Democrats Losing Race For Funds Under Dean

The Washington Post reports:

The Democratic National Committee under Howard Dean is losing the fundraising race against Republicans by nearly 2 to 1, a slow start that is stirring concern among strategists who worry that a cash shortage could hinder the party's competitiveness in next year's midterm elections.

The former Vermont governor and presidential candidate took the chairmanship of the national party eight months ago, riding the enthusiasm of grass-roots activists who relished his firebrand rhetorical style. But he faced widespread misgivings from establishment Democrats, including elected officials and Washington operatives, who questioned whether Dean was the right fit in a job that traditionally has centered on fundraising and the courting of major donors.

Now, the latest financial numbers are prompting new doubts.

As critics see it, Dean has disappointed on two fronts. The DNC has not replicated the success of Dean's presidential campaign two years ago in tapping vast numbers of new and smaller contributors over the Internet. And skeptics say he has not yet established rapport with and won the confidence of high-dollar donors.

"We will have the resources to do what we need to do," said Karen Finney, a DNC spokeswoman. "We are committed to investing in state parties and rebuilding the grass roots from the bottom up."

Finney noted that the DNC has staff in 38 states and will have organizers in every state by the year's end. She also noted that it donated $5 million to the winning gubernatorial campaign of Virginia Lt. Gov. Timothy M. Kaine.

Dean took over as DNC chairman with a background different from that of most of his predecessors. He succeeded Terence R. McAuliffe, who began as a fundraiser in his early twenties and had known many major donors for two decades.

In his presidential campaign, Dean drew cheers from activists for his sharp criticisms of what he described as an accommodationist party establishment, too beholden to Washington interests.

Several Washington Democrats not favorably inclined toward Dean said the party was willing to gamble on his "potential for hoof in mouth disease" -- in the words of one lobbyist -- because of the unexpected fundraising prowess he showed in the 2004 race.

Dean, a virtual unknown nationally when the race began, shocked the political world with his ability to raise dollars over the Internet -- a fundraising medium that had not been fully tapped before his campaign. Dean raised about $20 million online in the primary season -- about 40 percent of the more than $50 million he raised for his entire campaign. Using techniques pioneered by Dean, Kerry raised more than $80 million online in last year's general election campaign.

As some see it, Dean's larger problem is with the care and feeding of wealthy contributors, people capable of giving the maximum $26,700 allowed annually under federal law. Bob Farmer, a past DNC finance chairman, said that "where the chairman can make an impact is with the big donors and the big fundraisers."

Dean does not enjoy long relationships with these people and remains uncomfortable asking for a significant contribution after just meeting a donor, said party operatives familiar with his style.