Compete?

Can Santorum Raise Enough Money to Compete?

By Rebecca Ballhaus

As former Pennsylvania Sen. Rick Santorum launches his presidential campaign on Wednesday, he will face a pressing question: Can he raise enough money to distinguish himself from the crowded field of Republicans vying for the nomination?

In his last presidential campaign in 2012, Mr. Santorum’s fundraising surged as he won contests in 11 states, including Iowa. But when he dropped out of the race in April 2012, he cited a weak cash flow as one of the reasons for his departure. And in 2016, he may face an even greater fundraising challenge, as he competes for a limited pool of evangelical voters and conservatives with several first-time candidates who are way ahead of him in the polls.

One sign of the challenge ahead: Nick Ryan, the founder of the super PAC backing the former senator in 2012, has this time formed such a group for former Arkansas Gov. Mike Huckabee instead.

On Friday, Mr. Santorum will head to Great Falls, Va., for a fundraiser hosted by venture capitalist John Burke. Guests can pay $2,700 each—the maximum they can donate to a presidential campaign in the primary—to sit at a table with Mr. Santorum, where they are promised a “casual and candid conversation with Rick,” according to a copy of an invitation obtained by the Wall Street Journal. Attending a VIP reception costs $1,000 per person, and a “general reception” is just $500.

Eight couples are on the “host committee” for the event, according to the invitation, which does not specify how much members of that committee must pay to attend. Among the members are Washington, D.C., lawyers William Wichterman and Pat Cipollone, who both gave to Mr. Santorum’s last presidential campaign. Mr. Wichterman also served in George W. Bush’s administration.

How Mr. Santorum’s fundraising efforts fare will be key to determining his success in the crowded field of Republicans running for the nomination. Other candidates who are seeking to carve out a similar niche to the former senator saw their campaign coffers fill quickly after announcing their bids: Texas Sen. Ted Cruz raised about $4 million in the eight days after his announcement; Kentucky Sen. Rand Paul raised $1 million little more than a day after his. Establishment favorite former Florida Gov. Jeb Bush, meanwhile, is expected to unveil a record-breaking fundraising haul this summer, and has already held several $100,000-ticket fundraisers.

For his 2012 campaign, Mr. Santorum raised $22.3 million, according to the nonpartisan Center for Responsive Politics. By the time Mr. Santorum exited the race, Mr. Romney had raised $88.7 million. Mr. Santorum also received a hefty share of outside help through a super PAC, the Red, White and Blue Fund, that spent $8.4 million on his behalf. That super PAC was largely bankrolled by Foster Friess, a mutual fund investor who gave more than $2 million to the group. Mr. Friess has said he will back Mr. Santorum again in his second bid, but didn’t respond to questions about how much he would spend.

Prior to Friday’s fundraiser, the former senator had already begun raising money directly for his campaign. Last month, he set up a “testing the waters” account, allowing him to raise funds under the same contribution caps that apply to a presidential campaign. Money raised for that account will be rolled over to his campaign, and he will need to retroactively disclose the names of his donors. Funds raised at Friday’s event will go to the testing the waters account, according to the invitation.

Mr. Santorum also has a political-action committee and a 501(c)4 non-profit—both called Patriot Voices—raising money on his behalf. Those two groups have raised a combined $10 million since June 2012, according to a spokeswoman.