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Republican presidential nominee is counting a novel stimulus to his grassroots fundraising operation

July 11, 2023: -Republican presidential nominee is counting a novel stimulus to his grassroots fundraising operation, paying supporters back a piece of what they present for his campaign.

Ramaswamy, an entrepreneur who has largely fueled his longshot bid for the 2024 nomination, bills the new initiative as a way to “democratize political fundraising.” It may also help drive down the size of Ramaswamy’s average donation, a key figure for candidates seeking to tout broad support from grassroots voters rather than wealthy donors.

Ramaswamy’s campaign said it has already amassed more than 60,000 donors, exceeding the 40,000-donor threshold to qualify for the Republican presidential debate set for Aug. 23.

The campaign says the “Vivek’s Kitchen Cabinet” program will give supporters a 10% commission of the total they raise for Ramaswamy’s White House bid. Participants will get a unique fundraising link to share with prospective donors, and they can track their efforts through a “personal dashboard,” according to the campaign.

The campaign also promises “special awards,” such as a personal call with the candidate and invites to events.

Those who sign up for the program are told that a third-party background-checking agency will contact them to ensure eligibility. Ramaswamy’s campaign did not immediately say which agency would conduct those background checks.

Ramaswamy’s campaign said it had vetted the program with the Federal Election Commission, though some campaign finance experts say the incentives it introduces might raise ethical concerns.

As of the end of March, Ramaswamy, 37, had given his campaign more than $10.5 million in loans and contributions.

Brendan Fischer, a campaign finance expert at Documented, told in an email that he’s “never seen anything like this.” But he added that the program doesn’t raise any obvious legal red flags and seems to mirror campaigns’ traditional relationships with professional fundraisers.

Fischer said he expected to see some of the campaign’s payments reported in future FEC filings because it plans to treat the participants as independent contractors. In an interview, Dan Weiner, director of the Brennan Center’s Elections and Government Program, questioned whether the campaign would make clear to participants that their names may be disclosed as vendors.

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Republican presidential nominee is counting a novel stimulus to his grassroots fundraising operation