Political Dictionary

Campaign Finance

Campaign finance is the system of raising, spending, and regulating money in elections.

Definition

Campaign finance includes contributions, expenditures, disclosure, public financing, party spending, PAC activity, and independent political spending.

Why It Matters

Money affects a campaign’s ability to communicate, organize, travel, hire staff, and reach voters.

How It Works

Candidates and committees raise and spend funds under contribution limits, reporting rules, and prohibitions established by law.

History

Federal regulation expanded during the twentieth century, especially after the Federal Election Campaign Act and later court decisions on political spending.

Example

A Senate campaign may report donations and advertising expenses to election regulators.

Common Misconceptions

  • All political spending is subject to the same limits.
  • Candidates may accept unlimited direct contributions.
  • Disclosure reveals every source behind every political message.