The DNC Goes Broke

debbie-wasserman-schultz-empowers-a-radical-muslim-fundraiser_errbi_0While Americans are focused on a government shutdown precipitated in large part by America’s debt crisis, the fundraising arm of the party that advocates spending trillions of dollars in borrowed money has a debt crisis of its own. As a result of spending during the 2012 election campaign, the Democratic National Committee (DNC) is nearly broke, even as it struggles to pay its own vendors.

The numbers paint a bleak picture. At the end of May, the DNC had $6 million in cash and $19.8 million in debt, and was paying off its bills at a rate of less than $1 million per month. Through August, the DNC owed $18.1 million to its various creditors. Several of those creditors, speaking anonymously to avoid any blowback from the DNC, described the organization as one falling further and further behind in its ability to pay past due bills. Moreover, senior strategists with close ties to the money-raising arm of the Democrat party have expressed concerns that the DNC has no apparent strategy for returning to solvency. “They really thought they could get this money raised by the summer,” said one of those strategists. “But the fact is, from talking to people over there, they have no real plan for how to solve this.”

DNC officials note that their problems are exacerbated in part by the White House, as well as DNC head Debbie Wasserman Schultz, who reportedly has no strong relationships with anyone in the administration. Tellingly, Wasserman Schultz has personal debt issues that mirror the organization she represents. She is currently over a million dollars in debt, with two mortgages worth at least $750,000 in total, and another $350,000 in home equity and personal loans. In 2012, Wasserman Schultz also carried more than $50,000 in credit card debt. By contrast, she has $100,000 worth of spouse-held stock in the community bank where her husband is employed, and other smaller accounts that include college savings plan for her children.

Yet while Wasserman Schultz is incompetent, the DNC’s woes are not completely her fault. Organizing for Action (OFA), Barack Obama’s former campaign apparatus reincarnated as a nonprofit advocacy group, has emerged as a fierce competitor for donor dollars. Last March, Fred Wertheimer, head of Democracy 21, a campaign finance reform group, aptly described what OFA is all about. “It is operating as an arm of the presidency and it’s funded by private money including large contributions and bundlers raising large amounts,” he explained.

OFA also has a technological infrastructure with access to Obama’s 2 million volunteers, 17 million email subscribers, 37.2 million Twitter followers, and virtually every registered voter in the country. All of it is used to drive the president’s message–and raise money.

It is that money raising ability that has hurt the DNC. According to the Center for Responsive Politics, all of the top-tier OFA donors have also raised substantial sums of money for the DNC in the past. And while 13 of those donors contributed six-figure sums to the OFA over the first half of 2013, only three of them gave money to the DNC over the same time period.

DNC national press secretary Michael Czin acknowledges the OFA’s fund raising prowess, but doesn’t consider it a problem. “Of course there’s competition,” he explains. “But the Democratic family is a big one, and at the end of the day we are all on the same team, our work compliments each other’s, and there are enough resources for all of us.”

A top Democratic operative paints a completely different picture. “Donors are being pulled in two directions, and there’s absolutely no doubt it’s impacted the DNC’s fundraising,” the operative said. “I’m hearing it from donors regularly that they’re being told to help one and not the other.”

The DNC is also beset by leadership problems. Patrick Gaspard who was executive director of the committee since 2011, was chosen in March to become America’s ambassador to South Africa. The effort to replace him has been described as chaotic. “It’s a surprise to most people that there isn’t an executive director at this point,” noted a source close to the DNC. “There have been a number of candidates who pulled their names out after having been floated, but it should have been done by now.”

Ostensibly, President Obama is aware of the problem. According to the DNC, he has headlined 15 of their fundraisers in 2013, including two last week in New York and Washington, D.C. Yet it remains a reality that Czin is dealing with DNC vendors on a case-by-case basis, and that their aforementioned payment schedule of just under one million dollars a month is being maintained. Nonetheless, Czin expresses optimism. “While we work to retire our debt, we’re not taking our foot off the pedal and are making the investments that will help ensure that Democrats are successful in 2014, 2016, and beyond,” he contended.

Keeping the pedal to the metal is contingent on the continuing involvement of the president who may not be as inclined to help his party as he is to help himself. It is quite possible, given the Obama’s narcissistic tendencies, that he may be far more interested in burnishing his historical legacy than raising funds for his fellow Democrats. OFA is in a far better position to support that effort than the DNC.

This reality may explain the August appointment of longtime Clinton advisor Harold Ickes to the DNC’s rules and bylaws panel. According to Ickes, the panel’s “goal is to design rules to nominate the strongest candidate for the general election.” Toward that end he is engaged in eliciting contributions from wealthy donors and “assisting” the Ready for Hillary Super PAC that aims to get Hillary Clinton elected president in 2016. Earlier in August, the DNC also hired Mo Elleithee, Clinton’s traveling campaign press secretary in 2008, as its new communications director. Thus, the DNC’s transition with respect to the party’s standard-bearer appears to be moving past the current president towards their most obvious candidate for 2016.

It remains to be seen if Clinton is willing to return the favor. Barack Obama has established the template of organizing a SuperPac that allows him to raise large sums of money independent of the DNC’s efforts. If Clinton takes the same approach, big donors may gravitate towards her, leaving the DNC to fend largely for itself in the 2014 mid-term election and beyond.

Either way, the DNC’s current condition epitomizes a party that continues to insist America does not having a spending problem. Nearly $17 trillion in national debt, and more than $86 trillion in unfunded liabilities, say otherwise. It remains to be seen when denial gives way to reality for the DNC–and America itself.

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  • VHG1

    Let’s see Hitler’s dead, so is Stalin! Fidel Castro is almost dead if not dead already, and Mao is long gone! Hugo Chavez almost made it….well DNC looks like you’re fresh out of fellow travelers to nominate!

    • nomoretraitors

      They could always nominate Louis Farrakhan, Al Sharpton or Jeremiah Wright

  • dad1927

    Ah! Getting a man help and getting SOME ELSE to pay for it isn’t working any more? Go to the Republicans for a loan. Obama earned enough to pay their debt too. He wants them helped and us to pay for it. The people like Plosive and Clinton should pony up!

    • vulgar_imposter

      Shut up, Dad. Your ignorance is blinding.

      • Gee

        Your stupidity is illuminating.

        • objectivefactsmatter

          The dummy you’re talking to somehow expects us to conflate vulgarity with intelligence.

        • defcon 4

          LOL. Good one.

    • Aizino Smith

      Other gems from vulgar_imposter

      “I hope he isn’t a Christian. Christians are stupid sheep.”

      “Funny stuff. Just more rubbish from a knuckle-dragging, lazy, obese, angry white guy”

      “Wow, Greenfield. This is top-notch journalism. Not at all petty. But I guess the mouth foaming zealots who reside here lap it up like unthinking dogs. Conservatives are so f-cking stupid.”

  • mattogilvie55

    Cry me a river, I hope Debbie Wasserman-Schultz ends up homeless. Serves her right for hating America as much as she does.

    • Lanna

      Good comment….I think she will no doubt end up in the dog house!

      • dickG

        Probably a doghouse with an underwater mortgage!

        • Lanna

          The day is coming when these apostates of hate will pay for their assault on good people….In God’s time it will happen…it is a given against evil.

    • defcon 4

      SHe would look better and much more PC sporting the latest in islamic hefty trash bag apparel .

    • lookatme

      Even worse I hope she ends up with a real job, where she actually have to work for her bread and get stuck with Obamacare, oh the hatred!

    • lessthantolerant

      let’s get these financials published!

  • Lanna

    Gee, Maybe people are against the DNCs policies…ya think…who wants to donate to idiots, destroyers of jobs, and usurpers of Peace!

    • RLande

      They also enslave people to govrenment entitilement programs and promote racial divisiveness.

      • Lanna

        Very True! Dividing people helps them to implement their destructive agenda.

  • Michael Garfinkel

    George Soros, Peter Lewis, the Sandlers, David Geffen, Spielberg, Katzenbeg, Steve Mostyn, ad nauseum will rush in to set things right – just as they did for Obama, and will again for Hillary.

    There will always be more than enough money for the Democrats, who have become the party of wealthy Jews, resentlful women and the entitlement -seeking lower classes.

    • spyeatte

      Soros is getting long in the tooth – he will not live forever.

  • Aizino Smith

    Debbie Waterman Schultz is (or may not be) in serious jeopardy of default.

    Many Congressmen have 2 domiciles, on in the home state and one in the DC metro area. To have two home mortgages is not therefore unusual.

    Some congressmen try cut costs by staying in the equivalent of dormitories. The left goes after them with hammer & tongs. Torquemada would be proud. Unless they are (Roman0 Senator Harry Reid who stays at posh digs, the Ritz Carlton. How is that paid for?

    “Rachel Maddow | March 30, 2010
    Did C Street Congressmen violate tax laws?
    Were members of Congress getting sweetheart deals on subsidized living arrangements at C-Street. Rev. Eric Williams discusses on The Rachel Maddow Show.”

    Here is what will happen. If Debbie has not stepped on important toes in Democrat Party Circles and has carried the water for the party well enough, they will find her a high paying job to retire the debt.

    The mortgage debt is long term debt and can be serviced. With a lucrative speaking tour or a provided job it is not a problem. The credit card debt is more worrisome. But if the Clintons and Gore can earn easy money, then maybe Debbie can post congress.

    So i am not gloating nor am I expecting a fall. System is too corrupt.

  • Rosie

    This makes me wonder what the RNC debt ratio is.

    • A Z

      Jan 31, 2011 >> Chairman: Republican Party is $23M in debt

      Don’t be so coy.

      I do not think your intentions are honorable in asking the question. It is more like sly way , a passive aggressive way of attacking the Republicans.

      You missed or disregarded the implications of this paragraph

      “It remains to be seen if Clinton is willing to return the favor. Barack Obama has established the template of organizing a SuperPac that allows him to raise large sums of money independent of the DNC’s efforts. If Clinton takes the same approach, big donors may gravitate towards her, leaving the DNC to fend largely for itself in the 2014 mid-term election and beyond.”

      That paragraph should scare you. Like the Roman empire had crumbled where conscription and volunteers when out the window to be replaced by the comes or comitatus. What happened after that? The warlords, the dark ages, aristocracy.

      This is the same. It is a direct analogy. These political battles are battles. People like Huma Abedin may be regards as comes of people like Hillary Clinton.

      Welcome to the future.

      • MitchBaxter

        The RNC is NOT $23 million in debt; that was from a January 2011 article. As of January 2013, the RNC had a $4.7 million surplus.

        • A Z

          Correct. It was 2011. I could find no other article about RNC debt expect those on the 1st page of Google returns

          Suffice it to say if the RNC still was in debt, the LSM would be all over it like flies on scat.

          Or is it “Like LSM on scat”?

          No the RNC debt of 2 years ago is of the same scale or magnitude as the DNC debt.

          But I concur with the article that it is worse than it looks. One, because the Democrats are the ones in power and yet they are in debt. Two, the aristocratic magnates of the Democrat party do not care and are furthering their own nests instead of taking care of their faction/party.

        • A Z

          I led my post with the fact that the story I quoted was 2 years old.

          I appreciate your link. I did not find it in the 1st page of google returns on my search.

  • Raibeart MacIlleathain

    I still think she’s pretty. I’d be willing to cut her some slack if we attended the same synagogue.

    Wouldn’t want to have dinner with her, however, given her penchant for talking nonsense at Mach 2.

  • ca1

    “Yet while Wasserman Schultz is incompetent,”,…. one of the best statements in this interesting article.. do you suppose that they see that their supreme leader doesn’t give a rip about them yet? “OFA also has a technological infrastructure with access to Obama’s 2 million volunteers, 17 million email subscribers, 37.2 million Twitter followers, and virtually every registered voter in the country. All of it is used to drive the president’s message–and raise money”.

  • 1Indioviejo1

    The DNC needs a new face as a fundraiser. Debbie Wasserman Schultz has an impediment which would handicap a street walker.

  • LiveAboard

    Hah! Maybe they need a government bailout….ooopsie….they already got it…ahhh….too bad…..

  • edgineer

    The Democratic Party. Losers leading losers.

  • arrowhead753

    LOL! They run the democrat party like they run the US!

  • defcon 4

    The DNC morally bankrupt and now financially as well.

  • defcon 4

    I think the DNC better begin trolling the islam0fascist Gulf States for an infusion of jihadi blood money.

  • nomoretraitors

    I’d like to see someone give Debbie the mother of all b***h slaps

    “But the Democratic family is a big one, and at the end of the day we are all on the same team” …. bringing America down

  • MarilynA

    Don’t start cheering so soon. The democrats have been extremely efficient in getting money from one place or the other. Example: In 1993, when Democrats controlled both houses of Congress and the Presidency, Congress approved the all black Pequot Indian Reservation on the border between NY and NH. James Riady (Remember James Riady was the Chinese Communist spy that Clinton gave top secret clearance to, ) Riady put up the money to build this Bogus Indian Reservation a Casino, and the Pequot Indians were major contributors to Clinton’s and the Democrat’s campaigns. Does anyone really think all that money came from the Indians or was this a clever way to wash Chinese contributions to Democrat’s campaigns?. remember, the first thing Clinton did was give China Most Favored Nation status which allowed them to dump, tariff free, cheap slave labor made copies of products. The result was our manufacturing base was moved to China. In effect Clinton sold our manufacturing base to China for how much? The Clintons were so hard up when they moved into the White House that Hillary said they got involved in Whitewater to get money to pay for Chelsea’s college, but when they left 8 years later they were worth $100 million. go figure.

  • JacksonPearson

    Calm down, Debbie will leave congress, and get a gig at MSNBC!

  • lessthantolerant

    Perhaps Obama should as some of the 19 million fake Face book followers he has for donations!
    These are the people America elected to run health care? America your stupidity is showing!

    • ThomasER916

      They’re all takers.

      All of the people that vote for Obama are either self-loathing whites, anti-white Jews, or welfare “minorities.” None of them would send a dime if they couldn’t get a tax write off.