Ask WMD: Campaign Finance Question

Here is the question:

Hi Matt,

I have a dumb question.

I read about these high dollar fundraisers. Such as Bon Jovi $ 38,500 per person fundraiser for Obama.

I thought individuals were limited to $ 2300.

No such thing as a silly question. In fact, I've often wondered about this myself and this gave me a good excuse to ask my contacts about it...

Here is the answer:

Candidates often sign a Joint Fundraising Agreement with other entities that allows them to collectively raise a higher dollar amount from individual donors.

In the case of Sen. McCain, the joint “Victory” committee consisted of the campaign, the Republican National Committee and the Ohio Republican Party, with the first $2300 (or $4600 per couple) going to the campaign and the rest divided among the other entities. Because Sen. McCain has chosen to accept federal funding, the joint committee funds are now divided between the McCain-Palin compliance fund (to pay for legal/accounting work), the national committee and the state party.

I assume in Sen. Obama’s case, the fundraiser you mentioned is also for a joint committee. He has not chosen to receive federal funds, so he can continue receiving money directly through those events.

And now a follow-up question that I think I can take myself...

I read recently that John McCain cannot receive campaign donations due to public financing. If that is true, is it better to donate to the RNC or someone else?

My politico friends can correct me if I'm wrong, but you can still -- and should -- donate your full amount to McCain/Palin. As I understand it, you were able to "double" your maximum contributions to McCain if you had donated once prior to McCain accepting the nomination at the convention and then afterwards. Team McCain would have had to have used that money prior to the end of the convention.