The Elly Report: State Committee

Establishing a Budget

Once you have a political plan outlining your Committee's goals you will need to project your committee's expenditures. By creating a Town Committee budget you will know how much your committee needs to raise in order to achieve the goals stated in your political plan. Take each activity in the political plan and determine what that particular item will cost. A total of all the costs for each activity will result in the bottom line budget figure required to run a successful town committee.

The Finance Plan
It is then necessary to construct a fundraising plan to meet those financial needs. A written finance plan lends structure and credibility to your fundraising efforts, and defines goals and your members' responsibilities.

Your financial plan should consist of four parts:

Summary Page List fundraising programs. Indicate amounts to be raised and cost of the program. Total columns at bottom of page.
Narrative a detailed description of each program including date, organization, theme, supplies needed, projected gross and net income, personnel needs and cost estimates.
Calendar should be drawn for each month, event dates, literature drops and deadlines. This will show deadline dates when money will be needed.
Job Descriptions should be written for each member of the fundraising committee so all will understand their roles.

A finance plan will set the campaign's deadlines and allow you to measure your progress. Committees raise money to finance specific political activities that they have outlined. Without a plan, Committees are not justified in asking members of the community for financial assistance. Your Committee's fundraising will generally come from four different areas:

Direct Mail
Events
Major Donors
Membership Dues*

(*While Town Committees are legally not allowed to require annual membership dues, an informal dues request is acceptable and appropriate.)

Finance Committee
As I mentioned in the last article, the Finance Committee should be responsible for creating the Town Committee's operating budget and authoring a plan to raise the necessary funds to fund various committee activities.

The Chairman of the Finance Committee ideally should be a known & respected member of the community, have sales skills and be comfortable asking their peers for contributions to support the Committee's activities.

One factor that makes it somewhat easier for Town Committees to raise significant funds is that they are allowed to take larger contributions than candidates. While a candidate committee can take a maximum donation of $500 from an individual during a calendar year, Town Committees can take contributions up to $5,000 per calendar year. It should be noted that a Town Committee may only contribute $1000 in cash assistance to a candidate but can spend an unlimited amount on coordinated in-kind assistance (i.e. paying for a candidate's push cards, mailings, headquarters, etc.).

With a strong plan and an organized approach, there is no reason that the average Town Committee can't raise several thousand dollars per year to support its programs.

Donors: How to Get Them

Where do I find potential donors?
The first place to look is among people who have donated to Republican candidates, PACs, and causes through the years. NOTE: It is illegal to use Federal Election Commission (FEC) reports as a source for names to prospect. Committees can legally obtain lists of donors to Massachusetts state candidates and committees at the Office of Campaign and Political Finance. You can also access most of those records via the web at www.state.ma.us/ocpf.

How do I get donors to give me money?
Ask them. There are different ways to ask (events, letters, etc.). Regardless of how the request is made, remember to convey two things to all donors:

Urgency: A donation is needed as soon as possible. You do not want them to throw away the letter or misplace it. How many times have you forgotten about a bill only to receive a red tagged "danger of late fee" bill? For this reason it is important to express urgency.
Specificity: Outline how the Committee spends its money. This can be specific, such as mailings or newspaper ads, or abstract, such as conveying that you will be listening to the sound advice of others. It is important to demonstrate that the committee has its spending priorities in place.

Fundraising Letters
The most effective method for Town Committees to raise funds is through fundraising letters soliciting local Republicans for contributions. Consider conducting these mailings several times per year. The target of these mailings is the list of active donors compiled by the Committee. One letter should be a prospecting piece to help build the size of your fundraising list, and should go to registered Republicans in your community. Committees may choose to solicit every registered Republican, or you may pare the list down to target people more likely to contribute.

The Chairman or another Republican of note, such as a local Republican elected official, should sign your fundraising letters. Your letters should be informative, letting potential donors know what the Committee is doing and what you have planned for the coming election cycle.

Events
Events are not only a great way to raise capital, but they also increase awareness and build excitement around your Committee. When holding an event, you need to establish a realistic target figure to be raised (after expenses) and work backward from there. You may want to secure a speaker for your event who will draw attendees in. Where possible, look to utilize donated space and resources.

Major Donors
Major donors are an important part of your effort to raise capital. Major donors are recruited through personal solicitation of the Town Committee Chairman, Finance Chairman, or local Republican elected officials.

Great effort should be put into perpetuating their contributions so that it becomes second nature for your affluent local contributors to simply give the $500 or $1,000 check every year. Annualizing these donors' contributions may be done through the creation of major donor clubs. Asking for renewal in a club is easier than prospecting for new givers. Once established, this program should continue year after year to confirm its reputation and influence. Major donors must be involved with your committee. You should take great care to keep major donors informed of your activities and solicit their input on the management and growth of the committee.

Try to find some connection between a member of the Committee and the prospective major donor. Set up a meeting where you outline the Committee's strategic goals and plan for attaining them. Demonstrate the impact their contribution will make on the Committee's political operations.

Guidelines to successful personal solicitation of major donors:

Explain that the person is making an investment in a better future based on his/her values & ideals.
Be optimistic, sincere and exited about the Party.
Be convincing. Show that you believe in the programs being funded.
Be Flexible. Close the deal when you sense the person is ready.
Look at the situation from the potential donor's point of view.
Communicate with potential contributors on their level; for instance, you should approach business leader with the assistance of another respected member of the business community.
Tell the potential contributor how the money will be used.
Refer to the "community" and the Party's involvement therein.
Do not over-sympathize with your prospect. Never begin with, "I know it's a lot to ask, but..."
Do not leave without a firm commitment or a check in hand.
Ask for names of other people who might be interested in involvement.
Invite them to attend Town Committee meetings and events.

Campaign Finance Rules
Resources are readily available for you and your committee's Treasurer to stay in compliance with campaign finance laws. The Massachusetts Office of Campaign & Political Finance (OCPF) is the body that regulates your committee's financial activities. They exist to assist Party committees, PACs, and candidates in adhering to the finance laws that the legislature enacts. Through its website and the various manuals it publishes, OCPF is a helpful resource for the Committee. Visit their website at: www.state.ma.us/ocpf for more details.

Some quick points:

Government employees may neither solicit donations, nor may their name ever appear on an invitation for a fundraising event, not even if donations are merely "suggested."
A donor may contribute up to $5,000 to a local party Committee (note: donors are limited to donating an aggregate total of $5,000 annually to party committees, so if someone gives $4,500 to the State Committee, they are not allowed to give any more than $500 to their town committee).
You must report the name and address of every contributor whose annual contributions are more then $50.
You must report the employer & occupation for every contributor whose annual contributions are more then $200.
There is a difference between State & Federal party campaign accounts. Generally speaking, Town Committees do not operate federal campaign accounts because of the additional regulatory burden establishing such accounts would impose and because spending on federal campaigns is really outside the scope of a town committee's core responsibilities.
Your committee may donate up to $1,000 for candidates seeking a Massachusetts office.
Your committee may contribute an unlimited amount of coordinated in-kind assistance to candidates seeking a Massachusetts office. This assistance may be entirely coordinated with the candidate's campaign. This means that your committee can purchase an unlimited amount of goods & services or pay outstanding invoices for the candidates that your committee supports.
Contributions may not be earmarked for a particular candidate; you may say that your committee plans to assist candidates, but you may never say or guarantee that a particular donation will go to support the efforts of a particular candidate.
Committee Treasurers are responsible for the timely and accurate reporting of your committee's financial transactions. Treasurers are legally responsible for adhering to campaign finance rules.

Fundraising is necessary to achieve your committee's goals. With just a few thousand dollars your committee will be in much better position to help all republican candidates and build the party at the local level.

Please contact your State Committee members or myself if you have any questions regarding fundraising or any other subject.