Soft Money

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DEFINITION of 'Soft Money'

1. The "one-time" funding from governments and organizations for a project or special purpose.
2. Paper currency, as opposed to gold, silver, or some other coined metal.

INVESTOPEDIA EXPLAINS 'Soft Money'

A good example of soft money is the campaign funding that politicians get during election years. The money received is not recurring and it is to be used explicitly for election related expenses.

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RELATED FAQS
  1. What is the difference between "hard money" and "soft money"?

    Hard money and soft money are terms that are often used to describe coin money and paper money, respectively. However, these ... Read Full Answer >>
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