Buchanan Inc. (Page 3)

Matching-Funds Millions

Buchanan did even better in 1996 than he had in 1992. He won high-profile early victories in Alaska, Louisiana and all-important New Hampshire, and he almost won Iowa, in Senator Bob Dole's backyard. He was on the cover of Time in February and was briefly a front-runner until the GOP moderates steamrolled him on Super Tuesday.

And once again, Pat Buchanan's success at the ballot box was exceeded only by Bay Buchanan's at the mailbox. She collected a total of $16.3 million, mostly through direct mail. By the time they won the New Hampshire primary, the Buchanans had spent more than four times as much on direct mail as the campaigns of President Clinton and GOP front-runner Dole combined. And the Buchanans didn't stop there. Even after the nomination was hopelessly lost, they continued soliciting funds. On or about May 1--weeks after Bay had laid off half the campaign's 100 salaried workers--roughly 140,000 Buchanan supporters received a letter asking for money to continue Pat's fight for "the heart and soul of the Republican Party."

Why would the Buchanans continue asking for money even after they knew they had lost? Simple: They still had three months left during which contributions would qualify for federal matching funds. During those three months, every dollar given to the campaign would bring two dollars to Buchanan Inc.

Bay has proven herself a master at the finicky game of qualifying for federal matching funds. Federal Election Commission records show that in 1992 she collected $5.2 million in such funds. Only George Bush and Bill Clinton--the party nominees--qualified for more. And in 1996 the Buchanans took home nearly $11 million in matching funds. President Clinton, by way of comparison, collected only $13.4 million, and GOP nominee Bob Dole--who stayed on the campaign trail twice as long as Buchanan--received only $13.5 million.

Buchanan Inc.'s success at the matching-funds game stems from the way in which much of the money is raised. Only the first $250 from each donor qualifies for federal matching funds. As a result, candidates such as Clinton and Dole--each of whom received many contributions at the $1,000 limit--qualify for a lower percentage of matching funds than do candidates such as Buchanan, whose direct-mail solicitations produce greater numbers of smaller donations.

With Lamar Alexander, Elizabeth Dole and Dan Quayle out of the 2000 race so early--and with George W. Bush and Forbes choosing to forgo matching funds--the Buchanan campaign expects to do even better this time around. It had collected almost $4 million in contributions through the end of September, and was on track to file for more than $3 million in matching funds by the end of October. Bay hopes to raise and match another $6 million between now and the Reform convention next August. Thus, over the course of three presidential primaries, Buchanan Inc. may collect $26 million worth of matching funds. Add a $2 million Reform convention fund and the $12.6 million that will flow to the Reform Party nominee after the convention, and the Buchanans could wind up with some $40 million in taxpayer subsidies--making Buchanan Inc. the top beneficiary of public campaign financing this decade.

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