Freedom Forum Institute > What is soft money, and why is it being regulated?
The Federal Election Commission in 1979 issued a regulation allowing political parties to raise funds for “party-building” efforts — such as voter registration drives and TV advertising. This “soft money” remains outside the normal rules that require reporting the source and amount of donations. It was originally justified as a way for parties to remain viable as entities separate from their candidates. But over the years, soft-money donations from corporations and unions — otherwise barred from making donations — to political parties have skyrocketed. And the national parties have transferred much of the money to state party accounts that are used to influence specific elections. The growth of soft money was seen by reformers as thwarting the purpose of all campaign-finance regulations.
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