Apart from receiving money from public funding schemes, political parties can receive their funds from membership dues, private or (in some countries) corporate donations, or income from properties or businesses. All sources of funds are, however, associated with specific risks that may endanger the successful operation of a democracy. Many countries therefore choose to either limit donations from dubious sources or prohibit them altogether. For information on legal prohibitions, read the file about "Prohibited Sources of Funds".
Limits on donations attempt to draw the line between “participating financially” and “buying access or influence” by setting a limit on how much a donor can contribute or how much a political party or candidate can accept from one single donor. Limits can discourage big donations but also encourage a more balanced and diverse funding base for political parties. This can be especially effective when combined with a sufficiently robust public disclosure requirement.
