What Happens To Leftover Presidential Campaign Money?

The U.S. presidential elections are done, with Donald Trump being elected to the White House. Interestingly, Trump clinched presidency despite raising $380.3 million fewer than Hillary Clinton.

So far, Democrats and Republican candidates have raised a combined $1.3 billion during their campaigns this year. According to Open Secrets.org, they only spent about $1.22 billion, leaving $87.28 million surplus.

So, what happens to this leftover campaign funds?

The Surplus

The thumb rule is that candidates cannot use the excess money for their personal use as the Federal Election Commission has laid down guidelines over use of surplus campaign funds.

Candidates can use the cash to pay off debts taken for the campaign and to prepare for their next run. But, if candidates with no plans to contest again, they can use the money only to clear debts associated with the campaign, costs over winding down an abandoned campaign or a lost political office.

Also, candidates can either refund the money to donors or donate an unlimited amount to a charity or political party. They can also donate the funds to other candidates. But, here is the catch. Only $2,000 per election can be donated per candidate, but if their committee is converted into a political action committee (PAC) the limit is increased to $5,000.

In addition, to become established as a PAC, the committee should be in existence for six months, receive contributions from 50 donors and make contributions to five recipients.