The Fundraising Gap: Understanding Financial Barriers for Women in Political Leadership
Women politicians frequently receive less funding than their male counterparts in political campaigns. Access to adequate financing is crucial for running a successful campaign—whether it's hiring support staff, purchasing advertisements, or dedicating significant time to outreach. Many factors hinge on a candidate's ability to secure sufficient funding. However, it is well-documented that women candidates face greater challenges in fundraising compared to men.
The Government of Alberta's amendments to the Municipal Affairs Statutes Amendment Act (Bill 20) may further complicate access to funds for Alberta women politicians in municipal elections. The new amendments allow candidates to receive increased donation amounts beyond what was previously permitted.
Understanding access to funding
Women often encounter more difficulties than men when financing a campaign, and frequently receive less funding than their male counterparts, making it substantially more difficult to run a successful campaign. Additionally, women view a lack of finances as a more significant deterrent to entering politics, as evident in a 2008 survey from the Inter-Parliamentary Union. The survey notes that of 292 parliamentarians worldwide, women Members of Parliament viewed a lack of finances as a more significant deterrent to entering politics than their male counterparts did.
The current funding gap between men and women in political campaigns is also significant. In the 2021 Calgary Municipal Election, the financial disclosures from winning candidates revealed that female candidates raised an average of $36,709, while male candidates raised an average of $88,555. This means women raised an average of $51,846 less than their male counterparts.
In the mayoral race, the top female candidates (Mayor Jyoti Gondek, Jan Damery, and Grace Yan) averaged $299,234, while their male counterparts (Jeromy Farkas and Jeff Davidson) raised an average of $593,670. This represents a 50.4% difference, highlighting a substantial funding disparity. (Note that this average excludes Brad Field, who has not filed a financial disclosure.)
This funding disparity extends beyond Calgary; a similar trend is evident in the 2021 Edmonton Municipal Election. Female candidates raised an average of $31,338, while male candidates raised an average of $50,523, resulting in a 62% difference between men and women candidates.
The challenges women face in financing political campaigns significantly hinder their ability to compete effectively. This emphasizes the urgent need to address and understand the factors that cause the funding gap to create a more equitable political environment where women can participate fully and successfully, ultimately leading to a more representative and diverse political system.
Why is it harder for women to secure funding?
While numerous factors can influence a woman's ability to fundraise and secure funding, this section will focus on issues directly related to the fundraising process itself.
One notable factor contributing to the funding gap between women and men is that men typically have larger and more established professional networks. According to the International Institute for Democracy and Electoral Assistance (International IDEA), women generally have less access to social and professional networks, which play a crucial role in candidate-centered elections. These networks are often essential for fundraising, as they provide access to donors and resources.
For instance, based on 2022 data, women hold only about 35% of management positions and approximately 30% of senior management roles in Canada. This underrepresentation means that fewer women have the opportunity to build and expand their professional networks in ways that can facilitate fundraising. Consequently, they may find it more challenging to tap into the same level of financial support that their male counterparts can access through their broader connections. This disparity impacts the likelihood of women running as candidates, as well as their overall representation as elected officials in politics, ultimately impacting the diversity of perspectives in decision-making processes.
Women may feel less comfortable asking for funding compared to men, resulting in overall lower campaign contributions. This discomfort often stems from societal norms and expectations surrounding gender roles, which socialize women to be less assertive in financial matters. Women are also less likely to be donors compared to their male counterparts, limiting the potential donor base available to female candidates. The lower donations from women stem from both economic and social factors, including the gender pay gap, weaker donor networks, and a lower sense of political influence. This dual challenge not only affects the amount of money women can raise but also hinders their ability to build a supportive network of financial backers.
Because women have historically been excluded and underrepresented in politics, leadership positions, and among political donors, there may be skepticism or bias regarding a woman’s electability. This issue is especially pronounced for women of colour, who, on average, raise less than their white and male counterparts and are likely to receive more skepticism or bias against them, severely hindering their ability to run a campaign successfully.
While there are pockets of progress—such as increased donations from women as more feel confident participating in politics, and the federal government recognizing the importance of equal representation by implementing funding programs to encourage women in leadership roles—significant barriers remain. Women across Alberta, Canada, and the world still face challenges when fundraising for political campaigns. Without adequate funding from a diverse donor base, running a successful campaign becomes incredibly difficult, ultimately hindering women's political participation.
Some key amendments to Bill 20 regarding fundraising and finances include:
Allowing unions and corporations to donate $5,000 to local candidates per municipality per year (the same $5,000 limit that individual donors can make). This contrasts with the 2021 campaign, where unions and corporations were prohibited from donating to municipal campaigns.
Permitting unions and corporations to make donations outside the local election year and requiring annual reporting of these donations. Donations outside of the campaign period were previously restricted to a maximum of $5,000.
Limiting donations to third-party advertisers to $5,000 per election period, starting May 1 of the election year. The previous limit for all individuals, unions, and corporations was $30,000.
While there are some constructive amendments, such as limiting donations to third-party advertisers to ensure more equitable media representation among candidates and requiring annual reporting of donations outside the election year for greater transparency, the overall impact may still be challenging for women politicians. Given that women are under-represented in politics within all levels of government, it is important to understand how these changes to Bill 20 may potentially impact the likelihood of women running in municipal elections, as well as their chances of winning.
How Bill 20 may impact women’s participation in campaigns
The main risk associated with the new amendments to Bill 20 is that they enable unions and corporations to exert greater influence in politics. The concern is not only that these entities can play a bigger role during a municipal election, but that they can donate up to $5,000 per municipality in non-election years too. This means unions and corporations could become a significant funding source for candidates. According to Alberta Municipalities, this amount far exceeds what the average Albertan can afford to donate.
As previously discussed, women often lack the political networks that men have, making it more challenging to fundraise and finance campaigns. Women tend to rely more heavily on smaller, individual donations rather than large contributions from corporations or political action committees.
Furthermore, a 2022 survey on Albertans' views about money in politics revealed that a majority of respondents (62%) felt that Alberta’s municipal donation limit of $5,000 was too high. In contrast, 69% of Albertans believed that the federal donation limit, significantly lower at $1,650, was a more appropriate amount for donors to give.
Currently, women candidates in Edmonton and Calgary receive, on average, less funding than their male counterparts. Allowing corporations and unions to donate a maximum of $5,000, in addition to the $5,000 that individual donors can contribute, exacerbates the barriers women politicians already face.
Recommendations:
To ensure that women have an equal opportunity to fundraise and campaign, the Government of Alberta should:
Research how changes to electoral fundraising legislation have the potential to impact women's confidence in running for office and exacerbate the fundraising gap between men and women.
Seek input from current and past female mayors and councillors to identify the barriers experienced when fundraising, and use the information to inform and support prospective female candidates and donors.
Align the contribution limits for individuals and businesses to align with the limits set in other provinces and at the federal level.