We're not convinced that this is such a good thing. Therefore, as we develop public funding mechanisms for political campaigns, we need to make sure that all the cash doesn't go directly to candidates. Tax Credits as a Public Financing Tool . The Arkansas initiative uses tax credits as its public financing tool. Individuals can direct their piece of public financing to a candidate, to a political party, or to a political committee.
Voters can send it all to one, or divide it up any way they choose.
They can invest their piece of public financing in a candidate's campaign or in a political group with which they agree. And non-Arkansans will not be able to make an allocation since they are not Arkansas taxpayers. Small Donor Political Action Committees . What makes the small-donor PAC particularly effective as a campaign finance reform tool is its combination with the contribution limits of the initiative. They also have the advantage of putting more money into the system, thus answering one of the objections raised to relatively low contribution limits.