when a candidate drops out, what happens to their money?

[ButterflyBlood]

n/t

[gristy]

1. Why, they donate it to whomever they choose to endorse

from the remaining candidates! Not.
Good question. My guess is that many campaigns find themselves in debt with more bills to pay than cash on hand. So they essentially go through bankruptcy proceedings with creditors getting a fraction of what they are owed.

[cheezus]

2. Better question: what happens to their debt?

[dorktv]

3. Here is a better question: how do you avoid getting that debt?

[arewethereyet]

4. its theirs to do with what they will

including just keeping it. They seldom do. Most keep it around for the next time.

[nancyharris]

5. No one drops out of a race

if they have money left to spend.

[eyesroll]

6. As some previous posters said, most people don't drop out when they still

have money. But let's assume one did.
First, they must pay their debts. If they don't have enough money to pay their debts, they can keep their committees active to solicit funds to pay off debts. Federal matching funds can be used for that purpose, as can selling off campaign assets.

Then, if there are any funds left over, they can hold onto the account and keep filing quarterly reports. Some committees do this until they're sure they're done, and that there are no remaining claims to the money (debts, excess contributions, FEC fines).

Then, they can do any or all of the following:
1. Contribute to other candidates, including Congressional and Senate candidates (there are limits)
2. Contribute to the DNC or state parties (unlimited, I think)
3. Throw a big party for their staff/volunteers/etc. (most don't, at least not publically)
4. Donate it to charity (unlimited; must be a tax-deductible charity, so no churches, MoveOn, etc.)
5. Save it for a future run for federal office