soft money

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Soft Money

1. An indirect contribution to a political campaign. Soft money is money raised for political activities in favor of or opposed to a certain candidate or issue that stops short of actually endorsing anything. In other words, any ad stopping short of asking for a vote for or against someone or something is funded by soft money. Colloquially, soft money connotes large amounts donated by special interest groups for these purposes. The McCain-Feingold Act forbade political parties and some other organizations from raising soft money, but most organizations can still do so.

2. See: Fiat money.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

soft money

(1) A slang expression for creative financing techniques that involve no cash changing hands, such as seller financing. (2) Money invested in a real estate acquisition or development that is written off as an expense rather than added to the basis to increase equity.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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