Perry raises $17 million in first campaign period

Republican presidential candidate Texas Governor Rick Perry speaks at a meet and greet in Atkinson, New Hampshire October 1, 2011.

WASHINGTON/AUSTIN (Reuters) - Texas Governor Rick Perry raised $17 million in his first quarter in his race for the Republican presidential nomination, solidifying his position as top rival to Mitt Romney.

Perry's campaign on Wednesday also reported an impressive $15 million in cash on hand. It was widely reported that his advisers had set an internal goal of raising $10 million.

"Team Perry understands the cardinal rule of politics - under-sell and over-deliver," said Ford O'Connell, a Republican strategist who has donated to Perry in the past.

Romney has not posted third-quarter figures yet, but he is expected to pull in less than the $18 million he reported in his first fundraising period.

Perry's showing suggested that despite his shaky debate performances and several controversies, he has managed to raise a significant sum to compete.

He has been a formidable fundraiser in his Texas races, with several deep-pocketed donors giving upward of $1 million in donations over his decade as governor.

"I don't think that anyone would have doubted that Governor Perry could reach out to an already established network of people with deep pockets," in his first quarter, said Michael Malbin, a campaign finance expert at the Campaign Finance Institute.

Still, Malbin said the total was "relatively high," historically speaking.

Perry jumped in the race less than two months ago and has been fundraising furiously. He led polls after joining the field but his support has dropped recently after missteps, including a disappointing debate performance in Florida.

"Improving his debate performance is key for a lot of his would-be financial backers," O'Connell said.

Separately, Republican candidate Ron Paul announced he raised $8 million for his presidential campaign. Paul is running fifth in national polls among the Republican contenders, according to Real Clear Politics.

WAR CHEST NEEDED

Concern over Perry's candidacy led some prominent Republicans to court New Jersey Governor Chris Christie to join the race. But Christie said on Tuesday he would not run.

Romney and Perry have tried to downplay fundraising expectations for the third quarter, which is typically a weak quarter as it falls during the summer vacation period.

At the same time, a candidate's first fundraising quarter after joining the race is typically strong.

Still, Romney spokeswoman Andrea Saul said: "It's less than what Mitt Romney raised in the first quarter, and we feel good in the strength of our finance team and the fact that we are adding new people every day."

Republicans will need to raise formidable sums of cash to compete with President Barack Obama, who raised a record-breaking $750 million in 2008.

The 2012 election will likely be the priciest ever. Obama raised $47 million in his first fundraising period, plus nearly $40 million from the Democratic National Committee.

Neither the Romney nor Obama campaigns have released details on their third-quarter reports.

MAXED OUT?

For Perry, there are still questions as to whether he can translate his Texas success into national donor strength. There are no limits on donations in Texas, whereas individuals can only give a total of $5,000 for the presidential campaign.

Malbin said the average of $773 per donation was large and that it was still to be determined if he could expand his base.

"We won't know until the reports come out how many of these people maxed out and can't come back again," he said.

Full data is due to regulators by October 15.

Romney has the same challenge. Nearly three-quarters of Romney's campaign cash thus far has come from individual donors who cannot give again until the general election.

Obama, by contrast, had less than 20 percent of his campaign funds come from donors who reached the federal limits.

Small donors are vital to sustain a campaign, Malbin said, and also important organizationally to recruit volunteers.

(Editing by Eric Beech and Jackie Frank)