Independent expenditures are ads or other "communications" asking people to vote or not to vote for a specific candidate or party.
These expenditures can include everything from flyers to television ads but they differ from campaign contributions in that they are made without authorization or coordination of any official campaign.
So if a person independently decides to print window signs urging people to vote for Barack Obama without authorization from the campaign, it counts as an independent expenditure.
If a person makes $250 or more in independent expenditures a year, they must file a statement with the Federal Elections Commission (FEC). Any group that raises or spends more than $1,000 in a calendar year must register as an independent committee and file financial statements with the FEC.
Soft money
Big money donors get around campaign contribution limits by either spending their own money independently or by contributing to independent committees.
There is a limit to the amount they can contribute to committees, but not to how much they can spend on their own. All they have to do is place a disclaimer on the communication or ad stating that it was not authorized by the official candidate's campaign and listing some contact information (street address, telephone number or website URL).
Of course, grassroots supporters and organizations can also make independent expenditures if they have reached their donation limits. Even if they haven't reached their limits but are unable to make monetary donations to the campaign, they can independently use their own printers, paper and other materials to print flyers, signs, buttons, etc.
Independent committees like the well-known "Swift Boat" committee that targeted John Kerry's campaign can often have a significant impact on the election outcome.
MoveOn.org and Democracy for America are examples of more progressive independent multi-candidate committees.
Smaller grassroots organizations can also tap into this money by soliticing local donors who have reached their limits with the official campaign but are still looking to do more.
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