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Soft money is often pumped into political campaigns through loopholes in the law. In the simplest terms, hard money is from political donations that are regulated by law through the Federal Election Commission.
Money contributed directly to a specific candidate is known as hard money, while indirect contributions to political parties and political action committees are considered soft money. The rules governing the two types of contributions differ.
Soft money (sometimes called non-federal money) means contributions made outside the limits and prohibitions of federal law.
Background. Congress passed the BCRA in order to eliminate soft money donations to national parties and to ensure that electioneering communications immediately before election day are financed with regulated money and properly disclosed to the public.
The Federal Election Commission (FEC) is the independent regulatory agency charged with administering and enforcing the federal campaign finance law. The FEC has jurisdiction over the financing of campaigns for the U.S. House, Senate, Presidency and the Vice Presidency.
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People also ask

what is the difference between hard and soft money? soft money: campaign money raised apart from federal regulation and can be given directly to one candidate. hard money: campaign money raised for a specific candidate in federal elections and spent ing to federal laws and restrictions.

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