What is Soft Money?

business economy

When it comes to political campaign contributions, all the main players seem to be looking for loopholes. In many cases, they won’t have to look very far. One of the simplest ways to provide more support for a candidate, without creating suspicion or breaking any laws, is to donate soft money. Unlike "hard money," soft money goes to a given political party rather than being donated directly to a specific candidate. It is not intended to be used for any one candidate, but strictly for the party as a whole.

Soft money is supposed to be spent for particular purposes, on such things as campaign ads endorsing an entire political party. It can also be used for voter registration drives or “get out and vote” campaigns, yard signs, t-shirts, and bumper stickers for the party. Soft money may also be used for advertisements that discuss specific political issues or the party’s platform. The idea behind soft money is for early “party building” and rallying the base.

Today, soft money is said to be used for a variety of other expenses as well, including “administrative costs.” These costs may include things like purchasing office supplies, paying rent and utilities for general campaign offices, and a host of other mundane expenses. Since it isn’t being used for anything too exciting, like political mudslinging campaigns against opposing candidates, the uses of soft money are often overlooked.

At one time, nearly unlimited amounts of money were allowed to be donated to political parties through the soft money loophole. While it is said that campaign finance reform legislation no longer leaves the amount unlimited, the soft money loophole still allows wealthy contributors to donate a great deal of money. Many see this as a way for wealthy contributors to buy influence without being held accountable.

Since federal election laws do little to control the giving or spending of soft money, both of the main parties tend to utilize it as their chief source of campaign fund raising. Millions of dollars are raised long before any campaign contributions are made exclusively to individual candidates.

It is also true that spending soft money to alleviate other types of costs still frees up other money in a political party’s war chest that can be spent on specific candidates. Distinguishing between soft money and regular campaign contributions can sometimes be a tricky process, which may lead to impropriety or scandal.

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Posted by: anon13482
this was a very helpful article. thank you.

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Written by Sherry Holetzky

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