Where do political donations originate?

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Political donations come from individuals, political parties and political action committees (PACs). Individual donors range from friends, family, and others who support a loved one’s campaign to wealthy taxpayers looking to exert political influence. A candidate’s political party can boost electoral prospects by donating money at crucial moments in a campaign. PACs are formed by unions, industry leaders and political leaders to make donations and create publicity for political candidates. These donors are often limited in their total political donations per election under local, regional, and national campaign finance laws.

Depending on the law of the jurisdiction, money donated to a political campaign is documented on campaign financial reports filed during election seasons. These reports outline the number of individual, party and PAC donations given to candidates during their campaign. Transparency of political donations emerged in the late 20th century thanks to advances in data archiving. Election officials are able to post campaign financial reports on their websites for view by journalists, election experts, and constituents.

Individuals interested in a particular candidate or party could make political donations before Election Day. Individual donation limits vary by jurisdiction. These donations may not represent large amounts of money, but applicants can rate their support based on the number of donors. Local and regional candidates vying for party nominations often compete for the largest number of donors in their districts as a way to establish support before an election.

Political parties from the local to the national level distribute funds to their candidates to boost electoral prospects. Party committees benefit from donations across multiple election cycles that can be distributed to cash-strapped candidates. Elected officials and party leaders within a region could coordinate political donations to candidates most likely to win seats from the opposing party. These donations may also be needed for elected officials running for re-election against strong candidates.

PACs are set up by political groups and businesses to legally contribute to campaigns in the United States. These committees register with the Federal Election Commission with donation limits of $5,000 United States Dollars (USD) per candidate in each election period. These donors represent the largest contributors to local, state and national political candidates as of January 2011. The Center for Responsive Politics reported that the top ten donors to US political campaigns in 2010 were issue-oriented PACs such as ActBlue ($47.8 million ), business PACs such as Goldman Sachs ($33.2 million), and union PACs such as the Laborers Union ($30 million).

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