GOP confronts riddle: Big cash or big crowd?

Some in party say Gingrich VIP appearance could raise more funds

Friday, May 15, 2009

For just twice that amount, they can attend a VIP reception with former U.S. House Speaker Newt Gingrich prior to the state party's Red, White and Blue Dinner, their chief annual fundraising event.

Therein lies the problem for some Republicans, who say the low ticket prices are a missed opportunity to raise some much-needed cash for a party still trying to climb out of debt, particularly given Gingrich's high stature.

"I think that low level is a mistake and shows the lack of sophistication in the current leadership, which is why the party finds itself in such a significant financial hole," said Dirk D. Haire, who is chairman of the House and Senate Republican Slate committees, which raise money for incumbent GOP lawmakers.

State GOP Chairman Dr. James Pelura said he gave no consideration to increasing ticket prices for the June 5 gala at the risk of making it cost-prohibitive for rank-and-file members.

"The question was, do you pump up the price and put 400 people in the room?" he said. "There's a lot of folks out there who do a lot for the party, by waving signs and putting up signs and volunteering. Even at $125, that's a lot of money."

Half of the seats at the 850-seat ballroom at the BWI Airport Marriott where the reception will be held have been filled, Pelura said last week.

"This is a down economy, and the idea is to get as many people in that room as possible to hear Newt Gingrich and not restrict it to people with fat pockets," he said.

That's OK for the main gala, but others said the VIP reception is where the major contributions emerge and that $250 apiece is way underpriced.

"I'm a premium pricer, and they certainly could have done a lot better as far as price is concerned," said Richard E. Hug, a fundraiser for former Republican Gov. Robert L. Ehrlich Jr.

Even more disturbing to some party activists is that Sen. Andrew P. Harris is hosting a roundtable discussion with Gingrich prior to the VIP event and charging $1,000 a head or $1,500 a couple to raise money for his congressional campaign.

That essentially siphons money from state party coffers, foes said.

"The Maryland Republican Party has shown no strength in being able to raise funds to be competitive, and I think this is just another example of it," said former state GOP chairman John M. Kane, a frequent Pelura critic. "Unfortunately, they're more interested in ideology and grass roots than they are in raising money to fund either one, and that's been their failing through the last couple of years."

But Pelura said Harris' event is independent of the Red, White and Blue Dinner, and does not mean Harris (R-Baltimore, Harford) has the party's endorsement for the 1st Congressional District's GOP nomination.

Harris, who unseated incumbent Rep. Wayne T. Gilchrest in the 2008 Republican primary but lost in the general election, said his campaign reached out to Gingrich to see if he would consider coming into town earlier to help him raise money.

"It certainly is common for political events to have a wide range of ticket prices," said Harris. "We chose to be at the high end and the party made the decision to get as many people as involved as possible, and I think it works out perfectly this way."

Sen. E.J. Pipkin, who also sought the GOP nomination for the 1st District seat last year and is thought to be considering another run next year, said he isn't bothered that Harris is holding a fundraiser before the Red, White and Blue Dinner.

"I wish him the best, and the fact is that we're a long way away from the election," said Pipkin (R-Upper Shore). "The story hasn't been written on what's going to happen in the 1st Congressional District yet."

The state Democratic Party, which is holding its gala June 16 in Greenbelt, is charging $250 for general tickets and $500 for a VIP reception with state elected leaders.

Not everyone thinks the GOP's lower price levels are out of line.

"As a fundraiser, there are two schools of thought. I would rather have a room packed with people than just a few people," said Dan Morgan, a national Republican fundraiser whose firm, Morgan Meredith & Associates, is based in Herndon, Va. "Perception is important in fundraising. When you bring a lot of people into a room, there's momentum and enthusiasm."

And, with someone like Gingrich delivering the keynote, raising money may not be the No. 1 priority.

"Newt is dynamic, he's motivational, he's encouraging, and the way Republicans have been dumped on recently, this may be as much of a motivational thing as it is about raising money," Morgan said. "If I was putting on a fundraiser, I would say, ‘How do I maximize the amount of money I'm going to bring in, but how do I have a similar event next year that's going to bring in even more money?'"

Staff writer Douglas Tallman contributed to this report.

abrody@somdnews.com