What are soft money contributions?

Soft money contributions refer to unregulated donations that are made primarily for party-building activities, rather than directly supporting a specific candidate. These funds can be used for various purposes, such as party outreach, voter registration drives, and general party expenses. The lack of regulation on these contributions is significant because it allows political parties to raise and spend substantial amounts of money without the restrictions that apply to contributions made directly to candidates, which are capped and regulated by the Federal Election Commission (FEC).

This distinction is important in the context of campaign finance, as soft money became more popular after the Bipartisan Campaign Reform Act (BCRA) in 2002, which aimed to reduce the influence of money in politics by regulating the amount candidates could receive and spend. In contrast, the other options describe different types of political contributions that are either regulated or do not fit the definition of soft money. For instance, funds given directly to individual candidates are considered hard money, which is subject to strict contribution limits and reporting requirements.