Major parties raise $695M

The Democratic and Republican parties reported raising $695 million in hard money at the national, state and local levels during the first 18 months of the 2006 election cycle—six percent less than they raised during the comparable period in 2004 and eight percent less than in 2002, the last midterm election.

The 2006 election cycle is the second in which national parties are prohibited from receiving soft money—funds from sources or in amounts not permitted in federal elections. The accompanying graph on page 9 compares hard money fundraising by national party committees from January 1, 2005 through June 30, 2006 with hard and soft money receipts from previous cycles.

During this 18-month period, Democratic Party committees reported raising $289.3 million, an increase of four percent over the same period in 2004. Republican Party committees raised $405.7 million—13 percent less than 2004. Federal fundraising by parties has often been stable or even declined slightly in cycles without a Presidential campaign. While Democrats closed the gap in fundraising with their Republican counterparts, Republican Party committees still raised $116 million more than Democrats through June.

The greatest percentage increase in fundraising came from the Democratic Senate Campaign Committee (DSCC), whose $73 million total was 48 percent higher than the comparable 2004 period. The Democratic Congressional Campaign Committee (DCCC) increased its receipts by 37 percent to $76.6 million. The National Republican Senatorial Committee (NRSC) had an increase of 24 percent from the last election cycle, with receipts of $62.6 million.

Contributions from individuals continue to be the largest source of funds for all party committees, representing more than 77 percent of Democratic Party funds and 89 percent of Republican funds. Contributions by PACs, whose limits were generally not changed by the BCRA, accounted for 10 percent of all Democratic party receipts and 8 percent of all Republican party receipts. The Bipartisan Campaign Reform Act of 2002 (BCRA) increased contribution limits for individuals giving to national party committees. The limit increased from $20,000 per year prior to passage of the BCRA to $25,000 annually in 2003-2004 and $26,700 annually in 2005- 2006, due to indexing for inflation.

Transfers to party committees from the campaign committees of Members of Congress have comprised an increasing role in party finance in recent cycles. Democratic House members’ campaigns accounted for 20 percent of the funds raised by the DCCC through June 2006. Republican members’ campaign contributions accounted for eight percent of the total for the NRSC.

BCRA included a provision permitting state and local parties to receive some limited funds raised under federal and state law for purposes indirectly affecting federal elections, such as get-out-thevote activities. Thus far, 31 party committees have reported raising $342,000 of these funds, called “Levin funds.” The committees reported spending $197,000 in Levin funds.

Spending by Democratic party committees increased 18 percent over 2004 levels to $204.6 million. Republican committees have spent $316.5 million, six percent less than 2004. Overall, Republican party committees reported cash balances of $112.1 million with debts of $2 million, and Democratic committees held $89.9 million in cash on hand and $2 million in debts.

For more information on party committee statistics, please see the July 31, 2006 Press Release entitled, “Party Financial Activity Summarized” on the FEC website. This release includes extensive statistics such as:

• Democratic Party Committee Financial Activity;
• Republican Party Committee Financial Activity;
• Transfers from Candidate Committees;
• Joint Fundraising and Campaign Committee Transfers to Party Senate Committees; and
• National Party Transfers to States.