...but they still have money to spend. This AP article talks about Al Gore's generous donations of over 6 million dollars to various Democratic party groups to help them prepare for the elections in November. Where did he get all of this money? From his 2000 campaign fund.
As I have previously griped, the idea of defeated candidates keeping campaign funds after their losses annoys me. But, as with most things, there is a reason:
Under FEC rules, money in such compliance funds can only be used to pay for lawyers and accountants to comply with federal election law. But the rules also permit money left over in such accounts to be transferred to a national, state or local party committee, or to be donated to charity.