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January 25, 2007
The real questions for DPG candidates are:
I'm moving the ongoing debate between Chris and JerryT to the front because it is an interesting discussion that has implications on this Saturday's election for DPG officers. Chris and JerryT are both in agreement of wanting to see the Party flourish but are in two different corners on the economics of the process. I think that their comments are pretty much reflective of the split in the Party: Chris' point is that the DPG needs more big money donors and JerryT's point is that we need to engage the small dollar donors.
I believe that the crux of problem is not who we solicit for money. It is the misunderstanding of the true financial costs it takes to run the DPG and the nonexistent economic development and operational plans from the DPG candidates, especially the Chair candidates.
The reality is that it takes around $850,000 - $950,000 in operational costs a year to run the DPG. That's about $500,000 for salaries. Before anyone goes off on how salaries are outrageous, I agree to a point. As a technology person, I personally think that the technology wing has been crapped on at the DPG and more money needs to be spent on salaries there than on people that push paper. But that's just my beef. Then you have benefits - you know even DPG employees must have health and dental benefits. Then you have labor insurance and the rest of the government expenses. Plus legal services - of course if this line item was donated by one of the many law firms then the DPG could save about $100,000 to $150,000 a year. Plus rent, parking, printing, office supplies, and technology expenses. This is an annual budget for only 8-10 people and no salary for the Chair.
Keep in mind that these are annual costs without the DPG investing into any election campaigns.
The biggest revenue generator is the annual JJ Dinner. The JJ dinner historically returns annual revenue of $650,000-$700,000.
Now that we have a framework for the costs and revenues; the primary problem as it relates to Saturday's election is that none of the DPG Chair candidates have remotely quantified how the heck they are going to realistically raise the basic $900,000 a year. But they have included additional proposals for 159 county strategies and websites, real-time voter files, quarterly newsletters and increased communications, increased travel expenses, and other stuff.
Mike Berlon has said he would reexamine salaries, but that won't decrease costs much because slashing in 1 area will not equal the costs associated with his proposals for newer technology, better communications, and satellite offices. Jane Kidd says "as the budget allows, she will expand the DPG’s fundraising operation, adding staff and increasing our universe of donors."; not good if we can't meet the basic budget numbers plus "be competitive in every State House, State Senate, and local race". Carol Jackson doesn't mention the budget; only the need for more communications which I'm guessing will come with a high price tag. Rev. Jim doesn't mention the budget or any new ideas. We haven't heard anything from Hattie Dorsey.
This year's JJ dinner is going to be the wake up call for the DPG. The money generated will be the benchmark on the health and vitality of Georgia's Democratic Party.
Money raised for the JJ Dinner is a "all hands on deck" process. If the next DPG Chair pisses off the elected officials then they are not going to make the necessary phone calls to sell tables. If the next DPG Chair pisses off the big donors then they are not going to buy tables. If the SCM elect officers who have never raised money and/or do not have connections to external donors then the DPG is screwed. If the County Parties do not feel engaged in the process and also do not buy tables or contact donors then the DPG is screwed. And if the Dem activists and volunteers are not engaged and are not solicited then the DPG is again screwed.
I believe that some questions the SCM should really ask themselves are:
1) Which DPG Chair candidate even has a real clue about the financial realities of the DPG and has clearly explained their economic development and operational plans?2) Has any DPG Chair candidate really explained to the Dem community their financial soundness and capabilities? Not what they did in the past, but what innovative solutions for the future.
3) Should we elect elected officials who also have to raise money for their own personal campaigns - is this not the real conflict issue?
4) Should the SCM members not re-elect officers that have a proven track record of raising money and have connections to external donors; but may have been absent in State Committee meetings.
5) Should the SCM elect new candidates who have zero to very limited connections to external donors and no fundraising track record?
6) Should all candidates submit the costs and potential sources for revenue for each of their new proposals so that the SCM can assess their fundamental knowledge of program development?
7) Do your chosen candidates make you feel secure in their financial capabilities?
8) Can we end our divisiveness and support all newly elected officers on Jan. 28th? Will we be able to trust their leadership and economic development capabilities?
Many have said that the future of the DPG is in the hands of the SCM on Jan. 27th and it is very much so. If we don't elect officers that can increase the Dems financial competitiveness against Republicans than we are doomed as a Party. If the DPG candidates do not offer any new approaches based on the current political environment then our Party can not and will not be able to support future Dem candidates and compete for a better Georgia.
On. Jan. 27th, every time a candidate says "yes, I have lots of free time to travel across Georgia" ask yourself "did they ever explain how they are going to pay for the gas?". If you haven't been given an answer to a basic question like gas expenses then move on to the next candidate.
I heard that Calvin Smyre has a saying "it takes coal to run a train, but it takes gold to run a campaign". The DPG is one big campaign and if we elect officers that confuse zinc with gold then we are the fools.
This is a not a "doom and gloom" post - it's about taking Chris and JerryT's debate and applying it to the fact that something is very much absent in many of the DPG candidates' platforms - economic development and operational plans to move Georgia Democrats forward. Simply put, these absences have created most of the uneasiness and angst amongst activists, Party loyalists, big donors, small donors, and elected officials. We have to be unified to successfully implement the next DPG Chair's economic development and operational plans.
If there is no unity on Jan. 28th then just give the DPG office keys to Glenn Richardson. He can use it to house his mistresses.
One may ask why didn't I mention these absences earlier - it is simple - I'm not running for a DPG office. I seriously considered running but that's a 4 year commitment - geesh I don't have that kind of attention span. I love all Georgia Dems, but I would have to include therapy costs into my economic development plan. This whole "big tent" thing can wear a completely sane person down. God bless the winners.
Posted by Bernita at January 25, 2007 04:11 AM
Comments
These are great questions. Do we know if the DPG opened their books to the candidates so they could see just what they were getting into as far as operating expenses?
If not, this may be why we have not seen any proposed budgets from the candidates.
Tennessee has a 10 for Tenn program for small donors. 10 bucks a month to help with operating costs.
I see posts here every once in a while about people not being solicited to contribute to the DPG. I really hope that changes very soon. While $200 for the JJ Dinner is steep for quite a few, I think a good percentage of folks here could handle $5 or $10 a month.
Posted by: sndeak
at January 25, 2007 07:42 AM
sndeak, here's a scary concept - any person that is running for Chair and DIDN'T ask the DPG to open their books before running for this job. I can't imagine how anyone could run for this seat without asking the amount of operating costs, previous year revenue generated, liabilities, loans and debts. They may not tell you where all the bodies are hidden, but to omit asking the basic questions is cause for leadership concerns.
Damned if I would walk in there on Jan. 28th and not know anything about the financial history of the organization.
Posted by: Smitty
at January 25, 2007 08:11 AM
sndeak,
What a great idea! Back in college, I participated in a similar program with the ACLU. They asked for a large donation (and well, all my money went to other things in college) so instead we set up monthly drafts in the amount of $15.00.
Posted by: Jen B.
at January 25, 2007 08:19 AM
I'm not sure if this answers your questions, but it is from Berlon's website.
http://www.dpgchair.com/more/index.cfm?Fuseaction=Fundraising§ion=more_22347
Posted by: sweetpea
at January 25, 2007 09:41 AM
a quick note, it takes at least 1M to keep the doors open at SPring street and everything running. Every year prior, the JJ Dinner has raised at least 1M. This year it raised 600k-ish.
So, grassroots, small donor whatever, has to honestly go, what is easier; soliciting hundreds of small donors, or 3 or 4 big ones to cover what remains.
Posted by: indie_rock_elitist
at January 25, 2007 09:48 AM
We have to be able to do both, IRE. I don't think any "grassroots" advocates want to shun big donors, or even big donor input. But as so many have said, small donors aren't even being asked.
Posted by: JerryT
at January 25, 2007 10:00 AM
By also soliciting smaller contributions from many individuals, you create many more stakeholders in the party. In the long run, it's healthier for the organization to be more inclusive.
Posted by: MelGX
at January 25, 2007 10:30 AM
I call BS. With a vibrant, active party that had two-way communication with everyone we should be able to get the equivalent of $10 a month from 10,000 people which is $1.2 million a year.
Granted, it may take a year to get it going - which is why we must have a chair who understands the current financial circumstances.
Just like a business that must diversify it's customers - our party must diversify it's donors. Just look at all the businesses that crumble whenever GM has a bad year because GM is their biggest (sometimes only) customer.
Think long view people. Chances are that ten years from now we will not be able count on the same large donors that we count on now.
Posted by: CatherineAtlanta
at January 25, 2007 10:44 AM
JerryT - Exactly. They are not mutually exclusive. We all travel in different social circles and fundraising is no different.
It's all about targeting the right audience for the right event. We had 3 events a year at the county level. 1 was a black tie (optional) that was $100 with sponsorships up to 5k. 1 that was $50-150 in a more casual home setting. And the last was the harvest dinner in oct for the volunteers that was $25-75. We always set aside a handful of tickets for volunteers as a reward as well.
Posted by: sndeak
at January 25, 2007 10:46 AM
I said; which do you think is easier
Posted by: indie_rock_elitist
at January 25, 2007 10:52 AM
What's easier isn't always best.
Posted by: MelGX
at January 25, 2007 10:53 AM
If we're always thinking about what is easiest - we're screwed.
Posted by: CatherineAtlanta
at January 25, 2007 10:53 AM
I have looked at budgets for a number of non-profit organizations in Georgia.
There are non-profit organizations with less than 10 staffers that operate on a $1-2 million annual budget that have a purely *regional* focus. The question isn't: 'how can anyone else raise $1 million?' The question is: 'why has no one been able to raise more than $2 million for this *statewide* organization?'
I don't have the answer to that question. What I can say is that anybody's fundraising plan needs to be significantly different from previous plans, and not just "we're going to ask the same people we always ask for money, but better."
Posted by: Richard Campbell
at January 25, 2007 10:54 AM
One thing that has always frustrated me is how easily the RNC can line up big names - elected officials,former party leaders, former cabinet members - and send them all over the country to help state and county parties raise money while Democrats have to beg, borrow and steal to get even a local congressman to show up at an event. The DNC does a very poor job at this.
With the Presidential race off and running so early, I doubt that many of the candidates will be willing to sacrifice any time or money by coming to 'small' events.
Posted by: sndeak
at January 25, 2007 11:04 AM
"Chances are that ten years from now we will not be able count on the same large donors that we count on now." - yeah cause they are going to be all dead from having to fend off the begging people at the DPG.
In today's news: Ford Motor Co. lost $5.8 billion in the fourth quarter amid slumping sales and huge restructuring costs, pushing the automaker's deficit for the year to $12.7 billion, the largest in its 103-year history.
yeah that's gotta hurt for their large shareholders.
Posted by: Smitty
at January 25, 2007 11:08 AM
sndeak, it's not the DNC's fault that elected Democrats will not support other Dem candidates - that all about the elected Democrat. Maybe the DNC, DSCC, DCCC, and DPG can slap a few around and say "cut the crap, get over your egos, and help a fellow Democrat out." What they all do is remember how shitty they were treated when they started in the game and instead of being leaders they just sulk and hold on to the past and screw the next guy/girl coming up.
Once you have worked with a few new candidates you start to build a nice "ED-DTM" list - Elected Democrats that are Dead To Me.
Posted by: Smitty
at January 25, 2007 11:13 AM
"By also soliciting smaller contributions from many individuals, you create many more stakeholders in the party."
Agreed. It'll get them more involved in the party and more likely to volunteer. Big donors are great - and we need them - but most of them will not be out there holding signs and licking envelopes.
Posted by: Jen B.
at January 25, 2007 11:14 AM
Ann Cox C. and Lucy D. are two major donors that I know will hold signs and will go door knocking on a hot Georgia July day. Lucy D. can drop some yard signs in the driest Georgia red clay and keep going all day. If only they could inspire their other rich buddies.
Maybe the DPG can offer grassroots training classes to rich donors and have those 2 ladies teach the class.
Posted by: Smitty
at January 25, 2007 11:20 AM
Albright lives in my old county but would not attend a fundriaser as a key note because we were not "national". Now, with Jim Webb winning I hear she has pulled her head up out of the ground and may speak.
But litty ricky santorum lives there as well. I wonder if he moved back to PA yet. hehehe
Posted by: sndeak
at January 25, 2007 12:02 PM
granted whats easiest is not always best, but you still ignore a big problem with changing the donor structure...it is probably easier to get 4 large donors than 100 small ones. but, what happens if we court the small ones and can't make up the difference and then we can't even opperate. Is that better?
i know wed really like to change things from business as usual but, that might not always be the best thing to do.
Posted by: indie_rock_elitist
at January 25, 2007 12:04 PM
This is tied in with messaging too. Our state Party seems to be built around candidates and campaigns, so perhaps it's not surprising that there is difficulty getting some of them to show up for anything else besides their own gig. Once you implement stronger party messaging, I would think that eventually you end up with candidates and party members who buy into the message and therefore are for the most part in it to see the ideas succeed as well as candidates. Not to say many don't feel committed already, this should just make it more so.
Posted by: JerryT
at January 25, 2007 12:04 PM
I'm glad the moritorium is officially over.
Posted by: Mad Dog
at January 25, 2007 12:05 PM
IRE,
Regarding this comment, "..but you still ignore a big problem with changing the donor structure.."
I don't think sending out emails to small donors or throwing a few DPG house parties - where the hosts bear the burden - will change the ability of the party to get those big donors as well. I could be wrong and perhaps chris has numbers on how much more time and effort that would take.
Posted by: Jen B.
at January 25, 2007 12:12 PM
Nobody is saying to 'dis the big donors. We are talking about expanding the pool. The conventional ways of wooing big donors stays the say. There just needs to be a real effort to get money from the middle and lower tiers as well.
Posted by: sndeak
at January 25, 2007 12:23 PM
I had planned on staying out of these discussions, but the party’s lawyer emailed me and asked if he should send a bill for $100-150,000 in legal fees per year for the three years he has volunteered his services. Mike Jablonski has done a great job as General Counsel, and has been paid very little beyond expenses. He has handled a number of ethics complaints, including the one in which Sonny was fined. He also successfully defended us against a complaint filed for our efforts on behalf of Chief Justice Leah Sears. And, he has worked with numerous county parties on compliance issues and qualifying. The 2006 budget approved by the Executive Committee included $18,000 for legal fees. I believe we spent less than $10,000, mostly for a DC law firm which advises on FEC compliance. Don’t tell Mike we were under budget. Mike and others also volunteered a great deal of time dealing with absentee ballot and early voting problems, as well as election day issues.
Contributors to this blog have a lot of good ideas about fundraising. I have talked to most of the candidates for chair and other offices about fundraising and the party’s finances. They raised some of the same questions that are being raised on this blog, including the JJ and small donor fundraising. As to the JJ, I am hoping the days of the $1 million JJ will return, but we haven’t seen those numbers since we held the Governor’s office. As many have correctly pointed out, that is one of the problems resulting from over-reliance on a Governor to raise money. Lt. Gov. Taylor devoted 100s of hours a year to fundraising for the Party, and raised a significant portion of the JJ money, particularly in 2003 and 2004. He also donated some 500k from his Lt. Gov campaign.
Small donor fundraising is critical to the future success of the party. I am pleased to report that we have grown our small donor base from less than 500 to over 5000 in just over two years. We have built the list through a combination of phones, mail and the internet. Most of the growth has come from mining the voter file. Can more be done? Absolutely. But we didn’t grow from 500 to 5000 overnight, and we won’t go from 5,000 to 10,000 overnight either. Prospecting is not cheap, but in the long run, it pays off.
And, if any one sees Mike Jablonski, tell him Bernita’s check is in the mail.
Posted by: Bobby Kahn
at January 25, 2007 02:04 PM
"This is tied in with messaging too". 100% correct, Jerry. IF we are going to change how the party does business, then we have to get people to buy into the message of the "new" Democratic Party. One of the potential problems is that the erstwhile big donors are used to buying influence. Now we have to educate them to the fact that the party is one of primarily ideas, and the candidates have to buy into those ideas. I agree that small donors will be more easily attracted to this type of approach.
Posted by: yardman5508
at January 25, 2007 02:20 PM
BK, let Mike know that Bernita will have to set up a payment plan for him. As soon as her mom restarts her allowance plan she will start giving Mike a percentage. In addition, now that Mike has some free volunteer time, Bernita might be able to keep him busy. She might need some legal services. Something about the federal government and wiretaps and Dick Cheney.
Posted by: Smitty
at January 25, 2007 02:47 PM
How many times I've been reminded of my wonderful childhood years, sitting in my Daddy's truck with my brother, making all our plans for what we were going to do when we got the keys.
Eleven year old boys have ambitious and detailed plans for that day when they get the keys.
Lucky for my brother and I, Pop had more than a little life experience. He didn't call our plans by the real name:
Daydreams.
He called them Dreams and talked to us about them.
Told us about growing our legs longer and stronger before climbing Mount Everest. Maybe even getting tall enough to see over the steering wheel before starting the motor. He never belittled our daydreams. Instead, he helped us grow into them.
Same thing happens over and over again. Kids make huge plans to scale Mount Everest before learning to drive the pick up truck. Every candidate also has huge plans during the campaigning.
Before we hand anyone the keys to the family pick up truck, why don't we give them a written exam and see if they even know the rules of the road?
Or, would you rather ask my brother about our plans to drive to Australia in a 1957 Chevy?
Posted by: Mad Dog
at January 25, 2007 09:49 PM
5000 small donors is great. No doubt that growing this number will take some time, and with a good plan, visionary leadership, and a consensus to succeed, we can build on that foundation and create the conditions for long term success.
Posted by: JerryT
at January 26, 2007 07:43 AM
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