New Style - The Political Donor

[Frank Bellamy, MAP Masters of Applied Politics]

The Political Donor:  "Individual or Unified  Ideological  Collective"
                     
CHAMPAIGN FINANCE 3700:472/572-001/601, Spring 2006
Frank Bellamy
University of Akron
Ray C. Bliss Institute of Politics
Introduction

               
   This study will consider the presumed realignment of the political donor community at the
   Federal level.  Past labels such as the "Individual Political Donor" are rapidly evolving into the
   "Bundled Unified Collective" of Political Donor pooling.  The importance of this study is that it
   discusses the commonly used political Fundraising  multiplying methods of "Bundling" and it's
   appearance of polarizing Donor/Volunteer activities along the lines of Political Ideology and
   one's need for greater Political Access to effect governmental policy changes. 

   The thought behind selecting the Federal Political Fundraising activities is that our nations
   political directives are implemented in a top down fashion. The advantage of observing these
   activities on a federal level are that Bundling Fundraising Models will aggressively find its way
   to the state and local political levels.  Many studies are suggesting that the political party,
   political ideology and the need for political access will be the forces that drive political
   fundraising.

   Cognitively I surmise that, the Republicans will lead an Ideological Realignment of the political parties.  This new and possible required ideological party commitment will also act as the foundation for party political fundraising.  When selling the idea of... Why is  "political
donating" important?   It helps a great deal if the potential donor is already sold on your party's
overall vision.  After that point it's a factor of what donation amount should be the goal for the
donor and/or can the donor give his/her money today.  The need for political control, political
access and the reassurance of  political like-minded thinking is presently the fuel that operates


   the impact of political parties.  And this political fuel in its material form is money donations.                                                                                                                                                                                 

This study examines the Individual Political Donors and the Bundlers of Individual Donors, 
   their motivations, issues, affiliations and probable access need to governmental policy makers.     




Results

The evolution of the Political Donor into the new Bundling Political Donor is illustrated by the
actions of the traditional small donors like Tom Joyce and Yasmin Netervala.  Tom Joyce who
states that he was "completely apolitical" regarding political volunteering and donating money
to political campaigns.  Joyce is now a church pastor and was a political donor to President
Bush's reelection efforts in 2004.  Joyce's motivation for supporting President Bush and not
Senator Kerry was based on the Kerry's liberalism views and voting record.  Whereas in the
case of Yasmin Netervala who also feels strongly about political issues and unlike Pastor Joyce
she took her political donor participation to a different level.  Netervala a Senator Kerry
supporter not only did she give her regular volunteer time and small political donation.  She
went on to organize a $50 per head fundraiser for the Kerry campaign with hopes of raising
$10,000 as her target.  Her motivation was "I'm really disillusioned by what's going on in the
world right now," she said.  "We need to do something, even if it's on a small scale."  The
multiplied effect of small donations like that of Joyce and Netervala calculated a few hundred
thousand times indicate a remarkable development of the impact that small political donors had
in the 2004 political campaigns.  The record setting money donations to the Democratic and
Republican in 2004 reflects not only an increase in dollars but also an increase in the number of
individuals giving political money for the first time (Small Donors Grow Into Big Political
Force Both Parties See Number of Contributors Soaring by Paul Farhi).

The record number of political money donations to the Republican and Democratic Parties is not the direct result their constituents becoming more astute as to the importance giving money to political causes.  To the contrary, the Bush and Walker family's long standing connections to the Midwest industrial groups and Wall Street business interests are the framers for this political
money giving phenomena.  This business/industrial/political connection was  intrinsic to the
financing of the oil industry post World War II income gains of George H. W. Bush.  This
connection contributed to Mr. Bush's rise to national recognition and increased personal wealth. 
Our nations 41st president through his own political quests developed a financial/political
network that was greatly utilized by his two son George W. and Jeb Bush.  The political donors
and investors associated with the Bush Family empire were very accustomed to writing large
checks because of no contribution limits.   When then Governor George W. Bush's camp began
to send signals that he may run for the White House in 2000.  His big time political donors were
ready to weigh in heavily to support the campaign.  The obstacle was federal campaign donation
limits at that time $1,000 per individual.  The Bush's big money campaign donors had no
problems giving  $100,000 and even more to state level political activities.   In 1998 the

consultants' Evans, Phillips, Francis and Meyer would devise a plan to get the big money donors to recruit their friends, associates and clients to donate and in turn to recruit their friends to donate.  "We had to turn these people into money raisers instead of money givers," Francis said. This action may have marked the beginning of "Political Bundling" donation.  Francis and his group came up with methods to generate a competitive atmosphere and a four-digit tracking
number system for these new fundraiser to maintain accountability.  "We purposely set the bar
high," Francis said. "These are very successful, very competitive people,"  Thus resulting in the
recruitment of many thousands of donors pledging at the targeted $1,000 per person as their goal.  The consultants had the objective of raising $50 million to forgo the use for Federal
Public Funding for the primary election and by doing so the campaign could spend without
limits (The Bush Money Machine: By Thomas B. Edsall, Sarah Cohen and James V. Grimaldi).


Some political writers have liken the Bush Political Machine to the Amway Products
Distribution company.  Amway being well known for their use of the (MLM) "Multi Level
Marketing"philosophy of selling and recruiting new members.  In addition, Amway and other
company's that used the MLM systems have also been accused of creating a cultist like
atmosphere when recruiting new members.  "Some MLM's thrived by imposing their own
strange and insular cultures on their recruits, and while they offer the illusion of self-
employment, those at the top of the pyramid often demand a rigid kind of uniformity and
loyalty" (The Multilevel Marketing of the President, By Matt Bai).  The Republicans view the
[Ohio] cities as strongholds for the Democratic party and that more fertile ground for the
Republican is found in the developing regions just beyond the suburban communities [the
exurbs].  Republicans contend that these regions are fast growing, conservative and potentially
ready for political mobilization.  "If Bush can harness the power of the exurbs, he can create a
kind of organization the country has not yet witnessed -- a political machine for the new
economy", says Thomas B. Edall. 

The (RNC) Republican National Committee is currently headed by Ken Mehlman, a 30
something Harvard University trained lawyer who is in constant contact with Carl Rove hi
mentor.  In many ways Mehlman is a typical Bush follower because of his efficient and
aggressive style of management.  The RNC headquarters ran by Mehlman has no similarities to
the stereotypical political campaign office.  His RNC office has no political signs or posters on
the walls, no college students scurrying around in jeans or piles of political mailer/flyers stacked
all around.  At first glance the RNC office headquarters would take on the air of an Investment
or Accounting firm.  These offices are outfitted with soft lighting,  neutral wall colors and
orderly cubical workstations.  Mehlman has at his disposal the latest in political campaigning
weaponry for political polling, direct mailing, TV & Radio Advertising Production similar to
the Democratic opposition.  However, the "Republicans have added acan track every facet of a voter's profile, and they are honing their skills in ''micro targeting,'' which should enable the party to hunt down likely Republican voters using all kinds of consumer data" The Multilevel Marketing of the President, By Matt Bai).   Melhman's RNCoffice manages, equips and motivates their volunteers [the Bush Team Leaders] similarly to the Amway sales distribution team.  Amway gives their sales team a "Toolbox" with useful sales resources and product help for maximum effectiveness in the field.  The  RNC also has a Toolbox for it's [B.T.L.'s] Bush Team Leaders which contains color coded time line graphs, 72 hour 7 step programs for growing and recruiting more B.T.L.'s and specific task flow charts for their functions and other Bush/Republican campaign support information. [the Bush volunteers, at last count, 361,575 of them].  When questioned about the Amway/RNC similarities instructure, Melhman responded, "impulses such as Survivor  or  American Idol.... The lessons of reality TV are that people today are into participatory activities,  he said. They want to have influence over a decision that's made. They don't want to just sit and passively absorb. They want to be involved, and a political program ought to recognize that.  The campaign provided various ways for people to volunteer, he said, and the big thing that brings them all together is virtual activity.  The virtual method not only resembles Howard Dean's campaign; it also mirrors the marketing philosophy behind Amway".


Both the Republican and Democratic parties were saddled with the challenge of raising large
sums of campaign donations under the federal campaign rules on Hard Money, either to frighten
competition off with their large campaign bank accounts and/or to forgo the use for Federal
Public Funding for the primary election and by doing so the campaign could spend without
limits.  The methods used by both parties were very similar in basic structure however the
Republican Party did set the tone for developing a donor structure for Volunteer fundraiser
known as "Bundling" political donations [nick named "Bunds].   The idea was to set up
exclusive competitive levels, reward incentives and party recognition activities for the Bundling
Donors.  Federal campaign donation limits are $2,000 per individual and parties needed to
cultivate as many of these level donors as possible.  Bundlers would solicit donations from political supporters and have them make their checks [$2000 limit] out payable directly to the
political campaigns [pre-primary election] or checks [$25,000 limit per individual] payable
directly to the National Political Party Committee [general election].  The Bundlers would make
sure that each donation collected by them had their tracking number written on the donor's
check in order to gain credit for their solicitations and collections efforts. The Republican's
naming and donation amount designation for Bundlers was; The Pioneer had to collect $100,000 in campaign donations.  The Rangers had to collect $200,000 in campaign donations.  The Super Ranger had to collect $300,000 in campaign donations [Super Rangers were active mostly during the general election and the donation checks are made payable directly to the (RNC) National Political Party [$25,000 limit].  The Democrat's naming and donation amounts
designation for Bundlers was; The Co-Chair had to collect $50,000 in campaign donations.  The
Vice Chair had to collect $100,000 in campaign donations.  The Trustees had to collect
$250,000 in campaign donations [The Trustees were active mostly during the general election
and the donation checks are made payable directly to the (DNC) National Political Party
[$25,000 limit].  "Organizations that bundle together many individual contributions are often
among the top donors to presidential candidates. These contributions can come organization's members or employees (and their families). The organization may support one
candidate, or hedge its bets by supporting multiple candidates. Groups with national networks of donors - like EMILY's List and Club for Growth - make for particularly big bundlers" (The
Importance of Bundlers to the Bush & Kerry Campaigns, Public Citizen, by Joan Claybrook).     

By all accounts the Volunteer Fundraiser with the Bundler designation was very important to
the record setting levels of Hard Money donations for the 2004 presidential election (See: Figure 00, 1, 2 & 3).  Many of these "Bundler" Volunteers often solicited donations from party

loyalists, friends, family members, associates and clients with no particular strings attached to
the donations.  However, reports are emerging that some Republican [Big Money] Bundler
Volunteers did receive access and/or favoritism toward governmental policy changes in their
favor.  Richard T. Farmer, CEO of the Cintas Corporation [a $2.7 billion company] and a Bush
Pioneer Bundler in the 2000 campaign was having to face possible EPA regulation changes that
would affect his company's industry and cost him a lot of money.  "After a series of telephone
calls, e-mails, letters and meetings with representatives of the laundry industry, the EPA had
provided industrial-laundry lobbyists with an advance copy of a portion of the proposed rule,
which the lobbyists edited and the agency adopted" Mr. Farmer denies that his volunteer
bundling fundraising afforded him access to government policy changes that benefitted his
company over others on the opposite side of this issue.  "He said he supports Republicans
because they believe in less government, more individual freedom, more individual
responsibility. If you think I'm giving money to get access to [President Bush],  you're crazy, 
Farmer said. I'm just trying to get the right guy elected. That's all I care about".  Another
examples of possible Bundler fundraising for greater governmental access are found in the
investment banking and securities firms that will benefit from reduced dividend and capital
gains tax policy changes.  This industry produced 17 Bush Rangers and Pioneers and raised
$19.68 million for the 2004 election campaign.  "According to an analysis produced for The
Washington Post by Dwight L. Morris & Associates. Twenty-four Rangers and Pioneers are
either drug industry executives or lobbyists whose companies stand to get more business from
the administration's Medicare drug benefit bill passed last year,  they believe in less government, more individual freedom, more individual responsibility".   Its also being reported that some  40 energy industry lobbyists and executives who are also either Bush Rangers or Pioneers.  Some of these Bundlers are heavily involved in Energy policy development for the Bush administration with 7 of these Bundles serving on the President's energy transition team. 
Government Energy policy changes could provide energy industry benefits totaling into the
billions of dollars (An Industry Gets Its Way Fundraiser Denies Link Between Money, Access,
EPA Rule on Hazardous Waste Favored Ohio Businessman Who Is a Big GOP Donor By James
V. Grimaldi and Thomas B. Edsall).     


Discussion


Its becoming clear that middle income and wealthier Americans are having greater opportunities
at influencing government than they have ever had before.  The Individual Contribution Limit of $2,000 has turned into a blessing of a rebirth for the major political parties.   The advent of the Volunteer Bundler Fundraiser System, enables political connectivity to take on a more
specialized social role.  This system allows the wealthier political donor to easily court their
existing base of friends, associates, family members and clients because $2,000 would be a
small price to pay for political access and social acceptance.  Middle income political donors
will see this system as an opportunity to show their commitment and loyalty to the political
party.  By one becoming a Volunteer Bundler Fundraiser gives some sense of legitimacy and the feeling of importance to a larger more influential Political Party [the Unified]. 

One of the by-products of Volunteer Bundling Fundraising is,  the tendency to gravitate toward
like-minded people with the same ideological points of view (Raymond J. La Raja, State and
Local Political Parties, CFI ).   The effect being two fold in that, with the presence of a
Iideological connection the donor may tend to pledge the full amount of his/her donation much
quicker and may want to recruit their friends.  Some studies are theorizing that political parties
may start to promote their ideological views ahead of other political and government concerns in attempts to attract new members and retain party loyalists [the Ideological]. This research has shown that political ideology may not be the only motivation to give political
donations.  Our government system makes allowances for access to its policy makers and some
interpret political donations as a necessary part of doing business.  The Volunteer Bundler
Fundraiser is seeing the results as increased individual donations because most business
people will view $2,000 as a deal in exchange for government access.  Bundler fundraiser are
presenting the bundled donations to the campaigns and political parties as being from the affect
of a larger "Collective" organizational influence [the Collective].           

Figure 00

BUNDLER Volunteer Fundraiser
BUSH-CHENEY '2000
Primary Election
$94 Million Total Money Raised
$24 Million Total Money Raised by Bundlers (241 Bundlers)
26% of total...($100,000) per Bundler
--------------------------------------------------------------
BUNDLERS  Volunteer Fundraiser
BUSH-CHENEY '2004
Primary Election
$262 Million Total Money Raised
$76.5 Million Total Money Raised by Bundlers (548 Bundlers)
29% of total...221 each Rangers ($200,000), 327 Pioneers ($100,000)
(Public Citizen Bundlers estimate: $100 Million Total / 40% of Total Money)

RNC SUPER BUNDLERS  Volunteer Fundraiser
BUSH-CHENEY 2004
General Election (Opted for Campaign Public Financing)
Additional $75 Million to Campaign
(No Private Money to Candidates using Public Finance)
$31.5 Million raised by RNC / Bush (105) "Super Rangers" General Election
/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////

BUNDLERS Volunteer Fundraiser
KERRY 2004
Primary Election
$248 Million Total Money Raised
$41.5 Million Total Money Raised by Bundlers (564 Bundlers)
17% of total...266 each Vice Chairs ($100,000), 298 Co-Chairs ($50,000)
(Public Citizen Bundlers estimate: 52 Million Total / 21% of Total Money)

DNC SUPER BUNDLERS Volunteer Fundraiser
KERRY 2004
General Election (Opted for Campaign Public Financing)
Additional $75 Million to Campaign
(No Private Money to Candidates using Public Finance)
$4.3 Million raised by DNC / Kerry (17) "Trustees" General Election
(Public Citizen doubts these numbers and states that more money was raised)
///////////////////////////////////////////////////////////////////////////////////////////////////////////
Contribution Meter
Current Totals: George W. Bush $262,000,000.00
                             John Kerry $248,000,000.00
Source:  Whitehouseforsale.org