Investment Without Return? Individual Out-of-State Contributions to US Direct Democracy Campaigns

Abstract Existing scholarship investigates the influence of out-of-state donors in state-level candidate politics; however, comparatively little attention is given to out-of-state contributions in direct democracy campaigns, such as ballot initiatives and referenda. This study is the first to investigate out-of-state donations to direct democracy campaigns, focusing on the scope and characteristics of individual out-of-state donors across the United States. Utilizing an original dataset of contributions to direct democracy committees from 2006 to 2022, I present three key findings. First, out-of-state contributions to direct democracy campaigns have increased over time, with notable spikes in recent election cycles. Second, a large majority of out-of-state individual contributions total 100 or less, primarily to measures related to social issues and substance use regulation. Third, out-of-state contributions to direct democracy campaigns tend to share certain characteristics. A significant portion of these contributions comes from zip codes with lower to average incomes and states without direct democracy processes of their own. Finally, based on these characteristics, I develop a potential theory for why these donors contribute, arguing that individual out-of-state donors to direct democracy campaigns are primarily motivated by a combination of ideological and consumption-oriented considerations.