Trade Groups Turn to Individual Campaign Donors Uncertain Legal Status of 'Soft Money' Has Fundraisers Asking PACs to Mobilize Their Members
By Juliet Eilperin
Washington Post Staff Writer
Tuesday, May 6, 2003; Page A05
In last year's elections, the National Beer Wholesalers Association gave nearly $370,000 in "soft money" to the House GOP campaign organization. But soft money's legal status now is deeply in doubt, spurring Republican fundraisers to seek new ways to tap the wallets of beer wholesalers and many other business owners and workers sympathetic to their agenda.
One alternative: Press the group's members to send checks directly to the party. Simple as it sounds, this strategy would force an overhaul of habits ingrained not only in party fundraisers, but also in Americans whose political activism involves, at the most, an annual contribution to their company's or trade group's political action committee (PAC).
An individual's donation to a party or candidate counts as "hard money." Unlike soft money, it is limited and tightly regulated, but highly prized by campaigns because it can be used for virtually any purpose. Under the new McCain-Feingold campaign finance law -- which barred the national parties from raising soft money -- each person can give $2,000 to a federal candidate or party organization.
A three-judge panel last week struck down the ban on soft-money contributions to national political parties. But the decision is automatically appealed to the Supreme Court, and most Republican and Democratic leaders are hesitant to resume soft-money solicitations until the high court has its say.
Meantime, if the Republicans' House campaign committee could get 185 beer wholesalers to send $2,000 each -- or get 370 of them to give $1,000 -- then it could duplicate the amount it received in soft money from their trade group in 2002. But that's more difficult than simply persuading a top corporate officer to write a few big soft money checks.
That's the challenge facing, among others, Rep. Thomas M. Reynolds (R-N.Y.), chairman of the National Republican Congressional Committee. When he talks with corporate leaders or directors of PACs -- which can give no more than $15,000 to a party committee -- Reynolds asks them to urge their members to write checks of as much as $2,000 to the NRCC.
"I tell them, 'I want to think out of the box with you,' " Reynolds said of PAC officials. "The reality is, today the most they can contribute is $15,000. Maybe their CEOs [chief executive officers] will write checks."
Reynolds made the same request of John Motley, who heads the Food Marketing Institute's Washington office.
"He understands the ballgame has changed," Motley said. "They need to step out of the mold and do more than they've done in the past."
Motley said he planned to approach his most politically active Republican members about Reynolds's proposal. "I don't think that's beyond expectations," he said.
During a bus ride to the Super Bowl in January, Reynolds asked Jeff Vukelic, treasurer of the National Beer Wholesalers Association, whether he could ask his group's members to donate directly to the NRCC, in addition to supporting the association's PAC. Vukelic said he was happy to help the GOP because the party has been aggressive in working to eliminate the inheritance tax, a goal of many beer distributorship owners.
"I want to help him out because he helps us back," Vukelic said of Reynolds. "If we go back to [our members] and ask them, I know they'd be more than happy to do more."
Other association officers say it's not so easy. Brian Kelly, senior vice president for government affairs at the Electronic Industries Alliance, said congressional Democrats and Republicans alike are hunting for donations from EIA members.
"We are being asked by all the committees to provide information about our members and lists," Kelly said. "But it's very difficult because if you do it for one, you have to do it for all."
House Democrats are making similar efforts, though in a less systematic way. According to Rep. Robert T. Matsui (D-Calif.), who heads the Democratic Congressional Campaign Committee, "some of the health groups have asked how they can help," and he has suggested their members give individually to the committee.
The NRCC has raised the stakes for trade groups, telling their officers they can attend outings with House Republicans only if they donate $15,000 from their PACs as well as $15,000 from individuals.
House Democrats are adopting a similar strategy, offering PACs greater access to senior lawmakers if they can raise as much as $50,000 -- which requires donations from many individual members.
Reynolds isn't shy about urging Republican-friendly trade associations to boost campaign donations through their PACs and individual members. In a recent speech to the Independent Insurance Agents of America, for example, Reynolds said the group's PAC "needs to be bigger" in order to be more effective in Washington.
"A million dollars is a threshold of being an important player," he said. "You have the money to say you're with us, we're going to help ya [or] you're killing us, we're going to take you out."
Several association members said they were heeding Reynolds's call. Now that individual donations are more important, they said their members would have more incentive to give. Bob Bramlett, an insurance agent from Ardmore, Okla., said younger agents had raised $178,000 for their association's PAC in March alone.
"All candidates are going to have a greater need for the smaller donations," said Bramlett, who also serves as a state director for the Independent Insurance Agents. "We might finally have our $100 count."
Bill Hofmann, another state director from Massachusetts, said that if soft money is banned, then smaller donors to the GOP can counter wealthy Democratic allies.
"It will give the individuals a voice that will make them much more important than the trial bar or the AFL-CIO," he said.
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