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Money Exchange
Hard Money: Also known as federal money, these funds can be raised in amounts no larger than $20,000 a year per individual and $15,000 a year
per political action committee. It can be used any way the national party chooses, notably to directly support candidates for federal office, pay
administrative costs and reduce debt.
Soft Money: Also known as non-federal money, these funds can be raised in unlimited amounts from corporations, labor unions, and wealthy
individuals. But national party committees only can spend the money on
administrative costs and general party activity. The money cannot be spent
on behalf of congressional and presidential candidates but is more useful to many state parties that can make broader use of these funds.
How it Works
For a 10 to 15 percent commission, Democratic Party committees in the
following states sent at least the amount of hard money listed to the DNC
in exchange for soft money since Jan. 1, 1997:
A sampling of some exchanges:
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Sept. 4, 1997: DNC sends $55,000 in soft money to the Democratic State Central Committee of Maryland.
Sept. 15, 1997: A $50,000 contribution from the Democratic State
Central Committee of Maryland posts to a DNC hard money account.
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Jan. 16, 1997: DNC sends $172,500 to the Texas Democratic Party in
soft money, the largest such transfer last year.
Jan. 29, 1997: A $150,000 contribution from the Texas Democratic Party posts to a DNC hard money account.
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April 28, 1997: DNC sends $55,000 to the Iowa Democratic Party, the second time in four months it has done so.
May 1, 1997: A $50,000 contribution from the Iowa Democratic Party
posts to a DNC hard money account for the second time in four months.
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