Moneybombs and Democratic Participation: Regulating Fundraising by Online Intermediaries
\\jciprod01\productn\M\MLR\70-3\MLR304.txt unknown Seq: 1 10-MAY-11 13:53 MONEYBOMBS AND DEMOCRATIC PARTICIPATION: REGULATING FUNDRAISING BY ONLINE INTERMEDIARIES NATHANIEL J. GLEICHER* ABSTRACT In the last decade, the Internet has up-ended the world of politi- cal fundraising, helping campaigns marshal armies of small donors and volunteers. Rather than eliminating the need for fundraising organizations as some predicted, the Internet has created new in- termediaries that capitalize on the rapidly changing ecology of online fundraising. These new intermediaries combine fundraising, volun- teer mobilization, and activism. They raise new risks of accountabil- ity, polarization, and nationalized debate, but they also have the potential to enhance democratic participation. This Article contrasts online and offline fundraising intermediaries and provides a guide for regulating online political fundraising to avoid unintended con- sequences, to minimize the risks of online fundraising, and to rein- force the Internet’s potential for enhanced democratic participation. I. INTRODUCTION .......................................... 751 R II. INTERMEDIARIES, DEMOCRATIC PARTICIPATION, AND ONLINE FUNDRAISING .................................... 755 R A. Fundraising Intermediaries and Campaign Finance Law . 757 R B. Types of Offline Fundraising Intermediaries ............. 762 R C. Online Fundraising: Intermediaries and the Rise of the Internet ............................................. 766 R D. Why Intermediaries Are Valuable in a Democratic Society . 771 R III. CONTRASTING ONLINE AND OFFLINE FUNDRAISING INTERMEDIARIES ......................................... 777 R A. Member Engagement .................................. 777 R B. Aggregating Opinions ................................. 785 R Copyright 2011 by Nathaniel J. Gleicher. * Affiliated Fellow, Yale Information Society Project; J.D., Yale Law School. I am es- pecially indebted to Heather Gerken, Jack Balkin, Robert Post, and Danielle Citron, who all provided invaluable guidance and insight.
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