482:. London: Methuen, 1954, figure 6; for more recent data see Paul Webb, David M. Farrell and Ian Holliday (eds.),
1162:
1152:
247:
1199:
1179:
1126:
1036:
International
Political Science Association Research Committee on Political Finance and Political Corruption
328:
136:
of officeholders (called the "party tax"); government subsidies; or generally illegal activities including
1241:
1116:
149:
129:
815:
Schnurr, Emily (2022). "Chapter 13: Role of Money in
Campaigns and Elections". In Schultz, Toplak (ed.).
207:
846:: the financing of party organizations and election campaigns. Lexington, MA: D.C. Heath, 1970. no ISBN
742:. Cambridge, UK: Cambridge University Press, 1989; Alexander, Herbert E., and Shiratori, Rei (eds.),
1046:
486:. Oxford, UK: Oxford University Press, 2002, pp. 24, 55, 83, 121, 162, 163, 196, 225, 257, 325, 355.
1104:
211:
55:
789:, pp. 7, 10, available as: Discussion Paper 35/06 (December 2006), Democratic Audit of Australia,
440:. Chapel Hill, NC: University of North Carolina Press, 1960, pp. 251, 250 (i.e. in reverse order).
306:
145:
108:
98:
972:
961:
946:
931:
912:
897:
882:
868:
854:
820:
82:
23:
560:
1110:
1099:
671:
318:
290:
252:
170:
137:
51:
234:
heavy involvement of the taxpayer calls for a maximum of transparency for political funds.
58:
cataloguing) is too narrow to cover all funds that are deployed in the political process.
1131:
927:
702:
Comparative political finance: the financing of party organizations and election campaigns
333:
465:. Boulder, CO: Westview Press, 1994, pp. 127–29; Ladner, Andreas, and Brändle, Michael,
153:
133:
78:
43:
104:
current operations of party organizations at the national, regional or local level and
1230:
1021:
van Biezen, Ingrid, "Campaign and Party Finance". In: LeDuc, Lawrence et al. (eds.),
219:
945:: political finance and state funding for parties. Colchester, UK: ECPR Press: 2005
525:. Princeton, NJ: Citizens' Research Foundation, 1961, pp. 16–21; Adams, Karl-Heinz,
415:
The only example documented in Paul Webb, David M. Farrell and Ian Holliday (eds.),
302:
246:
Bans on political expenditure concern either campaign expenses by non-candidates ("
222:
in Sweden found a way to put "the costs of democracy" directly upon the taxpayer.
187:
47:
567:, October 22, 2006; a brief compilation of pros and cons in: Casas-Zamora, Kevin,
632:'Regulation of Party Finance'. In: Katz, Richard S. and Crotty, William (eds.),
619:'Regulation of Party Finance'. In: Katz, Richard S. and Crotty, William (eds.),
606:'Regulation of Party Finance'. In: Katz, Richard S. and Crotty, William (eds.),
580:'Regulation of Party Finance'. In: Katz, Richard S. and Crotty, William (eds.),
215:
1014:
Pinto-Duschinsky, Michael, "Party Finance". In: Badie, Bertrand et al. (eds.),
1005:
Democracy at the polls – a comparative study of competitive national elections
420:
128:
Political revenue may be collected from small donors or individual citizens ("
112:
89:
453:. 4th ed., Washington, DC: CQ Press, 1992, pp. 58–64, 73–5; W. T. Stanbury,
260:
Among the rules, which either restrict or favor specific types of political
141:
74:
406:(in Swedish with an English summary). Umea: CWK Gleerup, 1983, pp. 55, 353.
323:
865:
La Financiación de Partidos y Candidatos en las Democracias Occidentales
960:: Political finance in 25 democracies. Baden-Baden: Nomos Verlag, 2009
480:
Political parties – iheir organization and activity in the modern state
455:
Money in politics – financing federal parties and candidates in Canada
289:
The study of political finance was pioneered by James K. Pollock and
569:
Paying for democracy: political finance and state funding for parties
548:
Paying for democracy: political finance and state funding for parties
95:
training activities for party activists, officeholders or candidates,
1054:
993:, vol. 12. New York: Free Press – Macmillan, 1968, pp. 235–241.
989:
Heard, Alexander, "Political financing". In: Sills, David I. (ed.),
704:. Lexington, MA: D.C. Heath, 1970; see also the Special Issue of
1023:
Comparing Democracies – Elections and Voting in the 21st Century
499:. Washington, DC: American Enterprise Institute, 1981, pp. 52–8.
1058:
529:. Marburg: Tectum Verlag, 2005, pp. 112–26; Angell, Harold M.,
183:
campaigns came from a relatively small number of large donors.
894:
Campaign and party finance in North America and Western Europe
757:
Campaign and party finance in North America and Western Europe
738:. Beverly Hills, CA: Sage, 1979; Alexander, Herbert E. (ed.),
772:. Toronto: McGraw-Hill, 1970 and Pinto Duschinsky, Michael,
512:. Chapel Hill, NC: University of North Carolina Press, 1960.
190:. Some have demanded graft for a license or a favor, others
186:
In some cases governing parties have abused their powers by
140:, buying access to politicians, offices, honors or titles,
365:
1035:
523:
Government financing of political parties in Puerto Rico
776:. Washington, DC: American Enterprise Institute, 1981.
597:. Boulder, Colorado: Westview Press, 1994, pp. 145–57.
867:, Madrid: Siglo Veintiuno de Espana Editopres, 1985.
535:
Zeitschrift des öffentlichen Rechts und Völkerrechts
484:
Political parties in advanced industrial democracies
417:
Political Parties in Advanced Industrial Democracies
1140:
1092:
909:
Comparative political finance among the democracies
853:: The Transition Period. Aldershot: Ashgate, 2007.
744:
Comparative political finance among the democracies
595:
Comparative political finance among the democracies
463:
Comparative political finance among the democracies
230:specific efforts by the fundraising organizations.
907:Alexander, Herbert E., and Shiratori, Rei (eds.),
881:. Cambridge, UK: Cambridge University Press: 1989
851:Political Finance and Corruption in Eastern Europe
787:Fifty years of campaign finance study in Australia
380:. Chatham, NJ: Chatham House, 1984, pp. 80–81, 89.
991:International Encyclopedia of the Social Sciences
391:Canadian Political Parties in the Constituencies
1016:International Encyclopedia of Political Science
451:Financing politics – money and political reform
1070:
571:. Colchester, UK: ECPR Press: 2005, pp. 28–9.
550:. Colchester, UK: ECPR Press: 2005, pp. 30–1.
156:may offer a more adequate general framework.
8:
92:or re-selection of parliamentary candidates,
725:. Armonk, NY: M.E. Sharpe, 1999, pp. 11–36.
508:Phrase from the title of Heard, Alexander,
107:efforts to educate citizens with regard to
1077:
1063:
1055:
879:Comparative political finance in the 1980s
740:Comparative political finance in the 1980s
459:Comparative political finance in the 1980s
266:corporate donations for political purposes
206:After World War II, politicians including
546:For an overview see Casas Zamora, Kevin,
355:. Baden-Baden: Nomos Verlag, 2009, p. 31.
849:Smilov, Daniel and Jurij Toplak (eds.),
378:Money and politics in the United States
344:
717:Starting with: Alexander, Herbert E.,
449:For details see Herbert E. Alexander,
1025:. London: Sage, 2010, pp. 65–97.
998:The encyclopedia of political science
636:. London, UK: Sage, 2006, pp. 451–52.
623:. London, UK: Sage, 2006, pp. 450–51.
610:. London, UK: Sage, 2006, pp. 447–48.
584:. London, UK: Sage, 2006, pp. 446–47.
561:'It's their party, and we pay for it'
425:Party organizations – a data handbook
238:Regulation (political finance regime)
7:
911:. Boulder, CO: Westview Press, 1994
896:. Boulder, CO: Westview Press, 1993
774:British political finance, 1830–1980
759:. Boulder, CO: Westview Press, 1993.
746:. Boulder, CO: Westview Press, 1994.
708:, 1963, vol. 25, no. 4, pp. 664–811.
537:, 1966, vol. 26, no. 2, pp. 371–404.
531:Provincial party financing in Quebec
497:British political finance, 1830–1980
770:Political party financing in Canada
527:Parteienfinanzierung in Deutschland
521:For some details see Wells, Henry,
101:by parties or party related bodies,
817:Routledge Handbook of Election Law
785:For details see Hughes, Colin A.:
427:. London: Sage Publications, 1992.
14:
478:Early data in: Maurice Duverger,
16:Funds used for political purposes
1000:. Washington, DC: CQ Press, 2011
958:The funding of party competition
467:Die Schweizer Parteien im Wandel
353:The Funding of party competition
1045:K. Z. Paltiel and J. M. Wilson
1041:IDEA Political Finance Database
924:Il finanziamento della politica
842:Heidenheimer, Arnold J. (ed.),
819:. Routledge. pp. 147–159.
700:Heidenheimer, Arnold J. (ed.),
469:. Zürich: Seismo, 2001, p. 180.
393:. Toronto: Dundurn Press, 1991
305:on Eastern Europe, as well as
54:" (used as subject heading in
38:and the Labour headquarters ("
1:
1009:American Enterprise Institute
877:Alexander, Herbert E. (ed.),
844:Comparative political finance
32:Republican National Committee
28:Democratic National Committee
803:Money and Politics in Poland
678:. New York: Macmillan, 1932.
34:in the United States or the
723:Financing the 1996 election
719:Financing the 1960 election
495:Pinto Duschinsky, Michael,
36:Conservative Central Office
1258:
634:Handbook of Party Politics
621:Handbook of Party Politics
608:Handbook of Party Politics
582:Handbook of Party Politics
559:Michael Pinto-Duschinsky,
285:Study of political finance
152:, plutocratic finance and
73:election campaigns run by
1050:The Canadian Encyclopedia
956:Nassmacher, Karl-Heinz,
662:. New York: Knopf, 1926.
351:Nassmacher, Karl-Heinz,
248:independent expenditures
77:, candidate committees,
734:Alexander, Herbert E.,
329:Political party funding
1117:Grassroots fundraising
706:The Review of Politics
689:The costs of democracy
510:The costs of democracy
438:The costs of democracy
366:http://catalog.loc.gov
160:Grassroots fundraising
150:grassroots fundraising
144:of wealthy people and
130:grassroots fundraising
1018:. London: Sage, 2011.
941:Casas-Zamora, Kevin,
892:Gunlicks, Arthur B.,
863:del Castillo, Pilar,
768:Paltiel, Khayyan Z.,
755:Gunlicks, Arthur B.,
62:Expenses for politics
943:Paying for democracy
922:Melchionda, Enrico,
660:Party campaign funds
402:Gidlund, Gullan M.,
1105:Corporate donations
658:Pollock, James K.,
212:Gerhard Stoltenberg
178:Plutocratic finance
111:, ballot issues or
109:popular initiatives
56:Library of Congress
1007:. Washington, DC:
687:Heard, Alexander,
676:Money in elections
389:R. Kenneth Carty,
307:Kevin Casas Zamora
146:influence peddling
99:policy development
67:Political expenses
24:election campaigns
1237:Political funding
1224:
1223:
1086:Political finance
1047:"Party Financing"
977:978-91-87729-24-9
966:978-3-8329-4271-7
801:Walecki, Marcin,
736:Political finance
672:Overacker, Louise
436:Alexander Heard,
298:Daniel Lowenstein
83:political parties
69:can be caused by
20:Political finance
1249:
1168:Party foundation
1111:Follow the money
1100:Campaign finance
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40:John Smith House
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216:Jean Lesage
134:assessments
113:referendums
1231:Categories
1141:By country
873:8474760895
859:0754670465
421:Peter Mair
340:References
192:ristournes
90:nomination
75:candidates
1148:Australia
404:Partistöd
142:extortion
984:Articles
926:, Roma:
324:Lobbying
313:See also
196:tangenti
30:and the
1175:Ireland
1163:Germany
1153:Austria
1011:, 1987.
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262:revenue
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1185:Japan
1093:Terms
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