Democrat Steps Up Push for Big Donors

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The Wall Street Journal

Democrat Steps Up Push for Big Donors
By CHRISTOPHER COOPER
June 26, 2008; Page A6

LOS ANGELES -- A fund-raiser for Barack Obama here this week drew some of the cream of the entertainment industry, including recording artist Seal. He serenaded the crowd under crystal chandeliers at a downtown arts center just before the Democratic presidential contender took the stage. But the headline of the evening was whispered by a campaign operative in the back of the room: The event raised more than $4 million from 700 guests who paid between $2,300 and $28,000 each to attend. Sen. Obama's disclosure last week that he will forgo public campaign financing -- and the spending limits that go with it -- appears to be turning his campaign from a reliance on small donors to a well-worn political fund-raising path: the quest for soft money.

This wasn't the crowd of small donors that the Obama campaign often mentions to show the breadth of its common-man support. Instead, it was a crowd of big-money donors, many well-versed in federal campaign-finance laws that allowed them to give Sen. Obama more than 10 times the amount of money they normally are allowed to give a candidate. Like his Republican rival, Sen. John McCain, Sen. Obama has established a joint fund-raising committee with his national party. Such a committee allows him to co-sponsor fund-raising events in which donors can give as much as $28,000 -- the limit they are allowed to give a national party -- coupled with the standard $2,300 anyone can give an individual candidate running for federal office during a single campaign season.

The Los Angeles event Tuesday illustrated the twin perils Sen. Obama faces by opting to forgo $84.5 million in taxpayer money. While he is exempt from the $1.2 million daily spending limit under campaign-finance laws, he must work for the money he raises, taking time away from the campaign trail. Sen. Obama also could open himself up to charges that he is beholden to big-money people and standard Washington interests. In a news conference with reporters Wednesday, Sen. Obama said he wasn't and wouldn't be beholden to Washington "fat cats." He said 90% of his donors have given $200 or less.

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Sen. Obama has said his army of 1.7 million small donors is the essence of what public financing strives to accomplish and is why he opted out of the "broken" system. But his small-donor network is showing signs of fatigue. Federal campaign records show that Sen. Obama's monthly cash take has been falling steadily since hitting a record $55.4 million in February. In March, he raised $41.3 million. The total fell to $30.7 million in April and $21.9 million in May, roughly on par with Sen. McCain's performance. Wednesday, eight government watchdog groups asked both candidates to voluntarily reveal more information about their donors. There was no response from either campaign.

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