Political funding is an important element in electoral campaigns aside from the influence and support of known political persona backing incumbent candidates. Most of the time, financial funding is sponsored by officials who are currently seated in high government offices. The allegiance to a political party weighs greater than personal biases and it has become a tradition to these parties to support their incumbent representatives by all means, and financial assistance is one of those.
In January 2006, the New Jersey Democratic State Committee (NJDSC) was able to raise over $6 million and spent more than their collected fund in the 2005 elections. In the same manner, Star Ledger also published the report released by the Democratic Members of the Assembly raising a total of $6.5 million and spending about $6.7 million. Finally, the Senate Democratic Majority had a fund of approximately $1.3 million and was able to spend about $1 million. In total, all the State Democratic organizations raised almost $14 million in funds and spent about $14.1 million. In the similar report by the same newspaper, the Republican organizations had a total of $5.2 million and spent about the same amount on electoral campaigns.
The figures clearly show that during the 2005 elections, the spending of the Democratic organizations is almost thrice as much as that of the Republicans. It can be attributed to a number of factors including the fact that they own majority of the officials in the US House of Representatives. The huge amount of support from different sectors affects the amount of sponsors the group receives. And because the Democratic Party covers the majority of the members of the House, the expenses are also huge.
Aside from that, Democratic Party supports a number non-profit organizations. The website of NJDSC finances the following activities:
- Loans and lines of credit for facilities and working capital, all tailored to meet the needs of non-profit organizations at competitive rates and terms.
- New Markets Tax Credit Loans: tax credits for private investors in exchange for capital investment in facilities in low-income communities.
- Non-profit Business Analysis (NBA): an in-depth financial analysis and consultation that clarifies a non-profit’s financial condition, helping managers balance money with program goals and articulate financial needs to funders.
- Financial Leadership Clinic: a two-day educational seminar on finance for 4-6 non-profits working in a common sector, combining individual coaching and peer-based learning. Managers learn to read and interpret financial documents, understand the dynamics of their business models, and identify and communicate the specific financial needs and goals of their organizations.
- Workshops and Coaching: a dynamic exploration, available to both non-profits and funders, of how to better use money, so that missions can thrive. NFF provides expert guidance on how management decisions and capital structure affect an organization’s mission and finances.
- Capital Partners: helps non-profits attract the shareholder-like investment they need to support significant transformations. Capital Partners brokers and facilitates capital campaigns of $5 million or greater, so that non-profit executives can focus on the day-to-day running of their organizations.