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In the world of political campaign finance law, in the past few elections, the most important issue has been soft money. Today, soft money is still important, but it ranks with the money being raised and spent by national party committees and with the greater use of the internet, 2008 has brought individual contributions to a higher level of importance that ranks in importance with soft money and national party money.

While soft money or unregulated money can be spent for any advertising that stops short of expressly advocating the election or defeat of an individual, it is that broad definition that allows it to still be used in advertising that goes so far as to allow the advertising to mention a candidate, and virtually call him or her out for their position on an issue. Such advertising is in many cases blatant negative advertising.

Corporate and labor PACs raise money from restricted individuals. Labor PACs raise money from their union employees, corporation PACs from managerial employees and stockholders and their family members.

In the last 60 days before a federal election, PACs hands are untied and they can not only advocate political issues but also mention federal election candidates in their in their advertising.

Under the Federal Election Campaign Act, an organization becomes a political committee by receiving contributions or making expenditures in excess of $1,000 to influence a federal election.

A 527 Group (which falls into the category of soft money) avoids regulation by the Federal Election Commission because they allegedly use and raise money only for the advocation of issues. Because the line between issue advocacy and candidate advocacy is so thin, the use of these groups is a source of heated debate about soft money. These Groups are not bound by the same restrictions on PACs.

An example of a 527 Group in the 2004 federal election campaign was the Swift Boat Veterans for Truth which ran advertisements on television that blatantly attacked John Kerry. The Group was later fined by the Federal Election Commission for specifically advocating the defeat of John Kerry. But by then, the damage had already been done.

Different rules apply to state and local elections. An individual intending to campaign for any elected office needs to know election finance rules and should consult with a political campaign finance attorney as soon as possible in forming their campaign.

News Note - Democratic Presidential Candidate Barack Obama has set a new campaign contribution record with his announcement that his campaign fundraising efforts brought in more than $150 million in the month of September 2008. This gives Barack Obama a huge advantage which is reportedly allowing him to outspend John McCain by as much as 4 to 1 in some swing states. The campaign added 632,000 new donors for a total of 3.1 million donors to date. The average donor contribution to the campaign is $86.