The 2 Main Ways in Which You Can Finance a Political Party

You have two main options, in terms of the ways in which you can finance a political party. You need to be aware of these two options, if you are a person who is in charge of political party finances. You need to (fully) understand how each of these political party financing options works.

The first option entails relying on members’ contributions. You can have two-tier contributions here. In the first tier, you have people who are interested in becoming members of the party paying some registration or membership fees. Then, once they become members of the party, the second tier applies. That is where you can have them paying regular (say annual) membership subscription fees. These fees obvious have to be modest. You have to understand that it is the ordinary people who are likely to be interested in becoming members of political parties. So you may be having a UPS clerk, who has gone to the login screen, signed in, and found that he has earned some good over-time pay. Then, once he logs out of, he may consider using a bit of the extra money to pay membership fees for his favorite political party. But if the party membership fees are too hefty, he would be discouraged from paying them. You therefore need to ensure that the amounts of money charged as political party membership fees are modest. The amount of money you get from individual members may be modest, but if you have a large pool of members, you would collectively get a very decent amount of money.

The second option entails relying on public funds. You see, there are nations where political parties (being important governance entities) are eligible for funding using public coffers. This is where a small percentage of the tax money that is collected is channeled to funding political parties that meet certain thresholds in terms of support. If your political party meets that threshold, then you would be eligible for funding from the public coffers. The amounts of money that are obtainable in this way often turn out to be quite huge.