Among the Democratic Party nominees, US Senator, Elizabeth Warren became the first candidate to borrow money after having spent so heavily on her election campaign. Fearing of running short of her campaign funding, she took out a $3 million loan since she has already spent nearly 97% of her fundraising. According to a source, she raised the highest funding compared to her rival Democratic presidential candidates in the weeks before the Iowa caucuses and was also spending the highest.
Disclosure of Campaign Fundraising
Fundraising and strategic allocations of the funds remained a key strategy for every candidate during the election campaign that would be going on for more months. Keeping a view to understand how the candidates have been managing their multi-million campaign funds, all Democrat presidential candidates had to submit financial disclosures on Thursday.
A source told Reuters, “The Democrats, who are still competing for their party’s nomination, have raised $1.2 billion so far this election, both in donations and from their own money.”
According to disclosures filed on Thursday, Warren raised $10.4 million in contributions in January 2020, more than former Vice President Joe Biden’s $9 million and former South Bend, Indiana Mayor Pete Buttigieg’s $6 million.
Among these Democrats, at least two of the candidates namely Billionaire Michael Bloomberg and US Senator Bernier Sanders have been enjoying comfortable cash positions. According to a source, Michael Bloomberg, who is self-funding his campaign, contributed more than $460 million from his own wealth while Bernie Sanders raised $25 million in January 2020 and finished with $17 million in cash in this month.
Warren’s Campaign Funding and Expenses
Despite Warren had managed a third-place finish in Iowa and a fourth-place finish in New Hampshire, she still could attract funding due to her impressive campaign performance this week.
Warren’s campaign spokesman, Chris Hayden said, “Our January end-of-month grassroots fundraising push was very successful and February has been even stronger for us, shattering our monthly record already with more than $17 million raised in the first 20 days of the month.” Citing the latest move of borrowing $3 million loans by Warren’s campaign, Hayden told, “She only accessed $400,000.”
Unlike other Democrats, Warren spent heavily on staff payroll rather than paying on television ads. According to Reuters, she increased her payroll by 83% by spending $3.2 million on staff in December and $5.9 million in January, which is the largest payroll expense among the candidates.
On contrary to Warren, New York media mogul Bloomberg, besides a heavy investment in his TV advertisements, was slowing raising money for his staff after launching his campaign in November. Bloomberg was reported having spent $1.2 million in December and $5.7 million in January while Sanders invested $3.9 million for January payroll which was followed by Joe Biden’s payroll budget of $2 million.
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