In a Struggling Economy, City Fundraisers Grapple With Tapped-Out Donors
Tougher times will mean focus on smaller donations, possibly lower totals for January
August 11th, 2008
There are more Democratic candidates running in next year’s city elections than ever before. For 2008, though, their race is about money, with the historic number of candidates competing for many of the same dollars.
Not that the candidates have been having much trouble. According to a report issued in June by the Campaign Finance Board (CFB), more money has been raised this year than in the comparable period in 2001, and the number of donors has jumped by nearly half since the previous reporting period.
But after the long and exhausting presidential primary campaign waged by Sen. Hillary Clinton (D), many prospective New York donors are already drained. Add to that the worries about a struggling economy, with dipping stock prices and rising costs leaving less in the bank, and candidates may find donations scarce just as they begin the push toward the next finance filing in January, when more people will be paying attention and the campaigns will begin in earnest.
And in the meantime, the intensifying campaigns of Sens. Barack Obama and John McCain are draining even more money from New York, as are general elections for Congressional races across the country. New York City has a tradition of being the nation’s political ATM. But there may not be much cash left.
“My experience has been that people are sort of tapped out from the political scene in general,” said Melanie McEvoy, president of McEvoy & Associates. “We had a presidential primary that basically lasted a year and a half, and people put a lot into that, and very early.”
The result, she said, is simple: “I think donors today are more comfortable saying ‘no.’”
Jason Weingartner, a fundraiser for Cathy Blaney & Associates and the executive director of the New York County Republican Party, said raising money for GOP candidates has been particularly difficult.
“It’s been tighter than it’s been in previous years,” he said. “I think especially from a GOP fundraising perspective, it’s been tighter.”
He attributed the slowdown mainly to the troubling economic climate, in which major investment banks have been toppled and Wall Street has hemorrhaged thousands of jobs.
“Bear Sterns going under, those are a lot of people that—regardless of whether it’s GOP donating or Democratic fundraising—those are people that are the sort that would give,” he said. “And now they’re obviously more preoccupied more importantly with their own situations.”
On top of that, most Republican donors in New York gave to failed candidates, such as former Mayor Rudolph Giuliani. They seem skittish about pouring money into another campaign.
“Clearly some people are hedging their bets,” Weingartner said, “and trying to husband their money a little bit more vigorously than they used to in the past.”
Perhaps the most interesting development to emerge from the swirl of fundraisers and competing campaigns is an unintended one: increased access to candidates.
The CFB attributes that, in part, to new campaign finance regulations that encourage smaller donations, an approach that seems to have worked: The average donation in the first six months of 2008 fell to $403, down nearly a third from the previous reporting period.
Part of that decline can be attributed to the entry of new candidates for Council races, which have lower contribution limits. But another part is the consequence of candidates forcibly adapting to the new reality.
“Having more events where lower-dollar donors can afford to go and come and be a part of it is smart, and I think that we’re going to see a lot of that,” McEvoy said.
But though the presidential campaign and the economy may be creating additional problems, getting turned down is all part of the fundraising game, said Lisa Hernandez Gioia, president of The Esler Group, which raises for Democrats.
“People,” she said, “always have reasons not to give.”
sgentile@cityhallnews.com
Not that the candidates have been having much trouble. According to a report issued in June by the Campaign Finance Board (CFB), more money has been raised this year than in the comparable period in 2001, and the number of donors has jumped by nearly half since the previous reporting period.
But after the long and exhausting presidential primary campaign waged by Sen. Hillary Clinton (D), many prospective New York donors are already drained. Add to that the worries about a struggling economy, with dipping stock prices and rising costs leaving less in the bank, and candidates may find donations scarce just as they begin the push toward the next finance filing in January, when more people will be paying attention and the campaigns will begin in earnest.
And in the meantime, the intensifying campaigns of Sens. Barack Obama and John McCain are draining even more money from New York, as are general elections for Congressional races across the country. New York City has a tradition of being the nation’s political ATM. But there may not be much cash left.
“My experience has been that people are sort of tapped out from the political scene in general,” said Melanie McEvoy, president of McEvoy & Associates. “We had a presidential primary that basically lasted a year and a half, and people put a lot into that, and very early.”
The result, she said, is simple: “I think donors today are more comfortable saying ‘no.’”
Jason Weingartner, a fundraiser for Cathy Blaney & Associates and the executive director of the New York County Republican Party, said raising money for GOP candidates has been particularly difficult.
“It’s been tighter than it’s been in previous years,” he said. “I think especially from a GOP fundraising perspective, it’s been tighter.”
He attributed the slowdown mainly to the troubling economic climate, in which major investment banks have been toppled and Wall Street has hemorrhaged thousands of jobs.
“Bear Sterns going under, those are a lot of people that—regardless of whether it’s GOP donating or Democratic fundraising—those are people that are the sort that would give,” he said. “And now they’re obviously more preoccupied more importantly with their own situations.”
On top of that, most Republican donors in New York gave to failed candidates, such as former Mayor Rudolph Giuliani. They seem skittish about pouring money into another campaign.
“Clearly some people are hedging their bets,” Weingartner said, “and trying to husband their money a little bit more vigorously than they used to in the past.”
Perhaps the most interesting development to emerge from the swirl of fundraisers and competing campaigns is an unintended one: increased access to candidates.
The CFB attributes that, in part, to new campaign finance regulations that encourage smaller donations, an approach that seems to have worked: The average donation in the first six months of 2008 fell to $403, down nearly a third from the previous reporting period.
Part of that decline can be attributed to the entry of new candidates for Council races, which have lower contribution limits. But another part is the consequence of candidates forcibly adapting to the new reality.
“Having more events where lower-dollar donors can afford to go and come and be a part of it is smart, and I think that we’re going to see a lot of that,” McEvoy said.
But though the presidential campaign and the economy may be creating additional problems, getting turned down is all part of the fundraising game, said Lisa Hernandez Gioia, president of The Esler Group, which raises for Democrats.
“People,” she said, “always have reasons not to give.”
sgentile@cityhallnews.com
