BUSINESSWEEK ONLINE: AUGUST 30, 1999 ISSUE

Washington Outlook

Election 2000

At Least You Don't Have to Eat Rubber Chicken Online

Democratic Presidential hopeful Bill Bradley made headlines when midyear fund-raising reports showed him giving Vice-President Al Gore a run for the money. And in cyberspace, Bradley's fund-raising star shines even brighter. So far, he has raked in $312,000 over the Net, far more than Gore and almost as much as all other contenders combined.

Besides using his site to mobilize foot soldiers, Bradley uses pop-up promotions to steer supporters to a donors' page. The upshot: His site is luring thousands of younger, first-time givers--just the sort of nontraditional voters who are the bulwark of his campaign.

Bradley isn't the only candidate trolling for E-dollars. When the Federal Election Commission on June 6 O.K.'d federal matching funds for credit-card donations over the Internet, campaign Webmasters quickly turned mostly informational sites into money-raising machines. The sums raised so far are small, but pros say the potential is huge.

Online fund-raising is part of a broader trend that's seeing candidates embrace the Net's interactivity to connect with voters. ''What TV did for the 1960 Presidential election, the Internet will do for the 2000 races,'' says Janice B. Griffin, National Chair of the Women's Leadership Forum, a Democratic donor network. The Republican National Committee, for example, has raised $200,000 online since 1996. By 2004, it expects the Net to generate 25% of all contributions of $100 or less.

Although Gore was slow to promote online giving, he's pedaling fast now. On Aug. 10, while the Veep spent nearly an hour online answering questions, his site repeatedly flashed ''to contribute to Gore 2000 online, click here.''

Online fund-raising won't replace traditional solicitations anytime soon, though. Rather, it lets candidates broaden their appeals beyond the retirees who tend to respond to direct-mail pitches. By attracting more ''low-dollar'' donors, online giving can potentially dilute the power of fat cats--making politics more democratic. The Net, says R. Rebecca Donatelli, chair of Hockaday Donatelli Campaign Solutions in Alexandria, Va., is ''the ultimate grassroots fund-raising mechanism.''

Not surprisingly, GOP Presidential aspirant Forbes, who launched his campaign on the Net, has big plans for Net-raising. On June 16, he ducked out of a dinner at the Waldorf Astoria, where contributors had paid up to $1000 a plate, to chat for 20 minutes with 400 supporters who paid $10 each to attend online.

Now, armed with demographic profiles of 25,000 registrants to his site, Forbes is mulling online fund-raising events for select groups. Rick Segal, Forbes's Net consultant, says Forbes magazine Chairman Caspar W. Weinberger, a former Defense Secretary, may host an online reception for veterans. Also on the drawing board: E-mail solicitations to doctors.

Offline popularity is no guarantee of E-donations. Exhibit A is George W. Bush, who may be shattering fund-raising records offline but so far has raised only $41,572 online. His team blames a clunky Web site and promises to make it user-friendly.

Fund-raisers are coming to love the Net because it's fast and cheap. Faced with a stack of unfulfilled pledges as the FEC's June reporting deadline loomed, GOP operative Nancy Bocskor of Arlington, Va., E-mailed reminders to prospective donors--and got half to ante up. ''If I had phoned, I would've been lucky if 10% called back,'' she says. Now, if someone could only find a way for politicians to kiss babies online...

By Amy Borrus



Election 2000

TABLE: WWW.GIVEHERE.COM

                           AMOUNT              NO. OF
WEB SITE                   RAISED*             DONORS

WWW.BILLBRADLEY.COM       $312,000             2,000
WWW.McCAIN2000.COM         100,000             1,100
WWW.EDOLE2000.ORG           76,000               NA
WWW.ALGORE2000.COM          70,000               NA
WWW.GEORGEWBUSH.COM         41,572               327
WWW.FORBES2000.COM          30,000             1,000

* Dollar figures are through July 31



Capital Wrapup

Big Biz and Soft Money

Fueled by record corporate giving, Republicans have opened up a comfortable lead over Dems in the soft-money chase. While the two parties raised nearly identical amounts of the unlimited contributions from wealthy individuals, the GOP raked in 67% of Corporate America's $25.8 million in soft-money donations in the first half of 1999, according to Campaign Reform Project, a group backed by ex-investment banker Jerome Kohlberg.

Overall, the two parties have taken in $46 million in soft money this election cycle, with $27 million going to the GOP and $19 million to Dems. That's up 15% over the first six months of '97 and a 38% jump over the same period in '95.

The biggest soft-money donor, AT&T, raised its contributions from $269,921 in 1997-98 to $751,150--and counting. The giving accelerated with the November, 1997, arrival of CEO C. Michael Armstrong.

AT&T isn't the only telecom company upping the ante. Two others--SBC Communications and BellSouth--have almost tripled their soft-money donations in the past two years. While 70% of AT&T's largesse goes to the GOP, the other telecom donors more evenly divide their giving. The Democrats' share has increased from 23% to 36% since '97.

Philip Morris, Pfizer, and Enron are among the big corporations whose soft money overwhelmingly goes to the GOP. Business interests gave 10 times more than organized labor, which kicked in $2.5 million. But 92% of union cash went to Democrats.

By Richard S. Dunham





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STORIES:
At Least You Don't Have to Eat Rubber Chicken Online

TABLE: WWW.GIVEHERE.COM

Big Biz and Soft Money

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