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"As long as donors are more important than voters in determining who
gets elected in this country, then African Americans are prevented from
fully participating in benefits of our democracy. Welcome to the new poll tax: If you can't afford to contribute large sums to a politician,
then you voice and your interests are muted."

Hilary O. Shelton,
Director, Washington Bureau, NAACP

MAJOR FINDINGS


Campaign money—not votes—is now the currency of our democracy, determining who is able to run a viable campaign for office, who usually wins, and who has the ear of elected officials. This study examines federal contribution data for the 2002 and 2000 election cycles by zip code, side-by-side with 2000 U.S. Census data on race and ethnicity. The unfortunate conclusion is that, in a political system in which you have to pay to play, people of color are largely excluded from the game. This report confirms similar patterns to those detailed in our 1998 Color of Money report, which examined federal campaign contributions made in the 1996 elections, contrasted with 1990 U.S. Census data.

We examined more than $2 billion in individual contributions (of more than $200, referred throughout the report as "$200+") to federal candidates, parties, and Political Action Committees (PACs), attributable to more than 25,000 zip codes nationwide over the course of two election cycles, 2000 and 2002. We compared these data with U.S. 2000 Census information on race, ethnicity and income of people ages 18 and over by zip code.

While campaigns, parties, and PACs are required to provide details on the names and addresses of donors of more than $200, they are not required to list the race or ethnicity of these donors. Therefore, to conduct this analysis, we use zip codes as the bridge between information on campaign contributors and U.S. Census data on race and ethnicity. This methodology has certain limitations. We are not able to pinpoint precisely how much money comes from a particular racial or ethnic group. Nevertheless, the geographical element is informative, demonstrating a pattern of exclusion from the political money game in neighborhoods where the population is predominantly people of color.

It must be noted here that there are many complexities in determining how to present information about racial and ethnic minority populations, which are extremely diverse. While "black" and "Asian" are considered racial categories by the U.S. Census, "Hispanic" or "Latino" is not. Rather, "Hispanic" or "Latino" refers to ethnicity, and people who are Hispanic or Latino can be of any race. These issues are discussed more thoroughly in the methodology section of this report.

We include statistics on wealth and poverty because these are a significant determinant of campaign contributions. The neighborhoods that contribute the most campaign cash are also largely predominantly non-Hispanic white—but they are also among the nation's wealthiest. This comes as no huge surprise—decades of discrimination against people of color in this country has contributed to an uneven distribution of wealth that favors the white majority.

OUR ANALYSIS SHOWS:

- Neighborhoods comprised mostly of people of color are severely underrepresented in the campaign finance system. Given that money typically determines who wins political races, this means that these neighborhoods are effectively disenfranchised. Indeed, nine out of ten individual federal campaign dollars come from majority non-Hispanic white neighborhoods. Yet nearly one out of three adult Americans is a person of color.

- Nearly ninety percent of the more than $2 billion contributed by individuals in the two recent federal elections comes from zip codes that are majority non-Hispanic white. In comparison, just 1.8% of campaign funds come from predominantly Latino zip codes, 2.8% from predominantly African American zip codes, and .6% from predominantly Asian Pacific American neighborhoods.

- The top contributing zip code nationwide—10021, on Manhattan's exclusive Upper East Side—is the source of $28.4 million for federal campaigns in the 2002 and 2000 elections, and is home to 91,514 people ages 18 and over, 86% of whom are non-Hispanic white. Nearly 40% of the households have incomes of $100,000 or more. This one zip code contributes more campaign cash than:

-- the 532 zip codes nationwide with the largest percent of African American residents, representing 7,654,609 people ages 18 and over, 84 times more people than live in 10021;

-- the 533 zip codes nationwide with the largest percent of Latino residents, representing 9,355,643 people ages 18 and over, 102 times the number of people writing the zip code "10021" on the return flap of their envelopes;

-- the 167 zip codes nationwide with the largest percent of Asian Pacific American population, representing 3,523,852 people ages 18 and over, 39 times the number of people who call 10021 home.

- The neighborhoods supplying most of the money for federal campaigns in this country are also among the nation's wealthiest. Nearly one out of two federal individual campaign dollars ($200+)—$991 million—comes from a person living in a wealthy zip code, although just 12% of the adult population lives in these neighborhoods. Meanwhile, just 5.9% of individual campaign dollars—$118.8 million—comes from poor neighborhoods, although nearly 9% of adult Americans live in these communities. Another way to look at it: individuals living in wealthy neighborhoods supply eight dollars for every one dollar that people living in poor communities give to federal campaigns.

SIZE OF CONTRIBUTIONS

- Contributions of $1,000 or more make up nearly $1.7 billion of the individual contributions to federal campaigns ($200+). Predominantly non- Hispanic white neighborhoods supplied about 90% of both large contributions of $1,000 or more and of moderate contributions of $200-$999.

TOP CONTRIBUTING STATES

- The top ten contributing states account for 59% of the individual federal campaign cash contributed in the two elections; the top 20 states, 81%. In all of these states, the pattern is sustained of most campaign cash coming from predominantly non-Hispanic white wealthy neighborhoods.

- California supplies more individual campaign cash ($200+) to federal campaigns than any other state—$273.1 million in the 2000 and 2002 election cycles. (Five California metropolitan areas make the top 25 contributing metropolitan areas nationwide list1: Los Angeles-Long Beach, San Francisco, San Jose, Orange County, and San Diego, as well as several top contributing zip codes nationwide, such as 90210, 90024, and 90067.) The state is immensely diverse. Nearly one out of two of the residents are people of color (28% of Californians are Latinos). Yet 85% of the cash comes from zip codes that are predominantly non-Hispanic white, while these areas contain 55% of the state's population. Two-thirds of the state's campaign cash comes from wealthy neighborhoods, though just about one out of four Californians live in these communities. In contrast, just eight percent of contributions come from poor neighborhoods.

- New York ranks second in individual federal contributions ($200+)—$205.7 million, 2000 and 2002 election cycles combined. The state is home to top contributing metropolitan areas New York City and Nassau-Suffolk, NY, not to mention the generous Manhattan zip codes of 10021, 10022, and 10028. Ninety-four percent of the campaign cash comes from predominantly non-Hispanic white zip codes, although only 71% of the population lives in these neighborhoods. Sixty-four percent of the state's population is non-Hispanic white. Wealthy neighborhoods supply 78% of the campaign cash, even though just 19% of New York state residents live in these neighborhoods. Two percent of the campaign cash comes from poor neighborhoods, home to 16% of the state's population.

- Texas ranks third in individual campaign contributions ($200+)—$152.1 million. Houston and Dallas are among the nation's top contributing metropolitan areas. Fifty-six percent of the population is non-Hispanic white. Yet 77 % of the campaign cash comes from predominantly non-Hispanic white neighborhoods, home to 64% of the state's population. Nearly half (43%) of the contributions come from wealthy neighborhoods, even though just 10% of the state's population lives in these neighborhoods. Six percent of the contributions come from poor communities, although 15% of the state's population lives in them.

- Florida is the source of $112.1 million in individual federal contributions ($200+). Miami and West Palm Beach-Boca Raton make the list of top contributing metropolitan areas nationwide, and Palm Beach zip code 33480 is one of the nation's most generous to federal campaigns. Eighty-three percent of the contributions come from non-Hispanic white neighborhoods, where 79% of the state's population resides. Sixty-eight percent of the state population is non- Hispanic white. Wealthy neighborhoods supply 37% of the campaign cash, though just seven percent of the state's population lives in these areas. Five percent of the money comes from poor communities, which are home to seven percent of the state's population.

- Eighty-nine percent of New Jersey's $92.3 million in individual campaign contributions ($200+) in the 2000 and 2002 election cycles come from majority non-Hispanic white neighborhoods, home to 78% of the state's population. The state is home to Newark and Bergen-Passaic, two of the country's top contributing metropolitan areas (both bedroom suburbs of New York City). Nearly 70% of the state population is non-Hispanic white. Three-fourths of the contributions come from wealthy neighborhoods, although just one-third of the state's population lives in these neighborhoods. Meanwhile, about two percent of contributions come from poor neighborhoods, home to four percent of the state's population.

TOP CONTRIBUTING METROPOLITAN AREAS

- More than half—$1.1 billion—of the individual campaign contributions ($200+) made to federal campaigns in the 2000 and 2002 elections come from just twenty-five metropolitan areas. The campaign money flows disproportionately from non-Hispanic white and wealthy neighborhoods.

- New York City, where much of the nation's financial industry is centered, tops the list for contributions, with $155.7 million ($200+) contributed by individuals to federal campaigns in the 2002 and 2000 elections. People of color make up more than half of the population. But 93% of contributions come from non-Hispanic white zip codes, where just half of the metropolitan area's population lives. More than 84% of contributions come from wealthy neighborhoods, although just 19% of the metropolitan area's population lives in them. Just two percent of contributions come from poor neighborhoods, although 28% of the metropolitan area's population lives in these communities.

- The nation's capital, Washington, DC-MD-VA-WV, home to thousands of lobbyists, ranks second for contributions with $141.8 million in individual contributions ($200+) to federal campaigns 2000 and 2002 election cycles. One out of four of the metropolitan area’s residents is African American, and another 17% are Latino, Asian, or other racial/ethnic minorities. However, 85% of the metropolitan area’s contributions come from majority non-Hispanic white neighborhoods, home to 67% of the metopolitan area’s population. Seventy percent comes from wealthy neighborhoods, where 44% of the metropolitan area's population lives. Poor neighborhoods supply just under three percent of the contributions.

- Los Angeles-Long Beach, the epicenter of the entertainment industry, is the third top contributing metropolitan area, with $101.7 million in individual contributions ($200+) to federal campaigns in the 2000 and 2002 election cycles. Sixty-five percent of Los Angeles' adult residents are people of color, 40% of whom are Hispanic. Yet 85% of contributions come from majority non-Hispanic white neighborhoods, home to 32% of the population. Wealthy neighborhoods donate 64% of the contributions, although just 16% of the metropolitan area's population lives in them.

- Chicago, home of the commodity markets, is the fourth top contributing metropolitan area, with $80.2 million in individual contributions ($200+) to federal campaigns in the 2000 and 2002 election cycles. Ninety-three percent of the money comes from majority non-Hispanic white neighborhoods, home to 66% of the metropolitan area's population. People of color account for nearly 40% of the metropolitan area's population. Seventy-eight percent of the contributions comes from wealthy neighborhoods, although just one out of four Chicagoans lives in them. Only two percent of contributions come from poor neighborhoods, home to nine percent of the metropolitan area's population.

- San Francisco is the fifth top contributing metropolitan area, with $51.5 million in individual contributions ($200+) to federal campaigns in the 2000 and 2002 election cycles. Nearly one out of two San Franciscans is a person of color. Nevertheless, 82% of the contributions come from majority non-Hispanic white neighborhoods, home to 57% of the metropolitan area's population. Wealthy neighborhoods supply 81% of the contributions, while 61% of the metropolitan area's population lives in them.

TOP CONTRIBUTING ZIP CODES

- The neighborhoods providing the most campaign cash are among the most exclusive nationwide—and are all predominantly non-Hispanic white and wealthy. Unsurprisingly, all of these zip codes are in metropolitan areas that are on the top contributing metro area list.

- On the Upper East Side of Manhattan, where top zip codes 10021 (#1, $28.4 million), 10022 (#2, $15.1 million), and 10028 (#7, $8.8 million) are located, family-sized apartments often sell for $10 million. Dwellers have the Guggenheim Museum as a neighbor, and shopping at Bloomingdale’s, Calvin Klein, and Versace, is all near by. Between 86% and 88% of the population is non-Hispanic white and nearly 40% of households enjoy incomes of at least $100,000. Big contributors from these zip codes include Republican donor Henry Kravis of Kohlberg Kravis Roberts, a firm well known for leveraged buyouts in the 1980s and Democratic donor Bernard Schwartz, CEO of satellite communications company Loral Corporation.

- Lincoln Park (60614, #3, $12.7 million), in Chicago, is an upscale lakeside neighborhood, home to many of the city's most popular restaurants. Eighty-six percent of the population is non-Hispanic white, 35% of the households enjoy incomes of $100,000 or more. Big donors from the zip code include Democratic donor Fred Eychaner, president of Newsweb Corporation.

- In Los Angeles, the famous zip code of Beverly Hills, 90210 (#10, $8 million), where 85% of the population is non-Hispanic white and 55% of households enjoy incomes of $100,000 or more, makes the list. So does 90024 (#4, $11.9 million), in Westwood. Sixty percent of the population is non-Hispanic white, and one out of four households has incomes of $100,000 or more. (The zip code also includes parts of the UCLA campus, and it is likely the student population accounts for the somewhat increased diversity and lower income level in this zip code.) Century City, 90067 (#5, $11.2 million), is home to the posh Century Plaza Hotel. Eighty-five percent of the population is non-Hispanic white, and 40% of households have incomes of $100,000 or more. Big contributors from these zip codes include Universal Studios patriarch and the late Democratic donor Lew R. Wasserman (90210) and Gerald Parsky (90024), president of Aurora Capital Partners and key operative for President George W. Bush's campaign in California.

- In Washington, DC, 20007 (#8, $8.4 million) is in the exclusive northwest quadrant of the city. It includes sections of Georgetown with its tony boutiques and posh restaurants, one of the most expensive neighborhoods in the city. Eighty-three percent of the population is non-Hispanic white, and nearly 40% of households have incomes of $100,000 or greater. - Palm Beach, Florida, 33480 (#9, $8.4 million), is oceanside and boasts expensive hotels such as The Four Seasons and Hilton. Ninety-five percent of the population is non-Hispanic white, and 45% of households have incomes of $100,000 or more. Wealthy contributors include Republican donor Robert Rich, Sr., founder of Rich Products Corporation, which produces a wide range of processed food items.

 

 

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