For Convention Donors, It’s a Give and Take Proposition

It’s not the Olympic Games, but to the civic and corporate leaders who have pumped more than $50 million into the Republican National Convention it is the next best thing.

Although each party’s national convention this year is receiving $13.5 million in public money, which goes for staff salaries, campaign signs and the like, the vast majority of the funds needed to stage these political extravaganzas--to rent the hall, wire the phones and host scores of parties for delegates and politicians, for example--comes from local governments and American corporations.

Conceived as the venue for nominating the parties’ presidential and vice presidential candidates, political conventions have instead become a massive marketing tool: for the parties, for cities and states and for businesses selling everything from cellular phones to cars.

Only the public funds being used here are controlled by the Republican National Committee. The $50 million in corporate and government donations is raised and controlled by Philadelphia 2000, the convention host committee run by civic leaders.

The total price tag on this week’s GOP convention comes to more than $63 million, which doesn’t include the millions that the media pay to cover the event.

Most convention funders--in particular the corporations whose activities are regulated by many of the same lawmakers attending the conventions--consider their contribution a smart investment because it gives them a chance to raise their profiles and win friends in Washington.

The city of Philadelphia and the state of Pennsylvania, for example, who fought hard to host this year’s GOP convention, each kicked in $7 million toward the effort. For them, this week’s event is a chance to show the world a rejuvenated and spruced-up Philadelphia.

Eight corporations have donated more than $1 million each and scores more have made smaller donations, much of that money coming in so-called in-kind donations of everything from Philadelphia’s own TastyKake snacks to airline travel.

“We’ve had a constant flow of dollars and in-kind contributions, and a steady stream of support from a wide sector of our business community,” said David L. Cohen, co-chairman of Philadelphia 2000.

Ironically, Cohen is a lifelong Democrat who has no interest in promoting the Republican agenda.

“The major reason why people have given to this convention is the same reason why I’ve put four years into this effort: for civic pride,” he said.

Schaumburg, Ill.-based Motorola Inc. has sunk about $8 million into the convention to become the official provider of cellular phones.

“It’s not a new thing for Motorola,” said company spokeswoman Jennifer Weyrauch. “We’ve been sponsoring both political conventions for 48 years to showcase our latest technology and demonstrate our civic involvement.”

In fact, just as in the Olympic Games, corporations bid for the chance to donate money, goods and services and hold the title of official something-or-other of the GOP convention. Because the convention host committee is a nonprofit organization, both in-kind and cash donations are tax deductible.

In addition to providing services, many of the sponsors are hosting parties for delegates, politicians and the media.

Microsoft Corp., one of the top donors to the Republican National Committee, pitched in half a million dollars to the convention, most of which went to set up the computers for the host committee staff.

But the company also hosted a party for delegates from Washington state, a luncheon for the GOP congressional leadership and a reception about technology.

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Corporate Cash

Corporations that have made large donations of services or cash to the Republican National Committee, according to Federal Election Commission records and the Center for Responsive Politics:

*

$1 million

AT&T;

Ballard, Spahr

Comcast Corp.

General Motors

Microsoft Corp.

Motorola Inc.

PECO Energy

Verizon Communications

*

$500,000

American International Group

Andersen Consulting

Blank, Rome et al

PepsiCo Inc.

Safeguard Scientifics

SAP America

Tierney & Partners

US Airways

*

$250,000

Aramark Corp.

DaimlerChrysler

Enron Corp.

First Union

Global Crossing

Hewlett-Packard

Philip Morris Cos.

Prudential Insurance

SmithKline Beecham

Sunoco Inc.

Union Pacific

Unisys Corp

USX Corp.

*

$100,000

American Water Works Co.

Cigna Corp.

Independence Blue Cross

Lockheed Martin

Marriott International

PNC Bank Corp.

Source: Federal Election Commission