This chapter examines the genesis and development of legal rules and practices in the area of campaign finance, and offers an analysis of the incentives to corruption that the current system creates. Although on the chapter there are strict legal restrictions concerning the sources of political donations, every party has been successful in creating various ways of evading the rules. The Law for the Election of a Grand National Assembly was the first piece of legislation to tackle the issue of campaign financing. Donations are undoubtedly the most important source of campaign funding in Bulgaria. In 2001, Bulgarian lawmakers chose a compromise lower electoral limit for public funding eligibility. The major problem with access to the electronic media is the strong bias in favour of the government. On the other hand, sections of the academic community, various journalists and the few NGOs working in the area see party and campaign finance as a significant manifestation of corruption in Bulgarian society.