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A table titled “Contribution Limits for 2015-2016 Federal Elections”. The rows are labeled “Donors” and the columns are labeled “Recipients”. Under the column “Candidate Committee” are the values “Individual: $2,700* per election”, “Candidate Committee: $2,000 per election”, “PAC-multicandidate: $5,000 per election”, “PAC-Nonmulticandidate: $2,700 per election, “State/District/Local Party Committee: $5,000 per election”, and “National Party Committee: $5,000 per election (3)”. Under the column “PAC (1) (SSF and Nonconnected)” are the values “Individual: $5,000 per year”, “Candidate Committee: $5,000 per year”, “PAC-multicandidate: $5,000 per year”, “PAC-Nonmulticandidate: $5,000 per year”, “State/District/Local Party Committee: $5,000 per year”, and “National Party Committee: $10,000 per year”. Under the column “State/District/Local Party Committee” are the values “Individual: $10,000 per year (combined)”, “Candidate Committee: Unlimited Transfers”, “PAC-multicandidate: $5,000 per year (combined)”, “PAC-Nonmulticandidate: $10,000 per year (combined)”, “State/District/Local Party Committee: Unlimited Transfers”, and “National Party Committee: Unlimited Transfers”. Under the column “National Party Committee” are the values “Individual: $33,400* per year”, “Candidate Committee: Unlimited Transfers”, “PAC-multicandidate: $15,000 per year”, “PAC-Nonmulticandidate: $33,400* per year”, “State/District/Local Party Committee: Unlimited Transfers”, and “National Party Committee: Unlimited Transfers”. Under the column “Additional National party Committee Accounts (2)” are the values “Individual: $100,200* per account, per year”, “PAC-Multicandidate: $45,000 per account, per year”, and “PAC-Nonmulticandidate: $100,200* per account per year”. At the bottom of the table the following footnotes are listed: *Indexed for inflation in odd-numbered years. (1) “PAC” here refers to a committee that makes contributions to other federal political committees. Independent-expenditure-only political committees (sometimes called “super PACs”) may accept unlimited contributions, including from corporations and labor organizations. (2) The limits in this column apply to a national party committee’s accounts for: (i) the presidential nominating convention; (ii) election recounts and contests and other legal proceedings; and (iii) national party headquarters buildings. A party’s national committee, Senate campaign committee and House campaign committee are each considered separate national party committees with separate limits. Only a national party committee, not the parties’ national congressional campaign committees, may have an account for the presidential nominating convention. (3) Additionally, a national party committee and its Senatorial campaign committee may contribute up to $46,800 combined per campaign to each Senate candidate. At the bottom of the table, a source is listed: “Federal Election Commission. “Contribution Limits for 2015-2016 Federal Elections.” June 25, 2015”.
The Federal Election Commission has strict federal election guidelines on who can contribute, to whom, and how much.

Incumbency effects

Not surprisingly, the jungle of campaign financing regulations and loopholes is more easily navigated by incumbents in Congress than by newcomers. Incumbents are elected officials who currently hold an office. The amount of money they raise against their challengers demonstrates their advantage. In 2014, for example, the average Senate incumbent raised $12,144,933, whereas the average challenger raised only $1,223,566.

“Incumbent Advantage,” http://www.opensecrets.org/overview/incumbs.php?cycle=2014 (May 15, 2016).
This is one of the many reasons incumbent    s win a large majority of congressional races each electoral cycle. Incumbents attract more money because people want to give to a winner. In the House, the percentage of incumbents winning reelection has hovered between 85 and 100 percent for the last half century. In the Senate, there is only slightly more variation, given the statewide nature of the race, but it is still a very high majority of incumbents who win reelection ( [link] ). As these rates show, even in the worst political environments, incumbents are very difficult to defeat.

A chart titled “U.S. House and Senate Reelection Rates, 1964-2014”. The X axis is labeled “Election Cycle” and spans from 1964 to 2014. The Y Axis shows percentage reelection rate, and spans from 0% to 100%. Each year contains two bars; one for the House and one for the Senate. In 1964, the House is approximately 90%, and the Senate is approximately 85%. In 1966, the House and the Senate are both at approximately 90%. In 1968, the House is approximately at 95% and the Senate is at approximately 70%. In 1970, The House is approximately at 85%, and the Senate at approximately 75%. In 1972, the House is at approximately 92% and the Senate is at approximately 72%. In 1974, the House is at approximately 90% and the Senate is at approximately 85%. In 1976, the House is at approximately 95% and the Senate is at 62%. In 1978, The House is at approximately 92% and the Senate at approximately 60%. In 1980, the House is at approximately 90%, and the Senate at approximately 55%. In 1982, the House is at approximately 90% and the Senate at approximately 92%. In 1984, the House is at approximately 95%, and the Senate at approximately 90%. In 1986, the House is at approximately 98% and the Senate at approximately 75%. In 1988, the House is at approximately 98% and the Senate at approximately 85%. In 1990, the House and the Senate are both approximately 95%. In 1992, the House is at approximately 85% and the Senate at approximately 82%. In 1994, the House is at approximately 90%, and the Senate at 92%. In 1996, the House is at approximately 95%, and the Senate at approximately 90%. In 1998, the House is at approximately 98% and the Senate at approximately 90%. In 2000, the House is at approximately 97%, and the Senate at approximately 80%. In 2002, the House is at approximately 95%, and the Senate at approximately 85%. In 2004, the House is at approximately 98%, and the Senate at approximately 95%. In 2006, the House is at approximately 95%, and the Senate at approximately 80%. In 2008, the House is at approximately 95%, and the Senate at approximately 82%. In 2010, the House is at approximately 85%, and the Senate at approximately 82%. In 2012, the House is at approximately 90%, and the Senate at approximately 92%. In 2014, the House is at approximately 95%, and the Senate at approximately 80%. At the bottom of the chart, a source is cited: “Opensecrets.org Center for Responsive Politics. ‘Reelection Rates over the Years.’”
Historically, incumbents in both the House and the Senate enjoy high rates of reelection.

The historical difficulty of unseating an incumbent in the House or Senate is often referred to as the incumbent advantage or the incumbency effect . The advantage in financing is a huge part of this effect, but it is not the only important part. Incumbents often have a much higher level of name recognition. All things being equal, voters are far more likely to select the name of the person they recall seeing on television and hearing on the radio for the last few years than the name of a person they hardly know. And donors are more likely to want to give to a proven winner.

But more important is the way the party system itself privileges incumbents. A large percentage of congressional districts across the country are “safe seats” in uncompetitive districts, meaning candidates from a particular party are highly likely to consistently win the seat. This means the functional decision in these elections occurs during the primary, not in the general election. Political parties in general prefer to support incumbents in elections, because the general consensus is that incumbents are better candidates, and their record of success lends support to this conclusion. That said, while the political parties themselves to a degree control and regulate the primaries, popular individual candidates and challengers sometimes rule the day. This has especially been the case in recent years as conservative incumbents have been “primaried” by challengers more conservative than they.

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Source:  OpenStax, American government. OpenStax CNX. Dec 05, 2016 Download for free at http://cnx.org/content/col11995/1.15
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