Financing Political Parties

For a political party or political movement to exist and function well, it needs to raise as much money as possible for its organization. The larger the political party, the more such funds are needed. On the other hand, larger parties generally have an easier time raising funds than smaller parties. What opportunities do political organizations have to raise as much money as possible to successfully run and manage their parties and movements?
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Dues and membership fees
First, the traditional source of income is membership fees. Again, larger political organizations that collect dues from a larger number of people have an advantage in this regard. Because dues are paid regularly, usually annually, they provide a long-term, stable source of income for political parties.
Sponsor Contributions
Sponsor contributions can be a volatile but sometimes non-negligible source of income. The disadvantage is that it is not known whether donations will be received or how generous sponsors are willing to donate. In this case, it is important to get as many influential and generous people on your side as possible from the beginning of the political organization\’s existence so that they will be willing to support the organization\’s activities. The size of the political party may not matter here, and a smaller party may receive more donations than a larger one.
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State Contributions
As for state contributions, this is usually the highest revenue item. The amount of the contribution is based on the outcome of the election, or more precisely, on the percentage of votes received from the electorate. The fact that the donations are repeated year after year is very advantageous for the political parties. If a political party enters the Chamber of Deputies, this contribution amounts to CZK 10 million per year. However, a party that fails to win enough votes in the lower house elections will not receive a single crown for its activities, which usually leads to problems for the party\’s survival.