Earlier this year, Bill Burton left the White House to help create a pro-Obama fund-raising group with a goal of raising $100 million, aiming to mimic the success of recent Republican efforts.
So far, he's falling short.
Many of the Democratic Party's biggest donors aren't planning to support his organization, either because they're unhappy with Mr. Obama or disillusioned with politics in general. There's also this fund-raising fact of life: Wealthy donors are more likely to open up their wallets to defeat a sitting president than to protect one.
Mr. Burton's group has spent less than $1 million on advertisements this year, while the leading pro-Republican organization has spent more than $20 million.
Mr. Burton, a former spokesman for Mr. Obama, said in an interview that potential donors don't always know who he is, which means he has to use meetings for introductions, not strictly for pitching.
Arthur Lipson, owner of hedge-fund management firm Western Investment, has donated more than $500,000 to Democratic causes in the past decade, according to public records. He hasn't heard from Mr. Burton, but an outreach probably wouldn't be worth the effort. "I will definitely not donate to Obama in any way, shape or form," said Mr. Lipson, who objects to deals the president has made with Republicans.
The Burton group's struggles have caught the attention of Obama re-election campaign officials, who privately say they aren't counting on its support.
Democrats in 2004 and then Republicans in 2010 dramatically expanded a new, loosely regulated form of political fund raising—making it the fastest-growing source of election spending.
American Crossroads and Crossroads GPS, founded with the help of former White House aide Karl Rove, are the largest of the GOP-affiliated groups. They spent more than $70 million in 2010 and helped Republicans win control of the House. Their cash narrowed the financial advantage Democrats have held in recent years, in part due to support from labor unions.
Mr. Obama and the eventual Republican nominee for president are each expected to raise about $750 million for the 2012 race. As a result, these outside groups could tip the balance.
What are known as 501(c)4 outside political groups don't have to disclose their donors, but are limited in how much of their funds can be spent directly attacking or supporting candidates. Donors who give to a related category known as 527 groups know that their names must be disclosed, but 100% of their money can be used to directly attack or support candidates.
Mr. Burton is sticking by his prediction that his two groups, Priorities USA and Priorities USA Action, will raise and spend $100 million. The Rove-related groups could spend as much as $300 million on 2012 races for White House and Congress.
"We won't be able to match Karl Rove dollar for dollar," Mr. Burton said. "But we have no doubt that we will have the resources necessary to be a countervailing force."
In 2010, Democrats and the White House sharply criticized these outside groups, charging them with undermining the legitimacy of elections by not revealing their donors.
Republicans have noted the change of tune. "Last year, Obama sanctimoniously railed against nondisclosing groups, and this year his brazenly hypocritical operatives started one for him," said Jonathan Collegio, a spokesman for American Crossroads and Crossroads GPS.
Mr. Burton, in response, said he didn't want to let "the issues and candidates we care about [get] overrun with hundreds of millions of unanswered dollars."
His biggest hurdle will be lackluster interest from wealthy liberals. Of the $200 million donated by them in 2004 to back Democratic presidential candidate John Kerry, nearly $40 million came from Wall Street financier George Soros and Peter Lewis, chairman of Progressive Insurance Co. This election, neither plans to play a major role.
Mr. Soros plans to mostly donate to organizations promoting liberal policies, such as Media Matters, a group that criticizes conservative media outlets. A Lewis spokeswoman said he has "refocused his efforts on rebuilding the progressive infrastructure and modernizing marijuana laws."
Giving is often about relationships, said Michael Fleming, a political advisor to major Democratic donor David Bohnett. "You are more likely to regularly contribute [to an established organization] than to a brand new political enterprise where they have to introduce themselves and explain what they do," he said.
Mr. Burton's group is trying to motivate donors by focusing on Mitt Romney as if he were already the GOP nominee, hoping donors will contribute now. The group recently spent $100,000 on an ad titled "Mitt Romney's America." And Mr. Burton has been reminding donors of 2000 to warn against complacency.
Steve Rosenthal, a Democrat operative who was involved with the 2004 campaign, predicted donors would start writing checks once the Republicans select a nominee. "Fear is a great motivating factor," Mr. Rosenthal said. "Once they see a clear and present danger, Democratic donors should respond in a pretty big way."
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