2008 candidates load up on cash for final push

(L-R) Republican presidential candidates former New York City Mayor Rudy Giuliani, former Massachusetts Governor Mitt Romney, and U.S. Sen. John McCain (R-AZ) take the stage for during Fox News Channel Republican Presidential debate at the University of New Hampshire in Durham, New Hampshire, September 5, 2007. Presidential candidates are scrambling to pad their bank accounts before the end of the third financial quarter on Sunday, loading up on cash for a big-spending three-month dash to the first votes in 2008.

WASHINGTON (Reuters) - Presidential candidates are scrambling to pad their bank accounts before the end of the third financial quarter on Sunday, loading up on cash for a big-spending three-month dash to the first votes in 2008.

After months of early fundraising helped establish their viability and organizational muscle, the top contenders must end the quarter with enough money to bankroll an expensive advertising blitz in early voting states like Iowa, New Hampshire and South Carolina.

"Cash is king now," said Anthony Corrado, a campaign finance expert at Maine's Colby College. "They have to start putting it to work."

With many states moving up their nominating contests, the first votes in Iowa and New Hampshire are now expected in early January 2008. The races in both parties could be finished by early February -- forcing candidates to spend heavily on advertising earlier than ever.

"There is going to be a lot of money going out the door of these campaigns in October or November this year," Corrado said. "No one can afford to wait."

The third fundraising quarter is traditionally the toughest for candidates, who must compete with summer vacations and expand their reach beyond the enthusiastic donors who already have given the $2,300 maximum for primary campaigns.

Most top campaigns expect a dip in fundraising from the second quarter, when Illinois Sen. Barack Obama led the Democratic field with $33 million and former New York Mayor Rudy Giuliani led Republicans by raising $17.6 million.

Among Republicans, the numbers for newly minted candidate Fred Thompson and Arizona Sen. John McCain will be watched closely when candidates submit their financial statements to the Federal Election Commission by October 15.

Thompson, a former Tennessee senator and Hollywood actor, needs to show he can raise enough money to turn his strong poll showing since formally entering the race earlier this month into election support.

Thompson runs second to Giuliani in most national polls for the November 2008 race but has faced questions about a slow fundraising pace.

"The national polls have shown the level of enthusiasm for the campaign. We're going to have the resources we need to be competitive," said Thompson spokesman Darrel Ng.

PRESSURE ON MCCAIN

McCain, who shuffled his advisers and scaled back his campaign after a lackluster fundraising performance in the first two quarters, will face pressure to show he has enough money to stay viable.

McCain will not match the $11.6 million he raised in the second quarter, but an aide argued his shift to a smaller campaign focused on early voting states had eased the financial burden.

"Most of the Republican candidates will see their fundraising decline, and John McCain will be no exception," the McCain aide said. "But the senator made the necessary adjustments to ensure the survival of his campaign."

For Democrats, Obama and Sen. Hillary Clinton of New York will continue their rivalry at the top, with former North Carolina Sen. John Edwards and New Mexico Gov. Bill Richardson looking to raise enough to stay viable.

Obama expects to raise $18 million to $19 million this quarter, an aide said, and add at least 75,000 new donors to his donor list of 258,000. An Obama e-mail to supporters on Monday said the campaign was aiming for 350,000 by quarter's end.

"We can prove that it's people, not dollars, that can be the measure for campaigns," Obama said in the message.

All of the candidates packed fundraising events into the final week. McCain was spending six of the last seven days raising money, and former Massachusetts Gov. Mitt Romney had 12 fundraisers.

Edwards set a goal of raising $1 million online.

"This is crunch time -- every lobbyist, every pundit, every power broker who is part of the establishment is waiting for us to fail," Joe Trippi, an adviser to Edwards, said in an e-mail to supporters.