How do political parties raise money for election campaigns?

Political parties and candidates in the United States raise money for election campaigns through several regulated and independent channels. It is important to note that while campaign finance is a vital part of the democratic process, it raises significant ethical concerns regarding the potential for corruption and the principle of "one person, one vote," as large contributors may gain disproportionate influence over policy.1

Parties and candidates primarily raise funds through:

• Hard Money: These are regulated donations subject to federal limits on the source and amount of contributions. Individuals may contribute directly to candidates and party committees within these legal caps, which are indexed for inflation.2345
• Political Action Committees (PACs): Organizations formed by corporations, unions, or other groups to aggregate voluntary contributions from members or employees to support candidates.65
• Super PACs: Following the Supreme Court decision in Citizens United v. Federal Election Commission, these organizations can raise and spend unlimited funds independently of a candidate’s official campaign to advocate for or against specific candidates or issues.637
• Public Financing: Some presidential candidates may opt for a system of voluntary public subsidies, funded by a taxpayer "check-off" system, provided they agree to limit their overall campaign expenditures.87

Historically, parties also utilized "soft money"—unregulated donations for general party-building activities—but the Bipartisan Campaign Reform Act of 2002 largely prohibited national parties from raising these funds.234