How Uncle Sam Became a Top Donor

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When people learn that the U.S. Government is the top contributor to Barack Obama's presidential campaign, their reaction is oftentimes one of surprise, even confusion. "How can the U.S. Government be a campaign contributor?" they ask.

It's a great question. The answer is that the U.S. Government, itself, can't be.

Employees of the U.S. Government, however, are a different story, and that's exactly who's given $2.1 million dollars to the campaign of Barack Obama (and over $500,000 to Mitt Romney).

To be clear, it's no mistake that the name of the U.S. Government claims the #1 spot when the contributions "it" has given are in fact from its employees. When calculating total contributions from a company or organization, it's standard practice for campaign finance analysts to include contributions from that entity's employees. Google, Microsoft, Goldman Sachs, JP Morgan Chase, Bank of America, and a whole host of other big companies decorate Obama and Romney's top donors lists — in each one of these cases, the majority of the contributions have come from the company's employees.

There are a couple of reasons why it makes sense to count contributions from a company or organization's employees in its total.

First, the main point of calculating total contributions is to shed light on money influencing our political system. Influence happens when large political contributions represent clear cut, special interests. Contribution checks don't have to be signed by a company's CFO in order to represent that company's interests. Individual employees, to the extent that they benefit from their employer's success (e.g., bonuses, raises, continued employment, etc), share its interests. So when hundreds of a company or organization's employees all decide to open their checkbooks for a candidate, resulting in millions of dollars contributed, that company or organization's interests are being represented by those dollars, and influence is being exerted.

Additionally, it's a common practice for high-ranking individuals within a company or organization to act as "bundlers" — people who work to gather many individual contributions for a particular campaign. In other words, when you see hundreds or thousands of individual contributions coming from a particular company, it's probably not the case that hundreds or thousands of people within that company woke up one morning and spontaneously felt called to contribute: there may well have been somebody within that company doing the calling.

Notwithstanding these good reasons for including employee contributions when calculating totals for a company or organization, it's important to note a potential danger of this methodology: it's easy, when we see six- or seven-figure numbers next to a company or organization name, to forget that most of that money is coming from individuals who have the company or organization's interests at heart, not the company or organization itself. But as Rootstrikers' first Capital in the Capitol infographic clearly highlights, two-thirds of all contributions are indeed coming from individuals.

This may seem like a nuanced point, but it's important to keep in mind as we fight for reform: until we find a way to curb the aggregate influence of wealthy, individual donors the problem of money in politics will remain unsolved.

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Jay Costa commented 2012-11-02 16:39:42 -0400 · Flag
Do you feel as though each of the other top contributors should say “employees” as well? Because that’s where the vast majority of the contributions attributed to them have come from.
Deborah Hunsley commented 2012-11-02 09:57:39 -0400 · Flag
I was one of the DC Rootstrikers’ heated debaters with Robert on the helpfulness of the Presidential contribution infographic. At a minimum, for Obama’s top contributor, it should read “US Government Employees.” To paraphrase some comments from others on your Twitter feed, “We need to provide context, not JUST data…. This graphic would be a lot more credible if that was clear.”
Jay Costa commented 2012-11-02 01:20:48 -0400 · Flag
To add to the discussion about bunders: while I agree with you that they’re a huge problem, I think it’s important to put them into perspective. The OpenSecrets infographic that you link to cites bundlers as having raised at least $180M for Obama and the DNC — I think it’s key to note the “and the DNC” part. Limits on contributions to political parties are much higher than limits on contributions to candidates ($30k vs. $5k). It would be interesting to know how much of the money cited in the infographic went to the DNC vs. the Obama campaign. Even if the entire $180M went directly to the Obama campaign, Obama has raised over $600M — meaning that there’s still a whole lot of money out there that bundlers wouldn’t be accounting for.

To address your point below about super PACs — I think you’re absolutely right when you say below that the individuals who donate millions of dollars to them are wielding inappropriate amounts of influence over public elections. However, I again think it’s important to keep things in perspective — Obama’s campaign has raised 10 times as much in direct contributions as his affiliated super PAC has. And this isn’t exceptional — super PACs get a whole lot of attention, but they’re just the frosting on the cake; they account for a small percentage of the total money that’s being raised and spent to influence our elections. The vast majority of money comes in the form of direct contributions to candidate campaigns, as depicted by this OpenSecrets chart: http://www.opensecrets.org/news/2012/08/2012-election-will-be-costliest-yet.html#more
Jay Costa commented 2012-11-02 01:03:24 -0400 · Flag
Robert, I’m confused. How would that weaken the message? It’s the truth…
Szelena Gray commented 2012-11-01 17:18:37 -0400 · Flag
I’m really delighted to hear that this campaign generated such heated discussion. As Jay mentions, this is a complicated issue, and it’s not easy to choose one part to portray—but with talks like this taking place, we don’t have to. Also, Robert, often our campaigns are generated by ideas and work from our members. If you would like to help suggest or work on a project inspired by this, please let me know.
Robert Crowe commented 2012-11-01 13:46:20 -0400 · Flag
Our DC Rootstrikers group is going to be distributing the infographics this Sunday at: Dupont Circle Farmers Market on November 4th

At our last planning meeting this issue was heatedly discussed, which caused me to post my comments. In fact, we debated whether distributing the Obama infographic showing the U.S. Gov. as top donor would be counterproductive and weaken the message. The consensus was that it would divert some attention from the message, but overall it will give most potential voters information they would not otherwise get, and hopefully encourage them to start paying attention to the problem.

We anticipate there will be more and better data coming out about the funders after the election.
Jay Costa commented 2012-11-01 12:20:40 -0400 · Flag
Robert, you’re very right to point out that there are many different ways to highlight the most influential funders of election campaigns. As you point out, bundlers are a huge part of the equation. Perhaps it would be interesting to create some sort of graphical depiction of who the top bundlers to the candidates are.
Robert Crowe commented 2012-11-01 00:15:04 -0400 · Flag
Although Jay Costa gives a lengthy explanation of why federal employees’ contributions top Obama’s donor list, he does not address the important question of why Rootstrikers decided to use this specific data to supposedly highlight the most influential contributors. Contributions from thousands of federal employees, even if they do amount to over $2 million, will hardly be considered extraordinarily influential.

There are any number of ways to highlight the most influential funders of election campaigns. For example, on the Public Citizen website you can find out who Obama’s bundlers are and how much they raised. Here’s a link:
www.citizen.org/whitehouseforsale/results.cfm?mid=20&id=63

The OpenSecrets website has a page about bundlers for Obama and Romney, which shows that a relatively small number of bundlers bring in such enormous sums that they are undoubtedly among the most influential funders to these campaigns. Here’s the link:
www.opensecrets.org/pres12/bundlers_graphic.php

The Washington Post website has a page titled 2012 Presidential Campaign Finance Explorer, which shows, among other useful information, the 16 Super Pac contributors who donated $2 million or more for Obama and Romney. The largest is over $17 million. No one reading this data can avoid thinking that these funders already do have or will have unfair influence on the candidates. Here’s the link:
www.washingtonpost.com/wp-srv/special/politics/campaign-finance/

The Rootstrikers data listing top donors is technically correct depending on how one chooses to record and report campaign contributions. It is somewhat useful to show the large amounts that the candidates must raise and who is contributing. But it misses the mark, if the intent is to show the most influential funders and the enormous amounts such funders bring to the campaigns.
Szelena Gray commented 2012-10-28 13:08:06 -0400 · Flag
Hi Mike. The infographic was posted on 10/16/12 and this article was published on 10/26/12. The data isn’t static, and we’ll add a note to the infographic page as a reminder.
Mike Graham commented 2012-10-28 03:20:35 -0400 · Flag
In the infographic where you show the top five funding groups you do not show “US Government” as one of Romney’s top contributors. However, in this article you say that more than 500k has been dotated by the US Government to the Romney campaign. This seems terribly inconsistent, and causes me to question your calculations and reasoning.