In broad terms, it is convenient to divide the fund-raising activities of political parties into three levels of magnitude of contributions being sought. There are top level contributions (usually from the very rich or from institutions such as corporations); there is low level, 'grass roots' fund-raising activities carried out by local party organisations; and there is a middle level of activities. This last category is the subject of this entry.
Apart from fund-raising through business schemes, two of the most common forms of fund-raising carried out by central party organisations in some First World countries and aimed at medium-sized donations are (a) social events such as dinners and (b) direct mail.
Fundraising Dinners and Social Occasions
This is a time honoured form of political fund-raising in the United States but is also being practised more frequently in countries such as Britain. These occasions are less intimate than events for top-level contributors, who will be rewarded by personal access to party leaders.
The number attending a fund-raising dinner or reception will normally range from a few dozen to a few hundred. There will be too many guests to permit each one to engage in a detailed conversation with the party leaders. Nevertheless, the occasion will be sufficiently personal for leading figures to make brief contact with most of that present - a handshake and a few words. Moreover, there will be some tokens of exclusivity, possibly in the form of signed photographs of the leader or membership of a specially designated club limited to contributors of a certain amount. In addition, the successful fund-raising dinner will attempt to give those present the feeling that they are members of a social or business elite and will provide a chance to see and be seen by others sufficiently prominent to be able to afford the costs of a ticket. The cost of a ticket to a fund-raising event is typically between US$250 and US$1000.
Direct Mail
Direct mail fund-raising consists of appeals on behalf of a candidate or a political party sent by mail to a set of selected individuals. The success of such mailshots depends upon the efficiency with which those contacted are selected. Obviously, there are considerable costs in paying for postage stamps and for sending letters to a mass of people, of whom a relatively small proportion are likely to respond. Indeed, the amount collected through a direct mail appeal is not always as great as the cost involved in sending out the letters.
The success of fund-raising by direct mail depends upon a number of factors:
- first, the level of postal costs in the country concerned;</li
- second, the efficiency of the postal service;
- third, the habits of the population and whether a positive response to impersonal appeals is normal among, at least, a significant minority;
- and, fourth, the care and skill with which the data base of those to whom letters are sent has been prepared.
The data base for a direct mail appeal may consist of the names and addresses of those likely to contribute because of their past behaviour. Those who are party members or who have given contributions to the party in the past may be selected. However, the strategy of appealing again to those who have given in the past has limitations. Repeated demands for money to the same people risks 'donor fatigue'. Moreover, candidates who have not previously run for public office and newly-formed political parties will not have an established supporter base. In these cases, it will be important to select names and addresses of groups that probably contain a relatively high concentration of those able and willing to give.
In some countries there is a commercial trade in lists of names. For instance, a Left Wing political party may purchase a list of the names of subscribers of a magazine advocating a radical lifestyle; a Right Wing party may prefer to send a mailing to those who subscribe to an economics or business journal. Other methods are to send letters to those living in certain neighbourhoods or to survey lists of shareholders of particular companies.
See also Plutocratic Approach, Funding by Institutions, Profits from Party-Owned Business Activities, and Grass Roots Approaches.
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