What is the difference between hard money and soft money?

Hard money and soft money represent distinct forms of political contributions. While hard money is subject to strict regulations and directly supports individual candidates, soft money is largely unregulated and contributes to party-building activities. Understanding this difference is crucial in grasping the nuances of campaign financing.

What is soft money in politics?

Soft money refers to money donated to political parties for a general purpose, as opposed to the promotion of a specific candidate. It is largely unregulated. Political parties can essentially spend soft money on whatever they want as long as it fits a generic objective to "increase the vote." Soft money is often called "nonfederal" contributions.

What does soft money mean?

soft money, in the United States, paper money as contrasted with coins, or hard money; also, unregulated monetary donations to political parties or candidates. In the 19th and early 20th centuries, advocates of soft money favoured governmental deficit spending to stimulate consumption and employment.