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Campaign finance

Definition

Campaign finance refers to the financial resources and contributions used by political candidates and parties to fund their election campaigns. It includes donations from individuals, corporations, and interest groups, as well as public funding options.

Analogy

Think of campaign finance as the fuel that powers a car. Just like a car needs fuel to run efficiently, political parties need money to effectively operate their campaigns and reach out to voters.

Related terms

Citizens United v. FEC: This Supreme Court case in 2010 ruled that corporations and unions have the same rights as individuals when it comes to making political contributions, leading to an increase in the influence of money in politics.

Super PACs: These are independent expenditure-only committees that can raise unlimited funds from corporations, unions, and individuals. They cannot directly coordinate with candidates but can spend unlimited amounts on ads supporting or opposing candidates.

Soft Money: Refers to unregulated contributions made by individuals or organizations for general party-building activities rather than directly supporting specific candidates. Soft money was largely banned by the Bipartisan Campaign Reform Act (McCain-Feingold Act) in 2002.