How do soft money contributions differ from hard money contributions?

Soft money contributions are characterized by their relatively flexible nature when it comes to regulatory oversight, especially in comparison to hard money contributions. In the context of political financing, soft money refers to funds that are given to parties for "party-building" activities and are not subject to the strict limits and regulations imposed by federal law. These funds can often be raised and spent without being coordinated with federal candidates, thus allowing state parties to utilize this money without facing federal restrictions.

This ability to use funds with fewer regulations is what distinguishes soft money from hard money. Hard money, on the other hand, is subject to strict federal limits on contributions. These regulations mandate that contributions to federal candidates and political parties must be reported and cannot exceed a certain amount per election cycle. As a result, hard money is more closely monitored by the Federal Election Commission and must adhere to specific regulations that aim to promote transparency and limit the potential for corruption in federal elections.

In this light, soft money's flexibility allows state parties to engage in various activities that support their candidates without the same degree of oversight as hard money, which is specifically tied to federal campaigns and activities. This distinction underlines the differences in political funding and the regulatory landscape governing these two types of contributions.