What characterizes hard money in political campaign contributions?

Hard money in political campaign contributions is characterized by being limited and must be declared. This type of funding is regulated by the Federal Election Commission (FEC), which sets specific limits on the amount of money individuals and entities can contribute to political candidates and parties. These limitations help ensure transparency and accountability in the political financing process, as all hard money contributions must be reported publicly. This regulation aims to prevent undue influence from wealthy donors and special interest groups on political processes.

In contrast, the other choices do not accurately reflect the nature of hard money. For instance, hard money is not unregulated; it is subject to strict regulations. Additionally, hard money contributions are indeed limited by law, directly opposing the notion of being unlimited. Lastly, while some funds can be used for party activities, hard money specifically refers to contributions that are directed toward candidates, not general party activities.