Political party
Sources of party funds

Common sources of party funding across countries include dues-paying party members, advocacy groups and lobbying organizations, corporations, trade unions, and candidates who may self-fund activities. In most countries, the government also provides some level of funding for political parties. Nearly all of the 180 countries examined by the International Institute for Democracy and Electoral Assistance have some form of public funding for political parties, and about a third have regular payments of government funds that goes beyond campaign reimbursements. In some countries, public funding for parties depends on the size of that party: for example, a country may only provide funding to parties which have more than a certain number of candidates or supporters. A common argument for public funding of political parties is that it creates fairer and more democratic elections by enabling more groups to compete, whereas many advocates for private funding of parties argue that donations to parties are a form of political expression that should be protected in a democracy. Public financing of political parties may decrease parties' pursuit of funds through corrupt methods, by decreasing their incentive to find alternate sources of funding.

One way of categorizing the sources of party funding is between public funding and private funding. Another dichotomy is between plutocratic and grassroots sources; parties which get much of their funding from large corporations may tend to pursue different policies and use different strategies than parties which are mostly funded through small donations by individual supporters. Private funding for political parties can also be thought of as coming from internal or external sources: this distinguishes between dues from party members or contributions by candidates, and donations from entities outside of the party like non-members, corporations, or trade unions. Internal funding may be preferred because external sources might make the party beholden to an outside entity.
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