Campaign finance refers to the means by which money is raised for political election campaigns. Campaign finance system generally refers to prevailing fundraising practices as well as the laws governing those practices.

It is commonly alleged that campaign finance based on large private or corporate donations may lead to de facto corruption in democratic systems, even though such donations may be legal. Political analysts who value civic participation have observed that the main problem of money in politics should be understood not as illicit quid-pro-quo bribery or even moral corruption of individual public officials, but instead as a conflict of interest that necessarily arises when candidates (and elected public officials) rely on campaign financing from sources whose interests may be inimical to the public interest. Campaign contributions buy access to public officials, and greater access means greater influence. In many states in the United States, concern about the role of money in elections has led to movements for campaign finance reform.

In disciplines such as economics and public policy, public choice theory and collective action theory attempt to understand the effects of this kind of private power on the outcomes of political processes.

Democratic countries have differing views on what is legal and what types of donations to political parties and campaigns are acceptable. For instance, the United States has a fairly liberal view of campaign contributions, and the campaigns of most prominent American politicians are funded by a variety of sources. Other countries take a more restricted view, for instance making illegal contributions from corporations.

Australia has taken an even more liberal view, in that the amounts of donations are not limited.

See also

• Campaign finance reform
• Hard money (politics)
• Pacific scandal
• Soft money
• Australian campaign finance