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#chair: Fundraising!

by: edfactor

Fri Jan 11, 2013 at 13:38:39 PM EST


(Here is one area that I agree with Ed.  ActBlue - the technology you see below has been in place for at least six years at the federal level.  Your donations go to a pass through PAC for this system.  

The Office of Campaign and Political Finance has said that ActBlue can be used in Massachusetts.  It is a national program that local candidates can use.

The GOP has no such program.  There have been number of false starts, but since everybody tries to do it for profit, rather than a collaborative PAC model a standard has not emerged.  The lack of an ActBlue model on the right is something that should be rectified.

Ed, since you are a tech god, perhaps it is a program you could develop and roll out nationally.  Start a PAC and do it?  Then the local parties can use it, like the MassDems do with ActBlue?

- promoted by Rob "EaBo Clipper" Eno)

[This installment of my series to inject substance into the chairman's race is about new ways to raise, track, and spend money. If the party used its surplus cash in its federal account to build this infrastructure, it would be a game changer. I am hoping these ideas will be irresistible!]

Money is the most important thing in politics, and it is one of the biggest advantages the Democrats have over us.

Contents

- Chairman's Candidates Proposals
- GOP Fundraising Utopia!
- How We Might Get There
- Summary

(read more...)

edfactor :: #chair: Fundraising!
Candidates Public Proposals

This is all I could find from the candidate's public statements and media appearances:

- Mr. Green wants to set a goal of one new $35-per-year donor to the State Committee every month, in every precinct, statewide. (Are there really 26,000 people who want to give money - not to the candidates, but to the state party - before 2014? Scott Brown only raised money from than half of that number of in-state, individual contributors.)

- Mr. D'Arcangelo and Mr. Cavaretta propose a new candidate funding formula. (I am almost positive one already exists.) They also have spoken about the issue of negative equity (all that money on the big races doesn't help the party much). But they say little about how money could work better.

- Ms. Hughes has said three things: form a SuperPAC, support a party change so that the SC controls the money and can direct it to down ballot races, and also to raise $100,000 more for legislative races. (Though she has said nothing about how to accomplish such a difficult thing when the party is so weak.)

Utopia!

Here is what fundraising should look like:

1. A clearinghouse

There should be a statewide fundraising clearinghouse like ActBlue. (The fact that the Democrats have had this since 2004, and that it was created and is still run here in Massachusetts, and that it is nine years later and we have nothing like it makes me embarrassed to be a Republican.)

Everyone knows that ActBlue handles the big races. Did you know they also do their work for state-level stuff?  Here is the search link for Massachusetts stuff.

Here is an image of just some of what you'll see:

And there are others! Young Democrats, College Democrats, and all kinds of PACs. Does it make you cry yet?

But don't forget how big an impact they were on the Brown and Tisei races. Check out these numbers:






Yes, Tierney was small - but this was $50K that he got without lifting a finger. And $50K matters in a 3,000-vote race.

Fortunately for us, the Democrats aren't using ActBlue for statehouse races in MA. But this is happening in other states. It is only a matter of time and would be effortless for them to set up.

SO...... We must have a Massachusetts-wide website, that, like ActBlue, lets you see all races and PACs and committees. You should be able to both browse and choose where you want to donate, set up recurring donations, and set up your own sub-pages to raise money for a person or committee that you would like.

Having a site like this would be a game-changer. (My advice on how to do this is later in this post.)

2. Activity-specific fundraising

Have you ever seen charities that allow you to donate money to buy specific things?  There is probably no more famous example than the Oxfam Holiday catalog. (Here is a screenshot.)

This approach works pretty well and many charities do it. We should have this for the state party, RTCs, and and campaigns. (The campaigns have tried this is a loose way - doing  a money bomb to get an ad on TV - but I am talking something more strict.)

Take the state party. Would I give them $25? Maybe. But what if the page let me choose something that $25 buys? What if I was told that it would buy 5 T-shirts for an event? What if it funded one month of a campaign website for someone running for office? Or that it would pay for the bandwidth to put a state committee meeting on the Internet to help transparency? That would get my attention. Like with Oxfam, there would be lots of choices for different amounts.

I also think the campaigns should do this for some of their fundraising. I would be happier to give knowing it would be spent on something I would find helpful.

3. Game dynamics

All contributions are public and available through OCPF. Yet the system is boring and it's hard to compare people over time. (It's also not real-time.) What we really need is something called "gamification". This buzzword, big on the Internet, is when you turn something into a game with points, status, and rewards that was not a game before. (Think Foursquare with points and badges and mayorships.)

We really need a series of party "leader boards" for people to compete for certain kinds of recognition. (I don't think you can actually award prizes, that's probably illegal.) But you could do a lot with this. For instance, I might be embarrassed that my contributions have been a little low. If I saw a friend beating me by $25, I might donate $26 to stay ahead and have bragging rights.

How we might get there

There is no point in me giving the technical implementation of all of this on RMG, even if I could do it. (I will try to get this done and submit it to the SC). But I do want to describe the journey ahead.

1. Activity-specific fundraising would be pretty easy to implement. Create an online "store" where there would be an item code that would be carried through to a form field on the donation form. (Most fundraising software allows all kinds of codes to be carried through the process for tracking purposes.) There would need to be some brainstorming on what would be attractive items, but that is a fun thing to do. Also, implement some easy social-sharing so someone could advertise in social media that they just bought X for the party or a campaign.

2. Gamification would not be easy, but it would be straightforward. You really just need one or two software developers to take the feeds from OCPF and make a pretty website out of them. It would be much better to get this data from the campaigns and committees themselves, as real-time competition would be much more awesome - but I don't know if they can easily provide this. So, another action item would be for all GOP committees to expose their contribution data in a way that it can be accessed in near-real-time, in order to get the leader boards to be more competitive. (Tech-wise, it is probably better to steer people into fundraising platforms that can expose this automatically, rather than try to have them roll their own way of exposing contributor data.)

3. The clearinghouse. (ActBlue for MassGOP) If the national GOP would just get their act together, (ha ha) we wouldn't have to wait for anything. But my guess is that after years of false starts, nothing is going to happen. So, we are going to have to cobble together something ourselves. The best choice is going to be to pick a platform that offers feeds, widgets, and distributed fundraising, like the way that fundraise.com does. Then you will need to create a web application that gathers all of that data and puts it into a single, branded interface for the party. You would still be using the proven platform and reporting mechanisms under the hood, but the aggregated data and searching would be in a MassGOP-specific interface. (I could go further in describing this, but no point here on RMG.) But it is possible.

SUMMARY

If the plans of the candidates for MassGOP chairman are going to happen, they are going to need dramatically different ways of reaching people, promoting the right races, and raising money. We need a radically new approach to raising money online. Doing the things I recommend will take time, money, and software developers who know what they are doing. Fortunately, this kind of investment - in raising more money - should be easy money to spend. Also, the charities and ActBlue have proved that the approaches I have recommended will work. (As for the gamification, you're just going to have to take my word for it.)

Even better, I am almost sure that the large surplus in our MassGOP federal account could be used to fund this.

Oh - and one more thing. Do not hire the people that Mitt Romney did for his tech stuff. (Enough said.)

Tags: (All Tags)
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Fundraise.com (5.00 / 3)
is a local Boston company. The Founder/CEO is a Conservative. Given that they would get the cc processing fees and clearly have the tech know-how they might be interested in creating the platform for us. That would just leave setting up the PAC(s) and marketing to us.

Excellent! (0.00 / 0)
Nothing like a big potential customer to support some great product development! (And it is a little nicer when the leadership there is politically-friendly!)

Thanks Brad!


[ Parent ]
Great Idea (0.00 / 0)
And when you are able to tie it into a NationBuilder suite for campaigns you can have a simple processing solution for candidates at all levels!!!

[ Parent ]
Speaking of NationBuilder (4.50 / 2)
I have suggested to the MaGOP Tech Committee that we switch massgop.com to the NB platform and then set up all RTC's and MaGOP campaigns as sub-nations so the data can be shared and most importantly saved from cycle to cycle.

[ Parent ]
Yes (0.00 / 0)
I think the obvious thing for the party to do is what you have suggested: get the whole party into NationBuilder and then have sub-nations for campaigns and committees. There will be all kinds of problems with data sharing, donors, and relationships, but they could be worked out. Maybe. :-)

I will have more to say about this in a separate post in a few days.  


[ Parent ]
ActGOP won't work like ActBlue (0.00 / 0)
When people use ActBlue to give to Democrats across the country, they pretty much know what they are supporting and opposing: gay marriage, feminism, unions, teachers, abortion rights, government programs, etc.

Bot that's not true with the MAGOP, where our candidates have wildly divergent views on major issues. Some candidates are pro-life, others are not, some are for gay marriage, some oppose even Civil Unions, some are for RomneyCare, others are not, some are, well you get the idea. I can't think of one issue that I'm pretty sure every Republican would support or oppose. Maybe lowering taxes, and that's it, but no one is going to give money to someone just because they say they will lower taxes if they have the wrong stand on marriage or on abortion.

Now I can see using the ActBlue model for something like ActForMarriage or ActForLife that was a clearinghouse for candidates that pledged to work for those issues. (There already are groups like NOM that funnel money to pro-marriage candidates, but they have a very narrow and ultimately fraudulent focus  merely on trying to get men to support women, and are not opposed to transgender reproduction or same-sex reproduction or preserving marriage's conception rights, so they have a poisonous effect on the debate. What ActForMarriage would do is merely be a clearing house and not try to control the message or argument of the debate. Candidates would have their own pages to state their beliefs about marriage and ask for our money themselves.)


And here is a precis of how we became and will remain a minority party. (5.00 / 5)
"...no one is going to give money to someone just because they say they will lower taxes if they have the wrong stand on marriage or on abortion"

Do you think ActBLUE refused to give money to Tom Reilly and Tom Finneran, pro-life Dems?


[ Parent ]
Exactly (0.00 / 0)
ActBlue handles any Democrat race whether you are a die-hard conservative from WV or a hippie from CA. They have done very well to stay out of any ideological territory.

I think in this state we would have no problems. If we could lay out all of the races statewide, and each candidate had a picture and brief profile, the people would have no problem understanding that some guy running for office in Cambridge is probably not going to be like some guy in Norfolk.


[ Parent ]
Thoughts for Rob (implementation) (0.00 / 0)
So why we Republicans don't have anything like this, and what we can do about it, is worth more discussion.

WHY THIS HAS HAPPENED

ActBlue has raised more than $365,000,000 since 2004 for Democrats. They are so important that their people are at White House briefings and parties. Few have more influence in the Democratic fundraising world than they. Yet we don't have this. Why?

(the reasons matter because they will affect how we go about competing with it)

1. The Internet software startup world feels like it is 95% non-Republican.  That doesn't mean it is Democrat - many are apolitical or think they are above partisan politics. But there are lot of die-hard Democrats in my world. There was a much greater chance that this would have happened. It's just like the liberals who built NationBuilder. The dice are loaded for them doing this. (Thankfully, NB is for use by all.)

2. The Democrats have the unite-the-little-guys-against-the-rich-and-corporations ethic in their politics. The two guys who created ActBlue in 2004 in Cambridge had this as their goal. We do not have a lot of people like that. Even the Tea Party, which is better tech-wise than many Republicans, never did this because, as far as I know, there aren't any great developers or entrepreneurs in their ranks, or there certainly would be a TP version of ActBlue - which would have been perfect for their decentralized approach!

But Republican leaders fall back on the fact that we have the SuperPACs and evil billionaires, right? :-)  Yes, the Democrats now have them, too. But our strategy is much more heavily dependent on things like Crossroads GPS and they are more dependent on MoveOn and ActBlue. Again, this is a political-cultural thing.

WHAT HAPPENED TO THE FAILED ATTEMPTS TO REPLICATE THIS?

I have heard only a little about Slatecard and BigRedTent and a few others. But my experience in watching many Republican tech efforts over the years tells me that it was most probably this:

1. The people who did these things were doing them in a tactical way - for a group of candidates or for just one election cycle. They didn't decide that this was going to be their whole life from now on, in the way the ActBlue guys did.

2. They didn't have enough of the right people in the right demographics to make the business model work. So ActBlue makes money by taking a cut, and they critically also accept donations. There are enough young, politically-driven, Democrats who are comfortable on the web and know that $15 donations make a difference that they really got behind this. Also since this was a bootstrapped operation that started on a shoestring, they had lots of time to grow slowly and figure things out. But to reinforce what I said, they had a waiting audience and a culture that would celebrate what they were doing. More than that, the Democrats believe in this model so much, that even superstars like Elizabeth Warren used ActBlue donation boxes on their own website instead of their own. Now, how many Republicans do you know who would gladly route their donations through someone else in order to support the larger fundraising ecosystem? Yeah - none. Also, even Scott Brown tried distributed fundraising. It didn't take off. It all gets back to culture.

3. Our tech culture is big-business style, not startup style. It would take too long to explain this fully. It is the whole reason why Romney, despite outspending Obama 2-1 on technology, still had inferior infrastructure. They just do it differently (and better) than we do. This means that the people behind the "ActRed" efforts probably created them in a very ineffective and expensive way.


SO WHAT DO WE DO?
(There is good news)

First, the good news:

- There are now enough Republicans who would be willing to use such a system, and while there are still more tech-savvy Democrats than Republicans (though there is debate about this) there are certainly more than enough to support something like this. We just need to the tool to appear.

- ActBlue is really a group of applications that work together. Many of these pieces now already exist in many places.

- Nobody has to be convinced this is a good idea. $365 million is enough proof.

The bad news:

- While there are a good number of Republican programmers, I doubt we are going to discover there are some top-notch guys in a garage about to roll something like this out.

- We probably can't just convince the national GOP or some SuperPAC to go build one. They'll make it too complicated or too unappealing, it won't catch on, and it won't work, no matter how much they spend.

How to create one?

I wouldn't take a team and go build it. (There is this adage we have in computer science: young programmers want to figure out a way to code everything. Older, wiser programmers want to figure out how to get it done without writing any code.)  Even if I had an unlimited budget and top-notch people who wanted to dedicate time to helping Republicans nationwide, it would take 18 months to duplicate what ActBlue has done from scratch.

However, since lots of the pieces are out there already, and the underlying frameworks upon which the technology is based on is far more advanced than most of the legacy stuff ActBlue has, there is no need to do that.

Also, and critically, there is no need to do everything ActBlue is doing now. Even some of the pieces, if released, would provide enormous value.

Here are the choices, I think:

1. As Brad Marston very helpfully suggested, go to an online fundraising company that has a lot of the components that you need - working and tested already - and then convince them to create a new product that we can use. (The business deal piece is not important here.)

2. Inventory the stuff in ActBlue you want to do, and find similar stuff out there now. They wouldn't even have to be from the same place. You might say, "OK, we will use the engine of Fundrazr, the charting capabilities of pentaho, the social/competition parts of Bunchball, and then we will build a thin, nice-looking website on top of it with Twitter Bootstrap."  (This is just a made-up recipe to show the idea.)

3. Find someone at the national level (or maybe a SuperPAC) who is already doing this and help them finish it and be a beta tester.

Anyway, those are my thoughts on implementation. Could I do it? Not by myself by a longshot, even though my schedule is getting better. What we really need is for the party to get serious about doing this, and send someone to fundraise.com and see if a deal could be made, as Brad has suggested.


You'e missing a critical point about ActBlue's evolution... (0.00 / 0)
...it is now a one-stop clearing house to contribute to state and local candidates nationally.  But in the beginning, it was only for candidates for federal office.  Overtime, they slowly worked through individual state regulations and obtained official guidance on what they had to do to insure compliance, state by state.  (Actually I don't know how many states allow ActBlue to bundle money, I doubt all 50).

My point is that is not an all software driven factors, but involves a ton of administrative and legal obstacles, and that takes time.  

As usual Ed, good stuff.


[ Parent ]
Absolutely, Mr. Malarkey (0.00 / 0)
Indeed.

I left out the paperwork and PAC stuff as the party certainly could easily find people to do all that. But yes, I think it is probably a huge chunk of what they did.

There are other things they had to do also, such as convince people to donate to their site also, not just the candidates. They also had to build trust with many campaigns.

They also have lots of little features I didn't even mention.

My hope is that we can do something inside this state only that has maybe 1/3 the features and get it done before 2014 elections.

But that would take a huge culture change in the state party about technology that has not yet happened.  


[ Parent ]
Yes, But The Best Part (5.00 / 1)
is that they have already worked through the legal and campaign finance requirements in many states and jurisdictions which means that a Republican version could move more quickly through the regulatory hurdles as ActBlue has already set the precedent.

[ Parent ]
Yes (0.00 / 0)
And even the technology is well understood. We, in an ideal world, could do a better job now. But that would require that the party and leadership realize tech is job one. Yet nothing has been said AT ALL by Mr. Green whose business is online, or from Ms. Hughes, who is married to a programmer like me. I don't get it. :-(

[ Parent ]
Just a comment on the "26,000" (0.00 / 0)
I know back earlier in the decade, the MassGOP "house list" was as high as 20,000.  So 26,000 is a highly achievable number.

A House List, for those who don't know, is a list of donors who have contributed in the last 18-24 months, in other words "active donors".


Follow me on Twitter?  Sure, why not.  www.twitter.com/paulferro


Maybe! (0.00 / 0)
But Mr. Green said new  donors to the state party.

I do think that with very different fundraising software and approaches we can get thousands of new small donors. But I think that number would be across all candidates, committees, and the state party.


[ Parent ]
Fundraising problem (0.00 / 0)
It's clear that the candidates want to raise as much money as possible and need people's support. But to make people give money candidates need to motivate them and make them sure that these money will be used in a right way. Today people have totally different attitude to politics but it's hard to say that there's a trust. There are lots of ways to raise money, maybethey should e more creative and suggest something that can't be refused? In any case, if they will not raise enough can then it will be possible to apply for online payday loans or try to find sponsors.

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