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Terry McAuliffe, On a Mission...

He helped Hillary Clinton raise a stunning amount of money in the third quarter. Can he make sure she carries the Iowa caucus?

Terry McAuliffe is giving it a shot, one small cluster at a time.

Richard Wolffe Oct 4, 2007

Oct. 5, 2007 - The scene did not exactly reek of triumph. Just two dozen supporters had gathered at the union hall
perched between a welding company and a gas station in Cedar Rapids, Iowa.

The room was two-thirds empty, the sign-up sheets on the walls blank. But that did not deter Terry McAuliffe, the hyperkinetic chairman of

Hillary Clinton’s presidential campaign, as he tucked into his speech at the seventh event of his long day. The campaign is on fire.  

We’re doing great, McAuliffe told the room.

McAuliffe can be forgiven his congenital enthusiasm. He had just helped Clinton post impressive third-quarter fund-raising numbers outpacing her nearest rival, Sen. Barack Obama, in total dollar amount as well as the tally of new donors added to the rolls. A campaign that had already been taking on the aura of inevitability suddenly surged forward and was reflected in a fresh round of polls showing an ever-growing gap between Clinton and the competition.
 

But McAuliffe wasn’t resting on his laurels. What happens in your state here is going to be a huge determinant of who the Democratic nominee for president is, he said. Don’t believe the polls. Four of the last six polls have put Hillary in the lead here. But we’re not in first place. We’re bunched up in a three-way tie … We’ve got to run like we’re 20 points behind. McAuliffe’s pitch is a sign of both the strength and the weakness of the Clinton campaign in Iowa. Taking nothing for granted, the Clinton juggernaut dispatches a key lieutenant to canvas Iowa in a blue Chevy Cobalt, meeting small clumps of supporters other campaigns might view as hardly worth a major fund-raiser’s time. (McAuliffe says he extends his audience by making hundreds of calls to voters during his travel time.) But despite the Clinton camp’s manifest advantages, they need McAuliffe on that road. The New York senator’s position in Iowa is much weaker than any other early voting state. While she may have opened up a daunting lead in national polls33 points, according to the latest Washington Post/ABC News poll she's neck-and-neck with Obama and former senator John Edwards in the Hawkeye State.

A defeat in the first-in-the-nation caucus could imperil her lead in other early states, if the pattern of previous elections is repeated. And an early loss would raise serious questions about her campaign’s biggest selling point: that she is strongest, most electable candidate in the field. Even Clinton’s supporters in Iowa are nervous.

Wally Horn, an Iowa state senator from Cedar Rapids, introduced McAuliffe at the union hall Wednesday evening. Horn, who has spent 35 years in the legislature, signed up with the campaign after persistent pressure from the candidate’s husband during the Clintons’ first campaign swing together in early July. He asked me three times in 15 minutes, Horn said, recalling that Clinton had visited him as a sitting president in 1994. Clinton’s finger-wagging message for Horn was simple: I want you to be for Hillary. But Horn sounds more supportive of Bill than of Hillary. You know when he walks in the room; you don’t need to look around, you just know he’s there, he said.
 

What’s so sad, for me anyway, is he tries to hide it now because of Hillary. He can explode a room, but he has to keep low and small. Horn says he’s convinced that Hillary is ready to be president. He just isn’t sure that Iowans can be trusted to vote for her, even when they say they like her. I was a [Dick] Gephardt supporter before, but people didn’t show up at the precinct caucus, he said, referring to the former House Democratic leader from Missouri in the 2004 caucuses. In Iowa, people are so nice they’ll tell you they support you, but then they don’t show up.

This is what concerns me about Hillary. You almost know it’s a natural for people to get out for Obama to the precinct caucus. But Hillary is going to have to get her people there, and it’s not a natural. Horn’s views are supported by the recent NEWSWEEK Poll, which showed a big gap between support among registered Democrats and likely caucus-goers. Among all Democrats in Iowa, Clinton enjoys a 6-point lead over Obama. But among people likely to vote, Obama is leading by 4 points. That 10-point spread suggests that Obama holds an early advantage in organization and enthusiasm. Over the next three months, much can change in Iowa; many caucus-goers typically make up their minds in the last month of campaigning. At this stage of the campaign four years ago, John Kerry was universally written off as dead in spite of his early front-runner status and his strong performance in the TV debates.

Clinton might yet pull away decisively from her rivals in Iowa. Or she may suffer a Dean-like crash. But for the Clinton campaign, the lack of obvious enthusiasm for the candidate is troubling. At the union hall in Cedar Rapids, only two members of the audience expressed a strong bond with the senator. One was an Arkansas transplant; the other had recently hosted a house party for the candidate. But if that bothered McAuliffe, he didn’t show it as he primed the small crowd for a campaign swing by Clinton herself early next week. In his mind, Hillary is the only candidate who can defeat Republican Rudy Giuliani in states like California and New York. And only Clinton could lead the Democrats to a historic victory.

One supporter piped up asking for advice on how to answer a nagging question: why perpetuate the Clinton-Bush dynastic hold on the White House? I understand since 1980 there has been a Bush or Clinton on the
ticket, said McAuliffe, and I understand that people raise that issue. People like something new. But with the unique circumstances we have in the world, experience has to trump everything else. You’ll always have candidates that come up as an alternative to what people view as the inside. But what is very unique now is it’s obviously war in Iraq.

It’s Iran, it’s Afghanistan. You have Egypt, Saudi Arabia, Qatar; all these countries have issues today. It’s about to explode in the Middle East! I just pray we can keep everything together until we can get a new president in office. I like new things, too. But when you’re in a difficult situation, I’ve got to go with someone who can do the job tomorrow. There’s no on-the-job training for Hillary. If that apocalyptic argument didn't drive Iowans to caucus, McAuliffe had one last plea. In three months, we can change the course of the world, he said. I’m asking you, can you give us an hour a day, two hours a day? In three months, this thing could be over, and if we don’t do it, we’re not going to win. We have got to fire people up.

The audience shuffled out, and McAuliffe jumped in his car to the next event.

The sign-up sheets on the wall were still blank.  © 2007 Newsweek, Inc.

Terry McAuliffe is credited with almost single-handedly bringing a financially ailing Democratic party out of the red and into the black, securing a future for the blue. At an early age, Terry McAuliffe started a driveway maintenance company, earning money for contributions to the campaigns of candidates he thought could make a difference.   That passion led to establishing more than two-dozen companies in the fields of banking, insurance, marketing, and real estate, rebuilding and revitalizing the Democratic Ticket. After graduating from Catholic University, Terry McAuliffe served as the finance chairman of the Carter-Mondale reelection committee. Establishing himself as a proven wrangler of donor support, he was appointed national finance chairman of the Gephardt for President Committee, national finance chairman, and national co-chairman of the Clinton-Gore reelection committee. The life of the party. His tenacity proved especially impacting after the 2000 election, when the Democratic party was bankrupt and decades behind the times in acquiring voter and donor lists. Pressing state chairmen to give up exclusive control of their voter lists, Terry McAuliffe invested millions in a new headquarters, gambling that the party could mount a challenge to the wealthy GOP and its peerless fundraising efforts. Every high-risk tactic paid off. The Democratic National Committee built an extensive voter roster, enabling the party to develop a strong direct-mail donor list. And, the DNC's new headquarters and infrastructure enabled their operation to utilize the Internet and modern facilities -- producing state-of-the-art telecommunications and public relations media. While chairman of the DNC, Terry McAuliffe raised over $535 million dollars, shattering all previous records for funds raised by either party. Under Chairman McAuliffe's tenure, for the first time in Democratic Party history, the DNC was debt free and out-raised the RNC. Party animals. Terry McAuliffe gained national attention during the presidential election of 1980 when he wrestled an alligator to raise $15,000 dollars in funds. Since that feat, he has continued to demonstrate a drive and commitment that have helped elect Democrats for more than 25 years. Some of Terry McAuliffe's success at engaging crowds can be attributed in part to his trademark gravel-voiced charm and Cheshire cat smile -- but more important, to his business acumen and communication skills. It's difficult not to be engaged by his droll, no-nonsense presence. His abilities to rev-up party supporters and gain the respect of his Republican critics have been key to becoming the most successful fundraiser in modern political history. Serving as the chairman of both the 53rd Presidential Inaugural Committee and the White House Millennium Celebration, Terry McAuliffe's leadership and creativity helped the Democrats skyrocket 20 points in the polls during the 2000 Democratic National Convention. He is currently serving as the chairman of Hillary Clinton for President. Terry McAuliffe's New York Times and Washington Post best-selling first book, titled What a Party!: My Life Among Democrats: Presidents, Candidates, Donors, Activists, Alligators and Other Wild Animals was released in January 2007, to rave reviews from critics and insiders on both ends of the political spectrum. "We need to make sure that everyone who has a right to vote can walk into a polling booth, cast their vote and have their vote counted." Terence Richard "Terry" McAuliffe (b. 1957) is an American business and political leader. Courtesy of Wikipedia 2008 He served as chairman of the Democratic National Committee (DNC) from 2001-05. He currently serves as chairman of the Hillary Clinton for President committee. Terry McAuliffe Biography Terry McAuliffe lives in McLean, Virginia, with his wife Dorothy and five children. He is an attorney and is licensed to practice in the District of Columbia and the United States Supreme Court. He has successfully started more than two-dozen companies in the fields of banking, insurance, marketing and real estate. Terry McAuliffe Family and education Terry McAuliffe grew up in Syracuse, New York; his father was treasurer of the local Democratic organization.[1] He started his first business, McAuliffe Driveway Maintenance, at the age of 14. In 1979, he received a bachelors degree from Catholic University in Washington, D.C. After graduation, McAuliffe took a job in the 1980 presidential reelection campaign of Jimmy Carter. After the campaign, McAuliffe enrolled in law school at Georgetown University. He received a Juris Doctor degree in 1984.[2] Terry McAuliffe Career Terry McAuliffe served as Chairman of the Federal City National Bank by the age of 30. From 1985-87, McAuliffe served as finance director of the Democratic Congressional Campaign Committee. During the 1988 presidential campaign, he served as finance chairman for Dick Gephardt. During the 1996 election cycle, he served as national finance chairman and then national co-chairman of the Clinton-Gore re-election committee.[3] In 1997, he was chairman of the 53rd Presidential Inaugural Committee.[4] In 1999 he was chairman of the White House Millennium Celebration.[5] In 2000, Terry McAuliffe chaired a tribute to outgoing President Bill Clinton, which set a fundraising record for a single event.[6] The same year, he chaired the Democratic National Convention in Los Angeles.[7] Following the convention, the Democratic ticket received a significant bounce in the polls.[8] In February 2001, McAuliffe was elected as the chairman of the DNC. McAuliffe served until February 2005, presiding over a period of record fundraising wherein the DNC raised more than $535 million, outraising the RNC and emerging from debt for the first time in party history. McAuliffe built a new headquarters and created a computer database of more than 170 million potential voters known as "Demzilla".[9] Under his tenure, the Democrats lost House and Senate seats in the 2002 and 2004 Congressional elections, while their Democratic nominee narrowly lost the 2004 presidential election. In 2002, McAuliffe drew some controversy when he announced that he would not channel funds towards Carl McCall's campaign for Governor of New York. Congressman Charles B. Rangel protested that this would alienate the black vote and McAuliffe reversed himself.[1] McCall was defeated by a large margin by incumbent George Pataki. Terry McAuliffe stepped down as DNC chair in January 2005. As a former party chairman, McAuliffe is one of the roughly 796 superdelegates to the 2008 Democratic National Convention. On January 23, 2007, his book, What A Party! My Life Among Democrats: Presidents, Candidates, Donors, Activists, Alligators, and Other Wild Animals, was released and debuted at #5 on the New York Times Bestseller list and #1 on the Washington Post's list. Terry McAuliffe Controversies Global Crossing Terry McAuliffe has been criticized by political commentators such as William Safire [10] and Arianna Huffington [11] for his ties to Global Crossing, a company that went bankrupt in 2002[12] amidst what The New York Times called "many of the same accusations that have made Enron into one of the largest corporate scandals in history."[13] In 1997, McAuliffe purchased a pre-IPO $100,000 stake in Global Crossing. By 1999, McAuliffe sold his investment, which was then valued at $18 million dollars. Howard Kurtz of CNN reported that McAuliffe sold his shares years before there was "any hint of trouble with the company."[14] In March 2004, former Global Crossing executives paid $325 million without acknowledgment of wrongdoing to settle a class-action lawsuit alleging fraud. In April 2005, former executives agreed to pay fines for failing to disclose "material information" in the company's financial reports, settling a three-year inquiry by the Security and Exchange Commission.[15] Rick Perlstein, in his book review of McAuliffe's memoir, What a Party!, wrote that McAuliffe's involvement with Global Crossing compromised McAuliffe's ability to attack Republican ties to the Enron scandal during the 2002 midterm congressional elections. Republicans ended up winning a majority in the U.S. Senate. [16] Frank Rich of The New York Times contrasted McAuliffe's characterization of Enron as "a web of greed and deceit" with Mcauliffe's defense of his investment in Global Crossing.[17] Herman v. Moore In 1999, the U.S. Department of Labor sued Jack Moore, pension fund manager for the International Brotherhood of Electrical Workers, on the basis of several deals made with McAuliffe. In one deal, McAuliffe and the pension fund partnered to buy commercial property in Florida, with Terry McAuliffe investing $100 while the pension fund put up $39 million. McAuliffe received a 50% interest in the partnership and emerged with $2.45 million from his original $100 investment. The lawsuit was called Herman v. Moore, with Alexis Herman, the Secretary of Labor, as the plaintiff. In October 2001, Moore and another union official agreed to pay six-figure penalties for their roles in the deals and the union agreed to reimburse the pension fund. McAuliffe was not charged with wrongdoing.

DNC 2004

Terry McAuliffe Archives

Terry McAuliffe: The Manchurian Chairman? Hugh Hewitt says Dem Party chief 'world-class fool'

WorldNetDaily.com | Wednesday, February 4, 2004 | Hugh Hewitt
 

Posted on 02/03/2004 11:21:53 PM PST by JohnHuang

Terry McAuliffe: The Manchurian Chairman?

Posted: February 4, 2004
1:00 a.m. Eastern

© 2004 WorldNetDaily.com

Terry McAuliffe, whom we ought to call the Manchurian Chairman, hit a new low Sunday, saying on ABC's "This Week": "George Bush never served in our military in our country. He didn't show up when he should have showed up. And there's John Kerry on the stage with a chest full of medals that he earned by saving the lives of American soldiers. So, as John Kerry says, 'Bring it on!'"

McAuliffe is to politics what MTV is to Superbowl halftime shows: Low, tacky, and a failure. He is also increasingly unstable to the point that Democratic Party pros have to worry about what he'll say next. Yesterday's pratfall was a perfect example of an attention-starved ego diverting the press from the themes that the candidates are trying to develop onto a stupid comment and the clean-up that follows.

 
McAuliffe has long been a candidate message-killer – so much so that the anti-Clinton wing of the Dems suspects he's programmed to take down anyone who gets in the way of Hillary's potential run in '08. Crackpot allegations from the Begala school of broadcasting sure don't help the Kerry campaign, so you have to wonder about the Manchurian Chairman theory, though I think the evidence supports the much more simple proposition that McAuliffe is a world-class fool with too much money and powerful friends who didn't think about the Peter Principle until it was too late.

The Dems are stuck with McAuliffe through the convention, for which the Republican Party should be thankful. Having a buffoon in charge of the opposition is the sort of gift that keeps giving, as anyone who can recall McAuliffe's '02 prediction about the Florida governor's race or his '03 prediction about the California recall will attest.

McAuliffe's decision to deny that service in the national guard is service in the military – even as thousands of national guard have served in Iraq – is a blunder larger than any of his others, and trafficking in discredited urban myths gives you a glimpse of McAuliffe's desperation to turn the conversation to anything except Kerry's way-left voting record, or his role in the Dean meltdown, or the failure of Wes Clark to capture any significant support outside the loon caucus.

For the record: President Bush served in the Texas Air National Guard from May of 1968 to October of 1973. The long-ago discredited allegations that the president was AWOL (Absent WithOut Leave) are a feature of the Michael Moore crowd who point to a period of months when Bush was working on a campaign in Alabama, from May to November 1972, and did not fly. As the New York Times has reported in the past: "A National Guard official and Mr. Bush's spokesmen have said that he made up the missed dates, as Guard regulations allow."

Republican National Committee Chair Ed Gillespie labeled McAuliffe's lies "slanderous," "despicable," and "reprehensible" – which they are – but not even the dimwits in the national press corps are going to chase that rabbit, so only McAuliffe and the party he leads look bad as a result.

I hope the RNC provides a 24x7 cable show for McAuliffe and, in the interim, invites all those outraged with yet another clownish moment from the Alfred E. Neuman of American politics to skip the getting mad and go straight to the getting even via a donation at GeorgeWBush.com.

TERRY MCAULIFFE

BUSINESS WEEK, DECEMBER 22, 1997: The U. S. Attorney's Office in Washington is trying to learn more about how McAuliffe earned a lucrative fee in helping Prudential Insurance Co. of America lease a downtown Washington building to the government. Prudential just settled a civil case involving that lease for over $300,000 without admitting any liability .... The Labor Dept. is probing McAuliffe real estate deals that were bankrolled by a union pension fund .... And Labor Dept. probes are looking at possible conflicts of interest in at least two of McAuliffe's Florida real estate deals that were bankrolled by International Brotherhood of Electrical Workers pension money. Investigators want to know why McAuliffe got what look like very sweet deals.

WASHINGTON POST, JANUARY 12, 1998: McAuliffe, the premier Democratic fund-raiser of the decade, has spent much of the past 12 months dealing with hostile Republican investigators, federal prosecutors and adverse news stories. He has emerged as a key, but enigmatic, figure in two overlapping federal investigations: the broadening inquiry into illegal fund-raising on the part of the Teamsters union conducted by the U.S. Attorney's Office in New York, and the Justice Department's investigation into alleged 1995-96 Democratic presidential fund-raising abuses. In addition, the U.S. Attorney's Office in the District of Columbia investigated McAuliffe's role in the award of a $160.5 million federal lease, but decided against bringing criminal charges. . . McAuliffe has given depositions to federal prosecutors and congressional investigators, but he has not been called to testify publicly, and he has not been charged with any crime .... McAuliffe's success has come from his knack for being in the middle of a deal while maintaining a critical distance. For almost 17 years - as broker, lawyer, promoter and facilitator - McAuliffe had estimated with uncanny precision the sustainable distance between contributor and candidate, as well as between seller and buyer.

1999

ASSOCIATED PRESS: The Labor Department is suing two union officials alleging they invested pension funds in "imprudent" deals with companies owned by a top fund-raiser for President Clinton and Hillary Rodham Clinton. Terence McAuliffe, the fund-raiser who recently offered to help the Clintons purchase a home in New York, is not a defendant in the lawsuit. The Labor Department regulates those who manage workers' pensions, not those who do business with such funds. The lawsuit says that in one instance McAuliffe made $2.45 million on a deal in which the fund bought him out of a real estate partnership. He had invested $100, the pension fund $39 million .... The department alleges the pension fund lost money as a result of a loan and a partnership deal that comprised more than $47 million in investments with McAuliffe's companies. Tax records show the fund didn't receive all the principal and interest due under the loan.

WALL STREET JOURNAL: In his defense of the [Clinton house] loan, Mr. McAuliffe asks: What can Bill Clinton do for me? For starters, he could make it tough for the U.S. Attorney's office to get to the bottom of Mr. McAuliffe's oft-denied role in the sleazy 1996 "contributions swap" between the Democratic Congressional Campaign Committee and the Teamsters union .... What Terry McAuliffe did in essence is make a contribution to Hillary's campaign. Its whole purpose is to enable her to establish residence in New York, thus the money is absolutely essential to her campaign .... In the Hillary race, no McAuliffe "loan," no residency, no campaign. His contribution would seem to be more than $1,000.

AND THERE'S THE LITTLE MATTER reported by John McCaslin in the Washington Times: Chapter 5 of the Federal Elections Commission's guide for candidates states: "An endorsement or guarantee of a bank loan is considered a contribution by the endorser or guarantor and is thus subject to the law's prohibitions and limits on contributions."

JUDICIAL WATCH: By law, neither the President of the United States, nor any other federal employee, can supplement his income with cash gifts. So Bill Clinton, as President, can't use cash gifts to pay off his legal bills or supplement his income. Therefore he cannot use cash gifts to qualify for a mortgage. It is also improper for banks or other lenders to count the Clintons' future earnings potential when considering them for a mortgage. One qualifies for a mortgage based on current earnings and savings, not pie-in-the-sky future earnings "estimates."

NEW YORK TIMES: A former Democratic official has testified that Terence McAuliffe, President Clinton's friend and chief fund-raiser, played a major role in promoting an illegal scheme in which Democratic donors were to contribute to the Teamster president's re-election campaign, and in exchange the Teamsters were to donate large sums to the Democrats. The official, Richard Sullivan, the Democratic National Committee's former finance director, testified in Manhattan at the trial of William Hamilton, the Teamsters former political director, that McAuliffe urged him and other fund-raisers to find a rich Democrat to donate at least $50,000 to the 1996 re-election campaign of Ron Carey, the former Teamsters president. During the three-week-long trial, Sullivan testified that McAuliffe had said that if a Democratic donor made a large contribution to the Carey campaign, then the Teamsters would contribute at least $500,000 to various Democratic Party committees . . . McAuliffe's lawyer, Richard Ben-Veniste, said his client had done nothing wrong.

Terry McAuliffe Is Dems'

Comeback Kid
DNC Chair Fought for Stability, Financial Strength

By Thomas B. Edsall
Washington Post Staff Writer
Monday, July 26, 2004

BOSTON, July 25 -- On Monday night, Terence R. McAuliffe's party will hail him as a hero, the first Democratic chairman in decades to put the party on secure financial footing -- with an unheard-of $70 million in the bank -- and on the cutting edge of high-tech politics.

When McAuliffe gavels the Democratic convention to order at FleetCenter, he will be honored by the 5,672 delegates and alternates as the man who almost single-handedly put the Democratic Party back together again.

"Serving as chairman of the party when you don't have the White House, and you don't have the House, and you don't have the Senate, is the toughest job in the country," Sen. John F. Kerry (D-Mass.) told The Washington Post. "Thanks to Terry McAuliffe, we are ready to lead this country, we're ready to change this nation and I thank him for his leadership."

But McAuliffe has not always enjoyed such a lofty standing in his party. Just six years ago, he struggled to survive federal investigations of illicit Teamsters campaign contributions to the party and his fundraising role as national finance chairman and then national co-chairman of the 1996 Clinton-Gore reelection campaign.

At the nadir of his political career, McAuliffe threatened to give up politics forever. "My wife and I decided I don't want to do it anymore. I ought to be left alone," McAuliffe said during the federal inquiries. "I'm not doing money anymore," he declared. "I'm not involved in any campaigns."

McAuliffe reconsidered after he was absolved of any wrongdoing. In 2001, with a helpful nudge from Bill Clinton, he was elected Democratic National Committee chairman, only to become the target of grass-roots fury. Loyal Democrats, dismayed by the election of George W. Bush, complained that their leaders in Congress were acceding to the new Republican president on everything from Iraq to tax cuts. The outrage fueled demands that McAuliffe resign after the party lost House and Senate seats in the 2002 election.

Zack Exley, an Internet aficionado who worked at MoveOn.org, set up a Web site in 2002 that declared: "Don't blame the American people! Blame the Democratic Party leadership. Terry McAuliffe is an idiot."

McAuliffe recalled in a recent interview that "in 2000, we had a devastating loss. This party was demoralized in 2001, people were madder than heck at the party. 'Why did we allow this to happen?' and 'Why didn't we fight harder?' . . . We went through a very tough time in 2002 after the midterm election."

McAuliffe said that after passage of the McCain-Feingold campaign finance law that prevented the parties from raising and spending unregulated "soft money" from corporations, unions and wealthy individuals, many "wrote off" the Democratic Party. "It was one of the darkest times in our party," he said.

But McAuliffe fought back. He forced a controversial change in the primary campaign schedule and pressed state chairmen to give up exclusive control of their voter lists. He also invested millions in a new headquarters, and gambled that the party could mount a challenge to the GOP's three decades of dominating fundraising.

Every one of these high-risk tactics paid off. The schedule change gave Kerry time to raise more than $200 million; the DNC now has a voter list with information on more than 170 million people, which allows the party to develop its own direct-mail donor list. The new headquarters, in turn, is wired to run an operation increasingly dependent on the Internet and the facilities to produce all forms of telecommunications and traditional media.

Exley is now one of the key architects of Kerry's successful Internet fundraising operation, an operation that will soon be restructured to redirect its hundreds of thousands of donors to McAuliffe's DNC.

Donna Brazile, who was Al Gore's campaign manager and one of McAuliffe's early critics, has done an about-face. "We boxed," she said. "He has been punched, believe me." Now, she said, "Terry has put the party in a strong strategic position."

McAuliffe first gained attention in the presidential election of 1980, wrestling an alligator on a fundraising prospect's dare. His major claim to fame in the 1980s and 1990s was raising "soft money" contributions in amounts ranging from $100,000 to more than $1 million. Now, as DNC chairman, McAuliffe has become the champion of the direct-mail and Internet small giver.

While many assumed the 2002 McCain-Feingold law would gut the Democratic Party, the party has decisively broken all "hard money" fundraising records (contributions of $25,000 or less), eliminated debt and built a donor base that could potentially power the party for years with McAuliffe at the helm.

McAuliffe expects that when his term ends in early 2005, "I am going to walk off the stage and everything we said will have been accomplished. . . . The new chairman, whoever it might be, will take over a party financed by millions of dollars that will automatically come in at the touch of a button, new facilities, no debt and voter files. This party is now secure for 25 years."

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