What is hard money and what is soft money? How are they used?

Question by Nicki: What is hard money and what is soft money? How are they used?
Can someone please explain how the use of hard and soft money is effective in electioneering by interest groups?
Best answer:
Answer by James E Lewis AKA choteau
Hard money is money donated directly to the candidate, openly and above the table.
Soft money is money donated to a political party, PAC (1) or Nonprofit Organization to be used for or against a candidate. It is called soft money because it does NOT have to be reported by the candidate.
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