The national political parties are non-profit corporations. Exempt from taxes under the IRS code as 527 organizations. 527s can also be independent political action committees. Local parties are structured differently, based on state laws.
Republican National Committee and the Democratic National Committee have been sheltered under those rules for a long time. National parties in the United States are actually umbrella groups, with member parties from the 50 states, DC and the territories. Often, there are separately registered structures, such as the national campaign committees to elect party members to the Senate and to the House of Representatives. These private corporate clubs have quasi-governmental power! The private corporate club called the Republican Party. The private corporate club called the Democratic Party.
These private corporate clubs have the power to dictate where, when, and how we vote. They determine who will be our representative, governor, or president. This is government run by establishment party politics.
An ELECTION PRIMARY is not a civic function, but the choosing of the representative of that private corporate club. These private corporate clubs can decide which laws we have and don’t have. Organizations may hold conventions where the membership from different parts of the organization is assembled. Delegates attend the convention to represent their part of the organization.
For example, an organization may be national in scope and consist of many local member clubs. Such an organization may hold an annual meeting where each local club can send delegates, or representatives to vote on behalf of the club, to the national convention. Most private clubs are non-profit organizations. Clubs exist because a group of people came together with a mission — to socialize, golf, play tennis or RUN THE COUNTRY the way they want it run. The economics begin with the determination of this mission aligned with the wishes of members. Once that mission has been decided, costs can be outlined and a budget built to accomplish this mission.