What defines soft money in political fundraising?

Soft money in political fundraising refers to funds that can be raised and spent without the stringent regulations imposed by federal law. This type of funding often comes from individuals, organizations, and corporations and can be used for activities that promote a political party but not directly for a specific candidate's campaign.

The distinction between soft money and hard money is crucial in understanding campaign financing. Hard money is subject to federal limits and regulations, typically involving direct donations to candidates for their campaigns which must comply with contribution limits and reporting requirements. In contrast, soft money is usually directed toward broader political activities, like party-building efforts or issue advocacy, making it less regulated and more flexible for those raising it.

The other choices do not accurately capture the essence of soft money in political fundraising. For instance, strictly regulated money is contrary to the nature of soft money, while state-funded money refers to public financing, which is a different concept altogether. Contributions directly to candidates' campaigns relate to hard money, distinct from the unregulated nature of soft money.