McCain raises cash while limited to public funds

WASHINGTON  Republican John McCain is asking donors to give far in excess of what they can contribute to him directly, even as he is limited to taking only public funds for the fall campaign.

McCain's fundraising is legal because the money he is asking for does not come straight to him. He is collecting funds for federal and state GOP committees that will aid his White House bid. Donors can give a total of nearly $70,000 to these committees, far in excess of the $2,300 individuals can give directly to a candidate.

Barack Obama, meanwhile, also has agreements with the Democratic National Committee and 18 state parties to raise and spend money separately from his campaign. Unlike McCain, who is limited to $84.1 million in public funds, Obama can raise and spend as much as he'd like because he opted not to take taxpayer money.

The use of these committees to raise money violates the spirit of campaign-finance laws aimed at curbing the clout of special interests, said Craig Holman of Public Citizen, a watchdog group. McCain and Obama both have made reducing special interests a priority.

"The wealthy can still give a fortune to help pay for our next president," Holman said.

McCain spokesman Tucker Bounds said most of the money McCain is now raising would be used for voter mobilization. "It's important that the Republican get-out-the-vote effort has the adequate resources, and John McCain is committed to helping where he can," he said.

Obama spokesman Nick Shapiro said the joint fundraising "is an ordinary process." He said Obama "has changed the way political campaigns are funded" by rejecting money from federal lobbyists.

McCain has lagged behind Obama in money, but the Republican National Committee (RNC) had a nearly 10-to-1 edge in cash on hand over its Democratic counterpart through June, campaign reports show.

The restriction on raising private money kicked in once McCain became his party's nominee last week. He can accept only $2,300 from individuals to pay for legal and accounting expenses.

The Arizona senator, however, appeared at a $4 million fundraiser Monday night in Chicago where donors gave anywhere from $1,000 to nearly $70,000. Most of the money was split among the RNC and state parties in the battleground states of Michigan, Missouri, Ohio and Pennsylvania, according to Bill Strong, who helped organize the event.

Contributors who gave at least $25,000 attended a private dinner with McCain.

Strong said enthusiasm among donors was high, partly because of vice presidential nominee Sarah Palin. "We got unsolicited telephone calls from female executives in the Chicago area offering to contribute money," he said. "Fundraising has accelerated since the convention."

Bounds said McCain would do more fundraising for the joint committees; he couldn't say how much.

Jan Baran, a top GOP ethics lawyer, said the joint fundraising is not unusual. But he noted "there's an irony there that Sen. McCain is swearing off private money for his own campaign … but actively raising money for party organizations."

Contributing: David Jackson. The Price of Power tracks the role of money and business in politics.

Contributing: David Jackson