Campaign finance

Campaign finance—also called election finance, political donations, or political finance—refers to the funds raised to promote candidates, political parties, or policy initiatives and referendums. Donors and recipients include individuals, corporations, political parties, and charitable organizations.

Political campaigns usually involve considerable costs, travel, staff, political consulting, and advertising. Campaign spending depends on the region. For instance, in the United States, television advertising time must be purchased by campaigns, whereas in other countries, it is provided for free. The need to raise money to maintain expensive political campaigns diminishes ties to a representative democracy because of the influence large contributors have over politicians.

Although the political science literature indicates that most contributors give to support parties or candidates with whom they are already in agreement, there is wide public perception that donors expect government favors in return (such as specific legislation being enacted or defeated), so some have come to equate campaign finance with political corruption and bribery. These views have led governments to reform campaign financing in the hope of eliminating big money influence.

Private financing

Some countries rely heavily on private donors to finance political campaigns. These kinds of donations can come from private individuals or groups such as trade unions and for-profit corporations.