Campaign fundraising outsourcing
In the old days, politicians handled their own fundraising directly, or asked a trusted insider to do it for them. For example, John Kennedy had his father take care of fundraising. But these days, fundraising – like just about anything else – can be outsourced. According to Forbes, one of the emerging companies in this space is Stripe.
[B]y using Stripe, campaigns can avoid hiring employees to handle payments and donations. [Hillary] Clinton’s donations webpage, featuring a simple sign-up flow that promises security and the ability to set up recurring contributions, is powered by Stripe, which will process the gift, store credit card information and disburse the appropriate funds to the campaign.
The processing presumably includes compliance with all Federal and state campaign finance laws. For this service, Stripe gets a cut of up to 2.9% of the total dollars raised, which seems reasonable.
But Clinton isn’t the only person using Stripe. People from both sides of the aisle, ranging from Bernie Sanders to Mike Huckabee, are using the service. And some candidates are using more than one service.
[Rand] Paul paid $102,371 to Stripe for donations processing last quarter, compared to the $34,396 he disbursed to PayPal for similar services.
Stripe (like Paypal) is not just used for political donations; it can be used for any financial transaction. Interestingly enough, Stripe can accept Bitcoin payments. I’m not sure how the campaign finance regulators react to that, however.