WASHINGTON -- In an attempt to keep a clean sheen on its 2012 convention, President Barack Obama's reelection campaign will refuse contributions from corporations, political action committees and federally-registered lobbyists offering to help pay for the event, according to a Democratic spokesman.
An official with the Democratic National Committee told reporters on Friday afternoon that as they gear up for the extravaganza in Charlotte, N.C., they will also be capping total contributions to the convention coffers.
Cognizant, perhaps, of the flak they would take, the DNC is also banning "in-kind contributions" from corporate entities that received TARP or other bailout funds, "unless those funds have been repaid in full to the U.S. Government." Of course, that doesn't bar 18 of the biggest 20 banks, including the top 14, which have either repaid their TARP money or did not receive any.
Still, the official said, this is the first time in history that the party has put these kinds of financial restraints on its convention fundraising.
"From the very beginning, President Obama has placed a high priority on increasing the influence of grassroots and individual donors, and this convention will go further in that direction than any convention ever," said DNC Communications Director Brad Woodhouse, who dubbed the Charlotte event "the 'People's Convention'."
Party conventions have always been a conduit for moneyed interests to curry favor with the White House, as the price tag forces planners to scrounge for money. Obama, however, has the luxury of a massive donor base, which makes pledges like this one less of a gamble.
The guidelines announced on Friday evening follow earlier vows by both Obama and the DNC to outlaw donations from registered lobbyists during the presidential election and thereafter, respectively.
Here is the relevant provision from the convention contract:
Policies and Guidelines for Donations to the Host Committee
1. The Host Committee shall screen monetary and in-kind contributions in compliance with FEC regulations and policies and guidelines adopted by the DNCC, including, without limitation, a prohibition on the receipt by the Host Committee of contributions from the following:
(a) Any contribution whatsoever from any individual who is neither a US citizen nor a legal permanent resident of the U.S.;
(b) Monetary contributions from any incorporated for-profit entity;
(c) In-kind contributions from any corporation organized under the laws of, or with its principal place of business in a foreign country provided, however, that nothing shall prohibit in-kind contributions from any subsidiary of such corporation incorporated under the laws of a state within the United States, any tribal nation, the District of Columbia, or any territory of the United States, and provided that any such in-kind contributions from such a subsidiary must be made using revenue generated from U.S. operations;
(d) Monetary contributions in excess of $100,000 from any individual;
(e) In-kind contributions of goods or services from corporate entities that received TARP or other bail-out funds, unless those funds have been repaid in full to the U.S. Government;
(f) Monetary or in-kind contributions from political organizations as defined in Section 527 of the Internal Revenue Code, such as political action committees, unless approved in advance by the DNCC;
(g) Monetary or in-kind contributions from individuals registered as federal lobbyists under the Lobbying Disclosure Act; and
(h) Monetary or in-kind contributions from foundations established by or affiliated with any incorporated for-profit entity, unless approved in advance by the DNCC (and any such contribution approved by the DNCC would be subject to a limit of $100,000).2. In addition to the guidelines above, the Host Committee shall comply with the following policies of the DNCC:
(a) No individual registered as a federal lobbyist under the Lobbying Disclosure Act may serve on the Host Committee;
(b) No incorporated entity may sponsor any event or any other items funded under the Master Contract unless approved in advance by the DNCC;
(c) No incorporated for-profit entity may sponsor any event or other items funded as part of hospitality activities undertaken by the Host Committee on behalf of the DNCC such as events for party representatives, foreign dignitaries, Convention delegates, volunteers or media representatives, unless approved in advance by the DNCC.
(d) All "Official Provider" designations shall be negotiated with the DNCC and the Host Committee and signed by the Host Committee;
(e) All targets for monetary, in-kind, official provider, or other type of contribution to the Host Committee shall be approved in advance by the DNCC;
(f) All contributions, monetary or in-kind, shall be disclosed publicly by the Host Committee within an agreed upon regular timeframe on the Host Committee's website; and
(g) The Host Committee shall develop a grassroots fundraising plan for review and approval by the DNCC within 60 days of the signing of the Master Contract.