Many of the companies continue to support congressional, state and local candidates. Contributions to congressional and state candidates and committees were not included in this analysis.
Freddie Mac, a government-chartered mortgage financier, is one of the large donors to the 2000 presidential election that is giving less this year. Four years ago, Freddie Mac and its employees gave $708,450 to White House hopefuls and the national party committees. This year, Freddie Mac employees have given $25,518 during a period when the McLean company is facing public scrutiny over accounting problems and a government investigation of Freddie Mac's former chief lobbyist for campaign finance irregularities.
Campaign finance reform changed the way we give, said Shawn Flaherty, a Freddie Mac spokeswoman. "We don't have the same tools."
Over at Fannie Mae, officials set out a new policy toward political contributions soon after the campaign finance reform act passed. "What we decided is the spirit of the law pointed to individual contributions and PACs to participate in the process," said Brian Faith, a Fannie Mae spokesman. The new policy also ruled out giving to 527 committees, nonprofit organizations that participate in political activities.
Other companies have adopted similar bans on 527s. Corporations have practical reasons for being wary of giving to 527s, Noble said. "Their executives were giving to candidates and their parties because that's direct giving. They get direct credit. When they put it in 527s, some businesses don't see the same return," Noble said.
Lockheed Martin Corp., the Bethesda-based defense contractor, is a case in point. "We made a decision that we weren't going to contribute to federal 527s," said Stephen E. Chaudet, Lockheed's vice president of state and local government affairs and the Lockheed Martin Employees Political Action Committee. "We like to give directly to members who share our concerns."
Lockheed Martin has contributed $80,000 to the Republican Governors Association and $20,000 to the Democratic Governors' Association, both of which are 527 organizations. Chaudet said Lockheed's contributions to both groups, while 527s, are in line with the company's policy of "assisting organizations where we have a strong constituent interest. . . . We have operations in multiple states."
Unlike groups such as Swift Boat Veterans for Truth or MoveOn, the governors' associations focus on state-level races and they act "more like party committees than issue groups," Noble said.
The decision to only assist organizations where Lockheed has a strong constituent interest influenced its decision not to contribute money to the party conventions this year, as it had during the 2000 election. The previous contributions to the organizing committees were initiated by executives of Lockheed Martin IMS, a division of Lockheed that contracted with state and local governments, Chaudet said. Lockheed sold that division in 2001.
"They did some work at state and local levels, and the host committees would ask them to give them support money. . . . Those relationships aren't there anymore," Chaudet said.
