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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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  • Feyd Rautha

    Hard money is those silver and copper coins that jingle in your pocket. Soft money is those green paper bills that you keep in your wallet. They are traded at businesses for goods and services.

  • justin

    Hard Money, also called Private Money, is money loaned out from a
    private lender instead of an institution.  Private loans are
    usually backed my equity.  Private lenders usually don’t care
    about your credit, but look for at what you’re physically backing the
    loan with.  Soft money, as opposed to hard money, is money
    loaned out from a bank and is usually based on credit/equity. 
    I have a good friend who is a >hard money Florida< lender, so i know this information from the
    horse’s mouth.

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