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Politics
Behind Trumps campaign cash crunch: Small-dollar donor fatigue, major
donor hesitation
Published Mon, Mar 18 20244:45 PM EDTUpdated Mon, Mar 18 20246:41 PM EDT
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Brian Schwartz
@schwartzbCNBC
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Key Points
Former President Donald Trump is facing two major fundraising problems:
a shortage of big money interest and a drop in small-dollar donor support.
The decline in small-dollar contributors could be a significant
obstacle, as the former president seeks to cobble together a 2024 war
chest.
Small-dollar donors are critical to Trumps ability to raise enough
money to fund his presidential campaign.
Republican presidential candidate and former U.S. President Donald Trump
attends a watch party event to mark the Super Tuesday primary elections at
his Mar-a-Lago property, in Palm Beach, Florida, U.S. March 5, 2024.
REUTERS/Marco Bello
Republican presidential candidate and former U.S. President Donald Trump
attends a watch party event to mark the Super Tuesday primary elections at
his Mar-a-Lago property, in Palm Beach, Florida, U.S. March 5, 2024.
Marco Bello | Reuters
Donald Trumps reelection campaign has begun to see warning signs that the
small-dollar donors who fueled his last run for the White House have slowed
their support to the former president this year, according to people
familiar with the matter.
Since late last year, members of Trumps team have been warned by
Republican Party advisors that their small-dollar donor base could be
shrinking, said the sources, who were granted anonymity to discuss internal
campaign matters.
Some have even been told there may not be much that the former president or
his campaign can do to win back these key donors, the sources explained.
The drop in Trumps small-dollar contributors could be significant obstacle
as the former president faces the well-funded incumbent president, Democrat
Joe Biden.
Falling behind Biden
Evidence from earlier in the 2024 election cycle already hinted at an
erosion of Trumps small-dollar donor base, or support of $200 or less.
In 2023, Trumps reelection campaign raised 62.5% less money from small-
dollar donors than it did in 2019, the year before the last presidential
election.
In January of this year, Trumps campaign reported raising around $3
million from small-dollar donors, according to data from OpenSecrets.
This may sound like a lot of money, but consider that Bidens political
operation raised nearly $2 million in just one day, Feb. 29, according to a
campaign spokesman for the president.
Presidential campaigns have until March 20 to file their February
fundraising disclosures to the Federal Election Commission and the public.
Before that date, both sides try to shape the narrative by either playing
up expectations or tamping them down.
For example, Bidens campaign announced it raised $10 million in just the
24 hours following the presidents March 7 State of the Union address. But
those numbers wont be disclosed to the FEC until next month.
U.S. President Joe Biden delivers the State of the Union address at the
U.S. Capitol in Washington, D.C., March 7, 2024.
Elizabeth Frantz | Reuters
Meanwhile, Trumps campaign told The New York Times that February was its
strongest month so far in the 2024 campaign cycle for small-dollar
donations. When CNBC asked a Trump spokesperson precisely how much was
raised, the campaign did not reply.
One factor nobody disputes is that small-dollar donors are critical to
Trumps ability to raise enough money to fund his presidential campaign.
During his failed 2020 reelection campaign, the $378 million he raised from
small-dollar contributions represented almost half of the total cash.
The lions share of this money was raised during the final year of the
campaign. Between Jan. 1 and Dec. 31, 2020, Trumps campaign raised over
$264 million from small-dollar supporters.
Trumps struggle with small-dollar contributors so far this quarter could
be due to donors not engaging as much with his often bombastic online
pitches as they have in the past. It could also be the result of donor
fatigue after nearly nine years of supporting him with contributions,
people close to the Trump fundraising effort acknowledged.
Problems with big money
The drop in Trumps small-dollar donations is magnified by a second
problem: Many wealthy Republican donors have yet to commit to giving
millions of dollars toward a pro-Trump political action committee, or to
using their extensive networks to raise money for the campaign, according
to people familiar with the matter.
Beyond Trump-specific entities, some donors are also hesitant to fund the
Republican National Committee, or a newly created joint fundraising
committee that will raise money for the RNC, Trumps campaign and dozens of
state GOP parties, according to people briefed on the matter.
Their reluctance stems, in part, from concerns that the RNC will use the
money not to help elect Republicans, but to pay for Trumps extensive legal
fees, sources said.
Republican leaders insist they have no such plans. But recent developments
within the Trump campaign and the party suggest that donors concerns might
be warranted.
Former US President Donald Trump sits at the New York State Supreme Court
during the civil fraud trial against the Trump Organization, in New York
City on January 11, 2024.
Shannon Stapleton | AFP | Getty Images
A newly established joint fundraising committee, the Trump 47 Committee,
plans to split proceeds between the RNC, Trumps campaign, state parties
and crucially Save America, the Trump-affiliated leadership PAC that
spent $24 million on the former presidents legal bills in the latter half
of 2023.
The RNC did not reply to a request from CNBC for comment on the committee.
Joint fundraising committees like Trump 47 are allowed to accept nearly $1
million from each individual donor.
Biden and the Democrats have a similar joint committee, and in January
alone, at least five individuals wrote checks for more than $900,000 each
to the effort, dubbed Biden Victory.
But outside of longtime allies like veteran investors John Paulson and
Howard Lutnick, Trump has not received pledges or contributions from many
other wealthy Republicans, sources familiar with the matter told CNBC.
Trumps legal money squeeze is not limited to just his lawyers bills. Over
the past three months, the former president has been found liable for fraud
and defamation in federal and state civil court cases. The total combined
judgments ordered against Trump add up to more than $500 million.
On Monday, Trumps attorneys revealed the former president has been unable
to secure a $454 million bond he needs to prevent the largest judgment
against him from coming due later this month.
If Trump cant get a bond, he will need to pay the millions himself. New
York Attorney General Letitia James has said she wont hesitate to seize
Trumps properties if he fails to pay.
There are other Republican donors who might eventually back Trump, however,
including Blackstone CEO Steve Schwarzman and casino executive Miriam
Adelson.
Miriam Adelson speaks onstage during the 24th annual Keep Memory Alive
benefit for the Cleveland Clinic Lou Ruvo Center for Brain Health at MGM
Grand Garden Arena on March 7, 2020, in Las Vegas, Nevada. (Photo by Denise
Truscello/Getty Images for Keep Memory Alive)
Denise Truscello | Getty Images
New York businessman Stephen Louro told CNBC he plans to host Trump for a
fundraiser later this year in the Hamptons. The event will feature Trump
and Republican lawmakers who represent Long Islands congressional
districts. Louro said he plans to hold a demonstration of a jet suit at his
home for guests.
But Louro represents a rare commitment among New Yorks deep ranks of
Republican donors.
There are very few fundraising events currently scheduled to benefit
Trumps campaign in the coming months within the Empire State, a well-known
political advisor told CNBC.
Trump is also expected to attend the New York Republican Partys annual
gala in April, according a person briefed on the matter. That event will
feature Republican Texas Gov. Greg Abbott and Rep. Elise Stefanik, R-N.Y.,
a longtime Trump ally who could end up being his running mate, according to
the invitation.
The former presidents busy schedule of courtroom appearances could also be
holding him back from attending events, said a Republican fundraiser and
Trump ally.
Trump has to be at the event [in order to raise money]. How do you get
there if youre in court? this person asked. The enthusiasm for voting
for him is there. Maybe the enthusiasm in terms of giving may not be
there.
Chasing Haley donors
This includes critically Republicans who gave money to Trumps toughest
primary opponent, former South Carolina Gov. Nikki Haley.
Earlier this year, Trump threatened to blacklist Haley donors from his
campaign.
Anybody that makes a Contribution to [Haley] from this moment forth,
will be permanently barred from the MAGA camp. We dont want them, and will
not accept them, he wrote on Truth Social Jan. 24.
But the threat only made it that much harder for Trumps campaign to
recruit former Haley donors to the team, some of whom they spoke to as
recently as March 4.
So far, few of them have made the leap from Haleys camp to Trumps.
Former South Carolina Governor Nikki Haley speaks at the third Republican
candidates U.S. presidential debate of the 2024 U.S. presidential campaign
hosted by NBC News at the Adrienne Arsht Center for the Performing Arts in
Miami, Florida, U.S., November 8, 2023.
Mike Segar | Reuters
In some cases, they have ruled out Trump altogether, and committed to
either helping Biden or to raising money for Republicans locked in tight
congressional races instead, sources explained.
A former Haley fundraiser told CNBC how an investment banker explained to
him that while the person was no fan of Bidens, they may not end up
supporting Trump out of concern the former president will say things that
could embarrass his wealthy supporters.
The previous Haley fundraising advisor also described how the CEO of a
major investment advisory firm told him they did not want to give to Trump
or the RNC, out of concern that being publicly associated with the former
president would be embarrassing.
Trumps allies still hope to recruit billionaire investor and former Haley
backer Paul Singer, according to people familiar with the matter. Singer
gave $5 million to a pro-Haley super PAC in December, according to an FEC
filing.
Paul Singer
David A. Grogan | CNBC
But Singer has yet to decide whether he will support Trump, according to a
person familiar with the matter. Members of Singers donor group, the
American Opportunity Alliance, are gathering for dinner in Washington,
D.C., on Tuesday to discuss the future of conservatism, according to a
person familiar with the upcoming meeting.
There, Singers allies may discuss whether to start helping Trump with
their wallets. It was unclear Monday if Singer planned to attend the
dinner.
Diminishing returns
The struggles for Trumps online and overall small-dollar fundraising
efforts were clear to some of of his advisors before the Republican
National Committee recently met in Houston, according to a party
fundraiser.
Less than a year ago, on April 4, 2023, Trump raised nearly $4 million
online the day he pleaded not guilty to his first indictment in New York,
for falsifying business records, according to Politico.
At the time, it was Trumps single best online fundraising day of the year.
The first indictment was huge for everybody, this fundraiser explained,
referring to Trumps online small-dollar fundraising efforts.
But on June 13, when Trump was in court over his handling of classified
government records, the former president only raised $1.3 million from just
over 35,000 donors.