Matching Funds: The Antidote to Big Money Politics?

When you hear “matching funds,” where does your mind go? 

For many, it’s spam emails from PACs and fundraisers claiming they can “10X a donation” if only the reader would donate before midnight! I don’t think I need to tell you that’s a scam. There are no regulations that would prevent a political campaign from lying about that for marketing purposes, and unfortunately, many do, muddying the waters for real matching-fund opportunities. 

Real matching funds are an asset to grassroots political campaigns across the country, and could be the way out of the political fundraising downslide we are mired in. 

What are “real” matching funds, and how do they work? 

When it comes to political campaigns, matching funds are a public concern. They are funded by taxpayers and paid to campaigns that meet certain criteria. Often, campaigns are required to turn down most other kinds of political donations, either above a certain amount or from PACs, organizations, and corporations, in order to qualify, promising to follow strict transparency laws. 

That said, each state or municipality that has a public matching fund program functions a little differently. 

Arizona delivers a single payment per election as a grant to the campaign, funded by a special tax. Meanwhile, traditional matching fund programs deliver multiple payments based on the donations qualified candidates receive between certain filing deadlines, sometimes multiplied based on certain donation thresholds. For example, in Maryland’s Montgomery County, the first $50 is multiplied by 5, the next $50 by 4, and so on, down to $500 total, after which the donor cannot donate to that candidate. 

MoCo’s system is fairly complicated and hard to communicate to potential voters and donors. Meanwhile, Seattle’s “Democracy Dollars” program puts vouchers in the hands of voters to spend like cash on behalf of local candidates in a very direct and tangible way. 

There are a thousand ways that matching funds can be funded and deployed, and a wide variety of restrictions that can be put on candidates who choose to participate in the program. 

All campaigns that meet the criteria will be paid out, regardless of party affiliation or involvement, meaning matching funds can be a goal for third parties, which was a key achievement for the Green Party and Libertarian Party nationally when running presidential campaigns. 

They both met the qualifications in 2012. The Presidential matching fund is unique as a federal fund, made possible by voluntary donations on everyone’s tax return. (The box many people ignore).

Why Do Matching Funds Matter?

Matching funds can be complicated, with opaque rules and restrictions that make them overly restrictive for candidates who choose to apply for the program. However, they create a path to competitive fundraising for grassroots campaigns that otherwise would be swallowed up by big money. 

They also allow a campaign to run according to their ethics, free from big money, lobbyists, and PACs. It increases the power of local donors, and gives campaigns a financial incentive to reach out to everyday people in their communities to fundraise, with massive downstream benefits for the health of our democracy. 

When people have more power via their vote and their dollar, they possess the influence that only the largest donors and PACs typically wield. These programs put power more firmly in the hands of everyday people, and ensure campaigns will cater to their needs, not the needs of big donors. It’s worked for campaigns across the country, in red and blue states, united in their belief that our campaign financing system is not representative of average voters’ interests and is prone to incredible corruption. 

Matching funds are no panacea, but in the states and localities where they are in place, they give hope and a path to victory to grassroots campaigns, and have made a measurable impact in electing uncompromised local leaders. When grassroots campaigns that won’t accept other donations face big-money opponents, it can feel like fighting with a hand tied behind their backs. Matching funds give them the support they need to compete on more equal terms. It levels the playing field.

Public matching funds are a system that will hopefully continue to spread in the laboratories of democracy, as we find the best way to implement this system across the country. If you’re an organization or campaign looking for professionals who know how to leverage matching funds, we’re here to help! Schedule a FREE 15-minute consultation call today.