Crowdfunding in Politics

By Bart Everaert and Anthony G. Desmet

2012 UGent

MacrowikinomicsMacrowikinomics.wordpress.com

Crowdsourcing

Crowdfunding

Research environment

GOP RACE

Mitt Romney Ron Paul

GOP RACE

Ron Paul “Crowdfunding-based approach”

Mitt Romney“Traditional campaign”

Evidence for crowdfunding

Source: opensecrets.org

Mitt Romney Ron Paul

CONTRIBUTORS DIFFERENCE

Crowdfunding in reality

• Moneybombs

– Limited time period > "a one-day fundraising frenzy“

– Recent phenomenon > Since Ron Paul

Need for Transparency“We take the trust our donors place in us very seriously and are deeply commited to transparancy and accuracy in our reporting.” (Jesse Benton; RP Campaign Manager)

Importance of openness

• Clear communication

• Democracy benefits

• Report every expenditure >$200

• PAC (Political Action Comittee)

Access: www.opensecrets.org

Expenditure comparison

• Romney has more than twice Paul’s budget

• Romney spends 15% more on advertising

Further on

• Ron paul has 10% more(Campaign direct mail)

• Ron paul spends less on(moneybomb approach)

• Romney spends more on

Internet popularity

Conclusion

• Crowdfunding is not a decisive element yet

• Probably decisive in future « younger generation »

• Positive side effects « It’s as promoting your investment »

• Constant Cashflow