Parties Rack in Donations as Deadline Looms

W A S H I N G T O N, Aug. 1 -- Soft-money accounts at the Republican and Democratic campaign committees are quickly thickening this summer, as a Congress preoccupied with the first midterm election of the 21st century takes up corporate reform and the bread-and-butter basket of appropriations bills.

These summer months are hot for another reason: beginning Nov. 6, and barring a court order, many of these soft-money conduits — by which donors can contribute unregulated and unlimited sums of money to political parties — will be shut down, and donors will have to find less direct ways to contribute to the party of their choice.

An analysis of receipts and disbursements for the month of June shows that the parties combined took in more than $20 million in soft-money checks, which, since they aren't used to directly influence federal elections, are not subject to donation limits.

Much of that money came through state party transfers, owing to increased political activity in a dozen battleground states. An exact accounting could not be made because the disclosure documents often number in the thousands of pages and amendments to the filings have yet to be accepted.

Between the Democratic and Republican House and Senate campaign committees alone, there are least 20 separate non-federal, or soft money accounts. That's because states have different rules for spending non-federal money. Minnesota and South Dakota, for example, don't allow labor or corporate contributions of any amount. Texas allows money from organized labor and corporations only for administrative purposes. In New Hampshire, soft money can be spent only in $5,000 increments. Since the parties pool contributions, they need to maintain separate accounts to keep on the right side of state law.

Soft Money's Critical Role

But soft money remains essential to their efforts.

"Political parties are involved in promoting ideas that are contained in their platform. They promote legislation that the people who join political parties believe in. They support a national structure," said James Bopp, a Republican lawyer who is part of the team challenging the new campaign finance law. "All of those activities are paid for by soft money."

There were familiar patterns, showing clearly the ideological divisions that mark American politics. Most Democratic soft money came from organized labor, Hollywood entrepreneurs and trial lawyers. Businesses and wealthy entrepreneurs were the most reliable contributors to the Republicans.