What is meant by “soft money”?

Soft money is a term used to describe money that is donated to political organizations in the United States but does not fall under the direct regulation of federal election law. In the state of North Carolina, soft money refers to unlimited contributions to political parties from individuals, corporations, and labor unions. Soft money is typically used to fund activities that are not directly tied to the campaigns of particular candidates, such as voter registration drives, issue advocacy, television advertisements and get-out-the-vote campaigns. The Federal Election Campaign Act (FECA) of 1971 requires certain groups, including political committees, to register with the Federal Election Commission (FEC), and it requires them to disclose information about their contributions and expenditures. The Act also forbids the use of soft money. However, organizations may use their soft money to sponsor their own political activities, such as issue campaigns or ads, as long as they do not directly advocate for a particular candidate or party. Soft money has been criticized by some for being a way for wealthy individuals and corporations to influence political campaigns without being monitored by the FECA. Critics argue that the lack of disclosure of soft money activity enables groups to anonymously donate large amounts of money to influence the political process. In North Carolina, the State Board of Elections monitors the disclosure of soft money contributions and expenditures. The Board also requires political organizations to report all soft money activity, and it enforces the State’s soft money limits. Additionally, North Carolina’s ban on corporate and union contributions prevents political organizations from receiving soft money from these entities.

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What is meant by “soft money”?

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