foster, paul Western

he last time the Democratic and Republican

parties had to stage the quadrennial spectacles that serve as their

presidential nominating conventions, they got a big assist from the

taxpayers: The Federal Election Commission cut checks to each of the two

parties for $18.2 million to pay for construction and other basic

services required for the 2012 events.

Coming from the same pot of money that also provided public grants

for presidential candidates — the $3 per person voluntary income tax

checkoff — the convention funding part of the system effectively

outlived the rest of it. Candidates began rejecting the public funding

system in the 2000 election because there was too little money and too

many strings. It has <a href="https://www.opensecrets.org/news/2016/04/public-financing-is-available-for-presidential-candidates-so-whats-not-to-like-about-free-money/">so withered</a> by now that only one White House candidate (former Maryland Gov. <a href="https://www.opensecrets.org/pres16/candidate.php?id=N00037007">Martin O’Malley</a>,

a Democrat) opted to participate this cycle. Still, the parties

continued to accept their convention grants, supplementing them with

cash raised by the host cities for the occasions and other sources of

support.

That changed just before Christmas 2014, when Congress — to almost

everyone’s surprise — privatized the conventions by wiping out the

grants, which would have come to about $19 million each in this cycle.

Instead, each party is now allowed to set up a special convention

account and collect donations of up to three times the usual limit for

gifts to a national party — meaning as much as $100,200 in 2015 and

another $100,200 in 2016. PACs can contribute up to $45,000 per year.

As is often the case when it comes to fundraising, Republicans have

been more successful at bringing home money for their convention.

Through March, the Republican National Committee raised $11.8 million

through 318 of these “bonus” contributions. About half the money has

come in gifts of $100,200 each. But eight individuals have maxed out

already for both years of the current cycle, giving a total of $200,400

per person; that’s $1.6 million to finance national party activities

this July, or more than 13 percent of the total raised through March 30

for the GOP convention.

Look for these folks in the best sky box seats in Cleveland.

Who are they? Not exactly new players in the realm of

money-in-politics — the majority already have shelled out millions in

the 2016 cycle alone to the party, its candidates and super PACs

supporting them, and have been strong backers of the GOP for years:

<ul><li><a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2012&disp=D&type=V&superonly=N">Joseph W. Craft III</a> – A Kentuckian, Craft is president and CEO of Alliance Resources, the <a href="https://www.eia.gov/coal/annual/pdf/table10.pdf">sixth-largest</a>

U.S. coal producer in 2014. He and his wife have donated more than $3.2

million to Republican and conservative groups so far this cycle.</li><li><a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2016&disp=D&type=V">Paul and Alejandra Foster</a>

– Foster is chairman of Western Refining, a large independent oil

refiner. He and his wife have given $1.9 million so far in the 2016

cycle alone to party committees, candidates and conservative outside

spending groups.</li><li><a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2016&disp=D&type=V">Diane M. Hendricks</a>

– She owns Hendricks Holding company and is chairperson of ABC Supply, a

roofing supply company. Hendricks, who’s worth about $5 billion

according to <a href="http://www.forbes.com/profile/diane-hendricks/">Forbes</a>,

has contributed more than $3 million to Republican party committees,

candidates and conservative spending groups in 2015 and 2016. Hendricks

was refunded $4 million of the $5 million she gave to the <a href="http://www.opensecrets.org/outsidespending/detail.php?cmte=C00576108">super PAC</a> supporting Wisconsin Gov. <a href="http://www.opensecrets.org/pres16/candidate.php?id=N00036995">Scott Walker</a>‘s presidential run. She has also given $2 million to the Koch brothers’ <a href="http://www.opensecrets.org/outsidespending/detail.php?cmte=C00564765&cycle=2016">Freedom Partners Action Fund</a>.</li><li>Charles Joyce – The president and CEO of New

York-based Otis Eastern Service LLC, a large maker of oil and gas

pipeline, Joyce has been extremely active with <a href="http://newyork.gop/joyce">state and federal Republican party committees</a>. So far this cycle, he and his wife, Lorraine, have dished out more than $800,000 to Republican candidates and the party.</li><li><a href="http://www.opensecrets.org/overview/topindivs.php?view=hi&type=src">Thomas H. Russell</a>

– An Oklahoman who made his name in natural gas processing equipment

and technology, Russell has contributed about $500,000 to Republican

candidates and organizations so far in the 2016 cycle</li><li><a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2016&disp=D&type=V">Warren Stephens</a>

– The CEO of Stephens Inc., a financial services firm in Little Rock,

Ark., Stephens has donated more than $5 million to Republican causes in

the past 15 months — including super PACs backing failed presidential

candidates Walker, <a href="http://www.opensecrets.org/pres16/candidate.php?id=N00037006">Jeb Bush</a> and <a href="http://www.opensecrets.org/pres16/candidate.php?id=N00030612">Marco Rubio</a>. The biggest recipient of his largesse has been the anti-Donald Trump <a href="http://www.opensecrets.org/overview/topindivs.php?view=hi&type=src">Our Principles PAC</a>, to which Stephens has given $2 million.</li><li><a href="http://www.opensecrets.org/bigpicture/topindivs.php?cycle=2016">Elizabeth Uihlein</a>

– President of family-owned Uline, Inc., a major producer of packaging

and shipping materials, she and her husband Richard (who himself has

given $100,200 for the Republican convention thus far), can take credit

for more than $8 million in outlays to conservative and Republican

organizations this cycle alone. That includes millions to the pro-Walker

<a href="http://www.opensecrets.org/pacs/lookup2.php?strID=C00576108">Unintimidated PAC</a>, as well as <a href="http://www.opensecrets.org/outsidespending/contrib.php?cmte=C00575415&cycle=2016">Keep the Promise</a>, which supports Sen. <a href="http://www.opensecrets.org/pres16/candidate.php?id=N00033085">Ted Cruz</a>‘s bid for the White House, and <a href="http://www.opensecrets.org/pacs/indexpend.php?cycle=2016&cmte=C00487470">Club for Growth Action</a>.</li></ul>

For its part, the Democratic National Committee has reported raising

only $3.5 million in these special donations. It lists 165 contributions

to the convention account, with only seven coming in at $100,000 or

more. Thus far, only <a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2016&disp=D&type=V">Henry and Marsha Laufer</a> have given the maximum in both 2015 and 2016.

Laufer is on the board of <a href="http://www.opensecrets.org/orgs/summary.php?id=D000022219">Renaissance Technologies</a>,

a N.Y. hedge fund; previously he was the firm’s research director. The

couple has contributed more than $2.5 million to Democratic

organizations thus far in the 2016 cycle. <a href="http://www.opensecrets.org/bigpicture/topindivs.php?cycle=2016">James Simons</a>,

Renaissance’s founder, is one of three others who have given $100,000

or more to the Democratic convention effort; the others are <a href="http://www.opensecrets.org/races/summary.php?cycle=2016&id=MD08">David Trone</a>,

the co-founder of Total Wine & More who was a Maryland

congressional candidate until losing in the primary this week, and

longtime Democratic donor <a href="http://www.opensecrets.org/outsidespending/summ.php?cycle=2016&disp=D&type=V">Fred Eychaner</a>,

a Chicago publisher and radio station owner. So far, at least,

Renaissance Technologies would seem to have qualified for naming rights

to the Democratic convention this summer in Philadelphia.

The new convention accounts represent just one more example of the

dramatic increase in concentration of federal campaign funding among a

very small group of donors. In 2012, the grants to the two parties

represented ‘contributions’ from more than twelve million U.S. taxpayers

who voluntarily participated in the funding program. This year so far,

fewer than 500 people have accounted for the direct party funding of

these efforts, and while much more will be received before the gavels

fall in Cleveland and Philadelphia, the concentration of funding is

unlikely to change significantly.

Separately, the host cities are raising funds to pay for convention

expenses. Donations to these accounts are unlimited and there are no

restrictions on sources so corporations, unions and other institutions

will be important donors. These funds will not be publicly disclosed

until months after the convention is concluded, but the <a href="https://www.washingtonpost.com/news/post-politics/wp/2016/04/19/gop-outstripping-democrats-in-hunt-for-convention-cash/">Washington Post has reported </a>that the DNC has commitments totaling more than $40 million and the RNC has pledges of $56 million thus far for these groups.

We’re hearing these days about donor fatigue, and it’s no wonder.

This handful of people, who wouldn’t even make up a majority of

delegates to either of the conventions we’re preparing for, are

financing much of the outside spending that has become so important in

this presidential race, increasingly along with the normal activities of

the two parties and now the basic costs for the conventions.

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Tags: <a href="http://www.opensecrets.org/news/tag/alejandra-foster/" rel="tag">alejandra foster</a>, <a href="http://www.opensecrets.org/news/tag/bob-biersack/" rel="tag">Bob Biersack</a>, <a href="http://www.opensecrets.org/news/tag/charles-joyce/" rel="tag">charles joyce</a>, <a href="http://www.opensecrets.org/news/tag/club-for-growth-action/" rel="tag">Club for Growth Action</a>, <a href="http://www.opensecrets.org/news/tag/david-trone/" rel="tag">david trone</a>, <a href="http://www.opensecrets.org/news/tag/democratic-convention/" rel="tag">democratic convention</a>, <a href="http://www.opensecrets.org/news/tag/diane-hendricks/" rel="tag">diane hendricks</a>, <a href="http://www.opensecrets.org/news/tag/elizabeth-uihlein/" rel="tag">Elizabeth uihlein</a>, <a href="http://www.opensecrets.org/news/tag/fred-eychaner/" rel="tag">Fred Eychaner</a>, <a href="http://www.opensecrets.org/news/tag/henry-laufer/" rel="tag">henry laufer</a>, <a href="http://www.opensecrets.org/news/tag/james-simons/" rel="tag">James Simons</a>, <a href="http://www.opensecrets.org/news/tag/jeb-bush/" rel="tag">Jeb Bush</a>, <a href="http://www.opensecrets.org/news/tag/joseph-craft/" rel="tag">joseph craft</a>, <a href="http://www.opensecrets.org/news/tag/keep-the-promise/" rel="tag">keep the promise</a>, <a href="http://www.opensecrets.org/news/tag/marco-rubio/" rel="tag">Marco Rubio</a>, <a href="http://www.opensecrets.org/news/tag/marsha-laufer/" rel="tag">Marsha Laufer</a>, <a href="http://www.opensecrets.org/news/tag/our-principles-pac/" rel="tag">Our Principles PAC</a>, <a href="http://www.opensecrets.org/news/tag/paul-foster/" rel="tag">paul foster</a>, <a href="http://www.opensecrets.org/news/tag/renaissance-technologies/" rel="tag">Renaissance Technologies</a>, <a href="http://www.opensecrets.org/news/tag/republican-convention/" rel="tag">republican convention</a>, <a href="http://www.opensecrets.org/news/tag/richard-uihlein/" rel="tag">Richard Uihlein</a>, <a href="http://www.opensecrets.org/news/tag/scott-walker/" rel="tag">Scott Walker</a>, <a href="http://www.opensecrets.org/news/tag/ted-cruz/" rel="tag">Ted Cruz</a>, <a href="http://www.opensecrets.org/news/tag/thomas-russell/" rel="tag">thomas russell</a>, <a href="http://www.opensecrets.org/news/tag/unintimidated-pac/" rel="tag">unintimidated pac</a>, <a href="http://www.opensecrets.org/news/tag/warren-stephens/" rel="tag">WArren Stephens</a>