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 The price tag for the presidential race could top $5 billion,
according to research by The Hill, a weekly political publication,
so they are seeking contributions everywhere.
"There is no stone being left unturned looking for money," says Nick
Iarossi, a political consultant based in Tallahassee, Florida, who
raises funds mostly for Republican candidates.
If you are considering giving to candidates during the 2016 election
cycle, but you have not given before, you may have to network to get
the attention of the campaigns. Here is what financial advisers and
fundraisers say it might cost you:
GET A PHOTO
Small amounts will do just fine - even $50 or $100 is enough to
procure a handshake from some candidates. (Early in the 2008 Obama
campaign, $250 could even get you a good picture, says Robin
Rorapaugh, a Hollywood, Florida-based fundraiser for mostly
Democratic candidates.)
Today the going rate for the kind of access that gets you a snapshot
with the candidate is a contribution of $2,700. That's the maximum
amount an individual can give to a presidential candidate directly.
Contributions to political action committees and other groups are
unlimited. The closer it gets to Election Day, the harder it is to
get access at any price, though.
To maximize your impact, and perhaps even get better access to your
candidate, call the campaign and ask to talk to the finance
director. "Some very energetic person will get on the phone and help
that happen," Rorapaugh says.
Most people get close to candidates at exclusive fundraising events.
Attending the most exclusive parties could take upwards of $10,000
to $25,000 per couple, depending on the poshness of the event, says
Rorapaugh.
Of course, you can raise your profile quickly by offering to host an
event, too. "If you want to wield true influence, it's not just the
checks you write, it's the checks you get written on top of yours,"
Rorapaugh adds.
Keep in mind that many people who attend political fundraisers don't
always do so to meet a particular candidate, but rather to network
with the host of the event or other contributors, says Iarossi.
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Don't expect a hefty tax break for your donation,
though. The biggest misconception financial advisers hear from
clients is that contributions to political campaigns are tax
deductible, like they are charities.
Donating thousands of dollars to a political campaign is more like a
luxury purchase, in the eyes of financial adviser Gary Plessl,
partner with Kevin Houser in a wealth management firm based in
Allentown, Pennsylvania.
MAKING A DIFFERENCE
Many political givers are not in it for the glory but rather to make
a difference. Mary and Larry Schneider plan yearly for political
giving in both local and national races, but only out of their
surplus left over after necessary expenditures.
"We are not flowing in great wealth. We balance that with offering
boots on the ground," says Larry, a 70-year-old retiree who lives
near Allentown. "We call it the three Ts - time, talent and
treasure."
Political donations should not come out of retirement funds, though.
"For somebody who has excess and is on a good financial path, $2,700
is not going to put them back. But for others, that will have
implications," says Jordan Niefeld, a financial adviser based in
Miami. "I don't think it's prudent financial advice to have somebody
dip into other buckets that will put them behind the eight-ball when
preparing for their own family's well-being."
(Editing by Lauren Young and Ted Botha)
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