Depending on the form in which public resources are made available, public funding is divided into direct public funding or indirect public funding.
Direct public funding is given to political parties and/or candidates in the form of money – usually as bank transfers but at times in cash or cheque.
Indirect public funding is when resources with a monetary value are provided by the Government to political parties and/or candidates. It is generally less controversial than direct public funding but also has less impact even though it can at times amount to quite a large monetary value.
Indirect public funding can take a number of different forms, the most common of which are the following:
- Media access, which in practical terms usually means free advertising slots in publicly owned media. Publicly owned media broadcasting multi-party election debates does not constitute indirect public funding.
- Interest-free loans for paying registration fees or mounting a basic election campaign.
- Free printing and distribution of ballot papers in multiple ballot systems where parties are responsible for providing their own ballots and in some cases basic campaign information.
- Free or subsidized office space for political party headquarters or local branches.
- Free or subsidized public transportation for candidates, key party activists, or in some cases even for supporters going to political rallies.
- Use of Government buildings like schools, administrative buildings, and sports arenas for meetings and rallies.
- Special taxation status for political parties, meaning that parties do not pay normal taxes on receipts and expenditures, that they are exempt from paying Value Added Tax (VAT), or that they are exempt from paying any taxes at all.
- Tax-free donations is a form of indirect public funding that provides the donor with tax incentives for contributing to a political party.
- Free or subsidized postage for disseminating informational material to voters or, in some cases, for any purpose.
- Free or subsidized telephone lines and telephone calls.
