If public funds are given to political parties and/or candidates, the state may have an opinion on what the money should be used for. Sometimes, this can be expressed as recommendations to the political parties or candidates, while in other cases funds are earmarked for specific purposes, or certain uses are prohibited.
One main difference is whether or not it is expected that the funds will be used for election campaign purposes (more common where public funds are given to candidates) or for routine, non-election related operations (more common where funds are given to political parties). Specific funds may either be earmarked for specific purposes, or accepted purposes can be listed and it can be allowed that the party or candidate allocate the funds between them.
Apart from general election campaign purposes and routine operations of the party, funds are commonly earmarked for:
- The work of the parliamentary group/caucus, which may include administrative staff, legislative research, and publications or other information needed.
- Training of party members or candidates in everything from party ideology to membership recruitment and citizen outreach.
- Research, including research staff, information material, and opinion polls.
- Party solidarity work in other countries, often in the form of funds provided to a political party foundation to support sister parties in developing democracies.
- Activities aimed to support the participation of under-represented groups such as information campaigns aimed at increasing the participation of national minorities, immigrant communities, young voters, or voters in areas where voter turnout is lower than in the rest of the country.
- Electoral deposits in countries where political parties or candidates have to present a deposit to register for the elections.
- Support for collecting signatures in countries where signatures are a requirement for registration.
- Voter education, which is at times a responsibility of the political parties and/or candidates. If it is, they can often receive funds to cover their costs. In societies where there have been major changes to electoral systems, processes, and procedures and in the case of the newly enfranchised and first time voters, voter education may play an extra important role.
- Civic education, which may also be a responsibility of the political parties and/or candidates. Civic education deals with broader concepts underpinning a democratic society such as the respective roles and responsibilities of citizens, government, political and special interests, the mass media, and the business and non-profit sectors as well as the significance of periodic and competitive elections.
- Publishing of election manifesto, ideological publications, or party press.