soft money

Defined
Money that companies, unions or individuals may give to a political party to support "party-building" activities at the local or state level. Such contributions, however, are not regulated by the Federal Election Campaign Act. Consequently, soft money has become a way for parties to indirectly support candidates. (Source: Center for Responsive Politics).

Example
The general election is still many months away, but campaign finance advocates see hints that the party faithful are already plotting to channel millions of dollars in unlimited contributions -- so-called "soft money" -- into the 2008 presidential race. (Washington Post, November 12, 2007)

HISTORY
In 1978, the Federal Election Commission decided that campaign spending rules under federal law only applied to political campaigns, and not to "party-building" activities. (Source: The Federal Election Commission). Parties have sinced used the loophole as a way to fund ads, for example, that may not mention a candidate but can imply a party's position.

• (The Washington Post)

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