Currently, our nation's federal election activities are governed by a series of specific statutes enacted during the 1970s. Since the 1970s, FECA and other statutes have evolved under various court rulings. The differences in the treatment of these contributions have significant implications for candidates, political parties and the public. Hard money are those funds contributed to candidates and campaigns directly involved in federal elections. That is, the money is used for television ads, brochures, bumper stickers or related efforts to urge the election or defeat of a candidate.
Hard money consists of the contributions individuals commonly make to a candidate.
Hard money contributions are subject to a variety of limitations and restrictions that are enforced by the Federal Election Commission. There are two elections per two-year cycle, a primary and a general. However, unions and corporations are permitted to operate PACs. PACs are legal entities through which groups with political interests aggregate individual contributions and distribute those contributions to political candidates and political parties. Like individuals, PACs operating under the purview of the FECA are limited in the contributions they may make to candidates and parties directly involved in federal elections, albeit at a higher limit.