Hard Money: A Comprehensive Guide to Its Legal Definition and Use

Q: Can I donate more than $2,000 to a candidate?

No, donations exceeding this limit cannot be accepted as hard money.

Q: What happens if I exceed the contribution limit?

If you exceed the contribution limit, the excess amount will not be accepted by the campaign and may require reporting to the FEC.

Definition & Meaning

Hard money refers to financial contributions made directly by individuals to specific political campaigns. These contributions are subject to federal regulations, which set limits on the amount an individual can donate. For instance, legislation enacted in 2002 increased the maximum contribution from $1,000 to $2,000 per candidate for federal elections. Additionally, the first $250 of an individual's donation can be matched with federal funds, providing an incentive for smaller contributions.

Table of content

Legal Use & context

Hard money is primarily used in the context of political finance law. It is relevant in various legal areas, including campaign finance and election law. Understanding hard money is crucial for candidates, political parties, and donors to comply with federal regulations. Users can manage their contributions and related documentation using legal templates available from services like US Legal Forms.

Key legal elements

Real-world examples

Here are a couple of examples of abatement:

For instance, if a donor contributes $1,500 to a congressional candidate, only $1,500 is counted as hard money. If the donor later contributes an additional $500, they would exceed the legal limit, and that amount would not be accepted by the campaign. (hypothetical example)

Relevant laws & statutes

The primary statute governing hard money contributions is the Federal Election Campaign Act (FECA). This act outlines the rules for campaign financing, including contribution limits and reporting requirements. Additionally, the Bipartisan Campaign Reform Act (BCRA) made significant changes to these regulations in 2002.

Comparison with related terms

Term	Definition	Key Differences
Hard Money	Direct contributions to a specific candidate's campaign.	Subject to federal limits and regulations.
Soft Money	Contributions made to political parties or organizations, avoiding federal limits.	Not subject to the same contribution limits; used for party-building activities.

Common misunderstandings

What to do if this term applies to you

If you are considering making a hard money contribution, ensure that you are aware of the contribution limits and reporting requirements. It may be beneficial to use legal templates from US Legal Forms to help manage your contributions properly. If you have questions or your situation is complex, consulting a legal professional is advisable.

Find the legal form that fits your case

Browse our library of 85,000+ state-specific legal templates.

This field is required

Quick facts

Maximum contribution: $2,000 per candidate per federal election.
First $250 can be matched with federal funds.
Contributions must be reported to the FEC.

Key takeaways

Frequently asked questions

What is the maximum amount I can donate as hard money?

The maximum amount you can donate as hard money is $2,000 per candidate per federal election.