Steyer campaign’s charitable donations dwarf his rivals — especially in South Carolina

Billionaire philanthropist Tom Steyer has given away more than half a million dollars to charitable organizations, local nonprofit groups, and political parties in critical primary states, an eye-popping sum that far outpaces his Democratic presidential rivals.

And no state has benefited more than South Carolina, where Steyer is banking on a strong finish Saturday to keep his White House hopes alive.

Through the end of January, Steyer’s campaign contributed more than $100,000 to South Carolina charities and political organizations, a McClatchy analysis of campaign finance records found.

In September, for example, Steyer’s campaign paid the Joseph H. Neal Health Collaborative, a Columbia, S.C., charity providing services for those living with HIV/AIDS, $5,000 for an event sponsorship. On Dec. 3, the campaign made a $3,500 donation to Benedict College, the historically black liberal arts university in Columbia. And it gave $5,000 to the Tabernacle Baptist Church in Greenville, S.C. the day before Christmas.

Groups in Iowa, New Hampshire, Nevada and prominent Super Tuesday states like California, Texas and Tennessee have also received tens of thousands of dollars worth of donations.

It’s an unconventional spending strategy from an unconventional candidate. But Steyer’s defenders say the main factor that sets his giving apart is who he’s giving to.

Donating to fellow politicians and interest groups is “something that all candidates do,” said Michael Bailey, the publisher of the Minority Eye, a digital news outlet focused on South Carolina’s black community. Bailey has written favorably about Steyer, particularly about his commitment to spending money advertising in black-owned news outlets, including his own.

“What’s new is that he is doing that with organizations that predominantly serve people of color,” Bailey said.

The large sum of donations has emerged as Steyer has drawn scrutiny for hiring influential black legislators in the state as campaign advisers. The campaign also donated $7,500 to South Carolina’s state Legislative Black Caucus for an event sponsorship in December. The leader of that caucus is one of those being paid to advise his campaign, and has also endorsed him.

That’s prompted pushback from some prominent South Carolina Democrats. Former Democratic state Rep. Bakari Sellers responded to the disclosure about payments to a local legislator earlier this month on Twitter, writing “Presidential candidates shouldn’t be paying legislators for their endorsements.” Former South Carolina Democratic Party chairman Dick Harpootlian, a Joe Biden supporter, accused Steyer of “buying” his supporters.

Steyer isn’t the only presidential candidate paying local politicians for campaign help. The New York Times reported that Bernie Sanders, the current frontrunner in the Democratic race, has also paid companies owned by state lawmakers who have gone on to endorse his campaign.

The Steyer campaign’s charitable giving, however, goes far beyond that of any of his Democratic rivals. No other presidential candidate comes close to donating campaign funds on such a scale. Many simply don’t have the resources. But even those with flush bank accounts have given away just a fraction of the sum Steyer has. And they have adopted the more traditional approach of giving to local party organizations and politicians as they sought to curry favor in the early voting states

Former South Bend, Ind., Mayor Pete Buttigieg has donated north of $100,000 through January, primarily to Democratic groups and elected officials in Nevada. He did write one big check, for $47,050, to an Illinois-based nonprofit Kids off the Block, which helps at-risk low-income youth. And, like Steyer, he also paid the South Carolina Legislative Black Caucus $3,500 for an event sponsorship.

The other billionaire in the race, former New York City Mayor Michael Bloomberg, donated roughly $30,000 from his campaign account last month to a handful of charities and state parties. But his philanthropies have previously donated millions to help advance the campaigns and policy goals of many of the elected officials who have gone on to endorse his presidential bid.

Sanders has given approximately $14,000 in donations over the course of the campaign.

Steyer’s campaign and supporters say it’s not surprising the former hedge fund manager is donating so much campaign money to nonprofit groups in the communities where he’s appearing on the ballot, as opposed to focusing on political candidates and party organizations the way presidential aspirants have traditionally done.

“As a grassroots organizer, Tom’s made a commitment to hire local organizers who understand their communities and invest in local businesses and organizations to leave something behind after the campaign moves on -- building lasting infrastructure in these communities critical to the future of our diverse party,” campaign spokesman Ben Gerdes said in a statement to McClatchy.

Steyer, who has pledged to give away at least half of his $1 billion fortune as part of his broader philanthropy efforts, has struggled to gain traction in the 2020 race, as he’s yet to earn a single delegate. But he has focused much of his time and resources in South Carolina, and has made some inroads with the state’s black voters. Recent polls put him at third place there.

Antjuan Seawright, a Democratic strategist in South Carolina who is neutral in the 2020 primary, said he did not necessarily see anything “shady or suspect” in the Steyer campaign’s charitable giving.

“This is his way of giving back,” Seawright said. “When February 29 comes and goes, the investment he made into these organizations will live after … perhaps in a more real way than in the person who ends up being the nominee or the next president of the United States.”

This story was originally published February 28, 2020 at 4:00 AM with the headline "Steyer campaign’s charitable donations dwarf his rivals — especially in South Carolina."