What Happens to Leftover Campaign Funds When a Candidate Drops Out?

After nearly one year of campaigning for the Democratic presidential nomination, Kamala Harris has officially bowed out of the 2020 election. She's not the only would-be president to call it quits so far. So what happens to all the leftover campaign funds when a candidate drops out?

One thing's for sure: Upset candidates can't console themselves by putting the dough toward a new yacht and sailing off to recuperate. The Federal Election Commission has strict rules about what federal candidates can and can't do with leftover campaign money, and the biggest directive is that they can't pocket it for personal use.

Here's what a campaign committee is allowed to do with any lingering cash: it can donate the funds to charities or political parties; it can contribute $2000 per election to other candidates; and it can save the money in case the candidate chooses to run again. However, those regulations don't apply to the relatively new super PACs (Political Action Committees); this is only the third election where they have played a role, and there are currently no rules to stipulate what happens to that money beyond that it cannot go to fund another federal candidate. Much of that money tends to be returned to its original donors, used to wrap up the failed campaign, or donated to back a state-level candidate. The goal, however, is always to spend all of that money.

Running a campaign is an expensive proposition—Barack Obama spent nearly $750 million on his 2008 White House bid, and in 2012 he spent $985 million on reelection while challenger Mitt Romney spent $992 million—and insufficient cash is often a reason campaigns go belly up.

As for winning (or sometimes losing) politicians, they'll often put their leftover funds toward their next race. If they choose not to run, they have to abide by the same FEC rules. Wonder why this law is in effect? Until 1993, U.S. Representatives who took office before January 8, 1980, were allowed to keep any leftover campaign cash when they retired, but a study showed that a third of Congress kept and spent millions in campaign donations on personal items like clothing, jewelry, artwork, personal travel, and dry cleaning. Embarrassed, Congress passed a law negating this custom for the House; the Senate already had provisions in place so this wouldn't happen.

In reality though, officials can usually find a way to make that cash still work for them (and state laws differ from federal ones). After Chris Christie won reelection as New Jersey's governor in 2014, his campaign was granted permission to use some of its remaining war chest to cover the legal fees Christie incurred during the Bridgegate scandal. And this was well before he dropped $26.7 million on his failed 2016 presidential bid.

An earlier version of this article originally ran in 2012.

Why Are Poinsettias Associated with Christmas?

iStock
iStock

Certain Christmas traditions never seem to go out of style. Along with wreaths, gingerbread cookies, and reruns of A Christmas Story sits the poinsettia, a red-tinged leafy arrangement that’s become synonymous with the holiday. Upwards of 100 million of them are sold in the six weeks before December 25.

Why do people associate the potted plant with seasonal cheer? Chalk it up to some brilliant marketing.

In 1900, a German immigrant named Albert Ecke was planning to move his family to Fiji. Along the way, they became enamored of the beautiful sights found in Los Angeles—specifically, the wild-growing poinsettia, which was named after Joel Roberts Poinsett, the U.S.-Mexican ambassador who first brought it to the States in 1828. Ecke saw the appeal of the plant’s bright red leaves that blossomed in winter (it’s not actually a flower, despite the common assumption) and began marketing it from roadside stands to local growers as "the Christmas plant."

The response was so strong that poinsettias became the Ecke family business, with their crop making up more than 90 percent of all poinsettias sold throughout most of the 20th century: Ecke, his son Paul, and Paul’s son, Paul Jr., offered a unique single-stem arrangement that stood up to shipping, which their competitors couldn’t duplicate. When Paul III took over the business in the 1960s, he began sending arrangements to television networks for use during their holiday specials. In a priceless bit of advertising, stars like Ronald Reagan, Dinah Shore, and Bob Hope were sharing screen time with the plant, leading millions of Americans to associate it with the holiday.

While the Ecke single-stem secret was eventually cracked by other florists—it involved grafting two stems to make one—and their market share dwindled, their innovative marketing ensured that the poinsettia would forever be linked to Christmas.

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Why Does Santa Claus Live at the North Pole?

allanswart/iStock via Getty Images
allanswart/iStock via Getty Images

As children settle in for a restless night’s sleep this Christmas Eve, they’ll no doubt be picturing Santa Claus on his way from the snowy ’scapes of the North Pole to deliver them Star Wars LEGO sets, Frozen 2 dolls, and everything else on their wish list. They picture Santa at the North Pole, of course, because they’ve seen him living there in numerous Christmas movies, books, and television specials, from perennial Rankin/Bass programs to more modern classics like 2003’s Elf.

While it might seem a little more magical if we told you that nobody really knows why Santa lives there, there is a relatively traceable paper trail: The first known reference to Santa’s North Pole residence is in an 1866 cartoon from Harper’s Weekly.

According to Smithsonian.com, famed political cartoonist Thomas Nast—who was also responsible for establishing the donkey and elephant as the symbols for the Democratic and Republican parties, respectively—first started creating Harper’s Weekly Christmas cartoons as Union propaganda for the Civil War in January 1863. Borrowing imagery from Clement Clarke Moore’s (alleged) 1823 poem “A Visit From St. Nicholas” (which you’d probably recognize as “’Twas the Night Before Christmas”), Nast developed the white-bearded, rosy-cheeked, all-around jolly guy that we know today, and showed him passing out gifts to Union soldiers, climbing into a chimney as a soldier’s wife prays, and more.

harper's weekly santa claus at camp by thomas nast
Thomas Nast, Harris Brisbane Dick Fund, Wikimedia Commons // Public Domain

The cartoons became so popular that Nast branched out from his source material and began inventing his own details to add to Saint Nick—like where he’s from, for example. A December 29, 1866 issue of Harper’s Weekly debuted a multi-image cartoon titled “Santa Claus and His Works,” which includes a small inscription along the circular border that reads Santa Claussville, N.P. According to The New York Times, we don’t know exactly why Nast chose the North Pole (or if it was even his own idea), but there are a few reasons it made sense for the time period.

For one, Santa Claus was already widely associated with snow because most of the publishing companies producing Christmas cards and other content were located in New England, where it actually snows around Christmas. Furthermore, the 1840s and 1850s were partly characterized by high-profile—and ill-fated, in the Franklin expedition's case—attempts to explore the Arctic, and the public was generally interested in the mysterious, poorly-charted region. Because the Pole was unoccupied, Santa and his elves could toil the year away without interference from prying eyes; and, because it was unclaimed, Santa could remain a bastion of benevolence for every nation.

merry old santa claus by thomas nast
"Merry Old Santa Claus," perhaps Nast's most famous illustration of Santa, from the January 1, 1881 edition of Harper's Weekly.
Thomas Nast, Wikimedia Commons // Public Domain

Though we’ll likely never know Nast’s personal rationale behind placing Santa Claus in the North Pole, one thing’s for sure: At this point, it’s hard to imagine him living anywhere else. It’s also hard to imagine him riding a broom, wielding a gun, or smoking cigarettes (find out the stories behind those early Santas here).

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