OTTAWA – The once-mighty Liberal party has raised less money from fewer donors so far this year than the NDP, traditionally the poor sister of Canadian politics.

According to quarterly financial returns posted by Elections Canada, fewer than 35,000 donors contributed a total of $3.6 million to the Liberal party from January to September this year.

Over the same period, the Conservatives vacuumed up almost $15 million from more than 125,000 individuals.

Even the NDP did better than the Liberals, raking in $3.7 million from almost 44,000 contributors.

The dismal financial news comes just as Liberals are digesting the results of the Oct. 14 election, in which the party fell to its lowest share of the popular vote – 26.2 per cent – since Confederation.

Party president Doug Ferguson said he expects the party will be left with a $2-3 million campaign debt after it receives rebates on campaign expenses from Elections Canada.

Moreover, since each party receives a public subsidy worth $1.95 per vote, the Liberals' reduced vote share will translate into an annual loss of $1.6 million for the party.

Ferguson acknowledged the Liberals' financial straits are worrying. But he noted that the party traditionally rakes in the bulk of its donations in the fourth quarter and predicted that by year end the Liberals will surpass the NDP in fundraising.

However, the party will have to compete for scarce dollars with a half dozen or more Liberal leadership contenders, who will soon be scouring the country for donations.

Candidates to succeed outgoing Leader Stephane Dion are expected to bolt quickly out of the gate after the Liberal national executive meets next weekend to set the timing, location and rules for the leadership convention. The convention is most likely to be held next May in Vancouver.

The Liberal party has been struggling to raise money since 2004, when political financing reforms severely limited personal and corporate contributions. Stephen Harper's Conservatives tightened those rules even further in 2007, banning corporate donations outright and capping annual personal contributions at $1,100.

Traditionally most reliant on big corporate donations, the Liberal party has had the most trouble adapting to the new regime. By contrast, the Tories have thrived, tapping into their Reform party roots to master the art of raising lots of small donations from thousands upon thousands of individuals.

"There's a recognition that we do have to change our fundraising culture," Ferguson said.

"I'm concerned, of course, but I sense a desire and a willingness of the party to make the changes we need to make and turn things around."

Ferguson said his goal is to eventually match the Conservatives ``dollar for dollar."

Dion has also made fundraising his top priority during his remaining few months as leader. He blames the Liberals' election defeat on the fact that the party could not afford to counter costly Tory attack ads that denigrated him and his controversial carbon tax plan.

Ferguson hypothesized that the Tories and NDP have been able to tap into a sense of grievance and passion among their supporters to raise money. But Liberals, who tend to be moderate centrists, are generally less aggrieved or impassioned and it's consequently proved harder to motivate them to give money.

"At either end of the political spectrum, I think people are more motivated to give. I think it's because of emotion."

Still, Ferguson said the jaw-dropping fundraising success of Democratic presidential nominee Barack Obama proves that average people will open their wallets if they're inspired.

"We have to give meaning and value to being a Liberal. We also have to give them inspiration."