Presidential Fundraising Surpasses $2 Billion

How Did This Presidential Election Raise Over $2 Billion?At the end of October the 2012 Presidential Election is expected to be the costliest race in U.S. history as combined political fundraising on both sides will surpass the $2 billion mark. Even when inflation is calculated into the equation, campaign fundraising has hit a new high as President Obama and Governor Romney vie for a chance to hold the reigns to this great country. There are several reasons why this monumental fundraising achievement was able to take place:1. Say Goodbye to the Public Financing System – This is the first election where both candidates decided to opt out of the public financing system. They each could have collected about $100 million in tax payer dollars to spend on their campaigns, and yet this high stakes gamble truly paid off for both sides. By rejecting this option in the 2008 election, Obama became the first presidential contender to refuse all public financing. Republican rival, Arizona Sen. John McCain, on the other hand, accepted the government matching funds. The result was that Obama focused his energies on political fundraising and build a considerable war chest. In the end, Obama outspent McCain by more than 2-to-1 in the general election — effectively ended public funding as an option for serious candidates.2. The Rise of the Super PAC – At the start of this month, it was reported that super PAC’s contributed over $230 million to Romney’s campaign since 2011. American Crossroads set up by Karl Rove, reported raising at least $68 million through September. Restore Our Future, founded by former Romney aides, raised $110 million. Priorities USA supporting Obama reported raising $50 million through September. With the ability to have unlimited spending independent of their candidate of choice, they are indeed taking full advantage of the opportunities provided in this newer tactic of rallying contributions.3. New Ways to Give – With the evolution of fundraising technology and the amazing software capabilities that come with it, giving has never been more social or more convenient. Not only has online giving increased exponentially with pleas to give via Yahoo! ads and Facebook posts, but mobile devices have played a large part in encouraging political involvement.PewInternet just published recent findings that, “Among the 13% of adults who have donated to one of the presidential candidates in this year’s election: 67% donated in person, over the phone, or through the mail; 50% donated online or via e-mail; and 10% donated by sending a text message from their cell phone or using a cell phone app.” Another interesting fact that came from this study is that 57% of Democrat campaign donors contributed online or with e-mail, while only 34% of Republicans used these methods.