First published in The Straits Times, Oct 8, 2012
BY HOE PEI SHAN
(C) Singapore Press Holdings Limited
ELECTION 2012
Campaigners get phone numbers of backers, small donors get their say
NEW YORK – It began with an unassuming e-mail for free bumper stickers from US President Barack Obama’s re-election campaign.
Mr Michael Gruszczynski, a registered Democrat, promptly signed up to receive one. But upon accepting the no-cost offer last month, the 30-year-old Nebraskan was asked to donate US$10 (S$12.30) to the campaign in exchange for a large refrigerator or vehicle magnet.
“The way the campaign slowly walks individuals through this process by including rewards for going further and further really is well done,” he said. “By the end of the process, I was perusing the online merchandise, was going to receive three bumper stickers and a magnet, and was on board with the donation.”
Mr Gruszczynski’s favourite items include a beer can holder emblazoned with a picture of Vice-President Joe Biden and the words “Cheers Champ”.
Affordable campaign merchandise and memorabilia have long allowed American voters to be a part of their country’s presidential campaigns without breaking the bank.
Republican challenger Mitt Romney’s closed-door fund-raisers with wealthy donors, for instance, can cost a hefty US$50,000 each. Mr Obama recently headlined a similar event hosted by hip hop celebrity couple Beyoncé and Jay-Z for US$40,000 a plate.
But as the candidates come under pressure to raise ever larger sums of money to compete against each other, their campaigns have also begun tapping new ways of soliciting small dollar donations.
Just last month, Mr Obama’s team became the first in history to accept donations via text message. This followed regulatory changes by the Federal Election Commission (FEC) relieving phone companies of responsibility for possible fraudulent or excessive donations.
Supporters of the incumbent can now text “GIVE: to 62262 (it spells “OBAMA”) and anonymously donate up to US$10 per message with a US$50 monthly cap and an overall total of US$200 for a single candidate or campaign in keeping with FEC regulations.
Not one to be left behind, Mr Romney announced barely a week later that his campaign would also make the jump into text donations. His supporters can donate in a similar fashion by texting “GIVE” to “GOMITT” or 466488.
This new form of political donation is similar to methods adopted by charitable organisations in recent years. Donors first confirm their intention and eligibility, and later pay for the donation as part of their monthly cellphone bill.
One difference, however, is that such political donations are treated in the same manner as non-charitable transactions, such as the purchases of ringtones. This means carriers processing the payment must take a cut that typically ranges from 30 per cent to 50 per cent of the donated amounts.
Some election pundits view the opening of this latest fundraising channel as a game changer, not only in terms of the additional sources of campaign cash but also when it comes to grassroots outreach and voter engagement.
“Obviously campaigns want more money, but now they would also have the cellphone numbers of these donors and can go back to them to get them to increase their donations or to volunteer,” said Mr Aaron Scherb, the legislative programme manager of Public Campaign, an outfit dedicated to campaign reform.
“You’re much more likely to vote for someone you’ve donated to, and it’s easier to spread the word through texts.”
The Pew Research Centre’s Internet & American Life Project showed that almost nine in 10 adults in the US have at least one cellphone line and three-quarters of them use text messaging.
Mr Scherb added that small donations via text messages might help to level the playing field in an election that has been dominated by huge donations from a small number of wealthy businessmen.
Casino tycoon Sheldon Adelson, for example, has donated US$70 million so far this year to Republicans, nearly three times the previous highest amount.
“Most political donations in the US are from large donors, and we see text message donations as a way to put smaller donations on the map, which means everyday Americans can have more of a voice,” said Mr Scherb.
Mr Jimmy Aceves, 53, a stay-at-home dad, sent his first donation via text message to Mr Obama recently after seeing the programme advertised on Twitter. He was surprised at how simple the process was.
“I think it’s a great idea,” he said. His only complaint was that carriers should not be allowed to take a cut at all as these donations are meant for the candidates and not the networks.
Campaigns on both sides of the aisle are eagerly anticipating a tsunami of small donations as the election enters its closing weeks. Some campaign finance observers suggest that the Obama team will be able to better capitalise on this platform.
“The Obama campaign has a huge advantage when it comes to his younger network and getting people into a more complex social environment,” said Mr Michael Malbin, founder and executive director of the non-partisan Campaign Finance Institute.
Mr Obama also appears to have a larger base of small donors. According to the latest campaign finance disclosure documents, he raised more than US$114 million in August from big donors as well as more than 1.1 million Americans, who gave an average of US$58 each.
By contrast, Mr Romney raised US$111.6 million in the same month, of which only US$34.6 million came from donations under $250.
Mr Obama’s edge stems from the fact that he and his campaign have been cultivating and trying to grow this group of supporters since the last election.
Mr Romney is making substantial efforts to close the gap, analysts said, but he is naturally limited by the fact that he won the Republican primary in April and only received the party’s official nomination in August.
Republican digital fund-raiser and political strategist Peter Pasi said: “I do think the Romney campaign is adopting a lot of these things very quickly. And even though they can’t, in some parts, catch up in terms of sheer numbers, the Republicans are doing a lot more this time around, and using things like social networks a lot more effectively.”
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