Trump's first fund made a record $170M US in donations. Why companies get money

Outside the White House, a few days before the day of the inauguration of the president-elect Donald Trump, preparations were underway for an event that will be funded by a record number of corporate donations – including many first sponsors from the world of technology, artificial intelligence and crypto.

“I see it both ways,” Jr. said. Lopez, a visitor from Dalton, Ga., who was visiting the nation's capital before the inauguration. Lopez said the event — an American tradition celebrating the incoming president, with politicians from both sides of the aisle in attendance — was meant to be a day for the people.

However, “if you have too much business influence in politics, that can cause problems. And it can ignore the interests of the people. [in favour of] big companies,” he said.

Trump's second inauguration fund has so far raised $170 million, breaking the record he set in 2017 and surpassing all donations raised by Biden's committees and Obama's presidential inauguration committees, which are appointed by administrations that do not plan inauguration day festivities.

The donations, though symbolic, show that some companies are seeking a friendly relationship with the president-elect, hoping he will follow through on promises of deregulation and claims he will fire officials from oversight agencies such as the US Securities and Exchange Commission. and the Federal Trade Commission.

Some may offer this money as a mea culpa to Trump, who wears the company in public to show off. scornful against himincluding Facebook's Meta – Trump once called the company an “enemy of the people” for banning him from its platform after the Jan riots.

But CEO Mark Zuckerberg recently praised the president-elect and acknowledged that the company is making changes, just like him from fact checkingto adapt to the current political situation. He attended the launch event along with other tech executives such as Apple's Tim Cook and OpenAI's Sam Altman.

“Primary fundraisers are basically about goodwill and outreach,” said Bruce Freed, president and founder of the Center for Political Accountability, a nonprofit that promotes transparency in corporate political spending.

“They understand that the relationship with Trump is going to work,” Freed added. “Even Trump has made it clear that he will do what he wants, but he expects everyone to ride horses.”

Republican Rep. Ozzie Palomo, founder and managing director of Chartwell Strategy Group in Washington, DC, said there is more uncertainty in 2017 when Trump takes office. “People did not like to associate themselves in the community and in public. That discrimination is over,” he said.

“Inauguration weekend is by no means an opportunity to solve all your policy problems, but it allows you to show face and start building those relationships with key stakeholders who will be in office in the next four years.”

Which companies are dedicated, and how much?

CBC News reached out to 20 companies, many of which confirmed that they had made a donation to Trump's first fund.

Boeing donated $1 million to Trump's first fund this year, as it contributed the same amount to Biden's first fund in 2021 and Trump's first inauguration fund in 2017. President's First Committees.”

Google, Microsoft and Meta each contributed $1 million to the fund. An Uber spokesperson said the ride-hailing company has contributed $1 million to the fund (matching its contribution to the 2021 Biden campaign) and that its CEO Dara Khosrowshahi has contributed an additional $1 million this year.

A spokesperson for OpenAI said that Altman, who is its CEO, made a personal contribution of $1 million to the initial fund.

Spokesmen for oil giant Chevron, investment firm Goldman Sachs and carmaker Toyota confirmed the donations but did not confirm the amount. And a spokesperson for crypto company Ripple said it donated $5 million of its cryptocurrency, called XRP, to the startup.

Amazon, Apple, Adobe, Pfizer, Hyundai and Delta Air Lines did not respond to a request for comment. With the exception of Pfizer, which contributed an undisclosed amount, they all reportedly contributed $1 million each to Trump's first fund.

Biden's first fundraiser in 2021 raised $62 million, but his in-person celebrations were cut short due to the COVID-19 pandemic. Obama raised $53 million in that time from his 2009 primary fund, even less money from donations — something that was removed from his 2013 primary fund, which brought in $43 million.

'They don't want to be on the president's bad side'

The inauguration ceremony is widely regarded as a non-partisan political event. But it can also be an opportunity for companies to show their support for the president or the incoming administration, explained Brendan Glavin, director of information at OpenSecrets, an American nonprofit that tracks political money.

“They don't want to be on the president's bad side,” Glavin said. “If he is offended by a person or by a company that does something he doesn't like, he has no problem going out and scolding him in public.

“I think that plays into this more than before [the] we've been through with different presidents,” he said. “I think the experience of the past puts some of the actions into this.”

Although the start-up fund may receive a small amount from Congress to pay for any municipal services related to the event, the funds are generally funded by individual and corporate donations.

Companies aren't allowed to donate directly to presidential campaigns — they can donate indirectly to political action committees or other advocacy groups — but they generally stay out of politics so as not to alienate their consumer base, Glavin explained.

Although the ban on foreign donations is still in effect, startup funds they are not governed with the same restrictions as election campaigns. Some companies make disclosures. Besides, the presidential nominating committee it has 90 days to disclose the full list of donors to the Federal Election Commission.

'If you're not at the table, you're on the menu'

Many industries stand out on the list of companies donating to Trump's first fund.

For the first time, several crypto companies including Ripple, Robinhood and Coinbase are he said it was to contribute to the fund, which shows the desire to make interventions and management that has enthusiastically embraced the industry and even appointed a “crypto czar.”

“They see this as an opportunity to put a legal framework in order to make it legal to work in their land. And this is the type of their political party,” said Palomo.

Corporate America is “reading the tea leaves,” he added. “This isn't really about Donald Trump, it's about Donald Trump's voters …. From a commercial standpoint, they need his voters to buy what he's selling.

“There's an old saying here that if you're not at the table, you're eating. And I think people are trying to figure out how to be at that table where decisions are made.”