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In-Kind Donations Can Be Turned Into Dollars

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Since 2001, donors attending Rep. Mike Thompson's parties and other contributors have given him more than 800 gifts of wine worth about $340,000.

Rep. Mike Thompson often holds fundraising events that are BYOB.

Since 2001, donors attending his parties and other contributors have given the California Democrat more than 800 gifts of wine worth about $340,000, according to a CQ MoneyLine study of campaign finance reports.

These donations — including vintages that were personally donated by many prominent winemakers, including Daniel Fetzer and Robert Mondavi — are used to cater Thompson’s fundraising events or put up for auction to bring in additional campaign funds. 

“I’ve always done it that way,” said Thompson, who generally holds an event in each of the seven counties in his wine country district every year. “My events have always been fun, and they have showcased the great things that you can find in my district.”

Thompson leads all Members of Congress in raising funds through this legal but unconventional type of fundraising called “in-kind contributions.” Instead of writing checks, donors give assets, services and other things of value to political groups. 

Campaigns, parties and political action committees accepted more than
$17 million worth of in-kind donations from 2009 to 2010, according to Federal Election Commission records. Individuals are allowed to donate these items so long as they stay within the limits that cap contributions at $2,500 per election. 

Thompson, who co-chairs the Congressional Wine Caucus and owns 20 acres of vines himself, said it makes sense that wine makes up such a major percentage of his in-kind contributions because his district consists of counties that are the “epicenter for wine.” 

“Every event I have has a silent-auction component,” he said. “It provides a way that people can participate in helping me get re-elected, whether it’s a fishing trip, a wooden bowl, a box of vegetables or a bottle of wine.”

In addition to these vast amounts of wine, Thompson has received an additional $300,000 in auction items since 2001 that make his contribution reports look almost like a bucket list.

Some of these in-kind donations include a jet boat tour, a fishing trip and two-day white-water rafting excursion. Luxury items for bid by the campaign have been a Porsche rental, a bracelet and a pearl necklace; more practical-minded donors could bid on a massage or a mammogram.

While Thompson’s in-kind vino could stock a wine cellar, Rep. Lynn Woolsey has received enough works of art to fill a small gallery. The California Democrat’s campaign received 46 pieces of artwork during the 2010 election cycle totaling almost $56,000. 

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