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Difference Between Hard Money and Soft Money

Hard Money vs Soft Money

Hard money and soft money differ significantly, and these terms are coined as political donations for a candidate or an organization. However, both of these terms follow a different governmental ruling which is passed by the Federal Election Commission in the US or other countries implementing such actions.

Hard money is from donations of political parties or organization; nonetheless, it is enacted and approved by laws of the Federal Elections Commissions. Soft money is donations from political parties which are not regulated by the FEC or any regulating agencies. The difference between the two comes down to approval and submission by the board.

Since soft money is not regulated by law, it is considered to be a free political contribution and has no limits. Hard money is given to a specific candidate, an organization in a state, or local committee or other political agency as limited funding. The policy governing these two terms differ referring to the Federal Election Commission website ensures an elaborate explanation.

Hard money is directly constituted to a candidate. The candidate cannot be given more than $1,000 in a given year. Soft money is donated to district or national committees and to the political organization in each state. Since it is not highly monitored or regulated, the parties may use the money in promoting electoral candidates or support financially the party’s political projects such as political conventions, conferences, or rallies.

In a different scenario, hard money can be termed as money like gold or silver. Hard money can be traced during the ancient times and finally ended during World War II. It can’t be created or printed. Hard money was then replaced by soft money – a classified monetary system like paper bills and coins.

Soft Money is passed by the government as bonds or debt. It is issued as currency for the country; however, it still needs whatever hard material to back the value of the process.

Hard money is the one that exists. It is precious and very rare like gold, diamonds, or silver. Soft money is a nonrepresentational form but has virtual value like bills and currency in the marketplace, banks, or the stocks exchange. Soft money allows many online businesses to be existent but still be valuable with consumers and the stock market. The difference is specific between hard and soft money. The problem with soft money is that the government can’t just pump in money especially during unstable economic times. There are several considerations in this process.


1.Hard money is a contribution in the form of money given to a candidate in a given year but has limited scope. It is given as a donation to a candidate or political group. Only $1,000 is given to a specified candidate, and it will then be approved by the Federal Election Commission. Soft money is the same. It is given to a political group or an individual but has not limit in terms of funding or contributions. Soft money is not restricted compared to hard money.
2.Hard money is valuable pieces that truly exist in the form of gold or silver. It is very precious and relatively hard to find. It has definite value in the market. Soft money is classified as a monetary system passed by the government in the form of paper bills and coins. It can be created or printed.

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