Jan. 10 (Bloomberg) -- Corporations and campaign donors are spending millions of dollars to help President George W. Bush celebrate his second inauguration, one of the last opportunities for unfettered contributions in U.S. politics.

The Jan. 20 pageant, for which the inaugural committee is soliciting $40 million from corporate and individual sponsors, features a slew of formal balls and fireworks. In addition, sponsors are spending millions more on private events that aren't part of the official celebration. Both will provide a potential bonanza of contacts with policy makers.

General Electric Co., which spent more money to lobby Congress and the Bush administration during the first half of 2004 than any other corporation, has invited lawmakers to watch the inaugural parade from its office overlooking the route. Irving, Texas-based Exxon Mobil Corp., which is backing Bush's proposal to open an Alaskan refuge to oil drilling, wrote a $250,000 check to help pay for the festivities. The company gave another $50,000 to the Texas State Society for its Black Tie and Boots Ball, where Bush and House Majority Leader Tom DeLay are on the guest list.

``They're not doing this out of a sense of civic obligation,'' says Larry Noble, executive director of the Center for Responsive Politics, a Washington-based research group that studies campaign finance. ``They're doing this out of a sense of lobbying obligation.''

The sponsors and organizers take a different view.

``The inauguration has to be paid for in one way or another, and historically individuals and corporations have contributed to help defer the costs of the official events,'' says David Sylvia, a spokesman for New York-based Altria Group Inc., which is contributing $250,000 to the Presidential Inaugural Committee.

Celebrating Democracy

A spokeswoman for New York-based Time Warner Inc., the world's biggest media company, says the company's $250,000 donation is to celebrate democracy, not lobby on legislation.

``Our company has historically supported presidential inaugurals, both Democratic and Republican,'' spokeswoman Kathy McKiernan says. Time Warner hasn't decided which of its executives will attend the inauguration, she says.

Inaugural committee spokesman Kevin Sheridan says the donations fund free events, such as the fireworks show near the White House on the night before the inauguration, concerts and a ball for military families. Tickets for the eight other official inaugural balls are $150 apiece.

``The generosity of the larger donors definitely makes it more affordable to the general public,'' he says.

No Restrictions

Corporations and unions long have been banned from directly contributing to candidates, and a 2002 campaign finance law took away their ability to donate to the national political parties. No such restrictions apply to the inauguration festivities.

As of Jan. 7, the inaugural committee had raised $18.2 million, according to figures posted on its Web site. If the committee meets its $40 million goal, with donations capped at $250,000 each, it would tie Bush's 2001 inauguration as the most expensive ever. The 2001 inaugural committee capped donations at $100,000.

The budget is 10 times more than the amount spent for President Richard Nixon's second inaugural in 1973, and double the budget for President Ronald Reagan's second swearing-in in 1985. President Bill Clinton spent $30 million at the start of his second term in 1997.

The organizers and donors largely match the list of Bush fund-raisers. They include Sam Fox, chairman of the St. Louis- based Harbour Group Ltd., and Bradford Freeman, founding partner of Los Angeles-based Freeman Spogli & Co. Inc., each of whom gave $100,000 to the inaugural committee. Fox and Freeman raised at least $200,000 each for Bush's re-election.

Dining by Candlelight

For $250,000, sponsors get two tables at a candlelight dinner where the president is expected to drop by, 10 parade tickets and tickets to other events. Donors of $100,000 get one table, four parade tickets and admission to other events.

Joan Claybrook, president of Public Citizen, a Washington- based group that lobbies on consumer issues, says the social events can help efforts to influence lawmakers.

``You can't often have long, nice conversations with members of Congress,'' Claybrook says. ``So you entertain them and get their ear. Members aren't distracted, and they're influenced by these informal conservations.''

Among the business leaders expected at the inaugural are John Luke Jr., chief executive of Stamford, Connecticut-based MeadWestvaco Corp., the second-largest U.S. maker of coated paper for magazines and catalogs; former Texas Republican U.S. Senator Phil Gramm, now a vice chairman at New York-based UBS Investment Bank; and Bill DeWitt, a co-chairman of the inaugural committee and co-chairman of Reynolds, DeWitt & Co., a Cincinnati-based investment firm.

Political Parties

Some companies are forgoing official events for parties of their own. Fairfield, Connecticut-based GE, for example, isn't donating, and Chief Executive Officer Jeffrey Immelt isn't planning to attend the festivities, says company spokesman Gary Sheffer. Instead, it will open its office on Pennsylvania Avenue, overlooking the parade from the Capitol and the White House.

``It's the perfect parade-watching location,'' Sheffer says. ``It's viewed as a social event, a time to get together with people and have some good discussion and fun.''

One of the hottest tickets is the Black Tie and Boots Ball, put on by the state society of Bush's native Texas. The first was held in 1981, when another Texan, George H.W. Bush, the current president's father, was sworn in as vice president.

This year's event occupies two floors of the Marriott Wardman Park Hotel in Washington. Even the pool has been covered to increase the floor space available for 10,000 guests.

Tickets on EBay

The society offered 5,000 of the $125 tickets online; they sold out in 40 minutes. The rest of the passes were snapped up in mail offerings, though they are available for hundreds of dollars over face value on EBay's Web auction site.

``It could get bigger, except we've run out of room,'' says Republican Representative Kay Granger of Fort Worth, president of the society.

The dress is formal and cowboy boots are the suggested footwear. Attendees will dine on barbecue and peach cobbler and sample Texas wines and beer. They'll be able to view Texas fauna -- an armadillo, an alligator and the longhorn steer that is the mascot of the University of Texas at Austin -- and listen to Texas native Lyle Lovett and other entertainers while mingling with members of Congress and White House staff.

Along with Bush and DeLay, the invited guests include House Energy and Commerce Chairman Joe Barton, a Republican, and the rest of the state's congressional delegation.

Sold Out

Like the tickets, the 90 sponsorships -- from $10,000 to $50,000 -- are sold out. ``They were calling and saying they want to be supportive,'' Granger says. Sponsors get up to 10 tickets, plus an invitation to a private dinner before the affair at which Bush is expected to stop by.

``We wanted to help make this 55th inaugural a success,'' says Terri McCullough, spokeswoman for Atlanta-based Southern Co., which is contributing $50,000 to the Texas State Society and $250,000 to the inaugural committee. ``People understand that the inauguration of our president is a great tradition that transcends partisan politics.''

Other sponsors include the Edison Electric Institute, the trade group for investor-owned electric utilities such as New York-based Consolidated Edison Inc., Topeka, Kansas-based Westar Energy Inc. and New York-based Verizon Communications Inc.

Taxpayers

``I think it would be very difficult to sell to the American taxpayer, many of them who are not participating, that they are somehow going to be sent the bill for inaugural activities and for parties and receptions,'' says former Senator John Breaux, a Louisiana Democrat. ``I think it's more appropriate that the private sector makes those contributions for the parties they want to attend.''

In addition to official events, there are private parties. The National Association of Manufacturers, the trade group for such companies as Bermuda-based Ingersoll-Rand Co. and Boston- based Gillette Co., is throwing open its offices for an inaugural party on Jan. 20.

``The inaugural is part of the fabric of this town,'' says the group's chief lobbyist and political director, Fred Nichols. ``You do things related to it.''

The National Federation of Independent Business is holding three events. Bush's chief political adviser, Karl Rove, and his campaign chairman, Ken Mehlman, are invited to lunch at the private Capitol Hill Club with the biggest donors to the business group's political action committee.

Denim and Diamonds

A day before the official inaugural balls get under way, the federation and the manufacturers association are holding a ``denim and diamonds'' reception and dinner to honor new members of Congress. On inauguration day, NFIB and NAM are throwing a black-tie affair, a five-course dinner, to which the entire Congress has been invited.

``Everybody loves a party,'' says Bill Allison, managing editor of the Center for Public Integrity, a Washington-based organization that investigates the federal government. ``The question is always who's on the invitation list and what is the host expecting in return.''

The day after the inauguration, the law and lobbying firm of Patton Boggs LLC is holding a reception in honor of those who helped re-elect the president. Patton Boggs was paid $15.6 million in fees in 2003, more than any other lobbying firm, according to PoliticalMoneyLine, a Washington-based group that tracks campaign finance and lobbying expenses.

Clients include Roche Holding AG's Hoffmann-LaRoche Inc., a Nutley, New Jersey-based pharmaceutical company that opposes congressional efforts to import prescription drugs from Canada, and New York-based JPMorgan Chase & Co., the second biggest U.S. bank, which supports legislation making it harder for individuals to file for bankruptcy.

Patton Boggs sent out 1,000 invitations to its members, clients and government officials, spokesman Brian Hale says. ``It's a good time for everybody to be in one room together,'' Hale says.

To contact the reporter on this story: Jonathan D. Salant in Washington jsalant@bloomberg.net