Both the national Democratic and Republican party committees spend about two-thirds of the money they take in on the care and comfort of committee staffs and on efforts to raise more funds, with lavish spending on limousines, expensive hotels, meals and tips, an analysis of the latest financial disclosure data shows. ... administrative and fundraising expenses consumed about $60 million of Democratic revenue in this cycle through the end of February, or 59 percent of total revenue that exceeded $100 million. For Republicans, the amount exceeded $74 million, or 68 percent of $109 million in revenue.
The two political committees are not typical nonprofit organizations, and such high spending for overhead is almost unheard of in the nonprofit world. A rule of thumb among nonprofits is that administrative and fundraising costs should consume no more than 20 to 25 percent of income.
See Both National Party Committees Spend Big Chunks on Fancy Meals, Hotels, Travel by R. Jeffrey Smith, April 21, 2010.
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