Republican donors continue migration from Michael Steele’s RNC

The elections in November offer a sign of hope for many in the GOP, but the party’s central command, the Republican National Committee, appears no longer able to meet the demands of the party or its donors. Instead, even longtime supporters are looking to grassroots movements and other GOP groups such as Republican Governors’ Association, the Tea Party movement, American Crossroads and the American Action Network.

Republican distrust in RNC began shortly after the first scandal under Steele’s leadership, when  RNC officials reportedly held a fund raiser in a Hollywood strip club and spent thousands on private jets and hotels. And most recently, the RNC revealed that it is $7 million in debt rather than the $3 million it had reported earlier, although RNC now claims it is paid.

Besides the RNC’s fiscal woes, Steele’s comments and actions have caused major divisions in the GOP, leaving many to demand Steele’s dismissal. Some even call for Palin to replace him, although RNC denies the claims. Steele bashed the conservatively supported Afghanistan war earlier this month, stating “If he’s such a student of history, has he not understood that, you know, that’s the one thing you don’t do is engage in a land war in Afghanistan? All right, because everyone who’s tried, over a thousand years of history, has failed,” in a circulated video.

Steele began his RNC career under fire and continues to be. He won the RNC chair in 2009 after an intense, drama-filled vote, shortly after Obama was elected, with 91 out of 168 votes becoming the first African-American to serve as RNC chair. Steele wanted to revamp the GOP through new campaign methods, namely by diversifying votership. Steele wanted to appeal to mass America and gain the black and hispanic vote that tipped Obama over the edge for the presidential election.

Steele won the election for chairman after six dramatic ballots in January of 2009. During the ‘08 presidential election, the Democratic Party had grasped the powers of individual Internet donations, giving Obama a fiscal advantage over McCain. Since he was elected, Steele’s chief purpose was/is to fund raise. But after countless offensive remarks and ill-managed practices, even some staunch Republicans no longer were willing put their trust or funds into the RNC. During Steele’s first few months, RNC’s fund raising numbers actually hit a record low of $5 million.

Much of the core donor base of the GOP seemingly have fled Steele’s RNC and partnered instead with other outside conservative groups.

Steele’s actions have also left a widening gap for the conservative elite to blast through his defenses and take RNC’s donor base. Karl Rove set up American Crossroads among major Republican players to change the direction of GOP and offer an alternative outlet to the corrupt working of the RNC.

Rove’s group and other organizations like it, are not candidate oriented like the RNC, but instead must focus on promoting certain issues. These groups are known as 527 or 501 (c)(4) groups because of the tax code section they exist under. Both types of organization have contribution limits and 501(c)(4) orgs do not have to disclose the names of donors. 501(c)(4) orgs have proliferated as a vehicle for political activism in the wake of many of the campaign finance court rulings after the 2004 election cycle.  

The Republican Governors Association, another emerging alternative to the RNC focuses on electing Republicans to governorships, currently has $40 million on hand and raised $28 million last quarter compared to RNC’s $8 million. American Crossroads raised $8.5 million.

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