Philip Morris, the country's largest cigarette company, was the biggest soft money donor to the political parties during the first six months of 1996, according to the study. The tobacco industry's political contributions are a classic example of the corrupting influence of special-interest money in Washington, which is reaching mammoth and overwhelming proportions. The contribution was the Democrats' largest on record from the tobacco industry, the study found. Under current law, corporations and labor unions are prohibited from making contributions in connection with a federal election, while individuals and PACs are subject to federal limits.
Hard money means contributions that are legal under federal law for federal elections.
Soft money means contributions which are outside the limits and prohibitions of federal law, including large individual or PAC contributions and direct corporate or union contributions. National political party committees were required to disclose their soft money contributions beginning in 1991, after Common Cause filed a petition with the FEC, challenging the way in which the FEC was treating soft money. Disclosure of soft money donations to state party affiliates varies according to state disclosure laws.